Best home insurance company overall
- J.D. Power:
- 884 /1,000
- AM Best:
- A ++
- Avg. annual premium for 250k dwelling
- $ 969
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, State Farm and Erie are among the best homeowners insurance companies in 2023, according to Bankrate’s proprietary research
At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict , this post may contain references to products from our partners. Here’s an explanation for . Our content is backed by Coverage.com LLC, a licensed entity (NPN: 19966249). For more information, please see our
Bankrate’s insurance editorial team includes three licensed insurance agents, and we’ve 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’ve worked closely with customers and we understand the needs, wants and questions that shoppers often have. Our expertise helps us analyze the home insurance market through a specialized lens. You can rest assured that we stay focused on the consumer during our research; our goal is to help you understand how to shop for and choose the best home insurance company for your needs.
We chose our picks for the best home insurance companies in the country based on a range of metrics that we know are important to shoppers. Using 2023 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 property insurers that may be great options for homeowners across the U.S. Based on this extensive research, we found that USAA and Allstate may be great choices for many homeowners, while Lemonade topped our list for providing tech-savvy home insurance.
Best homeowners insurance companies in 2023
Insurance company | Best for | J.D. Power | AM Best | Average annual premium* | |
---|---|---|---|---|---|
USAA
3.7
Bankrate Score
|
Best for
Best overall
|
J.D. Power
884
/1,000 |
AM Best
A++
(Superior)
|
Average annual premium*
$969
|
Get a quote |
Allstate
3.5
Bankrate Score
|
Best for
Best overall
|
J.D. Power
815
/1,000 |
AM Best
A+
(Superior)
|
Average annual premium*
$1,340
|
Get a quote |
Lemonade
4.1
Bankrate Score
|
Best for
Best for digital experience
|
J.D. Power
Not rated |
AM Best
A
(Excellent)
|
Average annual premium*
N/A
|
Read review |
Chubb
3.5
Bankrate Score
|
Best for
Best for high-value home coverage
|
J.D. Power
809
/1,000 |
AM Best
A++
(Superior)
|
Average annual premium*
$1,775
|
Get a quote |
Amica
3.5
Bankrate Score
|
Best for
Best for customer experience
|
J.D. Power
849
/1,000 |
AM Best
A+
(Superior)
|
Average annual premium*
$2,996
|
Read review |
Travelers
3.3
Bankrate Score
|
Best for
Best for add-on coverage options
|
J.D. Power
794
/1,000 |
AM Best
A++
(Superior)
|
Average annual premium*
$1,249
|
Get a quote |
NJM
3.2
Bankrate Score
|
Best for
Best for unique discounts
|
J.D. Power
Not rated |
AM Best
A+
(Superior)
|
Average annual premium*
$371
|
Read review |
Auto-Owners
3.2
Bankrate Score
|
Best for
Best for budget home insurance
|
J.D. Power
825
/1,000 |
AM Best
A++
(Superior)
|
Average annual premium*
$1,049
|
Get a quote |
State Farm
3.2
Bankrate Score
|
Best for
Best for local agents
|
J.D. Power
829
/1,000 |
AM Best
A++
(Superior)
|
Average annual premium*
$1,462
|
Read review |
Erie
3.1
Bankrate Score
|
Best for
Best for robust coverage
|
J.D. Power
827
/1,000 |
AM Best
A+
(Superior)
|
Average annual premium*
$957
|
Get a quote |
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.
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.
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Best home insurance company for robust coverage
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:
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:
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.
Home insurance does not cover everything. For non-accidental incidents, like wear and tear and homeowners neglect, home insurance does not extend coverage.
For other incidents, you may need to purchase a separate policy or add an endorsement to your policy. For example, home insurance doesn’t cover earthquake and flood damage, so you’ll need to purchase separate earthquake and flood insurance policies for coverage. Home insurance also doesn’t cover water damage from sewage systems, such as an overflow or backup, although some carriers may offer coverage with a separate endorsement for sewer backup. Review your policy with your insurance agent to determine exactly what it does and does not cover
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:
Nationally, the average cost of homeowners insurance is $1,428 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.
Learn more: How to estimate the cost of home insurance
One of the easiest ways to maximize savings on your home insurance is to take advantage of home insurance discounts. Every insurance company has its own discounts, but common savings opportunities could include being claims-free, being a new home buyer or buying a new home, and more. Stacking home insurance discounts could mean significant savings on your home insurance premium. Be sure to ask your insurance agent about all available discounts you qualify for to make sure you don’t miss out on savings opportunities.
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.
Once you are ready to purchase homeowners insurance, here is an overview of steps to follow:
The exact steps of filing a home insurance claim may vary depending on your carrier, but in general, these are the steps you can expect to follow after an accident when filing a home insurance claim:
Assess the damage. Depending on the severity of the incident, you may need to make repairs immediately. If possible, try to speak to your claims adjuster first, as they may also want to send an inspector to view the damage. Also save any receipts for reimbursement if you paid out-of-pocket.