A standard homeowners insurance policy provides coverage for your home and belongings in the event of a “destructive” event, such as wind and hail, theft, or fire. Most policies also cover your liability for any injuries and property damage that you or your family members (including your pets) cause to others.
Like other types of insurance, homeowners insurance rates vary depending on the company you choose, the exact coverage you want, and even your credit history—insurance companies have found a correlation between your credit-based insurance score (similar to a FICO credit score) and the likelihood you’ll file a claim.
Rates also vary from state to state, among different cities in the same state, and even among neighborhoods in the same city. If you’re on a budget and looking for the most affordable homeowners insurance policy, it pays to shop around and compare quotes to get the best deal in terms of price and coverage provided.
To help you get started, here are three homeowners insurance companies that offer low rates and good value coverage for your money. To make our list, we looked at J.D. Power’s 2018 U.S. Home Insurance Study, which compared companies based on overall satisfaction, policy offerings, price, and other factors. We chose the top three that offer homeowners insurance on a national level.
- Homeowners insurance is a type of property insurance; most policies provide coverage for your home and possessions should they be damaged as a result of an event such as wind, hail, theft or fire.
- Homeowners insurance also typically provides liability coverage against accidents in the home or on the property caused by you or your family members.
- Amica Mutual Insurance is No. 1, ranking high in terms of customer satisfaction and overall quality.
- State Farm is No. 2, with 65,000 employees and 19,000 independent contractors who service 83 million policies and accounts in the U.S.
- Allstate comes in at No. 3, ranking as average in terms of overall quality but benefitting from a variety of discounts for customers.
Amica Mutual Insurance: Best for Customer Ratings
Amica services customers in all 50 states and the District of Columbia and is consistently ranked as one of the cheapest providers of homeowners insurance. The company carries the additional benefit of high customer satisfaction ratings. For 17 years in a row, Amica has won “Highest Customer Satisfaction Among National Homeowner Insurers” in the J.D. Power U.S. Home Insurance Study. It also earned top scores across the board—the only company to do so—in the 2018 J.D. Power study.
In addition to lower premiums, you may be able to take advantage of Amica’s homeowners insurance discounts, which it offers for:
- Customer loyalty
- Alarm systems
- E-discounts (if you receive policy info and bills electronically)
- Multi-policy holders (if you have more than one type of policy with Amica)
- Automatic payments
State Farm: Best for Working with a Local Agent
Like Amica, State Farm operates in all 50 states and the District of Columbia and insures more homes than any other company in the U.S. It has more than 65,000 employees and more than 19,000 independent contractor agents who service 83 million policies and accounts nationwide. State Farm earned “about average” scores in every category—including price—in the 2018 J.D. Power study.
You may qualify for State Farm discounts to help lower your premiums. It offers discounts for:
- Multi-policy holders
- Home alert protection (fire, smoke, or burglar alarms, or any other home-monitoring system)
- Impact-resistant roofing products
While it varies by city and state, in broad terms, a homeowner can expect to pay about $35 per month for every $100,000 of home value, according to Zillow.com.
Allstate: Best for Variety of Discounts
Allstate is one of the largest insurance providers in the U.S., with policies available in every state and the District of Columbia. The company earned “about average” scores in every category in the 2018 J.D. Power study and consistently ranks as offering some of the lowest rates in the country. Furthermore, Allstate is highly lauded for the online education and information tools that it offers to customers at no charge.
Like Amica and State Farm, Allstate offers discounts that can help lower your costs, including those for:
- Multi-policy holders
- Automatic payments
- Claim-free customers (save up to 20% when you switch to Allstate without a home insurance claim on your record)
- Early signing (sign up for a new policy before your current one expires)
- Newly constructed homes
- Additional protections against fire and theft
- New customers (up to 10% off the first two years for new customers)
- 55+ and retired
- Smoke-free homes
- Homes with storm shutters
- Homes with hail-resistant roofs
Rounding out the top five companies with a national presence are Farmers Insurance and American International Group (AIG). For a complete list of the rankings, see the 2018 J.D. Power study.
It's smart to check in with your insurance agent each year before renewing your policy to see if there are new ways you can save money; insurance companies won't usually tell you about discounts unless you ask.
The Bottom Line
It’s comforting to know your homeowners insurance will be there for you if something goes wrong. However, you still don’t want anything bad to happen to your house because it’s usually a huge inconvenience and often very stressful to deal with. Of course, insurance companies don’t want anything to happen to your house either because it costs them money, so some offer discounts if you take steps to lower your risk—for example, by installing a security system or an impact-resistant roof.
You can always lower your rates by raising your deductible, but think that over carefully to make sure the savings outweigh the added risk (think about your auto policy’s deductible while you’re at it).