If you’re like most people, your biggest investment is your home. It’s important to protect that investment with the best homeowners insurance possible.
To help you do just that, we looked at dozens of providers nationwide, assessing them for financial stability, customer service, and the ability to customize your policy for your own circumstances. Based on our research, we reviewed the 8 best homeowners insurance companies.
The 8 Best Homeowners Insurance Companies
- Amica: Best for customer service
- Allstate: Most customizable
- USAA: Best for military families
- Lemonade: Best for fast claim payments
- State Farm: Best web experience
- Liberty Mutual: Best discounts
- Farmers: Best pricing options
- Young Alfred: Best quote aggregator
| Best For | AM Best Financial Strength Rating | J.D. Power 2019 U.S. Home Insurance Study score (out of 1,000) | Market share (according to the NAIC) | |
| Amica | Customer service | A+ | 845 | NA |
| Allstate | Customization | A+ | 814 | 4.95% |
| USAA | Military families | A++ | 878 | 3.32% |
| Lemonade | Fast claim payments | NA | NA | NA |
| State Farm | Web experience | A++ | 831 | 9.27% |
| Liberty Mutual | Discounts | A | 792 | 5.03% |
| Farmers | Pricing options | A | 808 | 2.92% |
| Young Alfred | Quote aggregator | NA | NA | NA |
*Data as of June 1, 2020
Amica
Customer Service
Pros
High ratings
Policy dividends
Cons
Limited discounts for new or renovated homes
Amica is not one of the largest insurers in the U.S., but its great customer service outperforms many of the big names in the industry. It offers standard coverage options and, since it’s owned by its policyholders, you may receive a dividend each year.
Read the full review of Amica.
✓ Best For: Customer service
✗ Not For: Anyone who prefers to manage their account digitally
- AM Best: A+
- J.D. Power: 5/5
- Standard & Poor: NA
- Moody’s: NA
- BBB Rating: A+
Pros
- Great customer service
- Handles claims quickly and efficiently
- Money-back dividends for some policies
- Replacement value for personal belongings
Cons
- Bare-bones website
- Limited discounts
Discounts Available
Amica offers discounts that are found with most insurers; one that could be unusual is a credit when you insure your new or remodeled home. Other discounts are available for homeowners with:
- Burglar or fire alarms; sprinkler system
- Automatic detection devices such as a water or gas leak system
Unique features
Amica’s most unique feature is its consistent appearance at the top of best customer service lists. It’s been number one with J.D. Powers, in fact, for 18 years—that’s a legacy of customer care that is hard to match.
Why we chose it
Amica scores highly with consumer satisfaction organizations, but the reason isn’t that it has a lot of unique bells and whistles: instead, the company has a laser-focus on the customer experience, and everything it does, from online quotes to claims payout, is designed to keep its policyholders happy.
Further Reading (optional):
Allstate
New Homebuyers
Pros
Resources
Coverage & Discount options
Cons
Average customer service ratings
Allstate’s strength is in the diversity of its offerings and discounts, which allow you to pick and choose the coverage that works best for your circumstances. It has a great website, with tons of useful information.
Read the full review of Allstate.
✓ Best For: Customizing your policy
✗ Not For: Luxury homes
- AM Best: A+
- J.D. Power: 3/5
- Standard & Poor: AA-
- Moody’s: Aa3
- BBB Rating: A+
Pros
- Diverse discount opportunities
- informative website and digital tools
- Above-average customer service
Cons
- NAIC complaint index high
- Financial strength ratings good, but not great
Discounts Available
Allstate offers standard insurance discounts such as a multi-policy discount and one if you sign up for automatic payments. It has welcome and loyalty discounts, safety discounts, a senior discount, and more such as:
- Early signing discount
- Home buyer discount
- Hail-resistant roof discount
Unique features
Allstate’s discount list is longer than most insurers, with some uncommon ones such as 10% savings if you sign up for your new policy at least 7 days before the current one expires.
Why we chose it
Allstate’s discounts add up to lower premiums, making the company a good choice for anyone who’s looking to save a few dollars on their premium costs.
Further Reading:
USAA
Military Members and Families
Pros
High customer service and satisfaction ratings
High financial strength
Cons
Limited to military and family members only
Like Amica, USAA appears at the top of rating lists for its excellent customer service, comprehensive policies, and fair prices. The only catch is that you must be a current or former member of the military community to purchase a policy — but if you are, the company should be your first stop.
✓ Best For: Military families
✗ Not For: Those with no military connection
- AM Best: A++
- J.D. Power: 5/5
- Standard & Poor: AA+
- Moody’s: Aa1
- BBB Rating: NA
Pros
- Outstanding customer service
- Policies tailored to military family needs
- Competitive pricing
Cons
- Only available to current and former military members and their families
- Limited discounts
Discounts Available
USAA doesn’t offer a long list of discounts, but with prices that are reasonable from the start, it doesn’t need to. Some of the discounts available are:
- Save 10% if you bundle with auto
- Claims-free 10% discount
- Home security system discount
Unique features
USAA’s policies are written with service men and women in mind, and that means they have details that anyone in the military can appreciate, such as full coverage for uniforms for active duty or deployed members.
Why we chose it
USAA has earned a high reputation for quality and service within the military community. If you fit the demographic, getting a quote from USAA should be the first step in your search for great homeowners insurance.
Further Reading:
Lemonade
Best for fast claim payments
Lemonade uses AI and technology-based account management to lower costs and provide fast payout on claims. Some claims, the company says, may be paid out within a few minutes — something no traditional insurer can promise.
Read the full review of Lemonade.
✓ Best For: Getting a quick payout
✗ Not For: Those who like a personal relationship with their agent
- AM Best: NA
- J.D. Power: NA
- Standard & Poor: NA
- Moody’s: NA
- BBB Rating: B+
Pros
- Fast claims processing
- Seamless digital experience
- Zero Everything deductible
Cons
- Hard to access live customer service
- Little customization available
- Not available nationally
Discounts Available
Lemonade has a few discounts to lower your premiums, but it lacks common ones, such as a bundling discount for having homeowners or renters as well as auto insurance with the company. Some of the discounts they do offer are:
- Fire protection discount if you a fire extinguisher or sprinkler system, or your home is made of fire-resistant materials such as masonry.
- Gated community discount
Unique features
Lemonade makes your online experience easy and efficient, from getting a quote to making a claim. As a B Corp, its business model features the opportunity for you to have part of your premium given back to a charitable cause you care about.
Why we chose it
Lemonade does business differently, and that benefits its policyholder who can boast of extremely low rates and blindingly-fast service.
Further Reading:
State Farm
Online Quote
Pros
Highly detailed quote process
Numerous agents
Cons
No discounts for new homeowners or recent renovations
State Farm offers above-average customer support along with competitive pricing and solid coverage options. For those new to home ownership, its Simple Insights blog can tell you everything you need to know about homeownership in general.
Read the full review of State Farm.
✓ Best For: Web experience
✗ Not For: Those looking for discounts
- AM Best: A++
- J.D. Power: 4/5
- Standard & Poor: AA
- Moody’s: Aa1
- BBB Rating: A
Pros
- Financially strong
- Excellent web presence
- 19,000+ agents nationally
- Informative blog
Cons
- Limited discounts
- Higher premiums
Discounts Available
State Farm doesn’t offer an extensive list of discounts, and the ones it does are standard with most insurers. The standard discounts include:
- Multiple policy discount
- Fire, smoke, or burglar alarms discount
- Impact-resistant roof discount
Unique features
State Farm’s comprehensive website makes it easy to get a detailed quote in minutes. You can also pay your bill, file and manage a claim, and handle most maintenance tasks either online or via the company’s app.
Why we chose it
Providing a high-quality customer experience is only one of State Farm’s strengths. It also offers good policy coverages with add-ons to allow you to customize your policy.
Further Reading:
Liberty Mutual
Inflation Protection
Pros
Inflation protection
Multiple discount options
Cons
Lower customer service ratings compared to competitors
Liberty Mutual’s homeowners policies can be cheaper than most if you’re able to take advantage of the company’s extensive discounts list. You can earn a discount for everything from being claim-free for five years to putting a new roof on your home.
Read the full review of Liberty Mutual.
✓ Best For:Those looking for extensive discounts
✗ Not For: Those wanting a seamless customer experience
- AM Best: A
- J.D. Power: 2/5
- Standard & Poor: A
- Moody’s: A2
- BBB Rating: A+
Pros
- Extensive discounts
- Inflation protection coverage
- Add-ons allow for customizing
Cons
- Mediocre customer service ratings
- Below-average claims satisfaction score from J.D. Power
Discounts Available
Liberty Mutual’s discounts touch every part of the homeowner experience, and it’s easy to qualify for a handful of them for simple things, such as going paperless and having your payments deducted from your bank account. Other valuable discounts offered are:
- Insured to value discount
- New or renovated house discount
Unique features
By bundling discounts — which isn’t hard to do — you can achieve a considerable savings on your premium costs.
Why we chose it
Liberty Mutual should be near the top of the list for budget hunters looking to customize their policies. Discounted premiums and multiple endorsement options are key to the company’s appeal.
Further Reading:
- Liberty Mutual homeowners insurance review
- Liberty Mutual auto insurance review
- Liberty Mutual renters insurance review
Farmers
Best pricing options
Farmer offers an unusual quoting system that features three tiers of service. Within those three tiers, you can further customize your policy if you have, say, expensive electronics or jewelry to cover.
Read the full review of Farmers Insurance.
✓ Best For: Multiple pricing options
✗ Not For: The cheapest prices
- AM Best: A
- J.D. Power: 3/5
- Standard & Poor: A+
- Moody’s: A
- BBB Rating: A+
Pros
- Three tiers of coverage
- Bundling discounts
- Identity theft coverage available
Cons
- Sparse website
- Not as many discounts
Discounts Available
Farmers features fairly standard discounts. They’re not all listed on the website, so you’ll need to talk to an agent to find out exactly what you might be eligible for. Some of the better known discounts include:
- Nonsmokers discount
- Multiple policies discount
- Professional group member discount
Unique features
Farmers’ three tiers — standard, enhanced, and premier — let you pick the best coverage based on cost and coverages. The highest level, premier, includes replacement cost coverage with 100% reimbursement regardless of policy limits.
Why we chose it
Those three options for your coverage allow you to choose a policy that works for your pocketbook. Even at the lowest level, you can choose higher coverages for specific items, making your policy one of a kind.
Further Reading:
Young Alfred
Best quote aggregator
Young Alfred is an insurance marketplace that helps you find the best homeowners insurance policy at the most competitive prices. It uses technology to narrow down choices so that you can compare options from 40+ top carriers such as Nationwide and Progressive.
✓ Best For: Aggregating quotes
✗ Not For: Those who like to work with a single agent
- AM Best: NA
- J.D. Power: NA
- Standard & Poor: NA
- Moody’s: NA
- BBB Rating: A+
Pros
- Offers the best of 40+ insurers
- 24/7 customer service
- Effective use of technology
Cons
- Lacks personal attention
- Not all national insurers included
Discounts Available
Your discounts with Young Alfred will depend on which of the 40+ insurers you choose to purchase your policy from. Common ones include new or remodeled home, smoke-free, and multi-policy. Other options may include:
- Claim-free discount
- Storm shutters discount
- Home safety features discount
Unique features
Young Alfred works to make the online experience simple and reliable. As an aggregator, it has access to multiple insurers and can save you a lot of leg work by finding the best quote through its proprietary algorithms.
Why we chose it
Young Alfred models a new way of doing insurance. Powered by AI and the latest technology, it finds the policy that’s most suited to you, at a price you can afford.
How to Select the Right Insurance Company
- Consider location. If you live in Tornado Alley, for example, look for an insurer with feet-on-the-ground knowledge on insuring against the damage they cause.
- Know what you need. Do your research on the parts of a policy and how they work, so you understand how much coverage makes sense for you.
- Get multiple quotes by phone. Online quote tools are a great first step, but a phone or in-office connection to an agent allows you to ask questions and ensure that they understand what you’re looking for.
- Look at the ratings. J.D. Power and BBB assess the quality of the customer experience, while Moody’s, S&P, and AM Best look at indicators of financial health.
- Consider coverage along with cost. Don’t assume that the cheapest policy is right for you. In the end, you may save more with a policy that is a bit pricier but pays out more on your claim.
What Are the Main Coverage Types for Homeowners Insurance
Homeowners insurance policies are designated as HO-1 through HO-8. Below are some of the more common ones.
- HO-1: Basic coverage of ten named perils, including fire, explosions, theft, vandalism, damage from vehicles and aircraft, and riots and civil commotion. It generally doesn’t cover your belongings.
- HO-2: Covers the perils above, plus the weight of ice or snow, accidental discharge or overflow of water, and falling objects.
- HO-3: The most common type of homeowners insurance. Covers everything listed above and anything not specifically excluded, along with your belongings, attached structures, and personal liability. Doesn’t usually cover earthquakes or floods.
- HO-4: This is more commonly known as renters insurance. It covers only your belongings and personal liability.
- HO-5: Not as common, but covers more than an HO-3, including mold, fungus, war, nuclear hazard, and rust. It is also more expensive than an HO-3.
- HO-6: This is typically referred to as condo insurance. It includes belongings and personal liability. The building itself will usually be covered by the homeowners association.
- HO-7: Also known as mobile home insurance, it’s similar to an HO-3 policy but tailored for mobile homes.
- HO-8: This is coverage for older home insurance, as it’s tailored to meet the needs of owners of historic homes and other older structures.
How We Chose the Best Homeowners Insurance
Factors evaluated include the providers financial strength as indicated by organizations such as AM Best and Standard & Poors, customer service ratings and support.
FAQs
About the Authors
Mary Van Keuren has been covering auto and home insurance for Reviews.com for nearly five years, and has published numerous reviews of state-specific insurance trends and how to find the best insurance deals for your money. She earned B.S. and M.A. degrees from Nazareth College in Rochester, N.Y. and has been writing professionally, both in print and online, for 30+ years.
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