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. This is especially important to consider during the Covid-19 pandemic.
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 9 best homeowners insurance companies.
The 9 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
- Progressive: Best for easy online quotes
- Liberty Mutual: Best discounts
- Farmers: Best pricing options
- Young Alfred: Best quote aggregator
Compare the Top Home Insurance Companies
Reviews.com Score Score is based on company’s customer experience, financial stability, and coverage options. | AM Best AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim. | J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality. | ||
---|---|---|---|---|
Pin Amica | 4.25 | A+ | 845 | |
Pin Allstate | 4 | A+ | 814 | |
Pin USAA | 4 | A++ | 878 | |
Pin Lemonade | * | N/A | N/A | |
Pin State Farm | 3.75 | A++ | 831 | |
Pin Progressive | 3.75 | A+ | 809 | |
Pin Liberty Mutual | 3.25 | A | 792 | |
Pin Farmers | 3.5 | A | 808 | |
Pin Young Alfred | * | N/A | N/A |
Information as of 08/14/2020
*New providers may not have enough third party information to calculate a score.
Amica
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.
Best for Customer service
Why we chose it
Why we chose it
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
- Credit when you insure your new or remodeled home
- 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.
*J.D. Power 2019 Home Insurance Customer Satisfaction Survey, based on a 1,000-point scale
Further Reading on Amica:
Allstate
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.
Best for New Homebuyers
Why we chose it
Why we chose it
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
- Early signing discount
- Home buyer discount
- Hail-resistant roof discount
Unique features
Allstate’s discount list is longer than most national insurers. You could save up to 10% on your premiums if you sign up for your new policy at least 7 days before the current one expires.
*J.D. Power 2019 Home Insurance Customer Satisfaction Survey, based on a 1,000-point scale
Further Reading on Allstate:
USAA
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 Members and Families
Why we chose it
Why we chose it
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
- 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. This means they have details that anyone in the military can appreciate, such as full coverage for uniforms for active duty or deployed members.
*J.D. Power 2019 Home Insurance Customer Satisfaction Survey, based on a 1,000-point scale
Further Reading on USAA:
Lemonade
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.
Best for Fast Claim Payments
Why we chose it
Why we chose it
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
- Bundling discount for members with Lemonade homeowners and pet insurance policies
- Fire protection discount
- 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.
**New providers may not have enough third party information to calculate a score.
Further Reading on Lemonade:
State Farm
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 home ownership in general.
Best web experience
Why we chose it
Why we chose it
Pros
- Financially strong
- Excellent web presence
- 19,000+ agents nationally
- Informative blog
Cons
- Limited discounts
- Higher premiums
Discounts available
- 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.
*J.D. Power 2019 Home Insurance Customer Satisfaction Survey, based on a 1,000-point scale
Further Reading on State Farm:
Progressive
Progressive is widely known for its iconic commercials and promises to help you find the best insurance rates. With Progressive, you can get coverage for common, broad, and special perils.
Best for Easy Online Quotes
Why we chose it
Why we chose it
Pros
- Access to an online quote tool
- Service available in all 50 states
- Several discounts available
Cons
- Insurance quote varies based on home location and condition
- Average to below average customer service ratings
Discounts available
- Save 10% by bundling home and auto insurance
- Discount for owning an alarm system
- Discount for going paperless
Unique features
You can bundle your Progressive auto and home insurance to save on your premiums.
*J.D. Power 2019 Home Insurance Customer Satisfaction Survey, based on a 1,000-point scale
Further Reading on Progressive:
- Progressive homeowners insurance review
- Progressive renters insurance review
- Progressive auto insurance review
Liberty Mutual
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.
Most Personalized Online Quote
Why we chose it
Why we chose it
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
- Paperless statements discount
- 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.
*J.D. Power 2019 Home Insurance Customer Satisfaction Survey, based on a 1,000-point scale
Further Reading on Liberty Mutual:
- Liberty Mutual homeowners insurance review
- Liberty Mutual renters insurance review
- Liberty Mutual auto insurance review
Farmers
Farmers 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.
Best Pricing Options
Why we chose it
Why we chose it
Pros
- Three tiers of coverage
- Bundling discounts
- Identity theft coverage available
Cons
- Sparse website
- Not as many discounts
Discounts available
- 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.
*J.D. Power 2019 Home Insurance Customer Satisfaction Survey, based on a 1,000-point scale
Further Reading on Farmers:
Young Alfred
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 Quote Aggregator
Why we chose it
Why we chose it
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
- 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.
**New providers may not have enough third party information to calculate a score.
How We Selected the Best Home Insurance Companies
We evaluated the companies based on their customer rating and experience, financial stability, and coverage to determine the best companies. To compare home insurance companies across the board, we then calculated a Reviews.com score based on the following:
- Customer Ratings– Customer ratings are an indication of satisfaction with the process of filing a claim. We measured this using JD Power Homeowners Satisfaction ratings.
- Coverage– As there isn’t one company to fit everyone’s needs, we evaluated companies by the amount of coverage options available and add-ons available.
- Confidence– It is extremely important for insurance companies to fulfill customers’ claims. Companies with sound financial strength will not have issues paying out claims, regardless of the amount. However, companies with weak financial strength might not be able to pay out claims. We measured this using AM Best.
- Customer Experience– The amount of complaints a company receives is an indicator of the overall customer experience as it expresses dissatisfaction. We have based this measure on the NAIC National Complaint Index.
What To Look For When Buying Home Insurance
Consider Coverage
Home insurance policies should include the following key types of coverage:
- Dwelling coverage – Covers the cost of rebuilding or repairing the structure of your home.
- Personal property coverage – Covers the cost of replacing your personal belongings that are kept within the home.
- Liability coverage – Covers the cost of defending yourself from lawsuits related to bodily injury or property damage and paying for any related losses, such as medical bills or repairs.
- Additional living expenses – Covers the cost of accommodations, food, and other expenses if your home becomes uninhabitable.
Dwelling coverage includes reconstruction costs in the event that your home is damaged or destroyed. These are some of the common costs to consider:
- Plumbing – One of the most expensive parts of your home, the plumbing system consists of sinks, toilets, and bathtubs, gas and water supplies, and the pipes and vents that carry them.
- Electrical – Your home’s electrical system is subject to strict local codes that are regularly updated and require the involvement of a professional electrician. Controlled by a main switchboard, this system extends to every corner of your house via wiring, outlets, and appliances.
- Roof – The national average cost to build a new roof is approximately $7,800.
- Heating – There are many different types of home heating systems, although natural gas and electric are the most common. When rebuilding or renovating an HVAC system, paying more upfront may lead to significant energy bill savings down the line.
Inventory of Your Belongings
To make sure your home insurance limit covers everything you own, you should take an inventory of all the possessions in your house. Try using a home inventory smartphone app to make the process easier.
Consider Your Location
Location is a major factor in determining home insurance premiums. Areas with higher rates of crime and extreme weather events are typically more expensive to insure.
But even your home’s location within a region or city matters. “Homes in close proximity to a fire department may cost less to insure,” says nonprofit InCharge Debt Solutions. “And while seclusion can have its advantages, it won’t lower your insurance rates if emergency vehicles may have difficulty reaching your home.”
Gather Quote
You should always shop around and get quotes from multiple insurers. This will determine who can offer you the most competitive monthly premium based on your home and the type of coverage you need.
How to Calculate How Much Insurance You Need
According to Nationwide, two-third of homes in America are underinsured. This is because homeowners often confuse their lender’s minimum requirements with what they actually need. In an interview with CNBC, real estate attorney Peter Morra explained the difference. “Sometimes it’s cheaper to just get a policy that covers you for a dollar number that covers your mortgage, but you want to be sure that you can replace what you have if something happens,” says Morra.
When calculating how much home insurance to purchase, there are two major factors to think about. These are:
- Find out what type of coverage you need. Your lender may have their own requirements, but you should at least have dwelling coverage for the home itself, personal property coverage for its contents, and liability insurance in case you are held responsible for injury or damage. Additional coverage can help protect high-value belongings and insure you against specific hazards in your geographic area.
- Choose your policy limits. Again, check with your lender to find out what the minimum requirements are, but don’t assume this is enough. Make sure your dwelling coverage will cover the cost of rebuilding your home in the event that it is completely lost and your personal property coverage is enough to replace everything you own within your home. Liability coverage should at least cover your net worth or the total value of your assets minus any debts (like your outstanding mortgage balance.)