Any rates listed are for illustrative purposes only. You should contact the insurance company or insurance agent directly for applicable quotes.
Best Homeowners Insurance Company
Pros:
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Two homeowners policies available
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Policies that pay dividends available
Cons:
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Not available in Alaska or Hawaii
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Dividend policies not available in every state.
- AM Best Rating
- A+
- Quote Access
- Online Estimate
- Multi Policy Discount Available
Amica offers two different homeowners policies: the Standard Choice plan and the Platinum Home Choice plan. The Platinum policy includes everything in the Standard Choice policy and coverage that would be optional with the standard policy, such as water backup, replacement cost coverage for personal belongings, and expanded coverage for computers and business property.
Both of these policies also have the option of paying dividends. A policy that pays dividends may return a percentage of your annual premiums to you. The downsides are that a policy that pays dividends is generally more expensive than one that doesn’t, payments aren’t guaranteed, and it isn’t available in every state.
Availability: Amica sells policies in 48 states and Washington, D.C. It doesn’t sell policies in either Alaska or Hawaii.
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Most Affordable
Pros:
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Least expensive insurer in our rating
Cons:
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Fewer discounts offered when compared to other insurers
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Must purchase a policy through an agent
- AM Best Rating
- A++
- Quote Access
- Online Estimate
- Multi Policy Discount Available
With an average monthly premium of almost $89, State Farm is the least expensive insurer in our rating for which we have rate data. It is almost three times less expensive than the most expensive entry in our rating. On the downside, according to our data, it has fewer discounts than other companies in our rating.
It offers several options to help you bulk up a policy, including coverages for identity theft, home systems, service lines, energy-efficient upgrades (paying to upgrade damaged items with more energy-efficient replacements), as well as higher coverage limits for business property and valuable personal belongings.
It has a large network of agents throughout the country, which is good because you will have to purchase a policy with an agent. Although, once purchased you can use its mobile app to pay your premiums and file and track claims.
Availability: State Farm sells new policies in 48 states and Washington, D.C. New policies are not being written in Massachusetts or Rhode Island.
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Offers Green Improvement Coverage
Pros:
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Available in every state and Washington, D.C.
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Coverage available for home sharing
Cons:
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Most expensive average rates, based on our analysis
- AM Best Rating
- A+
- Quote Access
- Online Estimate
- Multi Policy Discount Available
Of the companies we have rate data for, Allstate is the most expensive. However, this could be mitigated by the number of discounts it has available. There are discounts for everything from bundling with an Allstate car insurance policy to being a non-smoker.
There are a number of add-ons available for a standard policy. You can get common extras like coverage for water backups and valuable items as well as less common extras like coverage for home sharing or upgrading to more energy-efficient items after a covered loss. If you have a home business, you can also get higher limits for your business property.
Availability: Policies from Allstate are available in all 50 states and Washington, D.C.
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Replacement Cost Is Standard
Pros:
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Replacement cost coverage is standard
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Identity theft coverage is standard
Cons:
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Only available to USAA members
- AM Best Rating
- A++
- Quote Access
- Online Estimate
- Multi Policy Discount Available
Homeowners insurance from USAA is only available to its membership which is restricted to current and former members of the military and immediate family members. There are also military-specific protections included in a USAA home insurance policy, such as coverage for military uniforms and equipment for active-duty members. Also, there is no deductible if your belongings are damaged or lost due to war.
Unlike many companies in our rating, replacement cost coverage is part of a standard USAA policy. This means that when USAA determines the value of your belongings, it doesn’t take depreciation into account. Also included in a standard policy is identity theft coverage.
Availability: USAA is available in all 50 states and Washington, D.C.
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Building Code Coverage Is Standard
Pros:
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Building ordinance and credit card coverage are standard
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Discounts for “smart home” devices, and some home renovations
Cons:
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Not as widely available as other companies in our rating
- AM Best Rating
- A+
- Quote Access
- Online Estimate
- Multi Policy Discount Available
As part of its standard homeowners policy, Nationwide includes coverage for both credit card fraud and building ordinances. This means that after a covered loss to your home, Nationwide may help pay to rebuild or repair your home to current building standards. There are also optional coverages for water backup and identity theft, as well as adding replacement cost for your belongings and dwelling.
Nationwide offers several discounts, including for having a smart home and protective devices like a security system and smoke detectors. There is also a discount if you renovate your home’s plumbing, electrical, or heating and cooling systems. If you’re switching from a different insurance company, there is a discount based on the number of years you were with that insurer.
Availability: Nationwide’s homeowners insurance policies are available in 44 states and Washington, D.C.
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Offers Extensive Bundling Options
Pros:
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Replacement cost coverage is standard
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Optional home business coverage is available
Cons:
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Only available in 12 states and Washington, D.C.
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Must purchase through an agent
- AM Best Rating
- A+
- Quote Access
- Agent only
- Multi Policy Discount Available
Erie Insurance is a regional insurance carrier and thus has limited availability. If you’re interested in purchasing a policy, you will have to do so through an agent.
Its standard policy includes replacement cost coverage and not as an add-on. There are also options for water backup, underground service lines, and identity recovery coverages. In addition, you can get expanded coverage for your home business property and high-value belongings.
Availability: Erie Insurance sells homeowners policies in 12 states and Washington, D.C.
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Pros:
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Policies can be purchased online or on the mobile app
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Giveback program donates money to causes of your choice
Cons:
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No in-person service available
- AM Best Rating
- NR
- Quote Access
- Online Estimate
- Multi Policy Discount Available
Lemonade stands out in our rating for being a primarily digital insurance company. You can purchase, file claims, and manage your policy through its website or mobile app. There are no local agents. In emergencies, policyholders must contact the company by phone.
In addition to the coverages available in its standard policy, there are options for swimming pools, buried utilities, water backup, and equipment breakdown to name a few.
Availability: Lemonade is available in 22 states and Washington, D.C.
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Pros:
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Water backup and replacement cost included
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Private flood insurance available
Cons:
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Only available through agents
- AM Best Rating
- A++
- Quote Access
- Agent only
- Multi Policy Discount Available
Chubb’s standard policy, Masterpiece Homeowners, includes water backup and replacement cost. While there are a few companies that include replacement cost coverage in our rating, no others include water backup. Also included is the option to take a cash settlement after a total covered loss instead of rebuilding in the same location.
It is also the only company in our rating to offer its own flood insurance policy. Other flood insurance policies sold by companies in our rating are for policies through the National Flood Insurance Program (NFIP).
A possible downside is that Chubb is available exclusively through agents. There is no online quote or purchase option. If you click on ‘Get Quote’ on its website, you will be directed to a local agent’s office after answering a few questions.
Availability: Chubb’s homeowners insurance policies are available in all 50 states and Washington, D.C.
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Pros:
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Available in all 50 states and Washington, D.C.
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Inflation coverage available
Cons:
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Standard coverage is pretty basic compared to others in our rating
- AM Best Rating
- A
- Quote Access
- Online Estimate
- Multi Policy Discount Available
Liberty Mutual standard policy covers the basics; dwelling, personal belongings, liability, guest medical coverage, and loss of use. But, it does have a number of optional coverages that may meet your needs. Coverage for water backup and valuable items is available. There is even coverage for inflation, where at the time of renewal, your coverage limits will be adjusted to keep up with inflation.
It offers several discounts, including for going paperless, being claim-free, and signing up for automatic payments. Also available are discounts for bundling, newly purchased homes, and for renovating your home.
Availability: Liberty Mutual’s policies are available in all 50 states and Washington, D.C.
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Pros:
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Green building materials coverage
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Available in all 50 states and Washington, D.C.
Cons:
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Not as many discounts as other companies in our rating
- AM Best Rating
- A++
- Quote Access
- Online Estimate
- Multi Policy Discount Available
Travelers is one of the least expensive companies in our rating for which we have rate data. Compared to others, it doesn’t have as many listed discounts. The discounts available are relatively common ones like bundling policies, having protected devices installed in your home, and being claim-free. But it also offers a relatively uncommon discount for having a Leadership Energy and Environmental Design (LEED) certified “green home.”
In addition to having a discount for a LEED-certified green home, there is additional coverage where after a covered loss, Travelers will help pay for you to rebuild or repair with energy-efficient or eco-friendly materials. This is in addition to more common add-ons like coverage for valuable items, replacement cost for your belongings and dwelling, and water backup.
Availability: Travelers’ homeowners policies are available in all 50 states, plus Washington, D.C.
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Our Cheapest Homeowners Insurance Companies are based on premiums for a sample policy. The policy was for a 2,400-square-foot townhouse in Illinois with a price of $450,000, $500,000 in coverage, and a deductible of $1,000. Based on those prices, we chose the least expensive companies in our rating for this list.
Any rates listed are for illustrative purposes only. You should contact the insurance company or insurance agent directly for applicable quotes.
It is often possible to reduce your overall insurance costs by purchasing both your homeowners and auto insurance policy from the same company. This is called bundling. Visit our Best Home and Auto Insurance Bundles of 2023 page for more information.
Although buying the right home insurance policy may seem complicated, it’s actually a fairly straightforward process. To begin, you’ll need to determine the value of your home and its contents. Then, select a company and policy that provides the coverage options you need at a reasonable price.
Take the following steps to purchase homeowners insurance:
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Determine how much home insurance you need. Take an inventory of your personal belongings. If you have receipts, file them away. For your home and other structures on your property, get an estimate from your insurance company or a real estate agent for the average rebuilding cost in your area per square foot.
Use this information to decide how much coverage you need for your property. The general rule is that you should have enough homeowners insurance coverage to repair or replace your home and everything in it after a total loss.
Determine how much you might spend on a hotel, meals out, and other living expenses if your home were to be destroyed or become uninhabitable after a disaster. The Insurance Information Institute (III) can help walk you through the process, as can a licensed insurance or real estate agent.
- Choose an insurance company. To choose the right homeowners insurance company, you will want to find an insurer that sells policies with the coverage and other features you need at an affordable price. In addition, look for a company that has a high financial strength rating from AM Best or another rating agency, gets good consumer and professional reviews, and allows you to file a claim or seek assistance 24/7.
- Choose a policy. The right home insurance policy will provide sufficient coverage, have terms that are easy to understand, and may even offer discounts. Consider purchasing a replacement cost policy that will reimburse you for the cost of replacing your property with new items rather than a cash value policy that only pays the depreciated value.
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Determine how much insurance coverage you need. To estimate the coverage you need, take a home inventory. A home inventory is a detailed account of all of your personal property, both inside and outside your home. Calculate the cost of rebuilding your home after a disaster. Ask a real estate agent for building costs in your area. Determine if you need additional coverage for earthquakes, floods, or a high-risk item, like a swimming pool.
If you have trouble determining how much home insurance you need, the Insurance Information Institute (III) can help walk you through the process, as can a licensed insurance agent or real estate agent.
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Decide if you want replacement cost coverage or actual cash value coverage. When buying a policy, you’ll likely have the option to select how you’re reimbursed should you make a claim.
Replacement cost policies issue claim payments without factoring in depreciation. For instance, if your home is damaged in a fire and must be rebuilt, your policy would cover the costs of materials that are similar in quality, even if the price of materials has increased since your home was built.
Actual cash value policies issue payments based on the depreciated value of the damaged item. Using the same example as above, your insurer would reimburse you for the cost of materials minus depreciation, which may be less than the actual costs of rebuilding your home.
As a result, most insurance experts recommend a replacement cost policy, even though premiums are somewhat higher.
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Narrow your search to several home insurance providers. As you review your options, it’s helpful to factor in:
- Coverage types and features
- Policy management options (e.g, online, mobile app, agent)
- Additional types of coverage you may need, such as auto insurance
- Professional and consumer reviews
Considering these things up front can help you eliminate companies that don’t meet your specific needs.
- Gather quotes. Once you have chosen a few companies, use the estimate tool on their websites to get an idea of how much it will cost for the coverage you need. It can be helpful to talk to an agent in person or over the phone at this point for additional help. Get quotes from several companies, but be sure to compare policies that offer similar coverages.
- Contact the company and begin the application process. As mentioned in the previous step, how you contact the company will vary.
Some home insurance companies may require a home inspection to confirm the condition of your home and ensure you have adequate coverage. If a home inspection is required, the insurance company will send an inspector to your home.
Due to COVID-19, many insurance companies have updated their inspection process to follow safety precautions, including wearing PPE and social distancing. Some inspections will not require you to be present because the inspector only will focus on the exterior of your home, including the roof, and any potential hazards in your yard that could cause damage to your home in the case of a severe storm.
However, some companies are still completing interior inspections, focusing on the condition of your home’s electrical systems, ventilation, fireplace, plumbing, heating, and air conditioning systems. When purchasing home insurance, check the requirements of the insurer you are considering to determine their home inspection practices.
Many insurance companies will give you a discount if you buy more than one type of policy from them, such as home insurance and auto insurance. This is called insurance bundling or a multi-policy discount. This is worth it to the insurance company because it generates more revenue per customer and helps promote customer loyalty.
Insurance bundling doesn’t always save money. For example, an auto insurance company may offer lower rates than companies that sell several types of policies, according to Amy Bach of the consumer advocacy group United Policyholders. Bach says that a company specializing in auto insurance may also offer benefits not available in an insurance bundle from another insurer, such as ticket forgiveness or claims-free discounts.
To file a homeowners insurance claim:
- File a police report, if needed. The Insurance Information Institute recommends filing a police report in instances of burglary, theft, and vandalism. Be sure to retain a copy of the report you file and make note of any and all law enforcement officers you speak with. Some cities, such as Austin, Texas, will allow you to file a police report online.
- Notify your insurance company as soon as possible. This can be done online, via the company’s mobile app, or over the phone, depending on your policy and the insurer. This will facilitate your claim and help ensure that you’re compensated promptly.
- Document damages. Whenever possible, take photographs or a video documenting damages. And, if you’re filing a claim due to theft, make a detailed list of everything that was stolen. It’s also helpful to write down any other information that may be pertinent to your claim. If you have security cameras, collect and share all footage with your insurance provider.
- Make any urgent repairs. After the damage is documented, make any emergency repairs or those necessary to prevent further damage to your home, assuming you can do so safely. The III recommends retaining receipts for any materials you purchase and keeping damaged materials you replace until your insurance company adjuster has examined them. Avoid making permanent repairs until after the adjuster views the damages.
A typical standard homeowners insurance policy provides coverage to repair or rebuild your home after damage from smoke, fire, theft, vandalism, a fallen tree, or a weather event such as lightning, wind, or hail. If you need to move out while repairs are made, homeowners insurance can pay for alternate food and lodging.
In addition to the primary structure, standard policies typically cover heating and cooling systems, appliances, furniture, clothing, and other personal belongings in the home. Guest medical coverage will pay medical costs for unintentionally injured on your property or by a member of your household. Liability will protect you if someone in your house unintentionally injures someone or damages their property. Most standard policies include coverage for:
- Detached garages
- Sheds
- Other outbuildings
- Outdoor fireplaces
- Fences
- Walls
It’s important to note that homeowners insurance is not the same as home warranty coverage, which typically covers failed appliances and heating and cooling systems, and can offer protection against damage from termite and rodent damage.
Most homeowners should purchase home insurance even if it isn’t required by their mortgage lender. Many mortgage lenders will require you to get homeowners insurance to financially protect themselves, but home insurance is also among one of the best ways to protect your largest investment: your home.
Even if you can afford to rebuild or replace all of your possessions in the event that your house is destroyed or robbed, homeowners insurance is an inexpensive way to avoid having to pay the huge out-of-pocket expense.
Homeowners insurance covers your assets in the case of unforeseen perils. A homeowners policy will pay to repair or rebuild your home and attached structures or outbuildings, like a garage, if something unfortunate or even catastrophic happens to it, such as theft, vandalism, storm damage, water damage, or fire. Your policy will also cover your personal possessions that are stored in your home or on your property, such as clothing and furniture.
Insurance will also provide liability coverage if a guest is injured on your property or someone in your household damages their property. Coverage includes paying their medical expenses and your legal fees if they sue you. If your home is uninhabitable because of a covered peril like a fire, a typical homeowners policy will also cover living expenses like a hotel room and meals.
Finally, home insurance can even cover items like a swimming pool that increase a homeowner’s liability risk or high-value items like fine jewelry, although these often require a higher premium to insure.
When purchasing an insurance policy, you should speak to an insurance professional from the company to ensure that you receive a policy that meets your specific needs at the best possible price.
Most standard homeowners insurance policies do not include earthquake or flood coverage, which may or may not be required or necessary in your area. Earthquake coverage is generally available as an option with most insurers, but most only offer flood insurance through the National Flood Insurance Program (NFIP). One exception is Chubb in our rating, which offers its own flood insurance policy.
Water damage from a clogged sewer drain or leaking pipe is another thing not included in most standard policies, but is available at an extra cost. Additional options you may want to consider are coverage for identity theft, dwelling replacement to cover the full cost of repairs regardless of inflation and other factors, and green rebuilding to make your home more efficient after a loss.
Most policies also allow customization to increase specific coverages, such as higher limits for valuables if you own collectibles or jewelry, or increased liability if you have a swimming pool. Talk to an agent or company representative if you’re not sure what coverages you need.
For the companies in our rating from which we were able to obtain quotes for our sample policy, the monthly premiums ranged from just over $88 for a policy with State Farm to $264 for a policy with Allstate. There are a number of variables involved in getting homeowners insurance quotes such as the location of your home, square footage, and amount of coverage offered.
In general standard homeowners insurance policies don’t cover flooding. For information on whether or not your home is at risk for flooding, you can look up your home’s location on the FEMA Flood Map Service Center’s website. You can purchase flood insurance through the NFIP from many of the companies in our rating.
Most homeowners insurance policies will cover your home in the case of fire damage. This coverage generally extends to damage caused by wildfires. If you live in an area with a high risk of wildfires you will want to review your coverage.
If you’re unsure if your home is at risk from wildfires, you can look it up on the Wildfire Risk to Communities website. This resource was developed by the USDA Forest Service.
Damage from earthquakes is typically not covered by a standard homeowners insurance policy. To cover damage resulting from an earthquake, you will need a separate policy. Several companies in our rating, including some of our top-rated companies, like State Farm and Amica, offer earthquake as an add-on coverage for an additional premium, although Lemonade only offers earthquake insurance in California. You can review FEMA’s Earthquake Hazard Maps to see the earthquake activity in your region.
The answer to this will depend on both your specific policy and how the damage was incurred. In general, damage from lightning, hail, and wind will be covered by a standard policy. However, if the damage is from flooding as a result of a storm (think the storm surge in a hurricane) then it will likely not be covered by a standard policy and would be covered by a flood insurance policy instead.
Though many policies cover storm damage, some may exclude or require a higher deductible for damage caused by windstorms. This is particularly true for homes that are located in coastal areas prone to hurricanes.
Whether or not mold is covered by your insurance policy often depends on the circumstances that created it. According to the Insurance Information Institute (III), mold usually isn’t covered unless it’s caused by a covered peril, such as a burst pipe. Even then, coverage isn’t guaranteed. The best way to determine if your homeowners insurance policy covers mold is by thoroughly reviewing your insurance agreement or contacting your insurer.
Homeowners insurance is not tax-deductible if the policy is for your primary residence, according to the IRS. However, you can take a tax deduction for home insurance policies on any rental properties you may own. You may also be able to deduct a percentage of your home insurance premiums if you work full-time from a dedicated home office, depending on your policy. Likewise, you may also be able to take a tax deduction if you have a roommate or tenant on your property.
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Homeowners Insurance Companies
Other Ratings From 360 Reviews
The following describes our 360 approach to researching and analyzing homeowners insurance companies to guide prospective consumers.
1. We researched the companies and products people care most about.
U.S. News analyzed and compared a variety of publicly available data, including internet search data, to determine which homeowners insurance companies and agencies Americans are most interested in. We found 15 homeowners insurance companies and agencies that stand out in terms of volume of searches and research among consumers, as well as across the different rating sources.
We then compared the available homeowners insurance companies and agencies across several criteria, including standard cost, dwelling and structure coverage, identity theft protection, valuable possessions coverage, and available discounts. Research shows that these are the most important criteria for people shopping for a homeowners insurance company.
2. We created objective 360 Overall Ratings based on an analysis of third-party reviews.
U.S. News’ 360 Reviews team applied an unbiased methodology that includes opinions from professional reviews as well as consumer reviews.
Our scoring methodology is based on a composite analysis of the ratings and reviews published by credible third-party professional and consumer review sources. The ratings are not based on personal opinions or experiences of U.S. News. To calculate the ratings:
(a) We compiled two types of third-party ratings and reviews:
- Professional Ratings and Reviews. Many independent homeowners insurance evaluating sources have published their assessments of homeowners insurance companies and agencies and their policies online. We consider several of these third-party reviews to be reputable and well-researched. However, professional reviewers often make recommendations that contradict one another. Rather than relying on a single source, U.S. News believes consumers benefit most when these opinions and recommendations are considered and analyzed collectively with an objective, consensus-based methodology.
- Consumer Ratings and Reviews. U.S. News also reviewed published consumer ratings and reviews of homeowners insurance providers. Sources with a sufficient number of quality consumer ratings and reviews were included in our scoring model.
Please note that not all professional and consumer rating sources met our criteria for objectivity. Therefore, some sources were excluded from our model.
(b) We standardized the inputs to create a common scale.
The third-party review source data were collected in a variety of forms, including ratings, recommendations, and accolades. Before including each third-party data point into our scoring equation, we had to standardize it so that it could be compared accurately with data points from other review sources. We used the scoring methodology described below to convert these systems to a comparable scale.
The 360 scoring process first converted each third-party rating into a common 0 to 5 scale. To balance the distribution of scores within each source’s scale, we used a standard deviation (or Z-Score) calculation to determine how each company and agency’s score compared to the source’s mean score. We then used the Z-Score to create a standardized U.S. News score using the method outlined below:
- Calculating the Z-Score: The Z-Score represents a data point’s relation to the mean measurement of the data set. The Z-Score is negative when the data point is below the mean and positive when it’s above the mean; a Z-Score of 0 means it’s equal to the mean. To determine the Z-Score for each third-party rating of a company or agency, we calculated the mean of the ratings across all companies evaluated by that third-party source. We then subtracted the mean from the company’s rating and divided it by the standard deviation to produce the Z-Score.
- Calculating the T-Score: We used a T-Score calculation to convert the Z-Score to a 0-100 scale by multiplying the Z-Score by 10. To ensure that the mean was equal across all data points, we added our desired scoring mean (between 0 and 10) to the T-Score to create an adjusted T-Score.
- Calculating the common-scale rating: We divided the adjusted T-Score, which is on a 100-point scale, by 20 to convert the third-party rating to a common 0-5 point system.
(c) We calculated the 360 Overall Score based on a weighted-average model.
We assigned “source weights” to each source used in the consensus scoring model based on our assessment of how much the source is trusted and recognized by consumers and how much its published review process indicates that it is both comprehensive and editorially independent. The source weights are assigned on a 1-5 scale. Any source with an assigned weight less than two was excluded from the consensus scoring model.
Finally, we combined the converted third-party data points using a weighted average formula based on source weight. This formula calculated the consensus score for each product, which we call the 360 Overall Rating.
U.S. News 360 Reviews takes an unbiased approach to our recommendations. When you use our links to buy products, we may earn a commission but that in no way affects our editorial independence.