A homeowners insurance policy protects you from having to pay unexpected repair or replacement costs out of pocket when an event damages your home or personal belongings, or when you’re responsible for bodily injury or property damage to someone else.
To help you compare home insurance providers, the This Old House Reviews Team created a guide that walks you through the best homeowners insurance companies available nationwide.
8 Best Homeowners Insurance Companies
After in-depth research, our review team has found that these are some of the best homeowners insurance companies available today:
- Lemonade: Best Overall
- Liberty Mutual: Best Discounts
- Allstate: Best Coverage Options
- Travelers: Most Experience
- Amica: Best Customer Service
- State Farm: Best Endorsements
- USAA: Best Membership Perks
- Farmers: Most Customizable Coverage
Lemonade: Best Overall Home Insurance
Though Lemonade is relatively new to the home insurance industry, the company has strived to create a unique insurance experience for customers. Some ways the company does this is by offering individual endorsements for jewelry, fine art, bikes, cameras, and musical instruments, and allowing you to determine how much coverage you want for each valuable item.
The company also strives to create a great experience for policyholders through its easy-to-use mobile app. Signing up for a policy takes just a minute and a half, and claims submitted through the app are often paid out within three minutes.
Pros & Cons
✔ Offers endorsements for valuable items
✔ Has a Giveback program that donates unused policy money to charities
✔ Signing up takes 90 seconds through the mobile app and most claims are paid instantl
✔ Features discounts for alarm systems, building frame type, gated communities, and fire protection
✘ No physical locations
Learn More: Lemonade Home Insurance Review
Liberty Mutual: Best Discounts
Liberty Mutual has been providing affordable home insurance to customers for over 100 years.
The company is able to keep its policies affordable because of its variety of discount opportunities for things like bundling, new homebuyer, paperless billing, early shopping, and even up to 10% just for purchasing online. This provider is ideal for anyone looking to maximize savings through available discounts.
Pros & Cons
✔ Offers a variety of discounts to lower the price of your premium
✔ Has over 100 years of experience in the insurance industry
✔Offers worthwhile unique endorsements such as mold coverage and sinkhole collapse
✘ Doesn’t include liability coverage for claims involving certain dog breeds
Learn More: Liberty Mutual Home Insurance Review
Allstate: Best for Coverage Options
Allstate has the best homeowners insurance in the industry because of its customer service, customizability, and affordability. While most insurance companies have a claims center open 24/7, but limited hours for policy, sales, and billing questions, Allstate has 24/7 customer service for all house insurance questions.
If you prefer self-service over talking to a customer service representative, you can use the online portal or mobile app to manage your policy and file a claim.
While dwelling, other structures, personal property, and loss of use coverage are determined by the rebuilding cost of your home, you get to choose your liability, medical payments to others, and deductible amounts.
You can also further customize your policy with more than 10 endorsement options, and, to keep premiums down, Allstate offers nine homeowner discounts.
Pros & Cons
✔ Provides 24/7 customer service for all claims, policy, billing, and sales questions
✔ Has a claim rate guard endorsement that won’t increase your premium if you file a claim
✔ Features discounts for multi-policy bundling, loyalty, green home improvements, and early sign-up
✘ Can be difficult to receive a hassle-free quote in some states, requiring contact with an agent
Learn More: Allstate Home Insurance Review
Travelers: Most Experience
Travelers is the oldest company in the home insurance industry, with more than 160 years of experience providing auto, home, and renters insurance products and services.
While its home insurance coverage options aren’t as extensive as Farmers home insurance, it still allows you to customize other structures, personal property, and loss of use protection. It’s a good choice if you’re looking for a reliable company that knows the ins-and-outs of the industry.
Pros & Cons
✔ Has over 160 years of experience providing insurance
✔ Offers a deductible of up to $50,000
✔ Provides up to $10,000 per person of medical payments to others coverage
✔ Features unique discounts for green homes and new homebuyers
✘ Does not have the option to insure mobile homes
Learn More: Travelers Home Insurance Review
Amica: Best Liability Coverage
Amica® offers the most liability options out of the providers in this review. While most companies offer between $100,000–$1 million worth of liability coverage, Amica’s minimum coverage option is at $25,000, giving policyholders a chance to lower their premium if they’re less worried about liability. It can also open up the opportunity for homeowners to affordably increase coverage in other categories.
Pros & Cons
✔ Offers liability coverage between $25,000–$1 million
✔ Has an endorsement for natural disasters called catastrophic coverages
✔ Provides a mobile app, online chat, and customer portal for self-service
✔ Features discounts for auto-pay, claim-free history, home renovations, and alarm systems
✘ Average premiums are typically higher than the national average
Learn More: Amica Home Insurance Review
State Farm: Best Endorsements
State Farm is one of the best home and auto insurance companies that offers just over 10 endorsements to help you customize your policy to fit your home protection needs. The company offers common endorsements such as water backup, full replacement cost, and earthquake insurance, along with unique ones like service line coverage, home systems protection, and personal injury coverage.
State Farm might be your pick if you’re looking to fine-tune your policy with additional coverage.
Pros & Cons
✔ Offers 11 endorsements to customize your policy
✔ Provides affordable coverage for homes that cost $400,000 or more to rebuild
✔ Connects customers to local agents from signup to policy management
✔ Features discounts for car insurance bundling, impact-resistant roofing, and home alert systems including smoke detectors
✘ Fewer discounts available than competitors
Learn More: State Farm Home Insurance Review
USAA: Best Membership Perks
USAA is available only to current or past military members and their immediate family members. If you’re eligible for USAA home insurance, you’ll receive perks like discounts on car rentals and ADT home security systems.
Another unique USAA feature is that base policies include three additional types of insurance coverage, while other home insurance companies require you to purchase add-ons for that type of protection. This company is a great place to start for anyone that qualifies for a membership.
Pros & Cons
✔ Offers a variety of membership perks, like USAA banking and shopping discounts
✔ Credit card and forgery, supplemental loss assessment, and business property coverage are included in base policies
✔ Features discounts for payment history, bundling, fire alarms, and home security services or features
✘ Only available for military service members and their families
Learn More: USAA Home Insurance Review
Farmers: Most Customizable Coverage
Farmers offers the most customizable homeowners insurance out of the providers in this review.
Most home insurance companies offer a set amount of other structures, personal property, and loss of use coverage based on your dwelling coverage amount, but Farmers allows you to decide how much protection you want for each area of coverage. This includes up to $2 million of liability coverage and more than 20 deductible options.
Pros & Cons
✔ Provides more dwelling, other structures, and personal property options than the other providers in this review
✔ Offers up to $2 million worth of liability coverage
✔ Features discounts for non-smoking policyholders, new homes, and roofing materials
✘ Policies can be on the expensive side compared with competitors
Learn More: Farmers Home Insurance Review
Which Is The Best Home Insurance Company for You?
While all of the providers in this review offer quality homeowners insurance, we recommend them each for different reasons. For example, Allstate is one of the best home and auto insurance choices for its comprehensive standard policies and excellent overall performance, Amica is unique for its low liability coverage options, and Lemonade offers unique features such as an easy signup tool and user-friendly mobile app.
Compare Top Homeowners Insurance Companies
|Unique Add-ons||Musical instruments, yard, and garden||Home business, catastrophic coverages||Unmarried significant other, swimming pool liability|
|Customer Service||24/7||24/7 for claims; limited for sales and service||Online chat and phone. Hours not specified|
|Other Structures Coverage Limits||10% of dwelling||10% of dwelling||10% of dwelling|
|Personal Property Coverage Limits||60% or 75% of dwelling||75% of dwelling||Up to 90% of dwelling|
*Based on quotes our team received for houses in Raleigh, North Carolina, and Pittsburgh, Pennsylvania
What Does Homeowners Insurance Cover?
Homeowners insurance policies typically include six areas of coverage—dwelling, other structures, personal property, loss of use, liability, and medical payments to others. The best homeowners insurance companies also offer additional endorsements to help you customize your policy.
Here’s a quick overview of the difference areas of insurance coverage:
- Dwelling Coverage: This coverage protects the structure of your home and covers parts like your interior walls, exterior walls, foundation, and cabinetry. Consider buying enough dwelling coverage to cover the cost of rebuilding your home as new.
- Coverage for Other Structures: This covers detached structures on your property like a garage, fence, or shed. It’s usually 10% of the dwelling coverage.
- Personal Property Coverage: This part of the policy protects the personal belongings in your home. If a covered event were to damage them, your provider pays to cover their depreciated value though an actual cash value policy or pays to cover new items with a replacement cash value policy. You usually get at least 50% of dwelling coverage for this type of protection.
- Loss of Use Coverage: If an event like a fire forces you out of your home for repairs, your policy will pay for any living expenses during that time. For example, if you usually spend $300 on food every month, but you spent $400 this month because you had to eat out for every meal, your provider will reimburse you for the $100 difference. This type of coverage is usually 20% of dwelling coverage.
- Liability Coverage: If you’re responsible for an accident that causes bodily injury or property damage to someone else, your policy will cover the cost. For example, if your dog bites a neighbor and they get stitches, your insurance provider will cover the costs. Insurance providers usually recommend purchasing at least $300,000 worth of this coverage.
- Coverage for Medical Payments to Others: If a guest is injured in your home, your policy will cover their medical bills. A standard amount of this coverage is $1,000 per person.
- Endorsements: Most companies offer at least one endorsement to make your policy more comprehensive. Common endorsements include coverage for identity theft expenses, earthquakes, valuable personal property, and water backup.
For your claim to be approved, the damage must be caused by a covered event. In an HO-3 policy, which is the type of home insurance policy most companies use, you’ll be protected from the following events:
- Sudden and accidental tearing apart, cracking, burning, or bulging
- Volcanic eruption
- Sudden and accidental damage from an artificially generated electrical current
- Frozen plumbing
- Damage from vehicles
- Damage from aircrafts
- Windstorm and hail
- Fire and lightning
- Civil commotion
- Falling objects
- Weight of snow, sleet, or ice
- Accidental discharge or overflow of water or steam
How Much Does Homeowners Insurance Cost?
According to the Insurance Information Institute, a home insurance policy cost $1,249 per year, or about $104 per month, in 2018.
The overall cost of your insurance premium will depend on the following factors:
- Claims history
- Credit score
- Cost to rebuild your home
- Square footage of your home
- Number and type of pets
- Proximity to a fire station and fire hydrant
- Level of susceptibility to natural disasters in your area
- Safety features in your home
How to Find the Best Homeowners Insurance
Before beginning your search for a homeowners insurance policy, ask yourself these questions:
1. How much does it cost to rebuild my home?
The rebuilding cost may be the most important factor of your homeowners insurance policy because it decides the amounts for four out of the six areas of coverage. You can find out how much it would cost to rebuild your home in one of three ways.
The first way is to use the estimate given to you by an insurance provider when requesting a quote from the company. After answering questions about your home, like what type of roof you have and how many bedrooms and bathrooms there are in the home, you’ll receive an estimate for how much it would cost to build the same home.
Your second option is to estimate the rebuilding cost yourself. You can do this by purchasing $100 to $155 worth of protection per square foot. Your last and best option is to talk to a local appraiser who has intimate knowledge of the real estate market in your area and will be able to give you an accurate estimate.
After determining the rebuilding cost of your home, you can use that number for dwelling coverage, and a percentage of that number will be used for other structures, personal property, and loss of use coverage.
2. Are there ways I can save on my policy?
Home insurance is more expensive than other insurance policies, like auto insurance and renters insurance. The best way to save money on your policy is to look for discounts. Many insurance companies offer discounts for bundling home and auto insurance, being claims-free, having home safety features, and setting up automatic payments. Check to see if you’re eligible for these discounts because, oftentimes, they can save you up to 25% on a policy.
You can compare home insurance discounts by getting quotes from a few providers and seeing what savings opportunities they offer you specifically.
Another way to save is to choose a higher deductible. When you choose a deductible higher than $1,000, the cost of your policy will decrease. This lowers the amount you pay each month in exchange for a higher deductible that you may or may not ever have to pay.
3. What kind of customer service experience do I want?
If you prefer to talk on the phone, choose a home insurance company that has 24/7 customer service or a claims center that’s open 24/7. If you like handling issues yourself, choose a company that has an online portal and mobile app.
4. Are there other events or items not in a homeowners insurance policy that I will need coverage for?
If there are certain areas of coverage that your policy lacks, you may want to consider endorsements or separate insurance policies. For example, if you have valuable belongings, you may want an endorsement that covers the full cost of those belongings. If you live in an area that’s susceptible to natural disasters, you may want to get an earthquake endorsement or separate flood insurance policy.
Best Homeowners Insurance FAQs
Is homeowners insurance required?
A homeowners insurance policy is not required by law. However, in almost all cases, lending institutions will require you to purchase a policy to receive a loan to buy a home. Check with your lending institution before purchasing a policy to make sure you meet its coverage requirements.
Who has the cheapest home insurance?
Amica, Lemonade, and Travelers gave us some of the most affordable home insurance quotes, coming in below the national average of about $101 per month. AAA and Geico are other home insurance providers not listed in this review that are relatively affordable compared to the industry average.
How does homeowners insurance work?
Most companies allow you to get a quote online or over the phone by providing information about you and your home. After getting your quote, you can purchase a policy and start coverage the following day.
When you cause bodily injury or property damage to someone, or a covered event damages your home or property, file a claim with your insurance provider immediately. You can do this over the phone, through a customer portal, or on the company’s mobile app. It usually takes 48 hours for the company to approve or deny your claim.
If your claim is approved, you pay your deductible and talk to the insurance agent assigned to your claim about the next steps to take.
What is not protected by homeowners insurance?
The list of events and items that aren’t covered by your homeowners insurance policy will depend on the type of policy you have and the company you buy from.
In general, home insurance policies won’t cover the following:
- Natural disasters
- Ordinance or law
- Nuclear hazard
- Intentional loss
- Governmental action
- Mischievous acts
- Water damage from flooding
Our Rating Methodology
The This Old House Reviews Team is committed to providing comprehensive and unbiased reviews to our readers. This means earning your trust through transparency and having the data to back up our ratings and recommendations.
With that in mind, we created an objective rating system to score each home insurance company. Here’s what that review process looked like:
- We analyze the information on each company’s website. This allows us to determine what products and services are offered by each home insurance provider.
- We get a sample quote from the companies by either talking to a sales representative or by using the online quote tool. This tells us what a policy looks like and costs.
- We test customer service by talking to a company representative, finding out their hours of operation, and determining what technological features are available for customers.
- We update all of this information on a continuous basis, storing it in a proprietary database that allows us to compare dozens of home insurance companies against each other.
With this data, we created a rating methodology to score each home insurance company. Our rating system is a weighted, 100-point scale based on the following factors:
- Coverage (30): We rated home insurance companies higher if they offered the six main types of homeowner protection—dwelling, other structures, personal property, loss of use, liability, and medical payments to others coverage.
- State availability (7.5): Companies scored higher if they covered more states than their competitors.
- Customer service (15): This factor is based on our communications with the company representatives, as well as the companies’ claims and quotes processes, availability throughout the week, and customer service information found on their websites.
- Technology (12.5): Technology can increase the efficiency of filing and tracking home insurance claims. Companies scored higher if they had technology options like mobile apps and online chat functions.
- Reputation (20): We gauged trustworthiness based on years of experience and Better Business Bureau ratings.
- Additional benefits (15): Companies that offered optional features, like discounts and endorsements, scored higher than competitors that didn’t.
The This Old House Reviews Team has a full-time researcher who collects and regularly updates data points from every company to help us compare them on key factors such as coverage, service, and dependability.
To share feedback or ask a question about this article, send a note to our Reviews Team at email@example.com.