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Best homeowners insurance companies for November 2022

Written by
June Sham
Edited by
Angelica Leicht
Reviewed by
Mark Friedlander
Updated Nov 17, 2022
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Best home insurance companies in November 2022

USAA
4.8
Bankrate Score
Info
Best for
Overall
J.D. Power
884
/1,000
AM Best
A++
Average annual premium*
$978
 Get a quote
State Farm
4.7
Bankrate Score
Info
Best for
Overall
J.D. Power
829
/1,000
AM Best
A++
Average annual premium*
$1,360
 Read review
Erie
4.6
Bankrate Score
Info
Best for
Robust coverage
J.D. Power
827
/1,000
AM Best
A+
Average annual premium*
$959
 Get a quote
NJM
4.6
Bankrate Score
Info
Best for
Unique discounts
J.D. Power
Not rated
AM Best
A+
Average annual premium*
$373
 Read review
Lemonade
4.2
Bankrate Score
Info
Best for
Digital experience
J.D. Power
870
/1,000
AM Best
A
Average annual premium*
N/A
 Read review
Amica
4.2
Bankrate Score
Info
Best for
Customer service
J.D. Power
849
/1,000
AM Best
A+
Average annual premium*
$2,851
 Read review
Nationwide
4.1
Bankrate Score
Info
Best for
High-value home coverage
J.D. Power
816
/1,000
AM Best
A+
Average annual premium*
$1,075
 Get a quote
Allstate
3.9
Bankrate Score
Info
Best for
Educational insurance resources
J.D. Power
815
/1,000
AM Best
A+
Average annual premium*
$1,300
 Get a quote
*Based on policies with $250K dwelling coverage for 2022
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Insurance Disclosure

Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

**USAA not officially ranked with J.D. Power due to eligibility restrictions

How Bankrate picked the best homeowners insurance companies

To find the best homeowners insurance companies, Bankrate’s insurance experts first looked at each carrier’s market share percentages, customer satisfaction ratings from the 2022 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. We also reviewed average premium information to assess each carrier’s affordability, as well as discount opportunities to maximize further savings. Our final list of the best homeowners insurance companies includes carriers that feature a variety of coverage options, a combination of competitive rates and discount options, plus unique options that allow you to personalize your policy to your needs.

Best home insurance companies in detail

Best home insurance company overall

USAA logo
J.D. Power:
884 /1,000
AM Best:
A ++
Avg. annual premium for 250k dwelling
$ 978
USAA Insurance Review Get a personalized quote

Best home insurance company overall

J.D. Power:
829 /1,000
AM Best:
A ++
Avg. annual premium for 250k dwelling
$ 1,360
State Farm Insurance Review Get a personalized quote

Best home insurance company for robust coverage

J.D. Power:
827 /1,000
AM Best:
A +
Avg. annual premium for 250k dwelling
$ 959
Erie Insurance Review Get a personalized quote

Best home insurance company for unique discounts

J.D. Power:
Not rated
AM Best:
A +
Avg. annual premium for 250k dwelling
$ 373
NJM Insurance Review Get a personalized quote

Best home insurance company for digital experience

Lemonade logo
J.D. Power:
870 /1,000
AM Best:
A
Avg. annual premium for 250k dwelling
N/A
Lemonade Insurance Review Get a personalized quote

Best home insurance company for customer service

J.D. Power:
849 /1,000
AM Best:
A +
Avg. annual premium for 250k dwelling
$ 2,851
Amica Insurance Review

Best home insurance company for high-value home coverage

J.D. Power:
816 /1,000
AM Best:
A +
Avg. annual premium for 250k dwelling
$ 1,075
Nationwide Insurance Review Get a personalized quote

Best home insurance company for educational insurance resources

J.D. Power:
815 /1,000
AM Best:
A +
Avg. annual premium for 250k dwelling
$ 1,300
Allstate Insurance Review Get a personalized quote

Additional home insurance companies to consider

Best home insurance company for luxury home coverage

J.D. Power:
809 /1,000
AM Best:
A ++
Avg. annual premium for 250k dwelling
$ 1,763
Chubb Insurance Review Get a personalized quote

Best home insurance company for home warranties

J.D. Power:
810 /1,000
AM Best:
A
Avg. annual premium for 250k dwelling
N/A
Safeco Insurance Review Get a personalized quote

How to compare the best home insurance companies

Each of the home insurance companies listed here have unique strengths, but not all of them will be the best fit for your needs. Although comparing homeowners insurance carriers can seem daunting, you might find this list of steps helpful to keep you on track:

  1. Decide how much coverage you need. Home insurance is individualized, and a coverage package that’s best for you might not be for another. Determine what level of coverage and optional add-ons you need to best tailor your quote for your unique circumstance. If you’re in doubt, you may find it helpful to seek advice from an insurance professional.
  2. Consider your priorities. Are you looking for diverse policy options? Do you need the cheapest rates and, thus, plentiful discount opportunities? Perhaps customer service is at the top of your mind. Knowing what you need in a homeowners insurance policy can help narrow down the list of companies from which to request a quote.
  3. Request quotes. Many companies will allow you to request quotes online, but others may require you to speak directly with an agent. Regardless of how you request your quote, you may want to be consistent and ask for the same (or similar) coverage options from one carrier to the next. This can help you compare home insurance quotes apples-to-apples.
  4. Ask questions. Home insurance can be complex, but taking the time to ask questions about the carrier’s coverage details may help you make the most informative choice about your policy’s inclusions.
  5. Make a list of pros and cons. Once you have your quotes in hand, making a list of pros and cons for each company may help you find one company that stands out from the rest.

What is homeowners insurance and how does it work?

Homeowners insurance is an agreement between you, the homeowner, and an insurance company. You agree to pay a certain amount — the policy premium — in exchange for the coverage outlined in your policy. Your policy is broken down into individual coverage types, including dwelling coverage (for the structure of your home), personal property coverage (for your belongings) and liability coverage (for your liability exposures).

If you have an HO-3 or HO-5 policy, which are the most common types of policies, your policy covers the structure of your home for any type of damage that isn’t specifically excluded, like floods or earthquakes. HO-3 policies provide personal property coverage for certain insurance perils, or types of damage, while HO-5 policies also cover your property for anything that isn’t excluded. If you are faced with a sudden and unexpected expense, such as a fire, damage from a windstorm or lawsuit over injuries sustained on your property, your home insurance may step in to help you cover the financial fallout.

Is home insurance required?

No state legally requires you to buy a home insurance policy, but you’ll likely have to purchase one if you have a mortgage or other type of home loan. Even if you own your home in full, home insurance is still a good consideration and could help protect your finances from the effects of home damage or lawsuits.

What does homeowners insurance cover?

Standard home insurance typically covers damage to your home, detached structures and personal property, although the way that your policy responds to damage depends on the type of policy you have. 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 for damage not specifically excluded in your policy.
  • Other structures coverage: Also called “detached structures coverage,” this is usually 10-20 percent of your dwelling amount and covers things like fences, sheds, gazebos, detached garages and in-ground swimming pools.
  • 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 [ercent of your dwelling amount, although you might be able to increase it if necessary.Your personal property coverage is generally 50-75 percent of your dwelling amount, although you might be able to increase it if necessary.
  • Medical payments: This coverage pays for guest injuries regardless of fault, up to the coverage limit.
  • 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.

Keep in mind, though, 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.

What are the types of homeowners insurance?

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 eight 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. Insurers rarely use this policy form.
  • 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.
  • HO-6: 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-7: An HO-7 insurance policy is for mobile homes and manufactured homes, such as RVs, trailers, modular homes and sectional homes. It insures both the structure of the home, as well as personal belongings and liability, medical expenses and additional living expenses.
  • 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 much does home insurnace cost?

Nationally, the average cost of homeowners insurance is $1,383 per year for $250,000 in dwelling coverage. While this is useful for comparison, the typical cost of homeowners insurance will vary widely depending on personal rating factors, including the state you live in, the year it was built and square footage. Requesting quotes from multiple carriers will give you a range of how much your home insurance is expected to cost.

Average cost of home insurance by state

How do I save on home insurance?

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.

Home insurance company Potential typical bundle discount*
USAA Up to 10 percent
State Farm Up to $1,127 annually
Erie 16 to 25 percent
NJM Not stated
Lemonade Not stated
Amica Up to 30 percent
Nationwide Up to 20 percent
Allstate Up to 25 percent

*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.

How to buy homeowners insurance

Once you are ready to purchase homeowners insurance, here is an overview of steps to follow:

  1. Estimate what you need to be insured. Starting with your home, consider the square footage, remodels or renovation and any external structures like a swimming pool or detached garage that needs to be insured. Also take inventory of personal belongings, especially if you have any high-value items that might benefit from a scheduled personal property endorsement.
  2. Calculate how much coverage you need. After thinking about what and how much you own, you can start to determine your dwelling, personal property and liability coverage amounts. You don’t need to work up exact figures, but having an idea of how much home insurance you need might help you ensure your quotes are at a proper level. An insurance agent can also help review the coverage limits to ensure you have the right amount of insurance. Depending on where your home is located, you may also need flood or earthquake insurance, which is purchased separately.
  3. Choose which insurance companies to request a quote from. Researching the top home insurance companies can reveal financial strength ratings and customer service reviews, which can help you narrow down your options. Requesting quotes will give you a better picture of policy offerings, estimated premiums and discount opportunities. Requesting quotes from more than one carrier will give you the best chance to see which company offers the best coverage for your needs and budget. Additionally, depending on how you want to manage your policy, this can be a great way to familiarize yourself with the company’s online services or connect with local insurance agents.
  4. Finalize the policy. Once you have made a decision, you’ll need to make a payment to bind, or finalize, the policy. If you are switching carriers, you can choose to have your new policy begin when the old one ends, or you have your new policy start immediately. If that’s the case, you’ll need to issue a request to your old insurance company to cancel the policy and request a refund for any unused premium.
Advertising Disclosure
This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.
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Quick Facts
Moneybag
$382/year
average savings through Bankrate
Two Thirds
2 out of 3 homes
are underinsured
Insurance Home
1 out of every 20
insured homes makes a claim each year
Circle Check
100% of homes
need insurance before getting a mortgage
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Written by
June Sham
Insurance Writer

June Sham is an insurance writer for Bankrate. Before joining the team, she worked for nearly three years as a licensed producer writing auto, property, umbrella and earthquake policies.

Edited by
Angelica Leicht
Insurance Editor
Reviewed by
Mark Friedlander
Director of corporate communications, Insurance Information Institute