7 Best Homeowners Insurance Companies of April 2023

Homeowners insurance pays to repair or rebuild your home and replace its contents if they’re damaged by specific perils like fire, theft or a weather event such as wind or lightning.

If you’re not familiar with home insurance coverage and its policies, you might end up paying more than you should for inadequate coverage. To help you find the best homeowners insurance policy for you, here are the seven best home insurance companies of 2023.

Our Top Picks for the Best Homeowners Insurance

Why we chose Lemonade: Lemonade’s streamlined online services and use of AI make the process of getting quotes and filing claims easier and faster.

Lemonade Insurance is an online-only insurance company that uses artificial intelligence to provide notably fast home insurance quotes and claim payments. The company can provide a quote in a few minutes — you simply fill out a form on its website and choose the coverage amount you want.

It’s also just as easy to file claims: you just press the claim button in the app and proceed to fill out any necessary information. The use of AI also makes this claims process unusually quick, with many reimbursements paid in a matter of minutes, the company says.

Lemonade also has unique and appealing approaches to paying for its operations and using company profits. Its operations are funded, at least in part, through a flat fee that’s added to the policy’s premium. Then, through its Lemonade Giveback program, it will donate up to 40{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} of premiums that haven’t been used to pay out claims to a non-profit organization of your choice.

Lemonade also offers a Standard selection of coverage options, including:

• Dwelling coverage
• Other structures coverage
• Personal property coverage
• Personal liability
• Medical payments
• Loss of use

Although Lemonade says it plans to expand its operations to more states and other countries, as of right now, Lemonade is only available in 24 states. In addition to that, not all of its policies are available in those states either — auto insurance, for example, is only available in three states. This lack of availability could potentially limit your bundling options depending on where you live.

Read full review>>

Why we chose Hippo: Hippo’s use of technology both for customer service and improved home security makes them a top choice for tech-savvy homeowners.

Hippo allows customers to complete the quote process entirely online and get a quote in as fast as a minute, and receive a policy in as little as five minutes, the company claims.

Hippo also provides a smart home discount if you agree to install and use a free smart home monitoring system. There are several levels of kit, with escalating arrays of equipment.

The company claims customers save an average of $64/year if they install the plain self-monitoring kit — which includes smoke, CO2 and water-leak detectors — and $91/year when opting for the pro monitoring kit, which adds 24/7 monitoring and emergency dispatch services.

Hippo’s standard policy includes up to $10,000 in coverage for computers and home office equipment, much higher than most policies include for electronics. If you have a home business or a remote working job, this is certainly something to consider.

It also offers a HomeCare Expert program that provides professional service recommendations, via phone, to policyholders who need repairs or maintenance.

In addition to standard home insurance coverage, Hippo can cover:

• Computers and home office equipment
• Appliances and electronics
• Smart home upgrades
• House cleaners and sitters
• Water backup
• Service line protection
• Enhanced rebuilding
• Full replacement costs
• Costs for local ordinance changes

Read full review>>

Why we chose Erie: Erie’s standard policy includes guaranteed replacement cost and an array of add-on’s that usually cost extra — all valuable additions to an already solid insurance package.

Erie Insurance is one of the country’s top insurers when it comes to customer service and claims satisfaction. It consistently ranked in the top five in the J.D. Power Customer Satisfaction and Claim Satisfaction studies from 2018 to 2021 (although it dropped to 7th in 2022).

The company is also among a handful of homeowners insurance companies that include Guaranteed Replacement Cost coverage as part of its standard coverage. This allows homeowners to rebuild their home the way it was before the incident, rather than receiving a depreciated amount due to the home’s age.

Its policy includes roof damage coverage as well, although full replacement does cost extra.

Although it comes up a little short discount-wise when compared to competitors, Erie does offer a 16{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} to 25{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} bundling discount and additional discounts if you install automatic sprinklers, smoke detectors, and burglar alarms.

The company is among the few insurers — along with Allstate and USAA — to offer, at additional cost, home-sharing coverage as an alternative to buying such insurance through AirBnB or Vrbo. As a rule, damage from paying guests is not covered under standard homeowners insurance.

Its biggest downside is its lack of availability. Erie only operates in 12 states, making it one of the most limited companies in our list.

Erie’s base policy also covers these other items, which cost extra with many other companies:

• Valuables and hard-to-replace items
• Gift card and gift certificates
• Animals, birds, and fish
• Cash and precious metals

You can also add the following coverage to any Erie policy:

• Water backup and sump overflow
• Personal liability coverage
• Identity recovery services
• Service line protection

Read full review>>

Why we chose State Farm: State Farm offers a wide variety of policies in all 50 states and is the highest ranked nationwide insurer in J.D. Power’s consumer satisfaction survey.

State Farm is the largest home insurance company in the United States. Its homeowners insurance policies are available in all 50 states and Washington, D.C. The company offers all sorts of policies, from life to car to condo.

This gives customers the chance to bundle in a variety of ways and not only get discounts, but get a more streamlined experience overall.

Keep in mind, however, that although State Farm offers a wide variety of policies, only car, condo, life and renters can be bundled. Despite this limitation, the savings it does provide can be substantial. State Farm claims the yearly savings could go up to $1,127 when combining home and auto, for example.

The company scores highly in customer service, according to J.D. Power — in fact, it’s the highest-ranking nationwide company, currently at 6th place in the Overall Customer Satisfaction Study.

However, unlike other large insurers in the country, State Farm offers few discounts. These include the traditional multi-policy discount and discounts if you have security systems such as fire and smoke alarms. (Some safety measures might or might not qualify depending on the state, so be sure to check with an agent.) There’s also a discount for using high-quality roofing protection.

Another drawback to State Farm is that it only works through exclusive agents. However, it does have an extensive network of agents — close to 19,000 by some estimates — that cover every state.

Why we chose Amica Mutual: Amica Mutual’s customer service is, arguably, the best out there, and its comprehensive contractor database can streamline the process of finding the help you need.

Amica Mutual stands out for customer service on claims, having topped the J.D. Power Property Claims Satisfaction Study for nine consecutive years, as well as the Overall Customer Satisfaction survey.

Another standout aspect to the company is its Contractor Connection database, which lists thousands of vetted, licensed and insured contractors and guarantees their work with a five-year warranty.

Like many insurers, Amica also offers loyalty discounts, in its case to customers who have been with the company for at least two years. It also offers breaks to those who are claim-free for at least three years.

Unfortunately, Amica Mutual is not currently offering homeowners insurance in Alaska or Hawaii, but it is available in every other state.

For customers who require additional coverage, Amica offers:

• Valuable items coverage
• Catastrophic coverages
• Identity fraud expense coverage
• Home business coverage

Read full review>>

Why we chose USAA: USAA has a great combination of low premiums and wide coverage for military members, along with outstanding trustworthiness and financial stability.

USAA is a highly rated insurance provider — for both financial stability and customer service (although its limited availability means it is not included in J.D. Power customer satisfaction rankings). It offers many different coverage options for military members and their families (including the children of veterans and those who are serving).

USAA is also among a handful of homeowners insurance companies that includes as standard Guaranteed Replacement Cost coverage, which allows homeowners to rebuild their home the way it was before an incident, rather than receiving a depreciated amount due to the home’s age.

The company is also known for its low premiums. If you qualify for membership in USAA, it would be hard to find better home insurance rates and coverage for property damage.

The company is one of the few — along with Erie and Allstate — to offer, at additional cost, home-sharing coverage as an alternative to buying such insurance through AirBnB or Vrbo. As a rule, damage from paying guests is not covered under a standard homeowners insurance policy.

Read full review>>

Why we chose AIG: AIG provides comprehensive coverage for high-value properties worth up to $100 million.

AIG is known as a luxury insurer that provides high net-worth individuals with comprehensive coverage, from dwelling to cybersecurity.

It offers guaranteed replacement cost (without any limits, according to the company) for homes valued from $750,000 all the way up to $100 million on an “all-risk” basis — meaning its policy covers all perils except the few specifically excluded.

It also offers the option of ultra-high deductibles (up to $100,000). This could help significantly lower your premium — however, you’ll also pay a lot more out of pocket.

You must have one of the company’s other policies to get homeowners insurance with AIG, but the company has a wide array of policies aimed at high net-worth customers to choose from — including collection insurance, yacht insurance, auto insurance and even private aircraft insurance.

You can also find services that will help you prevent accidents or take care of them quicker. The insurer provides background check services for domestic staff, private firefighting units, cybersecurity measures and more.

Since January 31st of this year, however, AIG has stopped providing home insurance coverage in California due to the high risk of wildfires and the state’s regular seismic activity. Other insurance policies will still be in effect, though.

In addition to standard coverage, AIG offers services such as:

• Kidnap, ransom and extortion coverage
• Landscaping coverage
• Crisis management and reputation restoration
• Multinational property coverage
• Business property coverage

Read full review>>

Other homeowners insurance companies we considered

As we analyzed home insurance companies, we focused on financial stability and strong customer satisfaction ratings, in addition to the variety of coverage options each company offered.

The insurance providers we selected excelled in all of these categories, but the following carriers fell a bit short when it came to most homeowners’ needs.

However, read on to see if one of these companies might fit your specific needs.

Allstate

Why it didn’t make the cut

Allstate provides discounts to homeowners who take good care of their property, pay on time and are claim-free. There are also discounts for loyalty, setting up AutoPay and renewing before your policy expires. It didn’t make our list because it fell slightly short in customer satisfaction and overall features when compared to competitors.

Read full review>>

Nationwide

Why it didn’t make the cut

Nationwide offers home insurance in 46 states and Washington D.C. and provides a wide range of coverage options and discounts. It fell a hair short of its competitors due to a below average score on the most recent customer satisfaction J.D. Power Rankings.

American Family

Why it didn’t make the cut

American Family offers comprehensive coverage and discounts, and its customer satisfaction ratings went up significantly in 2022. However, its limited availability (only 19 states) kept it out of our main list.

Country Financial

Why it didn’t make the cut

Honoring its name, Country Financial is a great option for customers who live in rural areas and, specifically, farmers. Unfortunately, there isn’t much publicly available information on its property claim satisfaction rates, and it’s only available in 19 states.

Liberty Mutual

Why it didn’t make the cut

Over a century old, Liberty Mutual offers one of the best apps out of any insurer and multiple discounts. However, a high number of complaints with the National Association of Insurance Commissioners (NAIC) kept them out of our main list.

Travelers Group

Why it didn’t make the cut

Travelers Group rewards you with discounts for a wide variety of maintenance and security measures — from having a sprinkler system to installing security cameras. However, its low ranking in the J.D. Power Satisfaction Study and higher premiums then competitors kept it out of our top picks.

Chubb

Why it didn’t make the cut

Chubb’s coverage for high-net-worth customers is top notch, and includes a long list of add-ons and policies you can pair with your home coverage. However, its high price and low ranking in consumer satisfaction studies eliminated it from our list.

Progressive

Why it didn’t make the cut

Progressive is one of the country’s largest insurance companies and, as such, might be one of the first names that come to mind. However, it doesn’t underwrite its own home insurance policies — instead, it uses an independent network of companies to underwrite the policies.

Homeowners Insurance Guide

While every homeowners insurance policy is unique, there are several factors that they all have in common. These are important to understand when you’re trying to find the right policy.

Read on to learn more about how homeowners insurance works and how to choose the coverage you really need.

What is homeowners insurance?

Homeowners insurance coverage is a type of property insurance that provides financial compensation if your home is damaged by certain natural disasters, theft and/or accidents. This type of insurance does not cover flooding or earthquakes, which require a different type of coverage.

Additionally, it’s important to keep in mind that home insurance is often required by mortgage lenders when you’re financing a new home.

What does homeowners insurance cover?

There are several levels of homeowners insurance coverage and policies. Which one is right for you will depend on the type of coverage you need.

Many insurance companies offer customizable coverage as part of their homeowners insurance policy. For example, depending on the insurer, you could add Identity theft protection and work-related damage coverage to your policy.

However, this is what most insurers offer in their standard coverage:

Dwelling coverage. This covers the main structure of the property — namely, the actual house — from ten basic perils: fire, lightning, hail, windstorms, explosions, civil unrest, aircraft damage, vehicle damage, smoke damage, vandalism, theft and volcano eruption.

Personal belongings coverage. Standard insurance will typically cover personal belongings up to a certain percentage of your overall home insurance coverage. This percentage will vary from policy to policy. An add-on is recommended if homeowners want to cover valuable items such as jewelry, art collections and other particularly valuable items.

Personal liability. Liability protection covers injuries suffered by non-residents of your household while in your property. It could cover medical and legal costs, depending on the specific policy.

Other structures. This covers detached structures such as fences, gazebos or tool sheds affected by covered perils.

What does homeowners insurance not cover?

Home insurance policies almost never include coverage for the perils listed below. These require additional and different policies.

• Earthquakes, landslides and sinkholes
• Flooding and sewer overflows
• Power failure
• Neglect
• War
• Nuclear hazard
• Intentional loss caused by you
• Government actions
• Loss of property caused by bad zoning, faulty construction and lack of maintenance.

High-risk flood areas

If your area is deemed high-risk by the Federal Emergency Management Agency (FEMA), you’ll be required to purchase flood insurance for your property as an add-on to your policy.

The National Flood Insurance Program (NFIP) provides flood insurance for property owners, renters, and businesses and is available for anyone living in one of the 23,000 participating NFIP communities. For more information about what’s covered and how to purchase flood insurance, visit FloodSmart.gov.

Hail and wind

Depending on where you live, there may be additional weather-related exclusions. For example, homeowners’ insurance policies issued for coastal homes in Texas don’t cover wind or hail damage.

Also, home insurance policies in the Eastern coastal states have what’s called hurricane and windstorm deductibles. Whether you live in Florida or New York, if your house is hit by a storm, the deductible you pay won’t be the fixed amount you agreed upon for the other perils. It will be a percentage based on the coverage you chose. This is mostly regulated by state laws, so to read more about your specific state, you can start at the Insurance Information Institute.

Earthquakes

Earthquake damage is normally not covered by any home insurance policy, and is only added through a rider or by buying a completely different policy. In a place like California — probably the most prone to seismic activity in the United States — it’s important to add a rider or get a policy to cover in the case of a loss. Checking with the largest earthquake insurer in the state, the California Earthquake Authority, is a good start.

Power outages

Depending on your home insurance policy, some items — such as spoiled food or frozen pipes — may not be covered in the event of a short or prolonged power outage. However, it’s not as clear cut as floods or earthquakes, so make sure to check directly with your insurer beforehand to see what’s covered and what’s not.

In the meantime, protect your appliances with surge protectors and check if your refrigerator protection plan is still valid, which can cover the loss of food.

Wildfires

Most home insurance policies tend to cover damages caused by wildfires. However, in places with higher wildfire risk of wildfires, some companies stopped offering this type of coverage altogether or made adjustments involving this specific peril.

Check your locally available insurance companies to see if they still offer those types of policies in your location, or if wildfires can be covered by a rider you can add to your plan. You can also check with your state’s FAIR Plan, such as California’s, to get fire insurance in case companies don’t want to cover your home.

Types of homeowners insurance

There are several types of homeowners insurance policies. Keep in mind, however, that these are partially customizable as most insurers offer insurance riders depending on a homeowner’s specific needs.

How much does home insurance cost?

While the national average premium is around $100 a month (or a $1,200 yearly premium), it’s important to know that there isn’t a single established price for home insurance. Although these vary from company to company and policy to policy, here are some of the most common factors that can determine how much you pay for insurance.

Factors that impact your insurance premium

Coverage amount needed. How much coverage you choose to buy will obviously have the greatest impact on your monthly or annual premium. This means the overall cap the insurer agrees to cover in the case of an included peril. You don’t need to cover the entire cost of your house, but you should aim to cover at least 80{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} of the value.

Location of your home. The location of your house determines the type of perils it could be exposed to and so this will greatly impact the rate an insurance company offers you. For example, a house in a storm-prone zone will be more expensive to insure than one that isn’t.

Style and age of the home. The overall build and condition of the house is taken into account in order to adjust the premium. If a house is fairly deteriorated or built with outdated materials, for example, its structure is at a higher risk, thus raising the price on coverage.

Square footage. No surprise here: the size of your home is used to calculate your premium. Larger homes will inevitably need more resources to fix or rebuild, and are also more prone to neglect in certain areas.

Credit score. Like many other payments, loans and services, credit score plays a role in calculating your premium when getting a homeowners insurance quote. Insurers use this as a way to measure your credibility in maintaining your house.

How to choose the best homeowners insurance

There’s a few factors to consider when you’re trying to choose the best homeowners insurance. You’ll have to consider price, your living situation, its specific policy offerings and more. Here are some steps to take before making your decision:

• Learn about coverage types, policies and the add-ons each company has available so you can find the one that fits your specific situation.

• Find the top home insurance companies that offer services in your area.

• Consider your needs and concerns when assessing each company’s products. Think about your area and its geographical risks, your personal hobbies, pets and more.

• Talk to an independent home insurance agent who can help you find the right combination of policies for your lifestyle and home. An agent can also help compare quotes objectively, as they have access to all the different companies’ pricing methods and history.

To know which homeowners insurance is best for you, take a look at our home insurance provider reviews and analyze these points for each one. Don’t forget to apply these to your particular home and living situation.

Bundling auto and home insurance

One of the most common discounts among insurance companies is the multi-policy discount. In some cases, this could save you over $1,000 a year. While there are companies that let you bundle more than two types of policies, including life insurance and even pet insurance, the most common is the bundling of home and auto.

Being, arguably, the two most common and important insurance policies — auto insurance is legally obligated in many states — bundling both is common practice, and should be an important factor when choosing an insurer.

If you want to consider auto insurance policies before making a decision on which insurer you want to purchase both from, look at our best car insurance list to see how auto insurance policies stack up.

Here are the insurers in our list that offer that home and auto bundling discount:

• Lemonade
• Hippo (although it doesn’t offer auto insurance itself, but offers a discount if you buy insurance through one of their partners companies)
• Erie
• State Farm
• Amica Mutual
• USAA
• Allstate
• Nationwide
• American Family
• Country FInancial
• Liberty Mutual
• Travelers Group
• Progressive

How are homeowners insurance claims paid?

In most cases, an adjuster will inspect the damage to your home and offer you a certain amount of money for repairs, based on the terms of your policy. The insurance company will then typically send an advance, before sending the final payment. In fact, you may get multiple checks as you make temporary payments, permanent repairs, and replace damaged belongings.

How to file a home insurance claim

While each insurer will have its own claim-filing process, there are aspects of the process that are the same across the board.

File a police report

If your claim is the result of a criminal act, the first thing you’ll want to do is file a police report. This will provide you with evidence for the insurer (many insurers will want to see the police report before paying a claim) and can help you in the process of recovering stolen property.

Contact your insurer

Contact your insurer as quickly as possible and ask all the necessary questions. Whatever doubt you have, ask it, and provide your insurance provider with all the required information. Your insurance company will send a form for you to fill out; do that promptly.

Document everything

As a precaution, you should already have pictures of your home and a list of your most valuable possessions in case anything were to happen. When it does, take pictures of all the damage and missing items, and write them down for when an inspection takes place in order to avoid forgetting anything.

Keep the receipts

In case you need to take care of urgent repairs or find accommodations elsewhere, other than documenting the damage, keep the receipts so that your insurance provider can reimburse you later on, given the damage and additional living expenses are covered.

What is the 80{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} rule in homeowners insurance?

Most insurers abide by the 80{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} rule, which states that they will only reimburse you the full amount of damages if you buy coverage worth at least 80{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} of the property’s value. If you buy coverage for less than 80{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} of your home’s value, the insurer will pay you only a percentage of the damages incurred.

Let’s say your home is valued at $500,000 and you buy coverage for $400,000 (80{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} of your home’s value). If you suffer $100,000 in covered damages, your insurer will likely pay for the full amount, minus your deductible.

If you bought coverage for $300,000, however, the insurer will not pay the full amount of damages. Instead, it will pay you the greater amount of the two following options:

• The actual cash value of the building or part of the home that was destroyed, which includes depreciation, or
• Based on the proportion of coverage you did buy compared to the coverage you should have bought.

So, in this example, it’ll divide the $300,000 coverage you did buy by the $400,000 you should have bought and pay a corresponding percentage of the damages. As a result, if you suffer a $100,000 loss, the insurer will end up reimbursing you 75{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} of that amount, minus the deductible you chose when you bought the policy.

It’s worth noting, however, that even a policy that covers 100{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} of your home’s value isn’t a guarantee that an insurer will pay the full amount needed to repair your home. If, for example, there’s a fire and the cost to demolish the structure is higher than what the policy covers, you’ll have to cover the difference.

Make sure to read your policy carefully and consult with an agent if you have questions about how much coverage to get.

Cash value vs. replacement cost

Coverage limits usually boil down to a decision between “actual cash value” or “replacement cost” coverages:

• Actual cash value: calculates the value of your home minus depreciation, taking into account existing damage or wear. You’ll only receive a settlement for your home’s value at the time it was lost.

• Replacement cost: reflects the amount needed to rebuild your home as close as possible to how it was before. Home replacement costs are almost always higher than actual cash value, making it the most expensive coverage option.

There isn’t a one-size-fits-all coverage choice or a straight answer for how much is homeowners insurance. It all depends on the homeowner, the dwelling, and the location, among other factors.

Additional home insurance expenses to keep in mind

Depending on your living situation, standard insurance products might not be enough.

When you’re ready to choose a homeowners insurance policy, see what types of endorsements — also known as insurance riders or add-ons — each company offers. These will increase your annual premium, but it might be worth it if it means protecting valuable assets such as jewelry or collectibles.

With certain companies, you can also get protection for more specific issues such as water damage, cybersecurity threats and even kidnapping.

How to save on homeowners insurance

When shopping for the best homeowners insurance, you should make it a point to ask about discounts on your insurance premium and save money on your policy.

Each company has options to help you reduce your insurance costs. The following are the most common home insurance discounts:

• Automatic payment discount. Set up automatic payments from your bank account or credit card.

• Paperless discount. Receive your statements electronically.

• Advance payment discount. Pay the entire amount of your annual policy at once instead of on a monthly basis.

• Claims-free discount. Your claims history can save you money if you don’t file a claim within a certain amount of time — usually three to five years.

• Protective devices discount. Install a burglar alarm, surveillance system, sprinkler system, water shut-off system or smoke alarms to help prevent losses.

Latest News on Homeowners Insurance

• Despite taking longer on average than previous generations, millennials are finally becoming homeowners, as the percentage of homebuyers surpassed that of renters during the last five years. For more details on the research, read our article There Are Finally More Millennial Homeowners Than Renters

• There are many factors to consider when purchasing a home, many of these could save you money in the long run, both in home insurance premiums and in repairs down the line. Read our guide on What to Look For When Buying a Home

• Houses are often the biggest purchase of one’s life. If you’re considering buying your first home and don’t know where to begin, this article can help you out: How to Buy Your First Home

How We Chose the Best Homeowners Insurance Companies:

To compile our list of the best homeowners insurance companies, our methodology focused on the following factors:

• Coverage: Looked through dozens of insurers and coverage options and narrowed our choices based on policy options, average annual premium, customer service, additional benefits and claims processing speed.

• Satisfaction rating: We used J.D. Power’s 2022 U.S. Property Claims Satisfaction Study to gauge customer satisfaction with claim settlement, claim process, First Notice of Loss (FNOL), estimation and repair.

• Customer complaints: We evaluated each underwriter’s homeowners insurance complaint ratio based on data from the National Association of Insurance Commissioners (NAIC).

• Financial strength: We eliminated companies with A.M. Best financial strength ratings below an A.

Summary of Best Homeowners Insurance Companies of April 2023