The Best Homeowners Insurance Companies

By Danika Miller Staff Writer

Danika Miller is a writer with Reviews.com. She has spent countless hours researching and writing about insurance and what consumers should know when they are in the market.

The best homeowners insurance companies should feature policies that balance affordable rates and strong coverage. Of course, your premiums will vary depending on your home, address, and assets, so it’s worth comparing quotes from a few different providers to make sure you’re getting the most value out of your homeowners insurance. We’ve put together a list of our top eight picks to get you started, and you can use our quote comparison tool above once you’re ready to shop around.

In This Article

• The 8 Best Homeowners Insurance Companies
• Methodology – How We Chose the Best Companies
• What is the Right Homeowners Insurance for You

The 8 Best Homeowners Insurance Companies

• Allstate
• Amica
• State Farm
• Nationwide
• The Hartford
• Liberty Mutual
• Progressive
• USAA

Why we chose it

Abundant online tools

When it comes to educating prospective buyers about the intricacies of homeowners insurance, Allstate stands out. Allstate’s website contains a library of best-in-class resources — everything from articles and videos to quizzes and infographics. Particularly impressive is the Common and Costly Claims tool that lets shoppers type in their ZIP code to see the most common claims in their region, complete with average dollar amounts for those claims. There’s also a startlingly realistic GoodHome home report that plays a Google Street View video of your home (or potential home) as it enumerates potential risks and gives local hazard data, plus prevention tips. Tools like this make it simple to understand which areas of coverage you may want to increase or supplement because of geographic or neighborhood risk

Extensive endorsements

Allstate has the second-largest number of additional endorsement options of all our contenders. Those additional endorsements are fairly low-risk: insurance for expensive sports equipment, musical instruments, or landscaping. Notably absent is additional coverage options for earthquakes and theft of other property (vehicles, trailer, watercraft), but the endorsements it does offer can be valuable if you have expensive hobbies or are putting a lot of money into renovating your home’s curb appeal.

Large number of discounts

Allstate also offers more discounts than most of our other picks. These include standard discounts for things like hosting smoke alarms, fire extinguishers, or deadbolt locks, as well as unique offers, like one for signing up before your current policy expires. First-time customer with Allstate? You’ll get another price slash for your first two years with the company.

Points to consider

Average customer service

Of our favorite insurers, Allstate earned among the lowest customer service scores: three out of five from J.D. Power. While this score pales in comparison to those of customer-service powerhouses like Amica, it’s important to contextualize the superior customer service of the field. Homeowners insurance is miles ahead of other service industries like internet service providers, so even a middle-of-the-road ranker like Allstate doesn’t leave much to be desired. When we tested its customer service ourselves, Allstate answered all of our questions politely and allowed us to end the call without signing over our Social Security number.

Why we chose it

Outstanding customer service

Amica consistently ranks among the top homeowners carriers by J.D. Power and Consumer Reports, due to its sky-high customer satisfaction with the all-important claims process (settlement, estimation, and repair). This is arguably the most essential element of good customer service in the industry. Amica was the only one of our top providers that received a five out of five in every category from J.D. Power. Amica also received the highest Consumer Reports reader score of our top picks — even better than USAA, the gold standard in insurance. None of our other finalists came anywhere close. With excellent scores across the board, you can expect timely and helpful interactions with Amica representatives.

Considerable discounts

Amica offers nearly as many discounts as Allstate, with exclusive discounts for being a long-time customer and for opting into e-bill pay. Essentially, by doing less (mailing bills and switching providers), you’ll save money with Amica. In addition to these are mainstays like multi-line, where you can save up to 15% when you combine home, auto, life, or umbrella policies. However, Amica comes up a little short on discounts for new and renovated homes — you’ll want to turn to Allstate for price breaks on those.

Dividends offer money back

As a mutual company, Amica is owned by policyholders rather than investors or stockholders. This means that as a policyholder, you could receive a dividend at the end of the term worth somewhere between 5% and 20% of your annual premium (depending on the financial success of Amica during that term and the company’s income after claims and expenses). However, dividend payouts are not guaranteed. And if you select a policy that provides them, you will have slightly higher premiums.

Points to consider

Lacks online resources

When it comes to online resources and navigation, Amica’s tech feels pretty dated. Its bare-bones site details only the basics of its policies and discounts. You won’t find anything like Allstate’s abundant and interactive resources, or guidance on how to build your policy. Thankfully, Amica scores highly in customer service, so a quick phone call can get you the information you need.

Why we chose it

Detailed online quote process

As with most good insurance companies, you can get a quote from State Farm online. But State Farm’s process involves extra-detailed questions about the construction of your home, down to the percentage of carpet-covered floors and the number of corners in your home’s framing. We recommend arming yourself with floor plans, your insurance history, a home inventory, and specific details of your home’s construction so there won’t be any surprises when it’s time to sign a policy contract. The upside is that all of these details provide you with an accurate quote and an exceptionally well-fitted policy.

Extensive online reosurces

Though not as comprehensive as Allstate’s offerings, State Farm’s tools, discounts, and resources are all top-notch. The Simple Insights blog provides tips for everything from fire prevention and home security strategies to house hunting and landlord advice. Many topics even feature video tutorials. State Farm writes more homeowners insurance policies than any other carrier in the nation, which speaks to its exceptional customer retention. Keeping policyholders informed plays a major role.

Points to consider

Minimal discounts

State Farm offers standard discounts for installing certain protective devices in your home, such as smoke detectors and fire alarms. It also offers a unique discount if your roof was built using impact-resistant roofing products. However, you won’t get any price breaks based on the age of your home, even if it’s newly built. Similarly, State Farm doesn’t provide discounts for new homeowners or for homeowners who have recently completed renovations, both of which are offered by Allstate and Amica. If your house is new or recently received a face-lift, it might pay to shop around elsewhere.

Why we chose it

Includes ordinance or law coverage

Nationwide stands out for having generous replacement coverage options. The company makes it easy not only to repair your home, but to actually improve it after damages happen. In large part, that’s because it offers ordinance or law coverage — an option we didn’t see included with other insurers on this list.

Ordinance or law coverage is a big boon, especially for those with older homes. If you have out-of-date systems (like HVAC, plumbing, or electric), it’ll help cover the cost of upgrading those systems during repairs so that they meet current safety codes — which is often required. Without the extra coverage, this could be an expensive endeavor.

Offers ‘better roof’ replacement

In that same vein, we were impressed by Nationwide’s “better roof replacement” coverage. This add-on will help pay to repair your roof with stronger, safer materials if it’s damaged by a covered peril. First off, that’s a good thing because a sturdier roof will hold up better in the future. But it’s also important because a better roof means cheaper homeowners insurance rates. So if you know your roof is getting up there in age, it may be worth paying a little extra now for better roof replacement — it could save you money in the long run.

Reimburses full value of belongings

Usually, when the items in your home are damaged, insurance pays out their current value — which will have depreciated since you first bought them. That means insurance won’t cover the full cost of replacing your damaged stuff. But with Nationwide’s optional “brand-new belongings” coverage, you’ll be insured for the actual replacement value of your possessions.

It works like this: After you file a claim, Nationwide will cut you a check for the depreciated value of your belongings. That way, you’ll have a cushion to help replace those things right away. Then, once you’ve replaced all the covered items, you can send Nationwide your receipts and it’ll reimburse you for the difference.

Points to consider

Pricier policies

Nationwide has a reputation for expensive policies. On the Better Business Bureau website, customer reviews reveal that quotes from Nationwide tend to be more expensive than those from the competition. We always recommend shopping around for quotes, but if price is your main consideration, Nationwide may not be your best bet. For homeowners more interested in full and specific coverage endorsements than price, it’s worth screening a policy.

Why we chose it

Green rebuilding benefits

The Hartford has a unique endorsement for green rebuilding — which isn’t quite the same thing as a discount for green homes. After a loss, The Hartford will increase your policy limits up to 10% if you use “green, environmentally friendly materials or processes for repairs and rebuilds.”

If your home is already green, most of your claims would probably qualify automatically, as long as the repairs remain environmentally friendly. But even if you have an older home, you can still qualify for the Green Rebuilding benefit if you use green materials (low-VOC paint, renewable resources) or processes (environmentally friendly demolition techniques) for repairs.

AARP endorsement

The Hartford is the only home insurance provider officially endorsed by the American Association of Retired Persons (AARP). If you’re an AARP member, you’ll qualify for more benefits thanks to its AARP Home and Auto Insurance Program. But even if you aren’t retired yet, you will be someday, and The Hartford has a special discount for retirees and individuals who work less than 24 hours per week.

Points to consider

Fewer additional discounts

The Hartford has fewer advertised discounts than most of our top picks; the only ones it boasts are those for bundling policies, installing home security devices, and being a retiree. But that doesn’t necessarily mean you’ll pay more for your home insurance. Just because a company offers more discounts doesn’t mean you’ll qualify for all (or any) of them, so it’s always worth comparing quotes instead of solely counting discounts.

Why we chose it

Offers inflation protection

Liberty Mutual has a decent selection of endorsements, from scheduled personal property to coverage for your home business, but one add-on stood out to us in particular. Liberty Mutual is one of the few providers that offers inflation protection for homeowners. With this add-on, the company will automatically adjust your coverage limits each year to keep up with inflation. That means if your house ever needs repairs, you won’t have to worry about the higher cost of building materials and labor exceeding your previously sufficient coverage.

Please note: Liberty Mutual coverage options vary by state. Talk to a local agent to see which home insurance options are available where you live.

Plenty of discount opportunities

If you’re in bargain-hunting mode, Liberty Mutual may be a good place to look for homeowners insurance. It advertises a long list of discounts — matching leading companies like State Farm, Allstate, and Nationwide in number — that includes some hard-to-find options we appreciated. For instance, Liberty Mutual is one of only two companies on this list, along with The Hartford, that will cut you a deal if you insure your house for 100% of its value. Other unique discounts include savings for new homes, homes with new roofs, first-time insurance buyers, and customers who set up autopay or pay online.

Points to consider

Claims process is unexceptional

Along with State Farm, Liberty Mutual has one of the lowest Consumer Reports reader scores on this list. Those numbers revolve around the company’s claims system: how quickly agents respond, how simple the process is, how timely and fair payments are. And while Liberty Mutual’s score isn’t poor — dubbed “very good” across the board — it doesn’t quite compare to the “excellent” ratings brought home by our other picks. This is worth considering if you live in a disaster-prone area like the East Coast, where the likelihood that you’ll have to file a claim is high and it’s important to choose a provider that makes them as painless as possible.

Why we chose it

Impressive customer service

Customers claim that Progressive offers reasonable prices and attentive representatives. Our own experiences with Progressive were bolstered by its well-designed online quote tool. Like many insurance companies, Progressive relies on third-party underwriters, and most that do so automatically pair you with a single underwriter in order to produce a quote. Progressive furnishes quotes from several of its underwriting partners and allows you to choose the one that best suits you. This gives you the power to prioritize coverage and price.

Extended endorsements

Progressive offers a unique Inflation Guard endorsement that will dynamically adjust coverage amounts to keep up with inflation, so the money you’ll need for repairs will be sufficient even as the market’s construction costs rise. Its coverage extends to cover things like pools, sheds, and fences at no additional cost. Progressive also offers a watercraft endorsement that allows you to extend your personal liability and medical coverage to small sailboats and motor boats.

Points to consider

Various underwriters

Progressive’s service varies heavily by state. As the company explains, “insurance through the Progressive Home Advantage program is underwritten by select companies that are not affiliates of Progressive and are solely responsible for claims, including Homesite Group Incorporated, IDS Property Casualty Co., and ASI Lloyds, and their affiliates.” Basically, Progressive isn’t selling its own homeowners insurance, but has partnered with another company (the one that will pay your claim) in order to offer that insurance to its customers. If you’re already a Progressive customer, no need to stray. If you’re considering opening a policy with Progressive, though, be aware that your options for discounts and coverage will vary by state.

Please note: USAA is only available to military members and their families. While we cut most companies with limited availability, USAA is still worth listing here. It carries all the standard homeowners coverage and discounts and has stellar ratings to boot. It’s also available in all 50 states. If you’re eligible for USAA coverage, it’s worth your time to learn more about this company and get a quote.

Why we chose it

Outstanding customer service

USAA’s service is nearly unbeatable. It’s the only company aside from Amica to earn five out of five points for both overall satisfaction and claims satisfaction from J.D. Power. It also ranked second only to Amica in Consumer Reports’ ratings. That’s not just for 2018, either — USAA earns the highest scores across all lines of insurance, year after year. There’s no question that this company rises to meet its customers’ needs on all occasions.

Top-notch financial strength

USAA also garners impressive marks for financial strength. As of 2018, the provider holds an A++ from A.M. Best, AA+ from S&P Global, and Aa1 from Moody’s. Out of our top picks, only State Farm rivals those scores. Such high financial ratings mean that USAA can be counted on to pay claims, regardless of size or circumstance — even if the market takes a downturn or a large-scale disaster requires the company to pay out on many claims at once. In other words, homeowners insurance from USAA is truly a safe investment.

Points to consider

Membership requirement

USAA only serves members of the U.S. military (both current and former) and their families. That means the majority of Americans won’t be able to buy USAA insurance — which is the only reason it’s at the bottom of our list. In all other regards, USAA holds its own. We highly recommend that anyone with a military affiliation request a USAA quote for their homeowners insurance.

How We Chose the Best Companies

Nationwide availability

We started with a list of 99 insurers from the Insurance Information Institute and state insurance department websites. To guarantee that our picks for best insurance company would be available to all, we looked for providers with coverage in at least 40 states and no special requirements for membership (with the exception of USAA, which we explain below).

While local or special-eligibility insurers can potentially write you a great homeowners policy at a competitive rate, large national carriers tend to have more discounts and bundling opportunities. They’re also better-equipped to handle claims in the wake of a disaster. Their rolling claims centers, outfitted with generators, satellite connections, and agent workstations, can make all the difference in areas where power has been knocked out.

Financial strength ratings

The ability to pay claims is an insurer’s bread and butter, which is why it’s important to compare financial strength ratings before choosing a provider. These scores assess insurers’ overall worth and credit outlook and determine their ability to continue paying claims over time.

To find the most financially stable companies, we looked for top scores from three major rating agencies — paying particular attention to ratings from A.M. Best, the only agency that focuses solely on insurance. We required at least an A rating from A.M. Best, as well as either a strong (A) rating from S&P Global or a high quality (Aa) from Moody’s.

Open peril policies plus endorsements

For free-standing, single-family dwellings, the chief difference in policy types is between named perils, which covers only the specific risks named in the policy, and open perils, which does the opposite. Open peril policies may not be right for everyone, but they are the most popular homeowners policy in the U.S., so we required that providers offer them.

In the same vein of guaranteeing robust policies, we also wanted to see a range of endorsements (optional provisions that extend coverage in various ways). The more endorsements offered, the greater the possibility of filling in any gaps that your home and location demand. Earthquake coverage, for example, is a common endorsement for Los Angeles homes.

Customer service

Great customer service means painless communication between a homeowner and their insurance provider at every stage, from the initial quote through the day a claim is filed and your settlement returned. To single out the providers with the best customer support systems, we consulted two different survey groups that collect customer sentiment about homeowners insurance companies.

First we looked to J.D. Power’s annual U.S. Household Insurance Study, which collects customers’ opinions on prices, policy options, service, billing, and claims. We required a J.D. Power score of three or better out of five.

For a closer look at how insurers handle claims, we turned to Consumer Reports, which published data from nearly 7,000 survey respondents who filed claims in the last three years. There carriers are rated on criteria like agent courtesy and problem-free claims experiences. We looked for a “very good” score.

Discounts

Your best possible price equals a competitive initial quote, plus lots of opportunities to save. The most significant discounts, like those for owning a fire extinguisher or being claim-free, are offered by most providers. However, there are a few exceptional discounts that make certain providers a better fit for certain homeowners. For example: Allstate’s “new purchase” discount gives a small break to owners who are moving into their home for the first time. We tallied and compared the discounts offered by each provider to help us make personalized recommendations for different homeowners.

What is the Right Homeowners Insurance for You?

Calculate your home’s reconstruction cost

In the event of a disaster, it’s vital that you obtain the right amount of coverage — that’s what’s going to pay for your repairs and/or a full rebuild. Your coverage limits for personal belongings and other structures are related to the amount of coverage on your dwelling, so you’ll have better protection for all your property if you lift your dwelling limit. “If you have a mortgage, your lender may only require you to purchase a policy with enough coverage to protect their interest — particularly if you have a low balance,” says Christina Moore, a compliance and risk management VP at SWBC. “But in the event of a substantial or total loss, the cost of rebuilding your property could be much more, leaving you with potentially large out-of-pocket expenses.”

Catalog your belongings

“I recommend that people create video evidence of all their belongings, as well as the inside and outside of their home,” says Jeffrey D. Diamond, adjunct professor of insurance law at Georgia State University College of Law. Many providers have online lists you can help to keep track. “The more ways in which you can establish and prove the features of your home, as well as the quality and quantity of your personal property before a loss occurs,” Diamond adds, “the better your homeowners insurance coverage will serve you at the time of need, if and when the need arises.”

Consider your location

We built a map displaying the historical frequency of floods and severe storms based on data from the Federal Emergency Management Agency (FEMA) and the National Emergency Management Association (NEMA). If you live in one of the darker blue areas, look for the specific endorsements that apply to your region and which providers offer them. Texas, for example, has the highest count of natural disasters. If you live in a region often affected by floods and storms, you’ll want to look for a company that offers additional flood coverage or purchase it separately through the National Flood Insurance Program.

Gather quotes

“Calling around to obtain quotes will take some time, but it is worth it to compare coverage and rates,” says Moore. Unlike auto insurance quotes, homeowners insurance quotes are more accurate when you call. The online tools are attractive because they make it appear easy to compare quotes from multiple carriers at once, but they often oversimplify in their information collection. For instance, you might be eligible for a discount from a certain carrier that wasn’t detailed online, or you might want a specific endorsement it didn’t ask about. Call and go through each carrier’s specific questions, and then you’ll receive quotes that are worth comparing.

Our Other Homeowners Insurance Reviews

Remember that it’s important to compare quotes from multiple providers before buying homeowners insurance. Look for a company that balances the coverage and service you need with a monthly premium you can comfortably afford. The eight best homeowners insurance companies below are a good place to start your search.

• Allstate — Best for New Homebuyers
• Amica — Best Customer Service
• State Farm — Most Personalized Online Quote
• Nationwide — Best Replacement Coverage
• The Hartford — Best For Green Homes
• Liberty Mutual — Best for Inflation Protection
• Progressive — Best for Boat Owners
• USAA — Best for Military Members and Families

That said, every state and city has a unique set of homeowners insurance needs, whether that’s extra flood insurance near the coast, earthquake coverage along fault lines, better personal property protection in high-crime areas, or another special circumstance. If you still have more questions, or just want to be even more informed, check out our homeowners insurance FAQ for help. In addition, each state has different insurers and a local list of insurance regulations — which is all to say that the best insurance in one state might not be the best next door. That’s why we’ve reviewed the top insurance companies in every state using a methodology similar to the one outlined here.

• Alabama
• 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
• Tennessee
• Texas
• Utah
• Vermont
• Virginia
• Washington
• West Virginia
• Wisconsin

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