How to Shop for Homeowner's Insurance

As climate change makes natural disasters more frequent and intense, preparing for emergencies is becoming more important. A vulnerability for many people is their home-owners insurance policy. Without the right coverage, a disaster can bring devastating financial aftershocks.

This episode, Wirecutter writer Gregory Han shares the questions you should ask to make the process less murky. Gregory’s home was severely damaged in California's 2025 Eaton Fire, giving him a firsthand look at why it’s crucial to know exactly what’s in your policy before disaster strikes.

He breaks down how to ensure you have enough coverage to rebuild, how to find discounts on your premiums, and how to safely use AI chatbots to translate confusing insurance jargon. Whether you’re buying a new policy, renewing an old one, or even renting, these tips will help you protect your home and your finances.

To hear more about Gregory’s experience with recovery, don’t miss our three-part series, The True Cost of Recovering from The LA Wildfires (including part 1, part 2 and part 3). 

This episode covers:

• Misconceptions about coverage: Many people assume their policy will cover them completely after a disaster, but things like water sewage backups or equipment for a home business are frequently excluded from standard policies.
• The terms to look for: Know the difference between Actual Cash Value (ACV), which factors in depreciation, and Replacement Cost Value (RCV), which pays for a brand new replacement. Renters and homeowners alike also need sufficient Additional Living Expenses (ALE) coverage to pay for rent if they are displaced.
• How to ensure you have enough coverage: Real estate values and building costs change. Look at comps on Zillow or Redfin to understand your local market, and consider hiring a professional home appraiser to document unique architectural details and structural elements so your insurer accounts for true rebuilding costs.
• Ways to lower your premium: Don't be passive—ask your agent for discounts! You can often save money by bundling your home and auto insurance, asking for loyalty discounts, or proving you have made safety improvements to your home.
• Using AI to translate your policy: You can upload your policy (with personal info stripped out) to an AI chatbot to explain terms in plain language. Just be sure to prompt the AI to include citations, and always verify its answers with your insurance agent.

Additional reading and listening:

• How to Shop for Homeowner’s Insurance
• The True Cost of Recovering from the LA Wildfires, Part 1 

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The Wirecutter Show is executive produced by Rosie Guerin and produced by Abigail Keel.Engineering support from Maddy Masiello and Nick Pitman. Episodes are mixed by Catherine Anderson, Efim Shapiro, Rowan Niemisto, Sophia Lanman, and Sonia Herrero. Original music by Dan Powell, Marion Lozano, Elisheba Ittoop, and Diane Wong. Wirecutter’s deputy publisher and general manager is Cliff Levy. Ben Frumin is Wirecutter’s editor-in-chief. Hosted by Rosie Guerin, Caira Blackwell and Christine Cyr Clisset.

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