Buying a home takes several stages of planning that involve settling on a location, budgeting for your home needs and making sure your property will be adequately covered in cases of loss. Although homeowners insurance is not legally required by your state, it is likely the first thing you will either want to purchase or be required to purchase by a mortgage lender to properly protect your investment. Without proper insurance on a home, you could be responsible for thousands of dollars — financial devastation could occur.
If you are looking for home insurance for the first time, the process likely involves many questions, including where you can find the best homeowners insurance companies to fit your needs. At Bankrate, we know that your most important considerations involve cost, coverage and overall consumer experience. Our Bankrate insurance editorial team has spent the year analyzing the best homeowners insurance carriers from across the nation based on average premiums, coverage options, customer satisfaction, available discounts and more to simplify your process as much as possible and expedite your homeowners insurance search. Our research should help you feel equipped in confidently selecting an insurer that is suitable for both you and your home or lender’s needs.
On this page
- How to compare the best home insurance companies
- Company reviews
- Why location matters when choosing home insurance
- Frequently asked questions
- Methodology
How to compare the best home insurance companies
When buying a homeowners insurance policy, you will want to consider several components of the company including their average annual premiums, extents of coverage, ability to handle claims and customer satisfaction. Bankrate utilized customer satisfaction ratings from J.D. Power and the National Association of Insurance Commissioners (NAIC), as well as 2020 average quoted premiums from Quadrant Information Services to determine which are the best homeowners insurance companies to consider.
Though some data is unavailable, Bankrate ensures that each company is worth your consideration. Lemonade is newer to the insurance space, joining the scene in 2015, and recently became a public company in 2020. Because of its newness, Lemonade has not yet been reviewed or rated by industry agencies. However, it shines in its all-digital experience and is worthy of consideration as one of the best homeowners insurance providers.
| Home insurance company | 2020 J.D. Power score | Average annual premium for $250K dwelling |
|---|---|---|
| Allstate | 829 | $1,451 |
| Amica Mutual | 853 | $1,996 |
| Chubb | 778 | $1,379 |
| MetLife | 824 | $1,256 |
| Travelers | 803 | $1,277 |
| USAA | **889 | $1,454 |
| Lemonade | **Unavailable | **Unavailable |
| National average | 823 | $1,477 |
**Rate data is unavailable for Lemonade, as it has not yet been reviewed or rated by insurance agencies. USAA is rank-ineligible due to eligibility restrictions.
To figure out which home insurance company is right for you, consider its policy options, how closely its premiums align with your needs for coverage and the ways you may want to interact with your insurer and policy. The companies listed here are some of the best-in-class when it comes to overall customer satisfaction and have average annual premiums that are within close range to the national average of $1,477 per year for $250,000 in dwelling coverage.
Allstate
Allstate’s home insurance is simple and straightforward, but the provider particularly stands out as one of the best homeowners insurance carriers for the way it helps policyholders navigate coverage and claims. Its average premium for a $250,000 home is in line with the national average, and the company has a strong focus on customer service, receiving a score of 829 out of 1,000 in the 2020 J.D. Power U.S. Home Insurance Study. Additionally, Allstate offers educational resources on its website to help first-time buyers navigate the homeowners insurance buying process.
Knowing what claims are common in your area can be tricky, but Allstate offers a solution. The Common and Costly Claims tool provides information about the most common and expensive insurance claims by ZIP code. Having this knowledge helps homeowners to assess the need for specific coverages on their policies.
Along with the standard coverage offerings, Allstate provides several unique coverage options and extra coverages for policyholders to consider, such as the Claim Rateguard feature, which prevents your premium from increasing from one claim every five years.
Highlights
- The ZIP-code-specific claims research tool helps policyholders determine what coverages they may need to purchase.
- Abundant online educational resources can help policyholders better understand and choose their coverages.
- Optional coverages can help tailor each policy to fit the needs of the policyholder.
Amica Mutual
If you are looking for home insurance coverage focused on customer service and peace of mind, Amica Mutual is a fantastic option. Amica policyholders are continually impressed with the company’s claims service. In the 2020 J.D. Power U.S. Property Claims Satisfaction Study, Amica received the highest rating for the ninth year in a row.
Amica also offers unique features, such as its Contractor Connection service, which helps connect policyholders in need of home repairs with licensed contractors. Amica also offers a unique dividend policy, which allows policyholders to recoup up to 20% of their home premium each year. Although the initial premium may be higher than non-dividend policies, Amica advises that the dividend policy may ultimately save policyholders money.
Amica offers robust online customer service options as well. Policyholders can create an online account to pay their bills, print ID cards, file claims and sign documents.
Highlights
- Consistently high-ranking claims service offers policyholders peace of mind knowing that they will be taken care of when it matters most.
- Unique policy features can help policyholders customize their policies.
- Online coverage tools allow policyholders more control over their policy management.
Chubb
If you have a high-value or luxury home, you should consider Chubb’s specialized homeowners insurance policies. Chubb has long been a mainstay in the insurance industry and can trace its origins back to the 1700s, making it a good choice for customers who are looking for an established company with a long track record.
Chubb’s Masterpiece homeowners insurance policy is specifically designed for homes of high value. For added peace of mind, Chubb offers risk consulting on its policies. A trained risk consultant will evaluate your home’s unique features to accurately determine your home’s rebuilding cost. This will help to ensure that you are well protected in the event of a loss. The consultant can also offer advice about fire prevention and home security.
Chubb includes several unique features within its Masterpiece policies, including the option to settle a claim for a cash payment rather than choosing to rebuild or replace the damaged home or items. Chubb policyholders also have access to HomeScan, which can help them identify potential issues in their home before they cause damage.
Highlights
- Policies are tailored specifically to the needs of high-value or luxury homes.
- Risk consulting can reassure policyholders that their unique needs are met.
- Features such as HomeScan can alert homeowners to issues before they cause damage.
MetLife
If you prefer to handle your insurance needs online or through an app, MetLife may be a good place to start your search for home insurance. Offering 24/7 customer support, MetLife will be there for you no matter when you need it. Through the MetLife app, policyholders can view their policy and pay bills by credit card. One highly useful feature of the app is that policyholders are able to see all their MetLife policies — including home, auto and medical policies — in one place.
With the lowest premium on our list, MetLife offers highly flexible and customizable home insurance policy options, so each policyholder can create a policy that fits their specific needs. Identity theft coverage is included automatically on homeowners insurance policies in most states, so customers are covered for the potential costs of restoring their stolen identity without having to manually add the coverage.
Policyholders may qualify for any one of multiple discounts, including discounts offered through employer groups.
Highlights
- Robust online and app features help policyholders to manage their policy from anywhere.
- Exceptionally customizable policies allow policyholders to choose the coverages they need.
- Identity theft coverage is included on most homeowners insurance policies.
Travelers
With agents in all 50 states and Washington, D.C., Travelers is a highly accessible company. Although Travelers already offers low rates — it is the second lowest carrier on our list — it also offers a wide variety of discounts to help policyholders save even more.
For example, policyholders whose home is certified by the Leadership Energy and Environmental Design (LEED) organization for being environmentally friendly can get up to 5% off their premium. Travelers also offers a discount for new home purchases. If a policyholder has purchased their home within 12 months since their policy started, they may save money.
Travelers offers other unique options as well, including the ability to manage policies using Echo or Alexa, which is an uncommon feature among the best homeowners insurance providers.
Highlights
- Travelers has agents in all 50 states and D.C.
- On top of already low premiums, Travelers offers an array of discounts to further reduce the cost of insurance.
- Unique policy management features, including the use of an Echo or Alexa device, can help policyholders feel more in control of their coverage.
USAA
USAA specifically caters to current and former military members and their families. The company consistently receives high marks for customer service, earning the highest scores in the 2020 J.D. Power U.S. Home Insurance Study, although the provider is not eligible for ranking because of its limited availability. The company’s claims service is outstanding as well, again scoring highly on the 2020 J.D. Power U.S. Property Claims Satisfaction Study.
Although its average premium is in line with the national average, USAA offers a range of homeowners insurance discounts to policyholders. There are discounts for being claims free for five years, purchasing multiple policies and installing security systems. USAA also offers unique coverage options, such as coverage for military uniforms for active duty or deployed policyholders.
Highlights
- USAA insures only past and present military members and their families.
- Multiple discounts are offered, giving policyholders greater control over their premiums.
- Military-focused coverages, such as for uniforms, are available.
Lemonade
Lemonade is a relatively new carrier, but its innovative style makes it worth mentioning as one of the best homeowners insurance companies. This company offers insurance for homeowners on an all-digital platform with low-cost monthly plans.
Lemonade leverages technology to offer favorable homeowners insurance premiums starting as low as $25 a month. There is no brick-and-mortar insurance agency; instead, business is conducted using a mobile app and artificial intelligence. However, if policyholders need to talk to a live person, customer service representatives are available.
Lemonade’s claims process is as innovative as the rest of the company. Claims can be reported 24/7 and may be paid in minutes.
Lemonade is a good option for tech-savvy consumers who want to save money and prefer to conduct business with their smartphones. Demotech has given the company a financial stability rating of A (Exceptional), and customer ratings on the website are very favorable (overall rating of 4.9 out of 5). Because it is a newer company, Lemonade is not yet rated by J.D. Power (for home insurance), AM Best or S&P.
Highlights
- Lemonade is an innovative carrier using AI and online tools to help customer service their policies.
- Customer service representatives are available if policyholders need to talk to someone.
- Claims can be reported 24/7 and might be paid in minutes.
Why location matters when choosing home insurance
Just as many considerations go into choosing your home insurance as when first deciding to purchase a home, if not more. Location — including state, city and ZIP code — is arguably one of the most important factors to consider when choosing the best homeowners insurance company, as it can affect your rates and coverage needs. Someone along the coastline may need to consider how the possibility of flooding can affect their home while someone in the Rocky Mountain region may consider the impacts of heavy snow, for example.
To make the best choice for home insurance, become familiar with your state’s conditions and common causes of loss. Links to the best homeowners insurance providers in your state are included in the table below for your convenience.
Frequently asked questions
What do homeowners insurance policies cover?
Homeowners insurance policy inclusions vary based on provider, but standard coverage includes dwelling, personal property, liability protection and guest medical protection. These standard coverage categories break down into particular events — even some that you may not expect — though it is recommended that you seek additional coverage for fuller protection. You can compare rates and speak with your homeowners insurance provider to ensure you have the most beneficial coverage for you.
What is the typical cost of homeowners insurance coverage?
The average annual homeowners insurance premium is $1,477 in the U.S. Keep in mind that home insurance rates are individualized and your specific rate will depend on which state you live in, the size of your home and weather patterns, among other factors.
Who is the best homeowners insurance company for bundling home and auto?
Many insurance providers allow policyholders to bundle home and auto policies and often offer discounts for doing so. Choosing the best homeowners insurance provider will depend on your needs for specific coverage, however many popular insurance carriers, including the ones mentioned above, offer this option.
Is flood insurance included with my homeowners policy?
No, flood insurance is not included with standard homeowners policies. However, as floods can be common in areas near coastal lines or with high storm probability, it can be added as a separate insurance policy. You can purchase flood insurance through FEMA’s National Flood Insurance Program (NFIP).
Methodology
Bankrate utilizes Quadrant Information Services to analyze 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 may be different.
Rates are determined based on 2020 Quadrant Information Services data.
Why Trust Us
Bankrate demystifies the insurance industry by making it easier to find insurance information. Regardless of where you are in your journey, Bankrate helps you make informed decisions.
We use two key sets of customer priorities to evaluate insurance carriers and help you decide what to consider:
First: we evaluated customer satisfaction and complaints, financial strength and stability and overall costs based on average rates quoted to real drivers.
Second: we evaluated customer experience by assessing each provider’s customer service options through online capabilities and agent accessibility.
About the author
Cate Deventer is a writer, editor and insurance professional. She is currently pursuing a Bachelor’s degree in English with a concentration in Professional and Technical Writing from Indiana University East. She has nearly a decade of experience in the insurance industry as a licensed insurance agent.
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