Being a homeowner has a number of wonderful benefits. But it also comes with a set of responsibilities, one of which is purchasing homeowners insurance. Homeowners insurance protects your home and your personal belongings from circumstances like fires, extreme weather and theft.
As a homeowner, it’s important to have homeowners coverage that’s as comprehensive and well-rounded as possible to protect your home––and your finances––from disaster. If this is your first time purchasing homeowner insurance, you should know that not all insurance companies are created equally.
To help you find the right insurance for you and your home, we created a list of the best home insurance companies of 2020. To rank these companies, we looked at ratings and reviews from third-party research firms, including Consumer Affairs, J.D. Power and AM Best.
Whether you’re looking for a simple shopping experience, the top-rated coverage or the cheapest bundles, there’s a company out there for you. Let’s take a look at which home insurance companies ranked at the top for 2020, and what insurance providers might be best for you.
Best homeowners insurance companies
Some of the best available homeowners insurance companies include:
Everyone has unique needs, so the best company for one person probably won’t be the right option for their neighbor. To help you decide which of the best insurance companies will provide the services you want, we’ve compiled a list of companies and what they have to offer.
|Provider||J.D. Power||AM Best||Consumer Affairs||Market Share %|
|Amica Mutual||5 out of 5||A+||Not rated||0.36%|
|Allstate||3 out of 5||A+||3.5 stars||4.88%|
|Metlife||2 out of 5||A+||3 stars||0.56%|
|USAA||5 out of 5||A++||3.5 stars||3.23%|
|Farmers||3 out of 5||A||3.9 stars||2.98%|
Best overall company: Amica Mutual
Amica Mutual is one of the most highly-ranked home insurance companies across the board, and for good reason. The company has consistently performed above average, and it gets great ratings from industry researchers.
Unlike many other insurance companies, Amica is almost always rated highly for its customer service, which is a major selling point for customers. It has gotten the highest rankings for home insurance from J.D. Power for 18 years in a row.
- Easy and fast claims handling process
- Affordable rates
- Great customer service and customer satisfaction
- Fewer discounts than other providers
- Multi-line discount: Customers who already have an insurance policy with Amica can save money on their premiums.
- New/remodeled home credit: Amica offers savings for customers who have recently remodeled their home.
- Claim-free: Customers who haven’t had to file a claim in the past three years are eligible for a discount.
Amica maintains industry-leading scores in customer satisfaction by consistently delivering on its standard coverage options. Additional unique coverage options include:
- Catastrophic coverages for protection (minus a deductible) that takes into account floods or earthquakes.
- Identity fraud expense coverage for protection against unauthorized use of your credit cards up to your coverage limit.
- Loss assessment plan for Condo owners who are responsible for shared sections of a property.
Best for first-time buyers and discount coverage: Allstate
If you’re looking for one of the cheapest homeowners insurance rates, Allstate might be the best option for you. The company offers massive discounts for bundling––up to 25% discounts––and other savings, like a 20% discount for having a clean claims record. There are also discounts offered for having hail-proof roofs, setting up automatic payments and being retired.
Allstate also helps ease the burden for first-time homebuyers by providing resources to customers. With Allstate’s Common and Costly Claims tool, new homeowners can figure out what coverage they may need by breaking down common insurance claims by ZIP codes. Between the tools, educational information and easy navigation, Allstate is a great option for a first-time buyer.
- Wide range of discounts
- Customizable coverage options
- Online educational tools
- Good for first-time buyers
- Average customer satisfaction ratings
- Welcome and loyalty discounts give customers 10% off their premiums for switching their coverage to Allstate. New customers can also save another 10% off for signing up at least seven days before their old policy ends.
- The Claim-free discount saves users up to 20% when they switch to Allstate without a recent claim.
- The retiree discount provides steep discounts to customers who are retired and over the age of 55.
In addition to standard coverage offerings like dwelling coverage, liability protection, personal property coverage and guest medical coverage, Allstate also provides users unique optional coverage options, such as:
- Personal umbrella policies for protection against large liability claims when you reach the liability limit on your policy.
- Manufactured mobile home coverage for coverage on mobile homes and manufactured dwellings.
- Host advantage coverage for coverage on your belongings when you’re home sharing.
Best replacement coverage: Metlife
There are a number of perks for purchasing homeowners insurance through Metlife. The biggest draw is that Metlife offers guaranteed replacement cost coverage. If disaster strikes, you’ll receive the full replacement cost without factoring in the depreciation. If your home initially cost $100,000 but has taken on $300,000 in damages, customers with MetLife’s replacement coverage can receive up to $300,000 in support.
- Guaranteed replacement coverage
- Below-average customer service ratings
- Poor online resources
- Customers have to call a representative to file a claim or get a quote
- Bundling: People who have more than one policy with MetLife can save money.
- Safety discounts for users who install devices, alarms or locks in their homes.
- Employer group discounts for people who work for certain companies or have a membership with partner groups or associations can get discounts.
In addition to many of the same standard coverage offerings that competitors provide, MetLife’s unique coverage offerings also include:
- Home replacement costs gives you the replacement cost instead of current value that would include depreciation.
- Personal property replacement costs gives the same kind of coverage found in home replacement coverage but for damaged or stolen personal property, such as furniture or electronics.
Best homeowners insurance rates and coverage for military members: USAA
USAA is rated highly across the board, and the company offers some of the best homeowners insurance coverage on the market. The downside to USAA is that they only serve military members and their families. If you’re in the military and looking for great homeowners insurance rates, USAA is affordable and the coverage is impeccable.
- Outstanding customer service
- High-quality coverage
- Affordable prices
- Only available to military personnel and their families
- Bundling discounts provide up to 10% savings on your homeowner’s insurance premium if you already have a USAA auto insurance policy.
- Protective device credit provides premium discounts if your home is equipped with security cameras, alarms or other devices.
- Claims-free discount gives customers that go five years without filing a claim 10% off on their premiums.
- Loss of use
- Home sharing
- Other structures
- Earthquake coverage
Best for cheap coverage: Geico
Geico is known for offering some of the cheapest insurance policies. However, it isn’t known for having the best customer service or offering tons of coverage options. In fact, Geico isn’t rated on J.D. Power’s homeowner insurance study. Still, Geico is a great option for the homeowner who is looking for bare bones coverage at the best price possible.
- Very affordable rates
- Flexible policy options
- Poor customer service reviews
- Geico doesn’t underwrite its own home insurance policies. Users insured by Geico should look into who is insuring them and make sure that they are financially solvent enough (Moody’s/ AM Best scores) to pay out on their claims before signing up.
- Bundling discounts are available for people with more than one policy from Geico.
- Home security systems discount for users who have burglar alarms, fire alarms, fire extinguishers or other in-home safety mechanisms in place.
- Jewelry provides limited coverage ($500-$2,000) for stolen jewelry, though this amount can be increased or customized based on the value of your in-home collection.
- Medical bills
- Additional expenses
Best for large policies: Farmers
If you need to buy coverage for a large home or a home that’s rapidly increasing in value, you may want to turn to Farmers. This company is an expert in doling out the best rates for high limit policies, and the customer service is top notch too. You may even be able to snag a few discounts on top of those low rates, which is an added bonus.
- Extensive coverage options
- State-by-state policy customization so that your plan addresses your risks
- Three-tier policy customization based on your desired coverage level
- Average customer service ratings
The specific discounts that Farmers offers clients with a home insurance policy vary by state. Apart from that, the majority of the discounts they offer are similar to the offerings you’ll see from other providers in this comparison.
- Declining deductibles discounts award customers $50 towards their deductibles for each year that their policy remains active.
- Claims-free discount rewards customers without a history of making claims.
- Claims forgiveness prevents your premium from increasing as a result of your next claim if you’ve been claims-free for five straight years.
- Eco-rebuild gives Farmers customers up to $25,000 when replacing materials and appliances with “green” substitutes.
- Contents replacement cost provides customers reimbursements for the cost of replacing a damaged item with a brand new replacement, rather than giving a pay out for what the item was worth as a depreciated good.
- Identity shield helps customers resolve identity theft-related crimes and replace certain documents, while also assisting with losses and expenses associated with the crime.
Choosing the best homeowners insurance company
Before choosing a homeowners insurance company, understand the different components of a homeowners insurance policy. For instance, it’s important to know how your deductible will affect your premium, and how you can take advantage of bundling options. Here are some other things to consider before you choose an insurance company.
Your home insurance deductible is the cost you pay out-of-pocket before the insurance company will contribute. Generally, the higher your deductible, the lower your monthly premium will be.
Keep in mind that not all coverage types have a deductible. As you’re researching insurance companies, look into the coverage limits that the provider stipulates. These will influence the monthly premium you pay, and in turn, your potential deductible amount.
Supplemental coverage options
Insurance providers offer different amounts of coverage. As a result, you might want to consider adding supplemental coverage options to make sure that you have enough protection. To get the best value, get a quote and understand what’s included in your package so you can determine where you may need to add more coverage on your own.
Most insurance providers offer discounts to help customers save money on their insurance premium. Before settling on a policy, research what discounts you qualify for. Some companies offer more discounts than others, so shop around.
If you already have a life insurance or auto policy with a provider, you can probably get a discount by adding a homeowners policy.
Customer service and claims
Customer service is often overlooked when people are shopping for homeowners insurance. However, if you do have to file a claim, you don’t want to get bogged down by a slow claims process or unhelpful representatives. Before choosing an insurance company, read customer reviews to see what other people think about their customer service.
Frequently asked questions
What do homeowners insurance policies cover?
Each policy differs according to the policy holder’s needs, but most contain dwelling coverage, personal property coverage, liability coverage and additional living expenses coverage. There are plenty of other coverage options that can be added to any policy depending on your needs.
What is the typical cost of home insurance coverage?
The cost of homeowners insurance coverage depends on what you need covered in your policy. Still, there are a few regular factors to help determine the cost of your insurance premiums. Keep your coverage options and these factors in mind as you search for the best homeowners insurance rates.
- The age and value of your home
- The materials your home is made of
- The type of policy limit you choose
- The policy deductibles you choose
- What, if any, security features you have at home
What is the cheapest home insurance coverage?
There isn’t one insurance company that will provide the best rates for every homeowner. Your premium is highly individualized, and it depends on factors like your age, state and credit score. However, you can use this guide to see what companies tend to offer the most affordable home insurance rates.