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Find the Best Homeowners Insurance Companies

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by Matthew Brodsky Insurance Contributing Editor

Homeowners insurance policies protect your home and the people in it. Read our guide to discover the best homeowners insurance for you. We look at how these policies work, how much they cost and how you can best financially protect yourself from property damage and liability.

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Our picks for top home insurance companies

We curated a list of our top picks for homeowners insurance providers to help get you started. To select companies, we considered verified customer reviews, AM Best ratings, the 2020 J.D. Power customer satisfaction index, availability and other factors.

  • Our top overall pick: State Farm
  • Our pick for older adults: AARP
  • Our pick for customizable plans: Farmers
  • Our pick for discounts: Allstate
  • Our pick for military families: USAA

How to choose homeowners insurance

For most people, coverage and pricing are the two primary considerations when buying home insurance.

Understand your coverage limits
Policies vary in terms of coverage and limits, so compare different insurers to get the best homeowners coverage for your budget. For instance, you might want just enough coverage to satisfy your mortgage lender, or you may prefer additional protection for personal assets and valuables, such as jewelry or musical instruments. Your insurer can adjust your standard policy through endorsements or riders.
Think about pricing
To get the right policy for your budget, pay attention to what’s included in the coverage and the cost of the insurance premium. This lets you find the lowest rate while also getting the right policy for you.

We suggest looking for companies that provide free quotes, policy discounts and helpful customer service. As you compare quotes, request estimates from insurance providers with efficient claims processing and high scores from analysts that provide industry ratings. Reading reviews and asking friends and family for recommendations can also help you make sure you’re only looking at reputable insurance companies.

Shop around with free quotes
If you’re interested in picking a new provider or want to see how your current rates compare, getting online insurance quotes is the place to start. To get an accurate quote, you need to have all of the necessary information about your home. We suggest comparing at least three to five providers.

You may need to provide your date of birth, Social Security number, phone number, marital status, job information, claims history and existing insurance policy information if you want the most accurate home insurance quote.

Look for high industry ratings
Homeowners insurance companies are scored by firms such as AM Best, J.D. Power, Standard & Poor’s and Moody’s. These companies rate an insurance company’s ability to pay claims to policyholders, indicating whether the provider is likely to be around when you need it most.

AM Best and J.D. Power rate insurance companies based on coverage options, company history and overall value. Factors considered include the likelihood to pay out a claim and how often the insurer accepts claims. These are usually rated on a letter scale, with A++ being the highest rating, or on a scale from one to 1,000. Lower insurance provider ratings can indicate that the company is less financially secure and less likely to pay out policy claims.

Some state departments of insurance rank available providers according to their complaint ratio, which measures justified consumer complaints against a company. Check with the National Association of Insurance Commissioners to find information about local insurance departments in your state.

Check out their customer service
Customer service is essential for policyholders who have questions about their coverage or require assistance during an emergency. Insurance companies are rated by such firms as J.D. Power in the area of customer satisfaction, which is a reflection of how well the company meets clients’ needs. You can also read reviews to get a sense of the typical experience for policyholders.

Some homeowners insurance companies communicate directly with customers, while others work through independent insurance agents who sell policies. Generally, customer service falls into one of three categories:

  • Central customer service: Some insurance companies offer one central contact location for customer service. This one location handles all issues.
  • Localized customer service: Some homeowners insurance providers use individual local agents to communicate with policyholders and handle their needs.
  • Digital customer service: Some companies use various online methods to communicate with customers, making access to services convenient no matter where you are located.
Look for efficient claims processes
Insurance providers are also rated on how effectively they handle claims filing, processing, adjustments and payments. Homeowners insurance claims are often made in urgent situations, so speed is a factor when dealing with a home insurance company. Homeowners insurance companies vary significantly in terms of how quickly they can get insurance claims processed and paid.

A company that requires a lot of paperwork can take a while to process insurance claims, which can be inconvenient when a homeowner needs money for a repair in an emergency or after a disaster. Other companies may be known for fighting policyholders over claims amounts. We also suggest finding a home insurance company that won’t raise your rates just because you file a claim.

Our top overall pickState Farm Homeowners Insurance
  • ConsumerAffairs: 4 stars
  • AM Best: A++
  • J.D. Power: 829

State Farm offers insurance policies for single-family and multifamily homes, duplexes, town houses, mobile homes and condominiums. Policies can include medical and personal liability coverage and protection for items like jewelry, cameras, musical instruments, appliances and tools in the event of a disaster caused by nature, fire, theft or vandalism. Water damage is covered if it results from an abrupt or accidental discharge of water from your plumbing system, but policies don’t cover flood damage.

State Farm offers a few ways to save, including bundling policies, using impact-resistant roofing products and installing an alarm system. An online quote tool makes it easy to get a price without jumping through too many hoops.

Our pick for older adults and seniorsThe Hartford Homeowners InsuranceAUTHORIZED PARTNER
  • ConsumerAffairs: 4 stars
  • AM Best: A
  • J.D. Power: 832

The Hartford specializes in home insurance coverage for homes and personal property, including exterior structures like garages and sheds. The Hartford’s program offers lower rates and credits to homeowners over the age of 50 through a partnership with AARP.

Discounts are available for bundling policies, installing home security systems and policy renewals. Seniors and retirees are eligible for additional credits if they work less than 24 hours each week. Policies for renters and condos, flood coverage and umbrella insurance are available. Like State Farm, The Hartford makes it easy to get a free quote online.

Our pick for customizable plansFarmers Homeowners Insurance
  • ConsumerAffairs: 4.1 stars
  • AM Best: A
  • J.D. Power: 814

Farmers offers three highly customizable insurance products. All policies include declining deductibles, claims forgiveness and a claims-free discount at the end of the year. Farmers Insurance also pays for cosmetic damage of items, a feature some providers don't offer.

You can choose from Standard, Enhanced and Premier packages. Within each plan, there’s still flexibility in factors like premiums and coverage type. Farmers also partners with industry leaders in home security and leak detection technology to educate clients on more than just insurance.

Our pick for discountsAllstate Homeowners InsuranceAUTHORIZED PARTNER
  • ConsumerAffairs: 3.8 stars
  • AM Best: A
  • J.D. Power: 829

Allstate awards discounts to homeowners for good payment history, being claim-free, setting up auto pay, installing theft or fire protection and bundling policies. Allstate is also a good pick for new homebuyers because it offers savings if you insure a newly constructed home or if you're a recent homebuyer. Welcome and loyalty discounts can save you up to 10% each year.

Like Farmers, Allstate has versatile customization options. You can choose from a list of extra perks, such as Claim Rateguard, which keeps your rate at the same price year after year, and offers deductible savings up to $500. Additional coverage options include lawn and garden equipment and musical instruments.

Our pick for military familiesUSAA Homeowners Insurance
  • ConsumerAffairs: 3.7 stars
  • AM Best: A++
  • J.D. Power: 889

USAA maintains a healthy portfolio of insurance products and should be a top consideration for active military members, veterans and their families. Policies include a claims-free discount that lets homeowners receive a 10% savings if they don’t file claims for five or more years.

USAA policies automatically include coverage for military uniforms, replacement-cost claims (no depreciation) and hands-on claims support. You can add additional coverage options to your standard home insurance policy, including earthquake coverage and home-sharing coverage for guest rooms.

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What does homeowners insurance cover?

Homeowners insurance covers loss due to disasters, accidents and theft. In addition to the house itself, protected items can include personal belongings, furniture and even shrubs, trees and plants. Your homeowners insurance also protects you from financial liability if someone gets hurt while on your property.

  • Personal property coverage: Personal property insurance covers damages caused by a peril, or risk, in your policy, but some insurance agents also offer off-premises coverage. If you want personal property coverage for damages that occur outside of your home, you may need off-premises coverage. Some insurers also provide policies with coverage for loss of use and additional living expenses after a disaster.
  • Personal liability coverage: The personal liability portion of a policy covers the financial burden of a lawsuit if someone sues after getting hurt on your property. For example, if your dog bites somebody on your property, liability coverage takes care of legal expenses up to your coverage limit. Most standard policies have liability limits between $100,000 and $300,000.

Coverage levels

There are different types of packages, but most home insurance policies include dwelling, other structures, personal property and liability coverages. Dwelling coverage is the part of a homeowners policy that insures the actual house, while “other structures” include fences, sheds, gazebos and similar items.

Most home insurance policies include dwelling, other structures, personal property and liability coverages.”

Homeowner insurance policies are labeled HO-1 through HO-8. An HO-3 is the most common type of homeowners policy. Usually, this type of insurance covers damage to your home caused by anything except for named exclusions (e.g., an earthquake or flood). Your belongings are covered only if the damage is caused by a named peril in the policy (e.g., fire, lightning strike, vandalism). In insurance speak, a peril is any specific risk or reason for the loss, such as a fire, windstorms, hail, vandalism or the weight of ice or snow, according to the National Association of Insurance Commissioners.

Actual cash value vs. replacement cost

When buying personal property coverage, you’ll likely have the choice between actual cash value or replacement cost coverage options.

  • Actual cash value refers to how much your property is worth today, considering its current age and condition. Actual cash value policies deduct depreciation when paying out a claim.
  • Replacement cost refers to how much it would be to replace damaged property with an item of similar materials and quality at today’s prices. Replacement cost policies don’t factor in depreciation.

Most insurers offer replacement cost coverage as the default option. Some also offer extended or guaranteed replacement value policies. With extended replacement value coverage, the policy has an extended coverage limit for dwelling replacement.

Not sure how to choose?

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    How much is homeowners insurance?

    The national average for homeowners insurance is $1,249 per year, according to the National Association of Insurance Commissioners. However, home insurance costs vary greatly depending on where you live and what kind of house you have.

    Average cost for homeowners insurance is $1,249 per year.

    Homeowners insurance costs also vary depending on the company you choose, the types of coverages that are in your policy and the coverage limits.

    As you compare coverage costs from multiple companies, it’s important to understand how deductibles and premiums work with home insurance. Otherwise, it’s hard to know if you’re getting the best coverage you need for a price you can afford to pay every month.

    • Deductibles: A deductible is the amount you must pay out of pocket before your insurance coverage kicks in. When a homeowners insurance policy has a high deductible, the insurance company generally charges less for annual premiums. For example, a policy with a $1,000 deductible will have cheaper premiums than an otherwise identical policy with a $500 deductible.
    • Premiums: Homeowners insurance premiums, or the amount you pay for coverage, vary based on multiple factors, like where you live and the types of coverage you buy.
    LocationAverage annual premium
    Nationwide$1,249
    Tennessee$1,232
    Alabama$1,370
    Mississippi$1,578
    Florida$1,970

    How to lower home insurance rates

    There are many ways you can save money on home insurance premiums, whether you already have a policy or you’re looking for coverage. Many companies offer discounts for bundling insurance, being a loyal customer, installing safety and security devices in your home and not filing a claim for a certain period of time. If you want to lower your payments, try:

    Homeowners insurance FAQ

    Is homeowners insurance required?
    Homeowners insurance is usually required if you have a mortgage. It’s not required by law, but many lenders require it when lending you money to buy a house.
    How much home insurance do I need?
    Generally, you need enough home insurance to cover your property and belongings, protect yourself financially from liability and satisfy your mortgage lender’s policy requirements. How much dwelling coverage you need largely depends on how much it would cost to rebuild your house. Be aware that the cost of replacing your home after a disaster will not necessarily be the amount you paid or the property’s current market price — in fact, it usually isn’t.
    Is flood insurance included in homeowners insurance?
    Flood insurance is issued through a separate policy and is not included in standard homeowners insurance. The federal government provides flood insurance through FEMA and the National Flood Insurance Program, or you can get a policy through a private insurer.
    What is the difference between home insurance and a home warranty?
    The main difference is that home insurance covers your home and assets that are damaged or destroyed by specific perils, while a home warranty helps you pay for repairs to major systems and appliances, like plumbing or refrigeration.

    Home insurance is a policy that covers you financially if your home or belongings are damaged or destroyed. In general, these policies cover your physical home structure, your personal belongings, other structures on your property and your liability. Nearly all mortgage lenders require some sort of homeowners insurance plan to be in place before lending money.

    A home warranty is a service contract that covers the cost of repairing or replacing major home appliances and systems when they break down from wear and tear. Components such as your furnace, plumbing, HVAC system and electrical system are eligible for coverage under a home warranty. Unlike insurance, a home warranty is not required when you have a home loan.

    How are home insurance rates determined?
    Homeowners insurance rates are determined based on a risk assessment by the home insurance company. Companies assess risk based on your house’s condition and location, your personal claim history and other factors.

    Insurers calculate premiums based on a percentage called an expense ratio. An expense ratio measures the profitability of an insurance policy and takes into account costs for acquiring, underwriting and servicing policies. According to the National Association of Insurance Commissioners, the average expense ratio for home and renters insurance is around 30%.

    Should I bundle home and auto insurance?
    You could get a better homeowners insurance rate by bundling your home and auto insurance. It’s a convenient option that lets you work with the same agent for both policies instead of dealing with multiple insurers. Work with your insurance provider to see if you can score discounted rates by bundling your coverage.

    Home insurance reviews

    TrustedChoice.com Homeowners Insurance

    This broker partners with all sizes of home insurance companies to offer competitive pricing and a wide selection of choices to consumers. Customers work with local agents in their city.

    Read more about TrustedChoice.com Homeowners Insurance
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    Allstate Homeowners Insurance

    This is the second-largest homeowners insurance company in the country. AM Best has given the company an A+ rating for financial strength. Policyholders are eligible for more than a dozen discounts, and they can submit claims and make payments through the company’s mobile app.

    • Cost: Allstate’s costs tend to be higher than its competitors’ prices. Average yearly premiums fall between $1,250 and $1,650.
    • Plans and coverage: When prospective customers request a quote, Allstate suggests one of three broad levels of coverage: Basic, Extended or Premium. These suggested plans are customizable, so consumers can add coverage they need and remove what they don’t.
    • Discounts: Allstate has multiple discounts, including savings for automatic payments, no claims, bundling, seniors, new customers, loyalty, early sign-on, home alarms, hail-resistant roofs, smoke-free homes, storm shutters and recently constructed or purchased homes.
    • Availability: Allstate provides homeowners insurance in all 50 states and Washington, D.C.
    Read 948 Reviews
    State Farm Homeowners Insurance

    State Farm is the largest homeowners insurance provider in the United States, and AM Best has given it an A++ rating for financial strength. Its local agents work in every U.S. state. Customers commonly bundle their homeowners insurance policy with their auto insurance policy for a discount.

    Read 1042 Reviews
    Homesite Insurance

    This company is known for offering affordable homeowners insurance, which makes it a good option for those who want basic coverage. Its basic plan lacks some common coverage, but customers who need more can add riders. The company sells several other types of insurance and offers discounts for customers who bundle policies.

    Read 403 Reviews
    Farmers Homeowners Insurance

    With more than 10 million homes under its coverage, this company is the fifth-largest provider of home insurance in the United States. It has an A rating for financial strength from AM Best. The company’s claim forgiveness feature means that customers who haven’t filed a claim for five years won’t see higher premiums after their next claim.

    Read 408 Reviews
    Nationwide Homeowners Insurance

    This company offers multiple types of insurance and provides online bill pay and claim filing. Customers can file claims, record damage and manage their policies from its mobile app. AM Best has given the company an A+ rating for financial strength.

    Read 302 Reviews
    Liberty Mutual Homeowners Insurance

    This insurance company sells auto and rental insurance in addition to homeowners insurance. Earthquake coverage and flood coverage are available as separate endorsements. The company offers 24/7 claims assistance and has an A rating from AM Best for financial strength.

    Read 351 Reviews
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    The Hartford Homeowners Insurance

    The Hartford sells renters and condo insurance, and it has an A+ rating from AM Best. It also partners with AARP to offer members homeowners insurance. Customers can view their policy, pay bills and track claims through its mobile app.

    • Cost: Policies from The Hartford cost an average of $1,200 a year.
    • Plans and coverage: Standard homeowners insurance covers dwellings, other structures, personal property, personal liability, medical payments and loss of use. Endorsements include full replacement cost, identity fraud coverage and earthquake coverage.
    • Discounts: Common discounts include discounts for no claims, new homes, home protection devices and policy bundling.
    • Availability: The Hartford is not available in Alaska, Florida, Hawaii or North Carolina.
    Read 130 Reviews
    AAA Homeowners Insurance

    This insurance company is well known for its auto insurance and roadside assistance, but it also sells homeowners insurance. Coverage and pricing differ by club.

    Read 314 Reviews
    USAA Homeowners Insurance

    This company provides homeowners insurance to members of the military, veterans and their families. It is the fourth-largest homeowners insurance provider in the United States, and it has the highest financial strength rating possible from AM Best, A++. The company is well known for its excellent customer service, as well.

    Read 339 Reviews
    American Family Homeowners Insurance

    This insurance company has 24/7 claims service for its homeowners insurance and an A rating from AM Best for financial strength. Online resources include an insurance calculator, a policy comparison chart and a home inventory checklist. The company also sells auto and renters insurance.

    Read 140 Reviews
    Progressive Homeowners Insurance

    This company acts as a broker that offers homeowners insurance policies through its partner, Homesite. It has an A rating for financial strength from AM Best. Customers who need to file a claim do so through Homesite.

    Read 132 Reviews
    Auto-Owners Homeowners Insurance

    Despite its name, this company sells more than just auto insurance. It has an AM Best rating of A++ for financial strength, which is the highest possible score. The company has agents in 26 states. 

    Read 18 Reviews
    ERIE Homeowners

    AM Best gave this company an A+ rating for financial strength. However, ERIE only operates in 12 states, so check to make sure the company writes policies in your area. In addition to homeowners insurance, the company also provides policies for cars, renters, condos, mobile homes and boats.

    Read 87 Reviews
    Farm Bureau Homeowners

    This insurance company offers homeowners insurance for single-family dwellings, townhomes, duplexes, fourplexes, mobile homes and condominiums. The company also sells auto insurance and has an A rating from AM Best.

    Read 63 Reviews
    Foremost Homeowners

    This insurance company specializes in writing policies for consumers with poor credit and covering high-risk homes, including older houses. It partners with local agents, so homeowners can always receive face-to-face answers for all their policy questions. The company has an A rating for financial strength from AM Best, as well.

    Read 50 Reviews
    Metlife Homeowners

    This insurance company offers home insurance, auto insurance and dental insurance. Quotes are only available by speaking with an agent directly. The company has an A rating from AM Best and offers three different plans. It also provides ways to customize coverage.

    Read 38 Reviews
    Amica Home Insurance

    Amica Home Insurance provides custom coverage. Policyholders can save money through a variety of discounts. Home insurance dividend program returns up to 20% of annual premium.

    • Standard coverage: Standard home insurance coverage from Amica includes dwelling, personal property, loss of use, personal liability and other structures.
    • Extended coverage: Extended coverage is available for policyholders who want more protection. Options include dwelling replacement coverage, personal property replacement, valuable items coverage, catastrophic coverages, identity fraud expense coverage and home business coverage.
    • Premier coverage: Amica’s highest tier of coverage includes options for dwelling replacement, personal property replacement, water backup and sump overflow. Computer coverage, credit card coverage, business property coverage, valuable items extended coverage, liability and medical payments coverage is also available.
    • Policy discounts: Policyholders get discounts after two years of loyalty and for not filing claims in three years. Receive more savings for enrolling in auto pay, combining policies and signing up for electronic statements. Safety discounts include alarm systems, water leak detectors, gas leak detectors and temperature monitoring systems.
    Safeco Homeowners

    Backed by Liberty Mutual, this insurance company has a financial strength rating of A from AM Best. Quotes are only available by speaking with a local agent, but the company has 24/7 claims assistance. The company also offers auto insurance, landlord insurance and umbrella insurance.

    Read 59 Reviews
    Chubb Homeowners Insurance

    Chubb Homeowners Insurance provides comprehensive home coverage with discounts.

    • Chubb Masterpiece: Highlights from Chubb’s Masterpiece homeowners policies include extended and replacement costs, temporary living arrangements, risk consulting and cash settlements.
    • Policy benefits: Chubb homeowners policies come with extras like tree removal after a storm, lock replacement and restoration of electronic data destroyed by a virus.
    • HomeScan service: Chubb HomeScan uses infrared camera technology to check behind the ceilings and walls for insulation problems, electrical issues and water leaks before they can become larger problems.
    • Additional products: Earthquake and wildlife coverage is also available through Chubb.

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    by Matthew Brodsky Insurance Contributing Editor

    Matthew Brodsky is an established expert on insurance, having written hundreds of articles and other pieces of content on the subject, interviewed countless practitioners, and attended dozens of conferences and events. He served as an editor at industry magazine Risk & Insurance for six years.

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