Price isn’t the only consideration when shopping for homeowners insurance. You must also consider the insurer’s ability to pay claims, the quality of coverage, and level of customer care a provider offers.
When searching for home insurance, consider the level of coverage a company offers in its standard policy, along with optional coverages and discounts. To compile our list of the best homeowners insurance companies, we looked for providers that offer the best combination of financial stability, coverage, customer support, and price.
Best Homeowners Insurance Companies
- Amica – Best discounts
- Erie – Best personal property coverage
- Nationwide – Best standard coverages
- Progressive – Best rates
- USAA – Best for military members
|JD Power Home Insurance Study||AM Best Financial Strength Rating||Average Cost|
|Amica||5 out of 5 stars||A+ (Superior)||$1,626|
|Erie||5 out of 5 stars||A+ (Superior)||$ 839|
|Nationwide||2 out of 5 stars||A+ (Superior)||$837|
|Progressive||3 out of 5 stars||A+ (Superior)||$640|
|USAA||5 out of 5 stars||A++ (Superior)||$1,073|
*Data as of 3/15/2020.
Amica: Best discounts
- Available in all states and Washington, D.C.
- multi-policy discounts up to 30%
- Platinum Choice Home package includes dwelling and personal property replacement cost coverage
- Ranked #1 in J.D. Power’s 2019 U.S. Home Insurance Study
- More expensive than many other carriers
- Sets rates based on credit-based insurance scoring
- Agents not available in all areas
In its 2019 U.S. Home Insurance Study, J.D. Power awarded Amica its top ranking. While Amica scored five out of five stars in all Power’s rating categories, we are most impressed with the carriers discount programs, which include a multi-policy discount of up to 30%.
We also like Amica’s Platinum Choice Home package, which includes standard coverage, along with business, computer, credit card, and water backup coverage. Amica isn’t the cheapest home insurance on the market, but it writes policies in all U.S. states.
Erie: Best personal property coverage
- Guaranteed replacement cost dwelling coverage in standard policies
- Multi-policy discounts up to 25%
- Base policy covers pets up to $500
- Availability of local agents
If a fire destroys your home, most insurers will settle your claim by paying the actual cash value of the property, but Erie includes replacement cost coverage in its standard home policies.
Erie also offers discounts for installing fire alarms and security systems and up to 20% when you bundle car and home insurance.
Erie is only available in 12 states and Washington, D.C., but if you live within its service area, request a quote.
Nationwide: Best standard coverage
- Standard policy includes loss of use coverage and ordinance or law insurance
- Available in most states
- Online quotes and claims filing
- Inflation protection with standard policies
- Average J.D. Power rating
- No loyalty or senior discounts
Nationwide writes homeowners policies in all states, except Alaska and Hawaii, and Washington, D.C. Nationwide’s website offers online quotes and policyholders can file claims online.
Nationwide’s standard policies go the extra mile by including contents, credit card, dwelling, loss of use, medical payments to others, law and ordinance, and other structures coverages. You won’t find such comprehensive coverage with many insurers.
Progressive: Best rates
- Low rates
- Single deductible when bundled with auto insurance
- Online quotes with price comparison
- 24/7 customer service
Progressive offers the lowest homeowners insurance rates we’ve found. To reduce your rate, Progressive also offers discounts, including a single deductible option when you bundle home and auto policies.
Progressive’s online quote application — which provides a price comparison with affiliated carriers — makes shopping easy, while also providing you more choices.
USAA: Best for military members
- Earthquake and home share coverage included in standard policies
- 5-star J.D. Power rating
- Up to 10% claims-free discount
- Replacement cost coverage included in standard policy
- Only available to military members and their families
- Must be a member to get a quote
- No local agents
USAA only offers insurance products to military members and their families. Nonetheless, the carrier’s standard policy features comprehensive protection, including earthquake and home sharing coverages, which other companies only offer as add-ons.
USAA scored five out of five stars in J.D. Power’s 2019 U.S. Home Insurance Study and AM Best gives the insurer its top credit rating.
Cheapest Homeowners Insurance by State
Top 10 Cheapest Homeowners Insurance States
|Average Cost by State||Average Annual Premium|
Top 10 Expensive Homeowners Insurance States
|Average Cost by State||Average Annual Premium|
Homeowners Insurance by Age of Home
|Age of Home Tier||Average Annual Premium|
|Average across tier||$1,822|
Guide to Finding the Cheapest Homeowners Insurance
Insurance carrier discounts can help lower your premium, but there are also ways you can help reduce the amount you pay.
Raise your deductible
Low deductibles mean less out-of-pocket costs when you file a claim, but they also increase your premium. To lower your rate, consider increasing your deductible.
Maximize discount opportunities and limit liabilities
Always take advantage of every discount program your insurer offers. Also, limit your liabilities by making home repairs quickly and following a regular maintenance program.
By bundling your home and auto insurance, you can usually save 10% or more. Some companies even offer a single deductible on bundled policies.
Curtail your Claims
After filing a claim, your insurer may raise your rate. For minor home damages, consider paying out of pocket for repairs to avoid a rate increase.
Pay attention to your Credit Score
Most states allow insurance companies to set rates based on your credit score. For the best insurance rates, always pay all your bills on time.
How We Chose the Best Cheap Homeowners Insurance Companies
To determine the best cheap homeowners insurance companies, we considered several factors. Price is important to all homeowners, but you also must consider the financial strength of the insurer you choose.
Financial strength is the primary factor in an insurance company’s ability to cover its claims obligations. To assess each company’s financial strength, we turned to AM Best.
We also evaluated insurers based on the level of customer care they provide policyholders. To narrow the field, we chose companies that performed well on J.D. Power’s 2019 U.S. Home Insurance Study.
Ultimately, we chose five companies that offer the best combination of financial strength, price, and quality coverage.
Founded in 1899, AM Best is the world’s oldest credit rating agency. AM Best maintains close relationships with insurance carriers’ management teams and compiles financial and non-financial data to assess a company’s assets, claims expenditures, and stability, to produce an independent rating.
Founded in 1968, J.D. Power is a leading consumer research company. Every year, J.D. Power conducts a study of the U.S. homeowners insurance market, evaluating each company’s performance in billing practices, claims handling, customer support, policy information and offerings, and price to produce a detailed ranking of the top providers.
A comprehensive homeowners policy should include dwelling, loss of use, medical payments, other structures, personal liability, and personal property coverages. You may also consider add-ons like identity theft, replacement cost, and water backup coverages, as well as earthquake and flood insurance.
Most insurance carriers offer discounts for purchasing more than one policy. For example, Amica offers discounts of up to 30% when you purchase homeowners and car insurance.
Most standard homeowners policies don’t cover earthquake damage, but many insurers offer earthquake coverage as an optional coverage.
Most homeowners policies don’t cover flood damage, but many insurance carriers offer separate flood insurance policies. If you live in an area prone to flooding or hurricanes, you may need to insure your home with a company that specializes in insuring high-risk property, such as UPC Insurance.