Best home insurance companies for October 2021

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Homeowners insurance can provide financial protection for you and your family against unexpected events that damage or destroy your home. Having a policy that fits your needs can give you peace of mind that your finances won’t be severely impacted if damage does occur. To help you find the best option for your unique circumstances, Bankrate analyzed the top homeowners insurance companies in the U.S. We found that USAA is a great home insurance choice for military members or immediate family members, while Lemonade topped our list for providing tech-savvy and low-cost home insurance. Travelers also scored highly for agent accessibility.

Bankrate’s insurance editorial team reviewed dozens of homeowners insurance companies across the nation, paying particular attention to those that rank highly in key market areas. Using 2021 average annual premiums from Quadrant Information Services, available coverage options, discounts, overall customer satisfaction and financial strength as measures — along with our proprietary Bankrate Score — we identified six property insurers that could be great options for most homeowners across the U.S.

Comparing the best home insurance companies

When buying a homeowners insurance policy, you may want to consider several attributes of each company, including average annual premiums, available coverage options, ability to handle claims, customer satisfaction and financial stability. Bankrate utilized market share percentages, customer satisfaction ratings from the 2021 J.D. Power U.S. Home Insurance Study and the 2021 U.S. Property Claims Satisfaction study, financial strength ratings as well as 2021 average quoted premiums from Quadrant Information Services to search for the best homeowners insurance companies.

The rates below are for $250,000 in dwelling coverage, the primary coverage component of any standard homeowners insurance policy that helps repair or rebuild your home after a covered loss. The home insurance companies we chose to feature offer a variety of coverage options, a combination of competitive rates and discount options, plus unique features that allow you to customize your policy to your needs.

Home insurance company Bankrate Score 2021 J.D. Power customer satisfaction score AM Best financial strength rating Average annual premium for $250K dwelling coverage
USAA 4.6 *882/1,000 A++ $992
Lemonade 4.6 **Unavailable **Unavailable **Unavailable
Travelers 4.4 800/1,000 A++ $1,269
AAA 4.2 840/1,000 A- $1,263
Amica 4.2 854/1,000 A+ $2,644
Allstate 4.0 829/1,000 A+ $1,458

*Not officially ranked by J.D. Power due to eligibility restrictions
**Rate data is unavailable for Lemonade, and it has not yet been reviewed or rated by J.D. Power or AM Best. However, the company has been rated by Demotech for financial stability and received a letter grade of “A,” which is considered exceptional.

USAA

Why USAA made our list: USAA only sells homeowners insurance to current and veteran military members and their families. The company could be a great option for this demographic with low average rates and unique, military-focused coverage options.

The company consistently receives excellent marks for customer service, earning the highest score in the 2021 J.D. Power U.S. Home Insurance Study. However, the provider is not eligible for official ranking because its products are not available to the general public. In addition to its average premium being lower than the national average, USAA offers a few homeowners insurance discounts, including savings for being claims-free for five years, purchasing multiple policies and installing security systems. Unique coverage options, such as coverage for military uniforms for active duty or deployed policyholders, are also offered.

Standard profile With average credit With alarm discount
USAA $992 $1,061 $982
National average $1,312 $1,433 $1,255
  • Available states: All 50 states and the District of Columbia
  • Market share percentage: 6.7%

Learn more: USAA Insurance review

Lemonade

Why Lemonade made our list: Lemonade’s artificial intelligence and digital-first approach to insurance is innovative and allows the carrier to offer useful online tools and lower-cost policies.

Lemonade is a relatively new carrier, but its innovative style earned it a place on our list of the best homeowners insurance companies in the U.S. This insurtech company offers insurance for homeowners on an all-digital platform with low-cost monthly insurance plans. Rather than maintaining brick-and-mortar agencies, Lemonade operates via an advanced mobile app, which earned a 4.4 out of 5.0 rating from Google Play and a 4.9 out of 5.0 rating from the Apple App Store. Because it is a startup, Lemonade is not yet rated by J.D. Power for home insurance customer service, but the carrier earned a lower-than-average complaint index from the National Association of Insurance Commissioners (NAIC). A score of 1.00 represents an industry-average number of complaints; Lemonade’s homeowners insurance received a score of 0.88. This means the NAIC received fewer complaints than average regarding Lemonade’s homeowners insurance. While Lemonade is not yet rated by any of the three major financial rating services, it carries an A (Exceptional) financial stability rating from Demotech.

  • Available states: Arizona, California, Colorado, Connecticut, District of Columbia, Georgia, Illinois, Indiana, Iowa, Maryland, Massachusetts, Michigan, Missouri, Nevada, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Virginia and Wisconsin
  • Market share percentage: N/A

Learn more: Lemonade Insurance review

Travelers

Why Travelers made our list: Unique policy management features, including using an Echo or Alexa device, might help policyholders feel more in control of their coverage.

With a network of thousands of agents across all 50 states and Washington, D.C., Travelers is a highly accessible home insurance company that offers a low average rate paired with a wide variety of discounts to help policyholders save even more. For example, customers whose homes are certified by the Leadership Energy and Environmental Design (LEED) organization for being environmentally friendly can save up to 5% on their premium. Travelers also offers uncommon features for tech-savvy consumers, such as managing policies using Echo or Alexa smart home systems.

Standard profile With average credit With alarm discount
Travelers $1,269 $1,422 $1,239
National average $1,312 $1,433 $1,255
  • Available states: All 50 states and the District of Columbia
  • Market share percentage: 4.4%

Learn more: Travelers Insurance review

AAA

Why AAA made our list: AAA members may earn an additional discount on their home insurance policies, although membership is not typically required.

AAA may be synonymous with roadside vehicle service, but the company offers several insurance products, including homeowners and auto insurance. Although AAA operates differently in each state, policyholders do not typically need an AAA membership to take advantage of its homeowners insurance program. If you are a member, though, you might earn an additional discount on a home policy. In addition to its slightly below-average rates, the company offers several discounts that could help policyholders lower their premium even more. Discounts vary by state, so speaking with one of their insurance agents might help you learn more about what savings are available where you live. AAA earned a lower customer satisfaction score from J.D. Power than the other carriers on our best homeowners insurance companies list but carries an A- (Excellent) financial strength rating from AM Best.

Standard profile With average credit With alarm discount
AAA $1,263 $1,382 $1,188
National average $1,312 $1,433 $1,255
  • Available states (operates through different region-affiliated clubs): All states except Alaska, Louisiana, Massachusetts, Rhode Island, Washington and Wisconsin (through different region-affiliated clubs
  • Market share percentage: 0.89%

Learn more: AAA Insurance review

Amica Mutual

Why Amica made our list: Amica’s consistently high-ranking claims service offers policyholders peace of mind knowing that they will be taken care of when it matters most.

If you are looking for home insurance coverage focused on customer service and peace of mind, Amica might be a fantastic option. Although its average annual premium is higher than the national average, Amica is consistently praised for its customer service — it earned the highest official ranking in the 2021 J.D. Power U.S. Home Insurance Study — and its policyholders are continually impressed with the company’s claims service. Amica earned the top spot in J.D. Power’s annual Property Claims Study for nine consecutive years between 2012 and 2020 before sliding to fourth place in the 2021 study. Amica also offers unique features, such as its dividend policy, allowing policyholders to recoup up to 20% of their home premium each year. The company carries an A+ (Superior) financial strength rating from AM Best.

Standard profile With average credit With alarm discount
Amica $2,644 $2,805 $2,636
National average $1,312 $1,433 $1,255

  • Available states: All states except Hawaii
  • Market share percentage: 0.86%

Allstate

Why Allstate made our list: Abundant online educational resources can help policyholders better understand and choose their coverage.

Allstate’s home insurance stands out as one of the best homeowners insurance carriers in the U.S. for the way it helps policyholders navigate their coverage needs. The company offers educational resources on its website to help first-time buyers navigate the homeowners insurance buying process. For example, Allstate’s Common and Costly Claims tool provides information about the most common and expensive insurance claims by ZIP code, which can help you assess the need for specific coverage options on your policy. The company earns average customer satisfaction scores from J.D. Power and carries an A+ (Superior) financial strength rating from AM Best.

Standard profile With average credit With alarm discount
Allstate $1,458 $1,560 $1,386
National average $1,312 $1,433 $1,255
  • Available states: All 50 states and the District of Columbia
  • Market share percentage: 8.2%

Learn more: Allstate Insurance review

Additional providers to consider

Chubb

Why Chubb is worth considering: Policies are tailored specifically to the needs of high-value or luxury homes, and risk consulting can reassure policyholders that their unique needs are met.

If you have a high-value or luxury home, you may want to consider Chubb’s specialized homeowners insurance policies. To ensure you are adequately protected, Chubb offers risk consulting, where a trained risk consultant evaluates your home’s features to determine your home’s rebuilding cost. The consultant can also provide advice about fire prevention and home security. Chubb policyholders also have access to the company’s HomeScan tool, which can help them identify potential issues in their homes before they cause damage.

Standard profile With average credit With alarm discount
Chubb $1,630 $1,751 $1,560
National average $1,312 $1,433 $1,255
  • Available states: All 50 states and the District of Columbia
  • Market share percentage: 2.8%

Learn more: Chubb Insurance review

Safeco

Why Safeco is worth considering: Through its Guaranteed Repair Network feature, Safeco can guide policyholders through the claims process and guarantee home repairs with a material and labor warranty.

A Liberty Mutual company, Safeco offers numerous home insurance endorsements that could allow customers to tailor their coverage to their unique needs, including equipment breakdown coverage, service line coverage and identity theft coverage. If the unexpected does happen, Safeco stands ready to help. The company’s Guaranteed Repair Network connects policyholders to pre-qualified contractors to give estimates and perform repairs. Safeco guarantees the materials and labor completed by experts included in its network.

  • Available states: Alabama, Arizona, Arkansas, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, New York, North Dakota, Ohio, Oklahoma, Oregon, South Dakota, Tennessee, Utah, Virginia, West Virginia, Wisconsin and Wyoming
  • Market share percentage: 6.3%*

Learn more: Safeco Insurance review

*6.3% represents the homeowners market share for The Liberty Mutual Group of companies, of which Safeco is a part.

Why location matters when choosing home insurance

According to the Insurance Information Institute (Triple-I), home insurers use multiple factors to determine your premium and location — including state, city and ZIP code — which can have a substantial impact on the cost of coverage. Different areas of the country come with distinct risk factors. For example, a homeowner along the coastline may need to consider how hurricanes might affect their home, while someone in the Rocky Mountain region may need to consider the impacts of heavy snow.

Becoming familiar with your state’s risks and common causes of loss could help you make a more educated decision regarding your homeowners insurance coverage. Links to Bankrate’s picks for the best homeowners insurance providers in your state are included in the table below.

Frequently asked questions

What do homeowners insurance policies cover?

Homeowners insurance coverage varies based on which carrier you choose, but standard coverage includes dwelling, other structures, personal property, liability protection and guest medical protection. The specific causes of loss that your policy covers will vary based on what type of home insurance policy you have. Working with a licensed insurance agent could help you determine the policy and coverage types that are right for you.

What is the typical cost of homeowners insurance coverage?

The average annual homeowners insurance premium in the U.S. for $250,000 dwelling coverage is $1,312. Keep in mind that home insurance is individualized and your specific rate will depend on which state you live in, the size of your home and what kinds of damage are common in your area, among other factors, according to the Triple-I. Your homeowners insurance premium will also be influenced by your deductible; a higher deductible means a lower premium, but it also means you will have to pay more out-of-pocket if you file a claim.

What is the best homeowners insurance company for bundling home and auto?

Many property/casualty insurers allow you to bundle your home policy and auto policy and often offer discounts on both policies for doing so. Although many insurance companies allow you to bundle multiple types of insurance policies, typically the greatest savings come from bundling home and auto insurance. Getting quotes for both your home policy and auto policy from several carriers might help you choose a company that fits your needs for both types of coverage.

Is flood insurance included with my homeowners policy?

No, flood insurance is not typically included with standard policies. According to the Triple-I, floods can occur just about anywhere in the U.S., so you may want to consider purchasing a separate flood insurance policy for full protection of your property. You can purchase flood insurance through FEMA’s National Flood Insurance Program (NFIP) and dozens of private insurance carriers. A few home insurance companies offer flood coverage as an endorsement. Like when you shop for home insurance, you may want to get quotes from several carriers to compare flood coverage options and premiums.

How do you compare homeowners insurance companies?

Understanding what matters most to you regarding your home insurance coverage can help you compare companies. If you are on a strict budget, the price might be the most important factor to consider. If you need specialized coverage, finding a company that provides the endorsements you need will be important. Although you will likely have a priority factor — like price, customer service or available endorsements — you should review all aspects of a company before deciding if it is the right fit for you.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:

  • Coverage A, Dwelling: $250,000
  • Coverage B, Other Structures: $25,000
  • Coverage C, Personal Property: $125,000
  • Coverage D, Loss of Use: $50,000
  • Coverage E, Liability: $300,000
  • Coverage F, Medical Payments: $1,000

The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).

These are sample rates and should be used for comparative purposes only. Your quotes will differ.

Credit: Rates were calculated based on the following insurance credit tiers assigned to our drivers: “poor, average, good (base), and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. The following states do not allow credit to be a factor in determining home insurance rates: CA, HI, MA. Maryland factors a few credit-related variables in determining rates but does not weigh those factors the same as other states.

Alarm discount:
Rates were calculated based on applying a discount for having a Central Station home alarm system.

Bankrate Scores

Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. We know it is important for homeowners to be confident their financial protection covers the likeliest risks, is priced competitively and is provided by a financially-sound company with a history of positive customer support.

To determine how well the best homeowners insurance companies satisfy these priorities, third-party agency ratings from J.D. Power, AM Best, S&P, NAIC, and Moodys had the most impact on the companies’ Bankrate Scores. As price is a common consideration for homeowners, we analyzed quoted premiums based on 40-year-old male and female homeowners purchasing $250,000 in dwelling coverage. This profile, assessed across more than 35,000 ZIP codes in the U.S., provided a basis on which homeowners may compare each provider.

While coverage options, insurer availability, affordability and customer experience are often the top priorities, Bankrate also analyzed each insurer’s online and mobile resources for policy management and claims handling. Insurance is rapidly evolving to keep pace with our digital world, so these aspects also carried weight in determining Bankrate Scores.

Written by
Cate Deventer
Insurance Writer & Editor
Cate Deventer is a writer, editor and insurance professional with nearly a decade of experience in the insurance industry as a licensed insurance agent.
Edited by
Insurance Editor
Reviewed by
Director of corporate communications, Insurance Information Institute