Best Homeowners Insurance

Protect your largest investment with proper homeowners insurance

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Buying a home is a huge investment, which is why purchasing the right homeowners insurance is crucial. Looking for a policy that is the best fit can prove to be challenging since there are myriad companies and coverage options. While homeowners should be able to find policies that cover basics like personal contents, living expenses, personal liability, the building, and even coverage for guests who need medical assistance, there are many aspects to consider. This includes the ability to add additional coverage, as well as specialized perks and discounts. 

All of the above reasons are why you need to shop around for the best deal, which is why we’ve reviewed 12 homeowners insurance companies to reveal our top picks to help you make an informed decision.

Provider Best For
Amica Mutual Best Overall
Allstate Best for New Homeowners
USAA Best for Veterans
State Farm Best for Discounts
Chubb Best for High Limit Policies

Below you'll find home insurance available from our advertising partners, followed by our complete in-depth list of the best home insurance companies we found.

Best Overall: Amica Mutual

Amica Mutual

Established in 1907 and headquartered in Lincoln, Rhode Island, Amica Mutual is one of the largest insurers in the U.S. We rated this insurer the top overall because it offers some of the best options for coverage, has highly rated customer service and other benefits, like its Contractor Connection feature.

Pros
  • Discounts for bundling insurance policies and other credits

  • Network of trusted contractors

  • Rated high on J.D. Power’s Claims Services Rating nine years in a row

Cons
  • Homeowners insurance not available in Alaska or Hawaii

  • Coverage for personal property for standard policy is for actual cash value

  • Additional coverage options not available in all states

Amica Mutual has extended coverage choices through its Extended Home Insurance Coverage program. Homeowners can also choose all-risk coverage. Options include replacement cost for the contents inside your home and the building itself, catastrophic coverage for earthquakes or floods, identity fraud expense coverage, and dwelling replacement coverage.

The insurer provides a few discounts to help you save money. Some of these include safety discounts for new or recently remodeled homes, alarm systems, and automatic detection devices, plus discounts for bundling policies, opting into autopay, signing up for e-statements, and if you've been claim-free for three years.

Additional details:

  • J.D. Power Customer Service and Satisfaction Rating: 5 out of 5
  • A.M. Best Financial Strength Rating: A+ (Superior)
  • J.D. Power 2020 Claims Services Rating: 902 out of 1,000

Read the full review: Amica Mutual Homeowners Insurance

Allstate: Best for New Homeowners

Allstate

Founded in 1931, Allstate offers some of the best home insurance tools for first-time home buyers. They include comprehensive educational resources, such as articles that show homeowners what to look for, and tools like the Common and Costly Claims which help customers figure out the types of coverage they may need. There are also policy discounts for new homeowners. 

Pros
  • Offers discounts for new customers and homeowners

  • Relevant educational tools

  • Website easy to navigate

Cons
  • Average customer satisfaction rating

  • Limited policy offerings nationwide (like its HostAdvantage home sharing option)

Aside from standard coverage options, Allstate offers optional coverage including yard and garden insurance, flood insurance, a personal umbrella policy, and coverage for your belongings if you're home sharing. There is also optional coverage for electronic data recovery and manufactured dwellings or mobile homes.

Allstate has multiple discounts homeowners can stack. The new customer discount can net you a 10% discount and bundling policies a 25% discount. Additional discounts include if you're a recent home buyer, have theft or fire protection devices, a smoke-free home, or are over 55 and retired.

Additional details:

  • J.D. Power Customer Service and Satisfaction Rating: 3 out of 5
  • A.M. Best Financial Strength Rating: A+ (Superior)
  • J.D. Power 2020 Claims Services Rating: 882 out of 1,000

Read the full review: Allstate Homeowners Insurance

Best for Veterans: USAA

USAA

Founded in 1922 and headquartered in San Antonio, Texas, USAA provides some of the best coverage for military members and their families. It offers coverage not normally offered by other insurers, such as for uniforms with no deductible under property insurance and extending to war zones.

Pros
  • Specialized coverage for military members and their families

  • Highly rated customer service

  • Multiple discount options

Cons
  • Membership required for customers

  • Limited extended or guaranteed replacement cost dwelling options

USAA's standard policy covers you for things like identity theft, vandalism, personal liability, dwelling coverage, and fire at the replacement cost with no depreciation. Homeowners can also add on additional coverage such as home sharing and earthquake coverage.

Discounts homeowners may be able to receive include saving 10% on premiums by bundling auto insurance, a 10% claims-free discount, and protective device credits.

Additional details:

  • J.D. Power Customer Service and Satisfaction Rating: N/A 
  • A.M. Best Financial Strength Rating: A++ (Superior)
  • J.D. Power 2020 Claims Services Rating: 904 out of 1,000

State Farm: Best for Discounts

State Farm

Founded in 1922, State Farm has local agents who provide personalized service and discounts not all insurance companies offer. This includes a policy discount for impact-resistant roofs in addition to the standard bundling discounts. 

Pros
  • Comprehensive online educational resources for homeowners

  • State Farm Premier Service Program guarantees workmanship for up to five years

  • Replacement cost for building and personal property only

Cons
  • Coverage not available for sewer backup

  • State Farm Premier Service Program isn’t available nationwide

State Farm offers standard homeowners coverage including theft or damage of personal property or damage from covered acts of nature or random acts such as fire, vandalism, explosion, or from vehicles. Other benefits include replacement cost coverage, and additional expense coverage—State Farm offers 24-months for this option.

Discounts range from the standard multi-policy discount to ones for devices you have in your home such as alarm systems. As mentioned above, the impact-resistant roof discount is unique and includes qualifying metal roofs and others that aren’t overlaid over existing ones.

Additional details:

  • J.D. Power Customer Service and Satisfaction Rating: 4 out of 5
  • A.M. Best Financial Strength Rating: A++ (Superior)
  • J.D. Power 2020 Claims Services Rating: 878 out of 1,000

Chubb: Best for High Limit Policies

Chubb

Founded in 1792, Chubb is one of the largest insurers in the world, with a presence in over 54 countries. It’s earned its reputation as an insurer that caters to high-net-worth individuals. We rated it the best in this category because it offers features that may be typical for those who need high limit policies and discounts for clients living in gated communities. 

Pros
  • Offers specialized coverage for high-net-worth homeowners

  • Full cash value settlement options with extended replacement coverage

  • Home inspections available to verify home value

Cons
  • Need to receive a quote offline with an agent

  • Policy premiums may be higher

Chubb provides standard coverage not typically offered by other insurance companies. This includes settlements on a replacement cost basis, all-risk coverage, and its HomeScan feature, where homeowners can find issues such as leaks and missing insulation before any damage occurs. Plus, clients can receive complimentary home appraisals to ensure adequate protection and assist with fire prevention and security advice. Optional coverage includes excess liability, wine collection coverage, and personal cyber risk.

The insurer provides a few discounts such as multi-policy discounts, ones for higher deductibles, and if you live in a gated community.

Additional details:

  • J.D. Power Customer Service and Satisfaction Rating: 2 out of 5
  • A.M. Best Financial Strength Rating: A++ (Superior)
  • J.D. Power 2020 Claims Services Rating: 871 out of 1,000

What Does Homeowners Insurance Cover?

Homeowners insurance typically comes with basic coverage that most companies adhere to. You'll be able to find out what your insurance policy covers and coverage amounts on the declaration page. 

Here’s what your policy could cover:

  • Building structure: This includes any attached structures or detached structures on your property.
  • Personal belongings: Personal belongings can also include items on and off premises. Coverage is for items that are stolen or destroyed by insured disasters. 
  • Additional living expenses: You'll be paid additional costs of living if you're unable to live in your home due to damages from an insured disaster. This includes meals, hotel bills, and other types of typical living expenses. 
  • Personal liability: This part of the policy covers you from lawsuits for property damage or bodily injury that covered members cause to others. 
  • No-fault medical coverage: If a neighbor or guest is injured in your home, this person can submit relevant medical bills to your homeowners insurance company. 

All basic coverage has limits, including the amount covered and limits on certain items, which are determined by your policy. Policies will also indicate what isn't covered—for example, damages caused by earthquakes and floods.

How Are Homeowners Insurance Rates Determined?

Insurance companies base their rates on a few factors which include:

  • Your personal details: Your payment and claims history, association memberships, employer, or even your insurance credit score can affect your premium.
  • Location: Factors include costs of construction in your area, the insurer’s experience in the area, distance to a fire station, and any weather conditions that may impact your property.
  • Structure of building: Insurers look at the age of your building, your property’s condition, and other details such as roof, electrical, heating, and plumbing systems.
  • Applicable discounts: Some insurers offer perks for homeowners who have preventative measures such as water shut-off valves and alarm systems. Discounts can also include whether you’re bundling additional policies and/or increase or decrease your deductible
  • Type of protection: Pricing may go up or down depending on whether you choose things like an all-risk policy, optional riders, green rebuild upgrade, blanket jewelry coverage, or just the bare bones.

$1,211.50

The average annual premium for homeowners insurance, according to a 2019 study by the National Association of Insurance Commissioners.

How Do You Get Homeowners Insurance?

Getting a homeowners insurance policy starts with obtaining a quote from a provider. Since homeowner insurance companies underwrite and price their policies differently, it’s best to shop around multiple insurers to find the best price and policy that suits your needs. Receiving a quote can take as little as several minutes if done online. 

Before getting a quote, determine what type of policy you want. This means looking at what deductible and coverage limits you want, plus any additional coverage like flood or umbrella coverage. When considering your deductible, make sure that it is not higher than what you can afford to pay out of pocket. 

Don’t forget to ask for any current promotions or discounts. For example, some insurance companies offer significant discounts for bundling multiple policies like auto and RV insurance. Some even offer discounts for homeowners who have certain home features, such as having a security alarm system installed. 

Article Sources

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  2. Amica. “Home Insurance Discounts.” Accessed August 13, 2020.

  3. J.D. Power. “Home Insurance Customer Satisfaction Declines, Opening Door for Insurtech Disruptors, J.D. Power Finds.”  Accessed August 13, 2020.

  4. AM Best Rating Services. “Amica Mutual Insurance Company.” Accessed August 13, 2020.

  5. J.D. Power. “Homeowners’ Satisfaction with Property Claims Reaches Record High as Insurers Focus on Relationship Management, J.D. Power Finds.” Accessed August 13, 2020.

  6. Allstate. “Homeowners Coverage & Policies.” Accessed August 13, 2020.

  7. Allstate. “Homeowners Discounts.” Accessed August 13, 2020.

  8. USAA. “What does USAA Homeowners Insurance Cover?” Accessed August 13, 2020.

  9. State Farm. “Rely on State Farm Homeowners Insurance.” Accessed August 13, 2020.

  10. State Farm. “Types of Home Insurance Discounts.” Accessed August 13, 2020.

  11. Chubb. “Homeowners Insurance.” Accessed August 13, 2020.

  12. Chubb. "Masterpiece Homeowners Brochure." Accessed August 13, 2020.

  13. NAIC. “NAIC Releases Report on Homeowners Insurance.” Accessed August 13, 2020.