Best homeowners insurance companies for May 2022

Bankrate’s insurance editorial team reviewed more than 50 homeowners insurance companies across the nation, paying particular attention to those ranked highly by third parties in key market areas. We found that USAA and State Farm may be great choices for many homeowners, while Lemonade topped our list for providing tech-savvy and low-cost home insurance. However, the best home insurance company for you will be a carrier that offers the coverage types, discounts, policy features and other attributes that most closely meet your needs.

Bankrate’s top picks for the best homeowners insurance

*Overall standing affected by limited data availability in the states where coverage is offered.

Comparing the best home insurance companies

When looking for the best homeowners insurance policy, several attributes of each company may be important to think about. Considering a carrier’s available coverage options, ability to handle claims, customer satisfaction and financial stability will help you ensure your homeowners insurance policy fully suits your needs. Bankrate utilized market share percentages, customer satisfaction ratings from the latest 2021 J.D. Power U.S. Home Insurance Study and 2022 J.D. Power U.S. Property Claims Satisfaction Study, and financial strength ratings from major credit rating agencies to help you evaluate the best homeowners insurance companies.

Another common priority when looking for the best homeowners insurance is affordability. Our editorial team analyzed 2022 average quoted premiums from Quadrant Information Services to determine top carrier options. We also reviewed standard discounts that could help decrease your premium. Some discounts are fairly standard, like bundling your home and auto insurance for a multiple policy discount, or earning a home security discount for home monitoring or alarms. Others may be more unique, such as a new home construction discount from Progressive and a nonsmoker discount with NJM. Looking for discount opportunities could be a significant advantage in saving on home insurance.

The rates below are based on a homeowner having $250,000 in dwelling coverage, the primary coverage component of any standard home insurance policy that helps pay to 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 personalize your policy to your needs.

*Not officially ranked due to eligibility restrictions

How to get started: You can get a USAA home insurance quote by calling 800-531-8722 or visiting one of the few office locations. Online quotes are also available for home insurance.

How to get started: State Farm makes getting a homeowners insurance quote easy. You can get a quote online, call 800-782-8332 or visit a State Farm agency in your area.

How to get started: Erie provides quotes through local agents only. The company’s website has a tool that could help you find an agent and even select a preferred language.

How to get started: You can get an NJM quote by calling 800-232-6600 or using the online quote tool.

*Rate data is unavailable for Lemonade, and it has not yet been reviewed or rated by J.D. Power or AM Best for home insurance. However, the company has been rated by Demotech for financial stability and received a letter grade of “A,” which is considered exceptional. J.D. Power also awards Lemonade the top position for renters insurance in its 2021 Home Insurance Study.

How to get started: Lemonade is known for its technology. Home insurance quotes can be obtained online or through the mobile app. If you need to talk to a representative, you can call 844-733-8666.

How to get started: Amica has an online quoting tool that you can use, or you can call 800-242-6422 for a home insurance quote.

How to get started: You can get a homeowners insurance quote from Nationwide in a few ways, such as by using the online quote feature, calling 877-669-6877 or by working with a local agency.

How to get started: Allstate offers online home insurance quotes. If you prefer working with an agent, you could call 866-702-6500 or visit a local agency.

Additional home insurance companies to consider

How to get started: You can get a homeowners insurance quote from Nationwide in a few ways, such as by using the online quote feature, calling 877-669-6877 or by working with a local agency.

How to get started: Safeco allows you to start quotes online, but policies must be purchased from an independent agent.

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

Bundling home and auto insurance means you are buying both policies from the same company. Most companies offer a discount on both auto and home policies (and sometimes other policies as well) as an incentive to policyholders. This has the potential to make both policies cheaper than if you were to purchase the policies from two separate insurance companies. To help give you an idea of how much you could potentially save by bundling policies, we checked each carrier’s website or contacted them to see how significant each company’s bundling discount could be.

Keep in mind that the best carrier for you will depend on your individual needs and preferences. One way to find the right fit for your needs is to make a list of the features you are looking for in both your home and auto insurance policies. Then you can get quotes from several carriers who might match your needs.

*Note that potential discount amounts for bundling are taken directly from the carrier website and are subject to change. Additionally, there is no guarantee that you would receive the discount advertised by the insurance company. If you want more information about bundling discounts from your insurance company, contact your insurance agent.

What is homeowners insurance?

Homeowners insurance protects your finances if your home is damaged or destroyed by a covered peril. Your policy will likely also include liability coverage, which provides you with essential financial protection if someone is hurt on your property or their belongings are damaged and you are found at fault.

Home insurance isn’t required by law, but if you have a mortgage or home loan, your lender will likely require you to have a policy. Even if your home is paid off, industry experts strongly recommend you consider purchasing home insurance coverage. A home insurance policy is designed to help you avoid financial stress or devastation if your home is extensively damaged.

What does homeowners insurance cover?

Home insurance covers damage to your home, detached structures and personal property from the losses indicated in your policy. Your liability exposure is likely also covered. Standard policies typically contain these coverage types:

• Dwelling coverage: This is the main coverage in homeowners insurance and covers your home and any attached structures from certain types of damage, like fire, vandalism and wind.
• Other structures coverage: Also called “detached structures coverage,” this is usually 10-20% of your dwelling amount and covers things like fences, sheds and gazebos.
• Personal property coverage: This part of your policy covers your belongings, like your furniture, clothing and decor. Your personal property coverage is generally 50-75% of your dwelling amount, although you might be able to increase it if necessary.
• Liability coverage: If you damage someone’s belongings or if someone is hurt on your property and you are found at fault, your liability coverage may pay the damages and your legal fees.
• Additional living expenses: Additional living expenses (ALE), also known as loss of use, pays the costs of living while away from your home if it’s uninhabitable due to damage caused by a covered property claim.

Most standard home insurance policies also include medical payments to others coverage, which pays for guest injuries regardless of fault, up to the coverage limit. Keep in mind too that all policies are different; you can often add endorsements to bolster your policy with more coverage. And home insurance comes in several different types, all of which cover different types of losses.

Types of homeowners insurance policies

Given the wide variety of homes, there are many different types of homeowners insurance policies for every situation. While the standard HO-3 policy is what we typically refer to when discussing homeowners insurance, there are actually nine different policy types, each one best suited for a different type of home or insurance need:

• HO-1: As the most basic type of home insurance, an HO-1 policy provides coverage for the structure of your home for named perils only. There is no coverage for your personal belongings, additional living expenses or liability.
• HO-2: This policy type offers expanded coverage for personal property, liability and additional living expenses, but for named perils only.
• HO-3: Widely considered the standard home insurance policy, this policy type comes with all the coverage options in the HO-2 plus medical payments coverage. Unlike the first two types of home insurance policies, the dwelling in an HO-3 is covered on an open perils basis.
• HO-4: An HO-4 is intended for renters as a solution to insure their personal belongings and provide liability coverage. As renters are not homeowners, this policy does not insure the structure of their home.
• HO-5: As an open-peril policy, an HO-5 expands coverage for dwelling and personal belongings to all perils except those specifically excluded.
• Condominium: A condominium owner’s policy insures the interior of their unit, as the exterior and shared spaces may be covered by the master condominium policy. It also insures the owner’s personal belongings and provides liability coverage.
• HO-8: The HO-8 policy type is a named peril policy that only covers 10 perils. It is intended for homes where the repair or replacement cost may be higher than its resale value, such as older or historical homes, or architecturally significant homes.

How to choose the best homeowners insurance policy

Dozens of home insurance companies might be available in your area, so how do you choose the right provider for you? Here’s a few steps you can take:

1. Understand your needs. Do you live in an area where wind damage is common? How much would your home cost to rebuild? Do you have specialty belongings that might need additional coverage? Understanding what you need from a home insurance company is often the first step to choosing the best carrier for your circumstances.
2. Determine what matters to you. Would you feel more comfortable with a local agent who knows the area and can help you navigate the insurance buying process? Or do you like to handle your policies digitally? Is customer service important to you? Analyzing third-party reviews might help you decide if a company will be a good fit.
3. Shop around. Once you know what you are looking for in a policy, you can get quotes from several different property insurers. Most companies offer a different combination of optional coverage types and discounts, so getting a minimum of three quotes helps you compare, according to the Insurance Information Institute (Triple-I). Also, insurance costs can vary significantly between companies, even for the same level of coverage.
4. Reevaluate your coverage occasionally. Life changes, and your insurance should change with it. If you experience a life event — maybe you get married, have a child or suffer a home insurance loss — you should talk to your insurance company or agent to evaluate your coverage needs. This helps to ensure you have the coverage and policy features that work best for you. The Triple-I recommends conducting an annual insurance review with your agent to ensure you have the right amounts and types of coverage.

Working with a licensed insurance agent can be very helpful during the process of purchasing homeowners coverage. An agent can assess your needs and help you choose the options that are best for you.

Why location matters when choosing the best home insurance for you

Home insurance companies use multiple rating factors to determine your annual premium, and location — including state, city, ZIP code, claims history and proximity to a fire station and fire hydrants — can have a substantial impact on the cost of home insurance coverage. Nationally, the average cost of homeowners insurance is $1,383 per year for $250,000 in dwelling coverage. However, different areas of the country come with distinct risk factors, which affect premiums. For example, a homeowner living along the coastline may need to consider how hurricanes might affect their property, while someone in the Rocky Mountain region may need to consider the impacts of heavy snow and wildfires.

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 insurers in your state are included in the table below.

Frequently asked questions