Best Homeowners Insurance Companies
Read our guide to discover the best homeowners insurance for you. We compare coverage options, rates and reviews. Learn 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
- Our top pick overall: Lemonade
- Our pick for customizable policies: Farmers
- Our pick for military families: USAA
- Our pick for bundle packages: Travelers
- Our pick for seniors: The Hartford
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 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 negative report ratio, which measures justified consumer issues filed against a company. Check with the National Association of Insurance Commissioners to find information about local insurance departments in your state.
- Check out 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're 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. These 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.
- Great app
- Affordable, instant coverage
- Giveback program donates to causes of the policyholder’s choice
Lemonade offers a simple, no-frills approach to purchasing insurance through its intuitive website and app. It offers one standard plan, although policyholders may also consider additional coverage options for water damage, earthquakes and more.
“Lemonade made the claim process so easy and quick! I was able to do everything online in a matter of minutes and received a phone call from the claims team right away,” a verified customer in New York told us recently. “The adjuster came by just a day or two after the claim was made and examined the damage in person without disrupting our personal space.”
Rates: Lemonade advertises rates as low as $25 per month. It also offers discounts to customers that use eco-friendly or fire-resistant materials in construction and have security devices.
What to consider: Lemonade may not be ideal for those who prefer traditional insurance agents, and it's not available in all states. To learn more, read our full Lemonade Home Insurance review.
- Diverse options and advanced features
- Offers discounts and incentives
- Committed to eco-friendly initiatives
Farmers Insurance has a strong industry reputation, with a full range of insurance products that allow you to save money by bundling coverages. All policies include declining deductibles, claims forgiveness and a claims-free discount at the end of the year.
Three plans are available: Standard is the least expensive, and Premier is the most comprehensive. We like that the Premier option offers Guaranteed Replacement Cost coverage, which can cover 100% of rebuilding.
Rates: One reviewer in Utah said Farmers has “the best price and coverage.” Another reviewer in California said it’s cheaper than other home insurance but implied that agents can be inattentive. Get a quote for the most accurate pricing information in your area.
What to consider: Farmers relies on traditional insurance agents rather than an online application, and rates may vary by state. To learn more, read our full Farmers Home Insurance review.
- Financial incentives for protective devices
- Available nationwide
- Bundling options may be available
USAA specializes in providing insurance products to military members and their families, including home insurance. Plans include dwelling coverage and coverage for other structures, loss of use, personal belongings, personal liability and earthquakes.
USAA’s policies are available in all 50 states, which can be a selling point for military families who frequently relocate. It also offers options for those who share their home with other families, as well as renters insurance and other plans.
Rates: USAA offers online quotes, but policy details are exclusively available to USAA members. “Rates are fair and customer service is easy to work with,” according to a reviewer in Maryland.
What to consider: USAA is limited to the military and families. To learn more, read our full USAA Homeowners Insurance review.
- Customized coverage
- Available in most states
- Offers discounts for bundling
Travelers boasts a strong industry reputation. Policyholders with multiple types of insurance can bundle and save.
Rates: Travelers offers online quotes but doesn’t publicly advertise average costs. “It makes me feel secure and doesn't cost an arm and a leg. The price of coverage I have is very fair, only about $200 and something a year,” a verified customer in Pennsylvania told us.
“Safe to say, my rates rarely increase and the few claims I needed to make were handled with ease. I had a roof on my house replaced due to Hail damage and all it cost me was $500 for the deductible,” according to another recent reviewer in North Carolina.
What to consider: Travelers has no policies for mobile/manufactured homes. To learn more, read our full Travelers Homeowners Insurance review.
- Good customer service
- Available nationwide
- Easy-to-use app
Customers 50 and older can rely on The Hartford for dependable, affordable protection. AARP offers dwelling coverage and personal property insurance through The Hartford.
The Hartford offers one main type of homeowners insurance policy, but it also provides flood insurance. We like that the ProtectorPLUS Zero Deductible Benefit coverage waives your deductible ($5,000 or less) if you experience a loss of $27,500 or more.
Rates: Online quotes tend to favor AARP members, and sample quotes are not otherwise available. One reviewer in Texas said they found cheaper rates elsewhere.
What to consider: Some specialized features are only available in packages. To learn more, read our full review of The Hartford Homeowners Insurance.
Compare Homeowners Insurance Companies
|Lemonade Homeowners Insurance|
Read 200 Reviews
Offers home insurance with adjustable deductible. Covers reconstruction, loss of use, on-site injuries, personal liability and personal property. Offers Extra Coverage endorsement for valuables with $0 deductible.
|Policygenius Homeowners Insurance|
Read 6 Reviews
Licensed homeowners insurance experts help decide how much coverage you need before you shop around for quotes from top insurance carriers. Handles the paperwork for you if you switch companies.
Chat with a ConsumerAffairs decision guideLive agent
|TrustedChoice.com Homeowners Insurance|
Read 161 Reviews
Partners with insurers to offer coverage for damage to property and belongings, liability and living expenses, plus umbrella policies in most states. Get discounts for safety improvements, bundling policies and loyalty.
Chat with a ConsumerAffairs decision guideLive agent
|The Hartford Homeowners Insurance|
Read 132 Reviews
Provides dwelling, structures, property, loss of use, liability and medical coverage with add-ons for AARP members. Discounts for bundles, home security systems and retired policyholders. Online or phone claims.
Read 38 Reviews
Offers convenient quotes and purchasing options for a variety of coverages. Umbrella coverage and discounts for bundling also available. Identity protection is included with each policy. 24/7 customer service.
Chat with a ConsumerAffairs decision guideLive agent
|National General Homeowners Insurance|
Read 92 Reviews
Offers customizable coverage with upgrade options to rebuild with sustainable materials. Discounts available for gated communities, new buyers and security devices. Submit claims online or over the phone.
Chat with a ConsumerAffairs decision guideLive agent
|Alfa Homeowners Insurance|
Read 34 Reviews
Provides free quotes over the phone or through a local agent. Available add-ons for mechanical and electrical failures. Online claims reporting. Multipolicy discounts. Mobile app available.
Chat with a ConsumerAffairs decision guideLive agent
|Progressive Homeowners Insurance|
Read 135 Reviews
Offers flexible coverage options and provides online quotes and claims. Discounts for bundled policies, new homeowners and houses with security systems. Provides 24/7 customer support.
|AARP/Hartford Homeowners Insurance|
Read 144 Reviews
The only AARP-approved auto and homeowners coverage provider. Two homeowners insurance plan options. Discounts available for retired individuals, policy bundling and more. Online claims filing.
|American Family Homeowners Insurance|
Read 142 Reviews
Includes discounts for smart home features, new purchases, renovated homes and more. Standard home insurance policies with optional add-on coverage. Submit claims online or with a local agent.
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.
There are different types of packages, but most home insurance policies include dwelling coverage and coverage for 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.
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 covered 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.
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.
The 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 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.
|Location||Average annual premium|
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 covered 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 insurance 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 insurance 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.
How we found the top home insurance companies
We started with a list of 29 home insurance companies based on other review sites, AM Best ratings and the 2020 J.D. Power Customer Satisfaction Index. To narrow it down, we first eliminated those with an overall satisfaction rating below 3.5 stars on our site.
To stay on the list, we also required companies to have more 5-star reviews than 1-star reviews submitted by verified customers over the last year (May 2020 through May 2021).
We then ranked our top five by the greatest difference between the number of 5-star reviews and 1-star reviews. Top-pick recommendations are based on what stood out in our analysis of each company’s recent 5-star review data.
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Home insurance reviews
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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 insurance and renters 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.
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.
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.
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.
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.
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.
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.
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.
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.
Information in this guide is general in nature and is intended for informational purposes only; it is not legal, health, investment or tax advice. ConsumerAffairs.com makes no representation as to the accuracy of the information provided and assumes no liability for any damages or loss arising from its use.
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