Best Homeowners Insurance Companies (March 2023)

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.

To find the best homeowners insurance rates in your area, call 855-948-5219 or get an online quote using our free comparison tool.

After in-depth research, our review team has found that these are some of the best homeowners insurance companies available today:

• Lemonade: Our Overall Top Pick!
• 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

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. 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 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.

Covered Perils

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:

1. Sudden and accidental tearing apart, cracking, burning, or bulging
2. Volcanic eruption
3. Sudden and accidental damage from an artificially generated electrical current
4. Frozen plumbing
5. Theft
6. Smoke
7. Damage from vehicles
8. Damage from aircrafts
9. Vandalism
10. Windstorm and hail
11. Fire and lightning
12. Civil commotion
13. Falling objects
14. Weight of snow, sleet, or ice
15. Explosion
16. Accidental discharge or overflow of water or steam

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, coming in at an average of $2,037 per year. This figure is more than $800 higher than the national average and can be attributed to the state’s location and risk of weather-related perils.

What Is the Cheapest State for Homeowners Insurance?

Iowa had the lowest national average home insurance premiums at $913 per month. Iowa faces a significantly lower risk of storm damage than a state such as Louisiana, which translated to lower premiums.

Compare The Cost of Homeowners Insurance in Your State

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We highly recommend that you obtain at least three quotes from the best homeowners insurance companies before choosing which provider and policy is best for your home.

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.

To find the best home insurance company for you, use the tool below and compare homeowners insurance rates offered from 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.

Lemonade: Easiest Sign-Up

• J.D. Power Rating: N/A
• A.M. Best Rating: N/A

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.

Sample Quote: $1,073

Get Your Free Home Insurance Quote: Lemonade Home Insurance Quotes

Learn More: Lemonade Homeowners Insurance Review

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*A.M. Best ratings accurate as of February 2023

Liberty Mutual: Best Discounts

• J.D. Power Rating: 805/1000
• A.M. Best Rating: A

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.

Sample Quote: $1,445

Get Your Free Home Insurance Quote: Liberty Mutual Home Insurance Quote

Learn More: Liberty Mutual Homeowners Insurance Review

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State Farm: Best Endorsements

• J.D. Power Rating: 829/1000
• A.M. Best Rating: A++

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.

Sample Quote: $1,057

Get Your Free Home Insurance Quote: call 1-360-262-2561

Learn More: State Farm Homeowners Insurance Review

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Nationwide: Best Standard Policy

• J.D. Power Rating: 816/1000
• A.M. Best Rating: A+

Nationwide is a well-known provider with a solid financial strength rating from AM Best. The company offers a full suite of financial products, including home and renters coverage. Nationwide is best for individuals who want comprehensive coverage without having to purchase a long list of add-ons.

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

Get Your Free Home Insurance Quote: call 1-360-262-2561

Learn More: Nationwide Homeowners Insurance Review

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Allstate: Best Coverage Options

• J.D. Power Rating: 815/1000
• A.M. Best Rating: A+

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.

Sample Quote: $1,902

Learn More: Allstate Homeowners Insurance Review

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USAA: Best Membership Perks

• J.D. Power Rating: 884/1000
• A.M. Best Rating: A++

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.

Sample Quote: $1,033

Learn More: USAA Homeowners Insurance Review

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Travelers: Most Experience

• J.D. Power Rating: 794/1000
• A.M. Best Rating: A++

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.

Sample Quote: $917

Get Your Free Home Insurance Quote: Travelers Home Insurance Quote

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Farmers: Most Customizable Coverage

• J.D. Power Rating: 792/1000
• A.M. Best Rating: A

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.

Sample Quote: $1,291

Get Your Free Home Insurance Quote: Farmers Home Insurance Quote

Learn More: Farmers Homeowners Insurance Review

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Amica: Best Customer Service

• J.D. Power Rating: 849/1000
• A.M. Best Rating: A+

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.

Sample Quote: $2,624

Learn More: Amica Homeowners Insurance Review

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Erie: Best Value

• J.D. Power Rating: 827/1000
• A.M. Best Rating: A+

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 did well across our review standards and stood out most for its affordability. The company consistently offers lower rates than most competitors in the industry.

Learn More: Erie Homeowners Insurance Review

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Filing a home insurance claim is a simple process. Here are the steps you should take in the event of a claim:

1. File a police report: If your claim is related to theft or vandalism, it’s crucial to start with a well-documented police report.
2. Contact your insurer: It’s important to notify your insurance company of the claim right away. Some companies allow you to file claims completely online. Your policy documents should specify how to file your claim.
3. Make emergency repairs: To keep the damage from getting worse, make temporary repairs, keep your receipts, and document everything with photos.
4. 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.

Here are some of the biggest risks homeowners face, which often result 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 a significant number of 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. You can protect your home with a home security system to reduce this risk.

If You Are a First-Time Home Buyer

Knowing where to begin when you insure your first home can be challenging. You should purchase home insurance once your offer has been accepted 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. 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 a hard time 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 towards the right provider for your specific situation.

If You Live in a High-Risk Area

If you live in a high-risk area that is more prone to natural disasters such as earthquakes or hurricanes, finding the right insurer poses its own unique challenges. Work with an insurance agent to choose the right provider, policy, and additional coverage for your needs. You can also consult with other people who live 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. Many home insurance companies have a list of banned breeds that they exclude from liability coverage.

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 will adequately cover 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.

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?

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 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)
• State availability (7.5)
• Customer service (15)
• Technology (12.5)
• Reputation (20)
• Additional benefits (15)

To share feedback or ask a question about this article, send a note to our Reviews Team at reviews@thisoldhousereviews.com.

Ratings listed in this article are accurate as of December 2023.

A.M. Best Disclaimer