The Best Homeowners Insurance Companies

Samantha Kostaras

The best homeowners insurance provides comprehensive coverage at an affordable rate, protecting one of the most significant investments you can make: your home.

A comprehensive homeowners insurance policy will cover the structure of your home, the personal property you own, additional living expenses you encounter if your home becomes uninhabitable, and expenses related to personal liability lawsuits. 

To help you choose the right homeowners insurance for your family, we focused on companies that met the highest standards of financial strength, coverage, and availability. For more on how we reviewed these companies, read our methodology. 

We 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.

The Best Home Insurance Companies In 2020

• Allstate – Best for New Homebuyers
• Amica – Best for Customer Service
• State Farm – Best for Personalized Online Quotes
• Nationwide – Best for 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

Data as of October 11, 2019
Source: J.D. Power 2018 U.S. Home Insurance Study

*Not included in J.D. Power’s 2018 homeowners insurance survey

Reviews.com Best Homeowners Insurance Top Picks

Allstate – Best for New Homebuyers

Allstate stands out with its website’s library of best-in-class resources. Although it tops our list with the second-largest number of additional coverage options of all our contenders, Allstate receives only average customer service ratings.

Amica – Best for Customer Service

Amica was the only one of our top providers that received a five out of five in every category from J.D. Power. While Amica offers nearly as many discounts as Allstate, discounts for new and renovated homes are limited. Amica is owned by policyholders, which means you could receive a dividend at the end of the term, though payouts are not always guaranteed.

State Farm – Best for Personalized Online Quotes

State Farm’s comprehensive quote process is likely to give you an accurate idea of an exceptionally well-fitted policy, which is why we selected it as a top provider. If your house is new or recently received a face-lift, it’s important to note that State Farm doesn’t provide discounts for these circumstances.

Nationwide – Best for Replacement Coverage

Nationwide stands out for having generous and unique replacement coverage options, such as law and ordinance coverage and its “better roof replacement” coverage. However, Nationwide does have a reputation for expensive policies.

The Hartford – Best for Green Homes

The Hartford offers a rebuild discount for homeowners that use environmentally friendly materials or processes for repairs and rebuilds.” However, overall discount options are more limited than other providers.

Liberty Mutual – Best for Inflation Protection

Liberty Mutual is one of the few providers that offers inflation protection for homeowners, which automatically adjusts your coverage limits each year to keep up with inflation. While Liberty Mutual’s claims processing score is “very good”, it falls just behind our other top picks, which receive “excellent” ratings.

Progressive – Best for Boat Owners

Because ProgreProgreProgre relies on third-party underwriters for its homeowners insurance, service varies heavily by state. On the plus side, Progressive furnishes quotes from several of its underwriting partners and allows you to choose the one that best suits you.

USAA – Best for Military Members and Families

USAA is only available to military members and their families but for those who qualify, it offers nearly unbeatable service. USAA also garners impressive marks for financial strength which means that USAA can be counted on to pay claims.

How We Chose the Best Homeowners Insurance 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 the 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 above).

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.

Customer service

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 minimum of a “very good” score.

Average Premium and Discounts

Quadrant data supplies us with an average premium cost per provider based on an average profile. In addition to average insurance premiums, we tallied and compared the discounts offered by each provider to help us make personalized recommendations for different homeowners.

How To Find The Best Homeowners Insurance Company For You

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.

Understand the level of coverage you need

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. For more information on calculating your home’s reconstruction cost and the value of your personal belongings, check out our Homeowners Insurance Buyer’s Guide.

Gather homeowners insurance quotes

Unlike auto insurance quotes, homeowners insurance quotes are more accurate when you call and talk to an agent. 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.

Consider each insurer’s claims ratings

One of the most important measures of a homeowners insurance company is its customer satisfaction when it comes to claims performance. In addition to reading online reviews on a potential insurer, you can reference industry leading resources like J.D. Power and Consumer Reports for insights.

Weigh cost with coverage

While you want to make sure you’re receiving great value, keep in mind that relying on cost to make your decision may not give you the best insurance coverage for your needs. Your exact rates will depend on many factors, including your location, coverage level, and claim history. However, if price is at the top of your priority list, our review of the Best Cheap Homeowners Insurance Companies can help you find a reliable insurer that fits your budget.

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.

About the Authors

Samantha Kostaras Insurance Writer

Samantha Kostaras is an Insurance Writer for Reviews.com where she covers everything about making sure you’re covered. With a background in both finance and writing, Samantha enjoys helping readers make informed decisions about their insurance. Her favorite service she’s subscribed to is Spotify Premium which she uses to binge news, science, and personal finance podcasts.

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