If considering homeowners insurance is giving you a breakout, you’re not the only one. You’re currently working on a home loan, and working on a pile of contract paperwork—so you’re probably feeling all kinds of stress.

But home insurance doesn’t have to be complicated. You need it to protect your new home. And if you do have a home loan, that’s actually a demand.

Think about it doing this: Your home loan lender is essentially the co-owner of your home. It is their advantage to maintain the fit of your new home. If the worst happens, and you are guaranteed, you will have the funds to take care of it. Or else, you will be entrusted with little or no value for the home loan, and you (and your lender) both relinquish your ownership.

When it comes to actually buying homeowners insurance, should you choose which company to come through with the most affordable home insurance offers? When we go shopping for clothes, it’s easy to compare cashmere versus polyester sweaters, but how do we compare high-quality home insurance policies—especially when there are so many home insurance providers to choose from?

The median cost of homeowners insurance in the US is $1,445 per year, or $120 per month, according to Worth Penguin. But to really understand how to choose the highest quality but affordable insurance coverage, let’s back it up a bit, and discuss how home insurance providers work—and what you get for your money.

If you need advice, homeowners insurance coverage is an agreement between you and your insurance company that covers you in many circumstances. This protects you and your home if an accidental fall makes you recuperate or fix a problem.

There are many different homeowners insurance providers to choose from, and most of them provide fairly comparable coverage options. (FYI, homeowners insurance has 6 main coverage locations. Find out exactly what your home insurance coverage covers.)

It’s helpful to understand that there are basically 2 common types of insurance providers: traditional, and insurtech. And after that there’s Lemonade.

With conventional insurance companies, the insurance buying process will be more vintage, likely more expensive, and possibly less efficient. You need to contact us with a representative, who will help you determine the type of insurance coverage you need. They will eventually give you a home insurance quote, either over the phone or at their place of work. Some individuals may appreciate this experience because it is deep-rooted and familiar—and hasn’t changed much over the years.

What about the supposed “insurtech” brand name? This is a company that, as the name suggests, integrates newer technologies in purchasing to develop the industry. But most insurtech companies are not proper insurance companies; instead, they offer plans written by various other companies.

With traditional insurance providers, you may get one-on-one attention, either in person from an insurance representative or over the phone, but they are unlikely to provide you with a quote right away. You will also have a lot of documents to sign.

When it comes to your customizable plans, the insurance premiums on your Boston townhouse won’t match your sibling, who owns an estate in Georgia. Why? Well, the price of homeowners insurance can vary significantly, depending on factors such as the problem and place of the home, as well as policy insurance deductions, and the amount of coverage you need.

Here are the top 3 factors that affect the cost of your homeowner’s insurance one the most.

Definitely. Insurance coverage resembles a big umbrella. It protects you from various bad things that can happen to you, your belongings (also known as your personal property), or your home (this is included in home coverage, in coverage terminology).

Let’s say you have a total of $10,000 worth of goods, consisting of your reliable bicycle, and some plastic crates that Uncle Bob gave you. On the other hand, your friend Gigi has a collection of classical guitars that she got from her father, the previous vocalist of the heavy-metal band Called Perils. Won’t the extra coverage Gigi need for those expensive tools not affect her premium?

It sure will. Gigi has to pay a bigger premium. That’s because, in the worst case scenario—say someone robs his house while he’s on vacation—Gigi can then use his plan to reclaim the value of that classical guitar.

And it’s not just the stuff you own. The value of your own home, of course, also affects the price of your plan. If you live on a $2 million estate, you will have to pay a larger monthly premium to represent the costs of reconstructing your home in the event of a disaster.

There are 6 broad coverage locations for homeowners insurance, comprising liability coverage. This can be tricky, but we want to make sure you understand everything. Do you want to determine how much you need in each category? Check out our handy guide here.

Depends! There are only a few ways to get a lower price on your home insurance coverage.

It’s an easy one: If you actually have a smoke detector, stop alarm system, or burglar alarm system you can get approved for a discount rate. That’s because we love Lemonaders keeping their home safe (and hello, that means a lot less risk for us too).

Here are some of the other factors that can affect the price of your plan (usually those are the points that will make it more expensive, not cheaper—but be born with us for a moment).

FYI, it’s not just your own habit before. If your previous tenants filed 300 burglary claims, it could affect your plans, as your home is more likely to be breached.

Alright, those are the points that will make your homeowners insurance price go up. But we’re not saying you should skip Extra Coverage, or avoid filing an insurance claim if you need to. Insurance is a safety net that exists in the worst possible situation for you, your belongings, or the people you deal with. Cutting down on openings for being clean just to save a few bucks a month may not be worth it! But in the end, the choice is yours.

This is where it gets interesting. Usually, if you have homeowners insurance and you want to get an insurance claim, you have to call your insurance company, listen to a song for about 20 minutes, and answer all questions. After that your insurance company may try to find the need to deny your claim. After all, the money could go straight into their pockets.

This also has an impact on the cost of losses. While AI Maya is the helpful bot that executes your plans, AI Jim is the one who handles, checks and resolves claims. He saves our Claims Experience Group 58,246 hours annually by using an anti-fraud formula, claims information aggregation, and instant claims.