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, our team created a guide that walks you through the best homeowners insurance companies available nationwide. We spent dozens of hours researching the providers listed below based on our in-depth review standards and methodology.
10 Best Homeowners Insurance Companies
To determine the best homeowners insurance companies, our research involved comparing plan costs, coverage amounts, endorsements, and available discounts before making our selections. We also did mystery shopping by calling providers to clarify our questions regarding coverage, discounts, and more.
Based on our findings, we recommend the following companies:
- Lemonade: Easiest Sign-Up
- Liberty Mutual: Best Discounts
- State Farm: Best Endorsements
- Nationwide: Best Standard Policy
- Allstate: Best Coverage Options
- USAA: Best Membership Perks
- Travelers: Most Experience
- Farmers: Most Customizable Coverage
- Amica: Best Customer Service
- Erie: Best Value
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 different 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. Additionally, if you’ve had features added to your house, such as having a solar company install panels on your roof, your home may require extra replacement cost coverage.
- Coverage for Other Structures: This covers detached structures on your property, such as 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 through 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 injures themselves 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.
Covered Perils
For your claim to be approved, a covered event must have caused the damage. With an HO-3 policy—the type of home insurance policy most companies use—you’ll be protected from the following events:
- Accidental discharge or overflow of water or steam
- Civil commotion
- Damage from aircrafts
- Damage from vehicles
- Explosion
- Falling objects
- Fire and lightning
- Frozen plumbing
- Smoke
- Sudden and accidental damage from an artificially-generated electrical current
- Sudden and accidental tearing apart, cracking, burning, or bulging
- Theft
- Vandalism
- Volcanic eruption
- Weight of snow, sleet, or ice
- Windstorm and hail
Finding the Best Homeowners Insurance Company for You
If You Are a First-Time Home Buyer
Knowing where to begin when you insure your first home can be challenging. We recommend purchasing home insurance once the home seller accepts your offer and the home is officially yours.
However, you can shop for a policy sooner, using the home’s details to see what home insurance risks it poses and to get an idea of coverage cost. Then, compare multiple quotes to ensure you chose the right provider. Some companies, such as Liberty Mutual, offer special discounts for new home buyers.
If You Live in an Older Home
Depending on your home’s age, you may have difficulty getting a traditional HO-3 policy. Instead, insurers may offer you a specialized policy with more limitations and exclusions.
We recommend working with an independent insurance agent if you live in an old or historic home. A professional can work closely with you and point you toward the right provider for your situation.
If You Live in a High-Risk Area
Finding the right insurer poses unique challenges if you live in a high-risk area that is more prone to natural disasters such as earthquakes or hurricanes. Work with an insurance agent to choose the right provider, policy, and additional coverage for your needs. You can also consult with people living in the area to determine which insurers could be a good fit.
If You Have a Banned Dog Breed
Insurers consider some dog breeds to pose a higher risk of acting aggressively and injuring other dogs or people. As a result, many home insurance companies have a list of banned breeds that they exclude from liability coverage.
Commonly banned dog breeds include the following:
- Akitas
- Chow chows
- Great Danes
- German Shepherds
- Huskies
- Pitbulls
- Rottweilers
If your dog is on this list or has a documented history of violence, your insurance company could restrict your coverage. As you shop for coverage, be honest about your pet and communicate with an insurance agent to ensure you get the best coverage possible.
If You Own Valuable Items
Personal property coverage has its limits. If you have high-value items such as jewelry or artwork, choose a provider that adequately covers them. Look for a plan that lets you increase your overall coverage amount or add a scheduled personal property rider to extend coverage on individual items.
Lemonade: Easiest Sign-Up
- J.D. Power Rating: N/A
- AM Best Rating*: NR
Though Lemonade is relatively new to the home insurance industry, the company has strived to create a unique customer insurance experience. The company offers individual endorsements for jewelry, fine art, bikes, cameras, and musical instruments. It also allows you to determine how much coverage you want for each valuable item.
Note that Lemonade doesn’t hold AM Best or JD Power ratings. However, it holds an A rating with Demotech
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 it pays out claims submitted through the app within three minutes.
Sample Quote: $1,073
Lemonade
Easiest Sign-Up
*AM Best ratings accurate as of August 2023
Liberty Mutual: Best Discounts
Liberty Mutual has been providing affordable home insurance to customers for over 100 years.
The company’s policies are affordable thanks to its variety of discount opportunities for bundling policies, being a new homebuyer, signing up for paperless billing, early shopping, and more. It even offers up to 10% just for purchasing online.
Policy discounts, however, may or may not be available based on your home’s location and personal information.
Liberty Mutual includes replacement cost value coverage within its standard policy. Most providers charge an additional fee for replacement cost coverage.
Sample Quote: $1,445
Liberty Mutual
Best Discounts
State Farm: Best Endorsements
State Farm is another reputable insurance provider focusing on policy customization. The company offers common endorsements such as water backup, full replacement cost, and earthquake insurance. It also offers unique endorsements, such as service line coverage, home systems protection, and personal injury coverage.
State Farm might be your pick if you want to fine-tune your policy with additional coverage.
Sample Quote: $1,057
State Farm
Best Endorsements
Nationwide: Best Standard Policy
Nationwide is a well-known provider with a solid financial strength rating from AM Best. Nationwide is best for individuals who want comprehensive coverage without a long list of add-ons. Nationwide typically charges higher premiums than other providers due to its extensive coverage.
Its standard policy includes coverage that most providers charge extra for. This includes ordinance of law coverage, which pays to get your home up to code during a rebuild or repair. It also provides some coverage for fraudulent credit and debit card transactions.
Sample Quote: $850
Nationwide
Most Inclusive Coverage
Allstate: Best Coverage Options
Allstate offers solid home protection coverage, customer service, customizability, and affordability. Most insurance companies have a claims center open 24/7 but limited hours for policy, sales, and billing questions. Allstate, however, has 24/7 customer service for all home 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 Allstate determines dwelling, other structures, personal property, and loss of use coverage by the rebuilding cost of your home, you get to choose your liability, medical payments to others, and deductible amounts.
You can further customize your policy with more than 10 endorsement options, and, to keep premiums down, Allstate offers nine homeowner discounts.
Sample Quote: $1,902
Allstate
Best Coverage Options
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, the provider includes additional perks alongside solid coverage. The perks include discounts on car rentals and ADT home security systems.
Another unique USAA feature is that base policies include three additional types of insurance coverage: credit card fraud protection, identity theft coverage, and inflation protection. Other home insurance companies require you to purchase add-ons for that type of protection.
Sample Quote: $1,033
USAA
Best Membership Perks
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 allows you to customize other structures, personal property, and loss of use protection. Therefore, it’s a good choice if you’re looking for a reliable company with coverage flexibility.
Sample Quote: $917
Travelers
Most Experience
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. Farmers, however, allows you to decide how much protection you want for each coverage area. This includes up to $2 million of liability coverage and more than 20 deductible options.
Sample Quote: $1,291
Farmers
Most Customizable Coverage
Amica: Best Customer Service
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 $25,000, giving policyholders a chance to lower their premium if they’re less worried about liability. This allows homeowners to increase coverage in other areas, such as personal property coverage.
Sample Quote: $2,624
Amica
Best Customer Service
Erie: Best Value
Erie is another popular home insurance company with high ratings for its financial strength and customer service. It’s worth considering if you live in one of the 12 states it serves or Washington, D.C.
Erie provides affordable home protection. However, its lack of available coverage in most states may not appeal to some homeowners. That said, Erie includes replacement cost reimbursement policies within its personal property and standard dwelling coverage. Other providers require you to pay extra for replacement cost policies.
Erie Insurance
Best Value
How To File a Homeowners Insurance Claim
Filing a home insurance claim is a simple process. Here are the steps you should take in the event of a claim:
- File a police report: If your claim is related to theft or vandalism, it’s crucial to start with a well-documented police report.
- Contact your insurer: It’s important to notify your insurance company of the claim immediately. Some companies allow you to file claims completely online. Your policy documents should specify how to file your claim.
- Make emergency repairs: To keep the damage from worsening, make temporary repairs, keep your receipts, and document everything with photos.
- Keep good records: Along those lines, make sure to document as much as possible if it’s related to the claim. Take photos and videos and evaluate the cost of stolen, damaged, or destroyed items.
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
What Is the Most Expensive State for Homeowners Insurance?
In the same report from III, Louisiana had the highest home insurance premiums at an average of $2,037 per year. This figure is more than $800 higher than the national average, which the III attributes to the state’s location and risk of weather-related perils.
What Is the Cheapest State for Homeowners Insurance?
Oregon had the lowest national average home insurance premiums at $727 per month. Oregon faces a significantly lower risk of storm damage than a state such as Louisiana, which translates to lower premiums.
Compare the Cost of Homeowners Insurance in Your State
Alabama | Alaska | Arizona | Arkansas | California | Colorado | Connecticut | Delaware | Florida | Georgia | Hawaii | Idaho | Illinois | Indiana | Iowa | Kansas | Kentucky | Louisiana | Maine | Maryland | Massachusetts | Michigan | Minnesota | Mississippi | Missouri | Montana | Nebraska | Nevada | New Hampshire | New Jersey | New Mexico | New York | North Carolina | North Dakota | Ohio | Oklahoma | Oregon | Pennsylvania | Rhode Island | South Carolina | South Dakota | Tennessee | Texas | Utah | Vermont | Virginia | Washington | West Virginia | Wisconsin | Wyoming
What Risks Do Homeowners Face?
Here are some of the biggest risks homeowners face, often resulting in home insurance claims:
- Water damage: Home insurance typically covers sudden, accidental water damage from a source inside your home, such as a busted pipe. It generally excludes flooding, preventable damage from unattended maintenance problems, and water backup.
- Wind damage: Between hurricanes, thunderstorms, and tornadoes, wind damage is a common cause of home insurance claims nationwide.
- Fire and lightning: Fire and lightning also account for many claims each year.
- Liability: While liability claims are less common, they do occur. If someone slips and breaks an ankle at your house, your home insurance policy could pay for medical fees or replace damaged personal property.
- Theft and vandalism: Homeowners are also at risk of theft and vandalism. To reduce this risk, you can protect your home with a home security system.
Comparing the Top Homeowners Insurance Providers
We highly recommend you obtain at least three quotes from the best homeowners insurance companies before choosing which provider and policy is best for your home.
Provider |
Sample Annual Premium |
Our Rating |
JD Power |
AM Best |
|---|---|---|---|---|
$1,073 |
4.2 |
N/A |
N/A |
|
$1,445 |
4.7 |
805/1000 |
A |
|
$1,057 |
4.8 |
829/1000 |
A++ |
|
$850 |
4.6 |
816/1000 |
A+ |
|
$1,902 |
4.9 |
815/1000 |
A+ |
|
$917 |
4.6 |
794/1000 |
A++ |
|
$1,291 |
4.7 |
792/1000 |
A |
|
$2,264 |
4.8 |
849/1000 |
A+ |
|
$1,033 |
4.7 |
884/1000 |
A++ |
|
N/A |
4.6 |
827/1000 |
A+ |
Quotes gathered using public data provided by the Texas Department of Insurance and the Office of Public Insurance Counsel for standard coverage on a 2,350 square foot single-family home in Pflugerville, TX with fire and burglar alarms.
Our Conclusion
To find the best home insurance company for you, use the tool below and compare homeowners insurance rates offered by several providers, or call 855-948-5219 to get quotes by phone.
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, Liberty Mutual offers a variety of attainable discounts and options to protect your policy against inflation, and Lemonade offers unique features such as an easy signup tool and user-friendly mobile app.
More Homeowners Insurance Resources
- What is Homeowners Insurance?
- Is Homeowners Insurance Required?
- How Much Homeowners Insurance Do I Need?
- How Can I Lower My Homeowners Insurance?
- Which Insurance Company is Best at Paying Claims?
- What Does Homeowners Insurance Cover?
- What is Loss of Use Coverage?
- Homeowners Insurance in Fire Prone Areas
- Is Earthquake Insurance Worth It?
FAQ About Homeowners Insurance
Our Rating Methodology
The This Old House Reviews Team backs up our ratings and recommendations with a detailed rating methodology that we use to objectively score each provider. We analyze online information, obtain a sample quote and policy structure, speak to a representative, research digital tools and technology, and review third-party ratings and customer reviews for each provider. We then score the provider against our review standards for coverage, availability, customer service, technology, reputation, and additional benefits to arrive at a final score on a 5-point rating scale.
To share feedback or ask a question about this article, send a note to our Reviews Team at reviews@thisoldhousereviews.com.
The ratings listed in this article are accurate as of July 2023.