Best Homeowners Insurance CompaniesUpdated June 23, 2022 Insurance
When you take out a mortgage to purchase a home, you are required by your lender to carry homeowners insurance for the duration of your loan. These policies cover damage and destruction to your home or personal property caused by unexpected events like fire, windstorms, or theft, and will typically cover repair or replacement costs as well as loss of use. It may also include personal liability coverage that will pay for lost wages, medical expenses, or legal costs associated with the incident.
10 Best Homeowners Insurance Companies
- Farmers Insurance
- Liberty Mutual
- American Family
- State Farm
- Erie Insurance
- USAA (military)
There are many different policies to choose from, even from the same provider. You must weigh your personal risks, the requirements from your lender, and how much you’re able to pay each month when choosing a plan. Additionally, where you live will also determine what kind of coverage you need and in turn, what insurance policy you choose.
1. Farmers Insurance
Farmers Insurance is based out of Los Angeles, California, and has been in the insurance business for nearly 100 years. In addition to providing home insurance to over 10 million households across the country, the company also provides auto insurance, life, and financial services. However, there are 10 states they don’t offer policies: Alaska, Delaware, D.C., Hawaii, Maine, Rhode Island, New Hampshire, North Carolina, Vermont, and West Virginia.
Farmers separates its home policies into three tiers: standard, enhanced, and premium which can simplify the buying process for consumers. The standard policy includes dwelling coverage, loss-of-use coverage, personal property, and liability protection. The company offers all customers multi-policy discounts, claim-free discounts, claim forgiveness, good payer discounts, and a declining deductible which reduces your deductible by $50 each year you hold your policy. The basic policies do not include flood or earthquake coverage, but these can be added on though the price will vary depending on where you live.
Farmers may be a good choice for an eco-conscious homeowner. Those who would like to make energy-efficient upgrades to their homes can make use of the company’s Eco-Rebuild option which gives policyholders up to $25,000 when they use environmentally-friendly appliances and building materials.
2. Liberty Mutual
Liberty Mutual offers home insurance to customers in all 50 states and has been a trusted name in the industry since 1912. The company is based out of Boston, Massachusetts, and has over 900 offices across the U.S. as well as offices in 29 other countries. It is currently the fourth-largest insurer in the country.
On average, Liberty Mutual has very affordable options for homeowners and may be a good choice for those who are looking for a cheaper policy from a well-known establishment. Their standard policy includes dwelling coverage and other structures (like sheds or detached garages), personal property, personal liability and medical coverage for you and others (sometimes called ‘coverage F’), and loss of use. You can add on additional coverage like blanket jewelry, flood, earthquake, hurricane, inflation protection, and water damage.
Liberty Mutual also offers military discounts, claims-free switch discounts (if you’re switching to Liberty Mutual from another carrier and have been claim-free for five years), multi-policy discounts, early shopper discounts (if you obtain an insurance quote before your previous policy expires), and discounts for installing protective devices like security systems. They also have a couple of unique offers like a new roof discount (essentially if you add or retrofit a new roof you may be eligible for a lower homeowners insurance rate), and an insured-to-value discount for those who insure 100% of the replacement cost of their home.
Customers consistently give favorable reviews for the company’s easy-to-use mobile app that lets you file a claim and manage your account, but they only receive average ratings for their customer service.
Additionally, they may deny coverage if you own certain breeds of dogs such as Pitbulls, but this will vary depending on your location.
3. American Family
American Family started in Madison, Wisconsin as a car insurance provider in 1927. Today, the company continues to offer auto insurance but also has comprehensive home insurance coverage, renters insurance, and landlord policies. They maintain a high overall rating for customer satisfaction, but they only offer plans in 19 states primarily in the West and Midwest, with no coverage options for those living on the east coast. Additionally, all purchases must be made through an agent as their online options for receiving quotes and buying policies is limited. This makes American Family ideal for customers within their service area and who prefer to conduct business in person.
The American Family home insurance company offers standard discounts for multi-policy holders, new and renovated homes, and multi-generational customers, as well as many add-ons like water damage, appliance breakdown coverage (much like a home warranty), credit and identity theft, and a diminishing deductible. The average American Family customer tends to have a higher insurance premium than others, but they are generally well satisfied with the coverage and the service they receive.
Progressive Insurance has been in the business since the 1930s and though they’re better known for their auto insurance, they do act as a broker to match customers with homeowners insurance through their partners. The company’s home insurance business is run through Progressive Home Advantage which matches consumers with different carriers, though they do underwrite some of them through their own agency, American Strategic Insurance unit. This is unlike other insurance companies that generally underwrite their own policies, and because of this, terms will vary since most policies will be with a third-party carrier. Even so, many customers find very affordable plans through Progressive since they’re able to compare quotes from several carriers through the company’s online HomeQuote tool.
Prospective customers may be eligible for a discount if they already have an auto insurance policy with Progressive, though these discounts are typically lower than competitors. Additionally, if you get a policy with a partnering homeowners insurance company, you’ll have to file and manage all your claims through them, while servicing all your auto claims through Progressive. This can be a negative for some customers. However, customers who want to compare multiple home insurance rates in one place to find the best deal may prefer Progressive.
Amica is one of the oldest insurers on our list. The home insurance company started in 1907 in Rhode Island as a car insurance company and began expanding in 1956 to include everything from home, condo, and renters insurance to wedding and event coverage. Amica frequently earns high rankings for customer service and overall customer satisfaction. They also have very competitive premiums, though factors like your location and the age of your home will affect your insurance rate.
Their standard home insurance policies include replacement coverage for your dwelling and other structures, loss of use, personal property replacement, and personal liability insurance. These plans are available across the U.S. except for Hawaii and Alaska, but they only have 44 offices across the country so most customers won’t be able to work in person with a traditional insurance agent. Instead, they may be able to obtain a home insurance quote online or by calling the customer service number.
Amica also has several add-ons and unique offerings such as their Contractor Connection program that matches customers with local and reliable contractors. Some customers may also have the option to enroll in a dividend program where you may pay more upfront for your premium, but you get a portion of it returned to you if it’s unused and this can range from 5% to 20%. You can also add on identity fraud coverage, earthquake, and flood insurance.
Although Lemonade has only been in business since 2015, the company frequently finds itself listed as one of the best homeowners insurance companies in the country. They are an entirely digital company and offer homeowner, renters, life, auto, and pet insurance to customers in both the U.S. and Europe. However, they currently only offer plans to 23 states and Washington D.C.
Lemonade is unique among insurance carriers in that they’re a certified B Corp and a public benefit corporation, meaning any premium payments that were not used to pay claims are then donated to nonprofits that the customers choose. All their business is conducted online or through their mobile app, and you can obtain a homeowners insurance quote and file and manage claims remarkably fast due to their use of artificial intelligence. The company says that claims can be filed and paid within a few minutes thanks to its use of AI. Lemonade is ideal for the consumer who’s comfortable conducting all their business digitally.
Their home policies provide average coverage for dwelling units and other structures, personal property reimbursement, and personal liability, but they also offer Extra Coverage which provides protection for valuable items like jewelry, bicycles, and fine art. It doesn’t, however, offer flood insurance to any customers, and only customers in California can add on earthquake protection.
Allstate has been in business since 1931 and is headquartered in Northbrook, Illinois. They are currently one of the largest insurance providers in the country with over 16 million customers. They provide policies for customers in all 50 states plus Washington D.C. and they also operate several smaller insurance companies under the Allstate umbrella.
Allstate offers standard homeowner insurance but stands out from its competitors by also offering home-sharing insurance for those who rent their properties through sites like VRBO and Airbnb. The company also participates in a number of philanthropic ventures such as The Allstate Foundation, founded in 1952 which works with youth and community partners as well as non-profits. The company also provides numerous discounts like early signing, claims-free (up to 20% off your premium), responsible payer, flood policies, protective devices, and multi policies.
Their average premiums are slightly higher than the national average, but because they offer so many discounts, many customers find they’re able to find affordable plans that meet their needs.
8. State Farm
State Farm, located in Bloomington, Illinois, is the largest property insurer in the nation with a strong record of financial strength. The company has been in business for 100 years. State Farm provides policies for customers across the country with the only exceptions being Rhode Island and Massachusetts, and they have over 20,000 local agents to serve their customers.
In addition to standard home insurance plans, State Farm also offers diverse coverage options like renters and condo insurance, and policies for properties like farms, ranches, and investment properties (landlord insurance). On average, they offer fewer discounts than other companies, though they do have a variety of add-ons such as fraud and identity theft, sewer back-up, flood and earthquake coverage, and umbrella coverage. State Farm may be ideal for those who already have an auto policy with them since they can save up to 20% when bundling home insurance. It may also be a good choice for those with a unique dwelling such as a farm or ranch.
9. Erie Insurance
Erie Insurance has been in the business for nearly 100 years and is headquartered in Pennsylvania. They currently only offer policies in 12 states plus Washington D.C., mainly on the east coast and midwest. Within this area, they have over 13,000 agents making Erie Insurance ideal for customers who like interacting with an agent in person or by phone rather than online. They currently do not have a mobile app to help customers manage their claims, and you must speak with an agent to get a quote. However, they do have low average premiums and high customer service reviews for their claims process.
One major selling point of Erie’s home insurance plans is that most of them come with Guaranteed Replacement Cost coverage. This is significant since many competitors won’t reimburse costs that are higher than the coverage limit listed on the policy. This coverage ensures you’re able to rebuild completely after a qualifying claim, drastically limiting your out-of-pocket expenses.
10. USAA (military)
USAA insurance is reserved only for those in the armed forces, veterans, and their families, and has been in the insurance business for 100 years. They are based in San Antonio, Texas but also have satellite offices in Europe to help those stationed overseas. USAA receives excellent reviews for its customer service but it has very few physical locations. However, because service members are constantly relocating, the lack of brick-and-mortar locations doesn’t affect many customers since they’re used to doing business digitally. USAA is an ideal choice for service members who either already have a banking relationship with them or who are comfortable doing business over the phone or online.
How To Choose the Best Homeowners Insurance
Most of us will have to purchase a homeowners insurance policy if we own a home or a rental property. When you take out a mortgage, it’s likely your realtor or lender will recommend an insurance company for you to use, but you can (and should) reach out to other carriers to obtain quotes. Each insurance provider will be able to offer you a unique policy based on their available programs and your needs, and rates can vary widely from one company to the next. Since there is so much variation, you need to know how to choose the best homeowners insurance company that meets your needs.
- Educate yourself about policy types and carriers
- Decide how much coverage you need
- Obtain quotes from multiple providers
- Choose a policy
When you research home insurance policies, most providers will offer similar coverage for their standard plan. This generally means you’ll receive compensation for your main dwelling unit (your home) and other structures like sheds or garages, some personal property, and personal liability. However, there are other types of insurance for homeowners that you may need. Look at reviews for the carriers you’re considering, and seek out those with positive comments about their customer service and claims process.
The amount of liability coverage you’ll need will depend on several things such as the age and condition of your home, and where you’re located. If you live in California or on the west coast you may consider adding earthquake insurance, while those who live in Florida or Louisiana may choose to purchase flood insurance. Typically, these events aren’t covered by homeowners insurance unless you purchase additional coverage. If possible, get an agent on the phone and ask them all your questions before deciding on a plan.
Where you live will determine how many property insurance options you’ll have, but most people will be able to get quotes from at least four to five carriers. Start with providers you already have a relationship with. Almost all insurance companies offer multi policy discounts, so if you already have auto or life insurance coverage you’ll likely receive a lower quote from your current carrier. However, this does not guarantee that the lowest offer will be the best home insurance for your needs.
The Bottom Line
The cheapest policy likely won’t be the most comprehensive coverage option, so look closely at what’s actually being offered and compare it with your other quotes. Sometimes a quote that’s only $100 more than a competitor could end up giving you exponentially more in coverage. You will also need to review your policy annually to ensure it’s still offering you the coverage you need.