By Dan Simms
Updated Jan 12, 2023
By Dan Simms
Updated Jan 12, 2023
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Purchasing homeowners insurance is an overwhelming task for most people. Whether you just closed on your first house and are looking for homeowners insurance for the first time or you’re a longtime homeowner who wants to supplement coverage on an aging home, this guide can help make your job easier.
Looking to invest in homeowners insurance? Contact any of the providers below to start your process for coverage.
Below is a quick list of our top-rated providers for homeowners insurance. We’ll follow that with a brief chart that provides key information for each company.
The chart below provides a quick look at the five best homeowners insurance providers.
|Lemonade||State Farm||Nationwide||Liberty Mutual||Geico||Allstate|
|Compare Quotes||Click for Quote||Click for Quote||Click for Quote||Click for Quote||Click for Quote||Click for Quote|
|Average Monthly Premium||$116||$113||$89||$92||$77||$112|
|Average Annual Premium||$1,400||$1,360||$1,067||$1,104||$921||$1,349|
|Savings vs. Average||$150||$-88||$205||$168||$351||$-77|
|J.D. Power Score||870||829||816||805||N/A||815|
|House Method Star Rating||4.8||4.6||4.5||4.6||4.6||4.5|
|A.M Best Rating||NR||A++||A+||A||A++||A+|
We primarily chose Lemonade as one of the best home insurance providers because of how fast the claims process is. All claims filing is online, so you can submit a claim through the Lemonade mobile app and get a response and resolution quickly. Artificial intelligence (AI) takes the first notice of loss for 96% of claims, enabling Lemonade to pay out claims fast—sometimes within mere seconds. This is much faster than the industry average of between 15 and 30 days.
However, since it’s focused on its mobile presence, it doesn’t have the same personal feel you’d get from other companies. This could be a benefit or drawback, depending on what kind of service you’re looking for from your insurance provider.
Lemonade is one of the youngest of the larger national companies for homeowners insurance. It was founded in 2015 but quickly gained traction in large part because of the entirely-online quoting process, the affordability, and the ease with which customers can file claims and make changes to their policies. Lemonade is available in all 50 states, plus Washington, D.C. It has a robust online platform that’s easy to access no matter where you live.
The average policy from Lemonade costs around $1,122 per year, which comes out to $94 per month. This is just over $325 cheaper than the industry average. The company also offers discounts for bundling and for safety upgrades to your home.
State Farm is one of the largest and most well-respected insurance companies in the U.S., offering extensive coverage to homeowners in all 50 states. The company offers more comprehensive coverage than its competitors for no additional cost, making it an outstanding value proposition for people looking for increased protection.
State Farm’s large network of agents makes it easy to get a quote from the company virtually anywhere in the country, reducing the hassle and lengthy quoting process you’ll find from smaller companies. Unfortunately, the company’s convenient online quote system is not available in all 50 states, so you’ll have to get a quote the old-fashioned way by making a phone call if online quotes are unavailable in your region.
Below are some upsides and downsides of getting your homeowners insurance from State Farm.
State Farm’s average annual premium is approximately $1,360, above the national average of $1,272. However, we believe the extra coverage you get and dependable service make it worth the slightly elevated cost. Bear in mind that your annual premium will vary depending on where you live. In general, State Farm’s home insurance rates are slightly above-average, independent of region.
Nationwide is a giant in the insurance industry with an impressive selection of homeowners insurance, auto insurance, and life insurance policies aimed at the average person. The company offers an impressive range of discounts, including multi-policy discounts, a new homeowner discount for recent home buyers, discounts for extended periods without making claims, and a host of others.
The company strikes a rare balance between offering affordable policies without sacrificing coverage by leaving some options out of their standard plans. While this can be a disadvantage for customers looking for specialty coverage, it makes its policies more affordable for basic plans.
Unfortunately, as of this writing, Nationwide is unavailable in Alaska, Hawaii, New Mexico, Louisiana, Florida, New Jersey, and Massachusetts.
Nationwide consistently gets outstanding customer reviews, as indicated by its high J.D. Power ratings. The company also has a solid A+ rating from AM Best, so its financial strength is not an issue. Nationwide’s excellent track record, combined with its solid standard policies and a wide variety of add-ons, make it a great choice for most homeowners — especially those on a tight budget.
Nationwide’s annual cost is around $1,065, $205 below the national average cost of homeowners insurance.
Liberty Mutual has been providing outstanding insurance to Americans since 1912. With over 100 years in business, Liberty Mutual’s consistently high rankings in J.D. Power studies make it one of the most dependable insurance providers in the country for people looking for standard HO-3 policies.
The company is not quite as affordable as Nationwide overall, but its rates are competitive with most of its competition in most places throughout the country. It also gives its customers plenty of opportunities for discounts, including savings for shopping online, multi-policy discounts, and discounts for new homeowners.
Liberty Mutual offers an impressive level of coverage in its standard plans, but the company really shines when it comes to endorsements. You can supplement Liberty Mutual’s standard coverage options with a host of endorsements that make it easy to protect yourself from anything that might keep you up at night.
Liberty Mutual is not the best option for you if you own a high-risk dog since the company has a lengthy list of banned breeds. It also has fewer deductible options compared to other companies, making it slightly more difficult to find a suitable plan for some people. Despite these shortcomings, Liberty Mutual’s outstanding 100-year track record, responsive customer service, and lineup of affordable coverage options make it one of the best overall home insurance providers.
Most people know that Geico is a major car insurance company — thanks to its wildly successful advertising campaigns — but comparatively, few realize that Geico is also a key player in home insurance. Geico homeowners insurance is different from the other companies on our list because they broker their home insurance to other companies. While this might give some potential customers pause, it’s a great way to save some money, especially if you already have Geico’s auto insurance.
Geico’s home insurance model features affordable base policies that customers can customize with an extensive array of optional add-ons. While this approach might not be everyone’s cup of tea, it is designed to help keep home insurance affordable, making it easier for some people to afford quality homeowners insurance.
Unfortunately, Geico’s homeowner’s insurance customer service is spotty at best, with customer reviews ranging anywhere from just ok to a huge pain to deal with. If you’re looking for high-end customer support, you’ll have to look elsewhere, but Geico’s unbeatable prices are a good enough reason to deal with occasionally subpar service for many people.
Geico hangs its hat on being an affordable option for homeowners insurance, with its customers saving approximately $350 per year compared to the average homeowner.
Allstate is another industry giant, and we’re willing to bet it’s one of the first names that comes to mind when you think about homeowners insurance. The company has been in business since 1931, giving it nearly a century of experience protecting people’s homes, and its outstanding J.D. Power score and AM Best ranking are a testament to its continued dedication to quality and health as a business.
One of the best aspects of Allstate’s coverage is its Claim RateGuard, which guarantees that your premium won’t increase when you file a claim. Many insurance companies raise your premiums when you file claims to offset their costs, making coverage less affordable than your initial quote would suggest.
Allstate’s policies are solid, offering standard coverage at reasonable — albeit slightly higher-than-average — prices. It also offers a nice selection of discounts, including bundling discounts and incentives for maintaining an environmentally friendly home.
Allstate’s standard policies cost an average of $1,349 per year. This comes out to approximately $112 per month.
Finding the best homeowners insurance policy to protect your home is a daunting task. It can seem overwhelming to sift through the nearly endless combinations, but the following tips will help you break the problem down into easily digestible chunks.
You’ll never find the best homeowners insurance policy if you don’t know what you want, so take the time to think carefully about what coverage you need. The right level of coverage for you depends on where you live, your risk tolerance, the value of the assets you want to be covered, and your income.
If you’re risk averse, you might want to consider a policy from a company that includes more coverage in their standard plans. Having more coverage without needing to add lots of endorsements to your plan is easier to manage and provides greater peace of mind than rolling the dice with a less comprehensive policy or adding extra options a la carte.
We recommend erring on the side of caution since home insurance coverage is cheap compared to the exorbitant costs of repairing your home or replacing your belongings if the worst comes to pass. A few extra dollars per month goes a long way towards helping you rebuild your life after disaster strikes without going bankrupt due to rebuilding costs.
Once you know what you’re looking for in terms of coverage, it’s time to shop around and compare quotes. You might be surprised to learn that different insurance companies offer significantly different quotes, so don’t assume that a quote from one company will be indicative of the rest.
Luckily, comparing home insurance quotes is easier these days through the power of the internet. Most companies offer online quotes, although there are generally restrictions. At the very least, it’s possible to schedule an in-person quote on virtually every insurance company’s website, even if you can’t receive an online quote directly.
Even though it’s best to purchase a policy that includes all the coverage you want, sometimes that’s not possible. Extra coverage for things like earthquakes and hurricanes is often only available as an endorsement.
Depending on what kind of additional coverage you’re thinking about, it’s usually not a difficult decision; skimping on earthquake coverage if you live in California or not purchasing hurricane coverage if you live on one of Florida’s coasts is just asking for trouble.
Discounts and bundles are the bread and butter of home insurance companies’ sales tactics, and competition between providers drives many of them to offer excellent deals for customers. Many homeowners insurance companies offer other forms of insurance — mostly auto insurance and life insurance — and offer multi-policy discounts for any customers who purchase more than one plan.
As bundling home and auto insurance becomes less popular, some companies are doubling down in an attempt to retain their customers and attract new ones, giving people shopping for coverage an excellent opportunity to save some money. Make sure to take your time reading a company’s website before contacting them so that you’re prepared to take full advantage of the deals they offer and get the best quote possible.
J.D. Power ranks the best insurance companies based on customer satisfaction, making it easy to tell at a glance which companies are viewed the most favorably by their customers. The methodology is proprietary, but the J.D Power score encompasses a blend of factors, including customer interaction rate, the policies a company offers, the average cost of coverage, the billing process, and how many claims are filed.
You can view the J.D. Power list to see how the most popular homeowners insurance companies stack up against each other.
Independent reviews of home insurance companies are also available in various places across the internet. While you shouldn’t base your entire decision on anonymous reviews written by strangers on the internet, you can use online reviews to get a sense of how current customers feel about their insurance provider. Reading customer reviews is especially helpful for getting the inside scoop on your local branch since the customer experience varies substantially depending on the quality of the local agents.
Keep in mind that online reviews often skew towards the negative since people who run into problems are more likely to post a review than people who don’t. Still, reviews are a helpful tool you can leverage to get an inside look at how an insurance provider treats its customers.
One of the biggest decisions you can make when choosing a homeowners insurance provider is whether you prefer a national company or a small, local one. National companies usually offer better rates, 24/7 support, and have tons of offices, making them more convenient to deal with when you need to file a claim. However, they’re also less likely to provide personalized recommendations, instead opting to cover you with a cookie-cutter policy designed for the average person.
On the other hand, choosing a smaller insurance company will often cost you more, but the coverage and customer service you receive will be more tailored to your needs. Small companies usually assign their customers a personal agent who knows the area, and they’re more likely to offer flexible policies designed to address local risks.
Remember that small insurance companies don’t have the same resources available, so you might not be able to file a claim online or contact an agent outside of regular business hours. Whether you prefer doing business with a small, local provider or a national behemoth is up to you; there’s no right answer.
If you’re a new homeowner looking to purchase homeowners insurance for the first time, you might not know what home insurance usually covers. Here’s a brief overview of the most common types of coverage you get from most companies’ standard HO-3 policies.
There are eight types of homeowners insurance policies, imaginatively named HO-1 through HO-8. The policies cover different types of properties and different circumstances, like renting or condo living. Here’s a quick look at each type of policy.
This is the most basic form of homeowners insurance, covering the fewest forms of damage to only your home’s primary structure. The coverage provided by HO-1 policies is typically limited to damage resulting from the below issues:
Due to the limited nature of coverage provided by HO-1 policies, they’re extremely uncommon these days. The list of covered items — usually called perils in insurance parlance — is very restrictive, and the insurance company will only pay the policyholder the actual cash value of the damaged items — minus depreciation — if the damage was caused by one of the named items.
This level of coverage is sometimes called broad-form coverage. It includes property damage coverage from HO-1 policies but also covers personal items and sometimes liability. It also adds several situations, including:
HO-3 policies are the most common type of homeowners insurance. They typically cover your home, personal belongings, personal liability, and loss of use costs. HO-3 policies are what most people refer to as standard homeowners insurance, so it’s a safe bet to assume that’s what someone means if they say homeowners insurance without specifying a particular type.
As the most common type of homeowners insurance for single-family homes, there can be a lot of variation between policies from different insurance companies, so it’s difficult to make sweeping generalizations that apply in all circumstances. The begging of this section already discussed the coverage you get from HO-3 policies, and you should consult your insurance provider for more specific information about your coverage.
Most people know HO-4 homeowners insurance as renters insurance. HO-4 policies cover personal belongings, liability, and living expenses from qualifying circumstances but don’t offer any coverage for the building’s structure. This makes them perfect for renters who don’t own the building they live in and who are not responsible for making building repairs.
HO-5 policies are the most comprehensive policies, offering the most coverage with the fewest exclusions of any type of homeowners insurance. They cover everything from the previous levels and provide higher coverage limits designed to protect expensive items like jewelry. As such, HO-5 policies are much more expensive than HO-3 policies, making them suitable for people with high-value items but too expensive for most homeowners.
Even though HO-5 coverage is extensive, there are a few exclusions, including the below:
HO-6 policies are meant for condo owners. Most HO-6 policies cover personal items, liability, loss of use, and damage to interior walls, which is usually the responsibility of the unit owner.
HO-7 insurance is for RVs, trailer homes, mobile homes, and modular homes. Most HO-7 policies cover your home’s structure, your personal belongings, personal liability, and loss of use.
The final type of homeowners insurance is for “architecturally significant” homes, such as landmarks and historic sites. These properties tend to have much higher values than ordinary homes with irreplaceable items inside, requiring more expensive coverage than an HO-3 or HO-5 plan can provide.
Certain circumstances make it slightly more challenging to navigate the confusing homeowners’ insurance landscape. The following sections are designed to help you deal with some of the more challenging situations that make it more difficult than normal to find the right homeowners insurance policy.
If you’re a first-time homeowner, you should be aware that you need to have homeowners insurance before you close. Your lender will require proof of insurance before they risk their capital on purchasing your home and providing you with a mortgage. You will also have to maintain homeowners insurance until you pay off your mortgage.
In general, the earlier in the home buying process you start shopping for homeowners insurance, the better. Most people start seriously looking for home insurance once they have an accepted offer, but you can start even earlier while you’re still making offers. This makes it easier to find the best combination of coverage and cost for your needs since you have more time to compare homeowners insurance quotes from different companies. It also gives you a chance to learn firsthand how premiums change from one home to another since you can ask for quotes for multiple properties.
Luckily, many insurance companies offer first-time home buyer discounts, making it slightly more affordable for new homeowners to purchase insurance. Make sure to take advantage of these offers if they’re available in your area since they can make a significant difference to your monthly cost.
Insurance is all about balancing risk and reward, and, unfortunately, if your home is in a high-risk location, you’re going to have to pay more for homeowners insurance. Homes in areas prone to natural disasters like tornadoes, hurricanes, wildfires, and earthquakes are more likely to experience catastrophic damage than regions without such environmental risks.
Even if your quotes are higher than the national average, you should still get quotes from as many different providers as possible since you might be able to find a better deal from a different company.
Certain kinds of pets can increase your homeowners insurance premiums since insurance companies view them as an additional risk. High-risk dog breeds like Rottweilers, Doberman Pinschers, and Pitbulls are often banned by insurance companies, making it difficult for people who own these dogs to find coverage. The average dog bite insurance claim is around $45,000, according to the Insurance Information Institute.
If you’re having trouble finding an insurance company to cover you due to a banned dog breed, State Farm is well-known for covering families with high-risk animals. State Farm chooses to use an individual dog’s history to determine whether or not to provide coverage instead of making sweeping generalizations based on its breed alone.
Other insurance companies might not deny you coverage for owning a high-risk dog but will evaluate dog-related claims on a case-by-case basis. While this type of coverage might seem attractive if you’re having trouble finding coverage, bear in mind that it puts you at risk of incurring hefty costs if your dog bites someone or causes an injury on your property.
Having a low credit score can be a blocker when you’re looking for homeowners insurance, but there are ways to make yourself a more attractive candidate. Customers with low credit scores tend to file more claims, according to a study from the Insurance Information Institute.
The best way to find an affordable home insurance policy when you have low credit is to compare quotes, take advantage of discounts, and improve your credit score — if you have time.
Comparing quotes and using insurance discounts is generally good practice when purchasing any kind of insurance, but improving your credit score will make the biggest difference to your yearly premium if you have the time to make some changes. You can improve your credit score by lowering your credit utilization ratio, paying off old debts first, and making payments on time.
If you’re having trouble finding affordable homeowners insurance due to poor credit, consider whether you’re ready to buy a home.
Residents of California, Maryland, and Massachusetts with low credit scores are in luck because it is illegal to use credit scores as criteria for homeowners insurance in those states.
Having an older home can also make it difficult to find affordable homeowners insurance. Older homes are more prone to having problems, making them riskier for companies to insure.
Unfortunately, there’s not much you can do to lower your monthly premiums besides proving that you keep your home well-maintained. If you’re looking for coverage for a home that’s more than 40 years old, be prepared to pay higher premiums.
Some people who own older homes may be able to get coverage through an HO-8 policy, which is usually less expensive but covers fewer perils and have lower coverage limits. You should speak with your representative during your quote to determine whether an HO-8 policy is an option for you.
You might not be able to get the level of coverage you desire from an HO-3 if you own high-value items like jewelry, antiques, or artwork. HO-5 policies are designed to cover expensive items and are the best plans for protecting your valuables. Make sure you understand a plan’s coverage limits and covered perils before you make a decision since HO-5 policies can vary a lot from one provider to another.
Finding the best homeowners insurance providers in your state is mostly a matter of comparing rates and shopping around. We recommend giving yourself a head start by asking friends and family which companies provide their homeowners insurance and using their answers as a starting point for your own research.
Once you have a few quotes in hand, you can use the tables in this study by the Insurance Information Institute to see how your quotes compare to the averages in your state. Keep in mind that there might be local factors that skew your quotes away from the statewide average, especially if you live in a larger state.
Ranking homeowners insurance companies is a difficult task that requires weighing many different factors, synthesizing that information, and ultimately distilling it down to a single number. There are many ways to approach such a complicated problem, but we choose to be as quantitative as possible when creating our ranking.
We ranked the country’s major homeowners insurance providers based on the number of policies they offer, the average cost of standard coverage, what discounts they offer, and their customer review ratings from several independent review sites. We then considered external ratings from J.D. Power’s recent studies as another data point measuring customer satisfaction and ratings from AM Best to assess each company’s financial health.
The final results are reflected in our scores and reviews above. While we try our best to be as thorough and unbiased as possible when crafting insurance reviews, we also realize that there is no objective best homeowners insurance company. Every homeowner’s situation is different, and a policy that checks all the boxes for one person may be woefully inadequate for another.
Purchasing a homeowners insurance policy is a relatively straightforward process, even though deciding on what policy is best for you can be paralyzing. In general, purchasing a home insurance policy typically goes like this:
So now that you have homeowners insurance, what do you do when you need to file a claim? While the process of filing a claim will differ slightly depending on your insurance provider, the steps are generally as follows:
After much analysis, we believe that State Farm provides the best homeowners insurance for most people. The company provides excellent standard coverage at a reasonable price and boasts outstanding ratings from J.D. Power and AM Best, making it an extremely solid and reliable option.
If you are willing to sacrifice a little in the way of customer satisfaction for a slightly fatter wallet, Nationwide also provides outstanding coverage at a more affordable price. While Nationwide’s recent ratings from J.D. Power and AM Best aren’t quite on par with state farm, the company is one of the most well-respected and dependable insurers in the country.
You can’t go wrong with any of the companies on this list, and some companies that did not make the cut offer competitive homeowners insurance. If you’re shopping for homeowners insurance and aren’t in a hurry, it’s worth your time to consider each company on this list, along with honorable mentions Erie, Chubb, and Amica. Contact any of the providers below to get coverage for your home.
According to the most recent J.D. Power study, USAA has the highest customer satisfaction, followed closely by Amica Mutual and American Family. While these ratings aren’t the final word on customer satisfaction, they’re generally regarded as a reliable barometer of a company’s reputation.
USAA is only available for military members and their families, so it’s not an option for most people. If it is an option for you, it’s worth a look because it also offers tons of discounts for bundling and unique discounts like lower premiums for customers with ADT home security systems.
Customer reviews from independent sources online suggest that Nationwide, Liberty Mutual, and State Farm also have above-average levels of customer satisfaction.
A home insurance deductible is the amount your insurance company requires you to pay out of pocket before your coverage kicks in. Policies with higher deductibles usually have lower monthly premiums, while plans with low deductibles cost more since the insurance company has to pay more when you experience a covered event.
HO-3 insurance is the most common homeowners insurance, covering your home’s structure, personal items, liability, and loss of use. It’s what most people mean when they say “homeowners insurance” without qualifying what type they mean.
Other common types of home insurance are HO-5 for high-value items, HO-8 for older homes, and HO-4 for renters.
While homeowners insurance is not required by law, everyone who is purchasing a home via a mortgage loan is required to have homeowners insurance by their lender. Mortgage lenders are putting capital at risk when they lend home buyers money, so they protect their investments by requiring homeowners have insurance policies to help pay for repairs in the event of damage to their homes.
What coverage amount is required varies slightly between lenders and regions, so you’ll have to check with lenders in your area for more specific details.
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