Protecting your financial investment in your home is critical, which is where homeowners insurance comes in to offer coverage against unexpected damaging events. There are seemingly endless provider options, but among the best are USAA, Lemonade and Travelers, which provide particularly standout coverage for military and veterans, modern-age homeowners looking for an innovative and low-cost insurance experience or those seeking easy agent access, respectively.
When comparing top options, having a few metrics to rate each carrier according to your criteria can help you decide which companies fit your needs. Bankrate’s insurance editorial team reviewed the best homeowners insurance companies across the nation, paying particular attention to those that rank high in key market areas. Using average annual premiums, overall customer satisfaction and financial strength as measures — along with our weighted Bankrate Score incorporating this information — we found seven home insurance companies likely to be suitable for most homeowners’ needs.
- Despite being a newer carrier, Lemonade ties with the top-ranked provider on our list with its Bankrate Score of 4.6, largely due to its AI innovation and low-cost premiums.
- Each company selected for our list is available nationwide and rank-eligible carriers receive no lower than an “Excellent” financial strength rating from AM Best.
- More than half of the providers on our list, including USAA, Travelers and AAA, have average annual premiums below the national average annual cost of home insurance of $1,312 for $250K in dwelling coverage. Lemonade’s policies begin at $25 a month.
Table of contents
- How do I choose the best home insurance company?
- What are the best home insurance companies of 2021?
- Homeowners insurance for military members and veterans
- Artificial intelligence-driven home insurance
- Homeowners insurance with plenty of agents
- Homeowners insurance with extra benefits
- Home insurance with dividend policies
- Highly customizable home insurance
- Homeowners insurance for first-time buyers
- Home insurance for high-value homes
- Home insurance with guaranteed home repair
- What are the most common home insurance claims in my state?
- Most common questions about homeowners insurance
- Methodology
Comparing 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, available coverages, ability to handle claims and customer satisfaction. Bankrate utilized market share percentages, customer satisfaction ratings from the 2020 J.D. Power U.S. Home Insurance Study and the 2021 U.S. Property Claims Satisfaction study, as well as 2021 average quoted premiums from Quadrant Information Services in our search for the best homeowners insurance companies.
| Home insurance company | Bankrate Score | 2020 J.D. Power customer satisfaction score | AM Best Rating | Average annual premium for $250K dwelling coverage |
|---|---|---|---|---|
| USAA | 4.6 | *889/1,000 | A++ | $992 |
| Lemonade | 4.6 | **Unavailable | **Unavailable | **Unavailable |
| Travelers | 4.4 | 803/1,000 | A++ | $1,269 |
| AAA | 4.2 | 820/1,000 | A- | $1,263 |
| Amica | 4.2 | 853/1,000 | A+ | $2,644 |
| Allstate | 4.0 | 829/1,000 | A+ | $1,458 |
*USAA is rank-ineligible with J.D. Power due to eligibility restrictions.
**Rate data is unavailable for Lemonade, as it has not yet been reviewed or rated by insurance agencies.
To determine which home insurance company is right for you, consider its coverage options, how closely its premiums align with your budgetary needs and the ways you may want to interact with your insurer and policy. The insurance companies we chose to feature offer a variety of coverage, a combination of competitive rates and discount options plus unique features that allow you to customize your policy to your needs.
USAA
Why USAA made our list: USAA only sells insurance to current and veteran military members and their families, meaning unique military-focused coverages are available.
- Headquarters: San Antonio, Texas
- Market share percentage: 6.67%
| Pros | Cons |
|---|---|
| Low average premiums | Only available to military members, veterans and qualifying family members |
| Military-focused coverages | Fewer discounts than some other providers |
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 eligibility restrictions. The company’s claims service is outstanding as well, again scoring highly in the 2021 J.D. Power U.S. Property Claims Satisfaction Study.
Despite its average premium being lower than 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.
| Standard profile | With average credit | With alarm discount | |
|---|---|---|---|
| USAA | $992 | $1,061 | $982 |
| National average | $1,312 | $1,433 | $1,255 |
Learn more: USAA Insurance review
Lemonade
Why Lemonade made our list: Its AI innovativeness and digital-first approach to insurance helps in offering useful online tools and lower cost policies.
- Headquarters: New York City, New York
- Market share percentage: N/A
| Pros | Cons |
|---|---|
| Innovative use of technology | Few third-party rankings |
| Fast claims service | No physical agency locations |
Lemonade is a relatively new carrier, but its innovative style earned it a place as one of the best homeowners insurance companies. This company offers insurance for homeowners on an all-digital platform with low-cost monthly insurance plans.
Lemonade leverages technology to offer favorable homeowners insurance premiums starting as low as $25 a month. There are no brick-and-mortar insurance agencies; instead, policies are available through the company’s mobile app, using artificial intelligence. However, if policyholders need to talk to a live agent, 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 might be paid in minutes. The company’s app is highly rated, with a 4.4 out of 5.0 rating from Google Play and a 4.9 out of 5.0 rating from the App Store. Customers say that Lemonade is easy to work with, convenient and even fun. Lemonade is a good option for tech-savvy consumers who want to save money and prefer to conduct their business online.
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. Lemonade’s homeowners insurance also received a lower-than-average complaint index from the NAIC. A score of 1.00 represents an industry-average number of complaints; Lemonade’s homeowners insurance received a score of 0.98. This means the NAIC received fewer complaints than average regarding Lemonade’s homeowners insurance.
Learn more: Lemonade Insurance review
Travelers
Why Travelers made our list: Unique policy management features, including the use of an Echo or Alexa device, can help policyholders feel more in control of their coverage.
- Headquarters: New York City, New York
- Market share percentage: 4.41%
| Pros | Cons |
|---|---|
| Numerous optional coverages and discounts | Below-average J.D. Power scores for overall satisfaction and claims satisfaction |
| Alexa and Echo skills can help with home maintenance and claim prevention | You may need to call an agent rather than fully managing your policy online or through an app |
With agents in all 50 states and Washington, D.C., Travelers is a highly accessible company. Although Travelers already offers low rates, 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.
| Standard profile | With average credit | With alarm discount | |
|---|---|---|---|
| Travelers | $1,269 | $1,422 | $1,239 |
| National average | $1,312 | $1,433 | $1,255 |
Learn more: Travelers Insurance review
AAA
Why Amica made our list: AAA members may earn an additional discount on their home insurance policies, although a membership is not typically required.
- Headquarters: Heathrow, Florida
- Market share percentage: 0.89%
| Pros | Cons |
|---|---|
| AAA members may receive a discount | High complaint index from the National Association of Insurance Commissioners (NAIC) |
| Online resources available to help you understand your coverage | Potential policyholders may need to do more research to see how it operates and what it offers in their state |
AAA may be synonymous with roadside service, but the company offers several insurance products, including homeowners insurance. Although AAA operates differently in different states, policyholders do not typically have to have a AAA membership to take advantage of the home insurance program. If you do have a membership, though, you might earn an additional discount.
AAA’s average premiums are slightly lower than the national average. However, the company does offer several discounts that could help policyholders lower your premium even more. Discounts vary by type and state, since AAA is a federation of motor clubs throughout the U.S.
| Standard profile | With average credit | With alarm discount | |
|---|---|---|---|
| AAA | $1,263 | $1,382 | $1,188 |
| National average | $1,312 | $1,433 | $1,255 |
Learn more: AAA Insurance review
Amica Mutual
Why Amica made our list: Its consistently high-ranking claims service offers policyholders peace of mind in knowing that they will be taken care of when it matters most.
- Headquarters: Lincoln, Rhode Island
- Market share percentage: 0.86%
| Pros | Cons |
|---|---|
| Highly rated claims service | Average premium is higher than the national average |
| Dividend policies allow you to recoup some of your premium | Certain types of structures, such as mobile homes, farms and ranches, are not eligible for coverage |
If you are looking for home insurance coverage focused on customer service and peace of mind, Amica is a fantastic option. Although its average annual premium is higher than the national average, Amica is praised for its customer service. Amica policyholders are continually impressed with the company’s claims service. Amica had claimed the top spot in J.D. Power’s annual Property Claims Study for nine years in a row, between 2012 and 2020, before sliding to the fourth place in the 2021 study. The company still ranks well above the industry average for claims service.
Amica also offers unique features, such as its Contractor Connection service, which helps connect policyholders in need of home repairs with licensed contractors. Additionally, Amica 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.
| Standard profile | With average credit | With alarm discount | |
|---|---|---|---|
| Amica | $2,644 | $2,805 | $2,636 |
| National average | $1,312 | $1,433 | $1,255 |
Learn more: Amica Insurance review
MetLife
Why MetLife made our list: Exceptionally customizable policies allow policyholders to choose the coverages they need.
- Headquarters: New York City, New York
- Market share percentage: 1.01%
| Pros | Cons |
|---|---|
| Highest official J.D. Power claims satisfaction score | No online claim reporting tool |
| Flexible and customizable policies | Customer service ranks average with J.D. Power |
If you prefer to handle your insurance needs online or through an app, MetLife (now a part of the Farmers Insurance Group) may be a good place to start your search for home insurance. Offering 24/7 customer support, MetLife seeks to provide assistance 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.
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. However, MetLife was recently acquired by The Farmers Insurance Group, so changes to the home insurance product may come.
Policyholders may qualify for any one of multiple discounts, including discounts offered through employer groups.
| Standard profile | With average credit | With alarm discount | |
|---|---|---|---|
| MetLife | $1,252 | $1,388 | $1,125 |
| National average | $1,312 | $1,433 | $1,255 |
Learn more: MetLife Insurance review
Allstate
Why Allstate made our list: Abundant online educational resources can help policyholders better understand and choose their coverages.
- Headquarters: Northbrook, Illinois
- Market share percentage: 8.16%
| Pros | Cons |
|---|---|
| Numerous online resources | Below-industry-average J.D. Power claims service score |
| Common and Costly Claims tool could help you prepare for and mitigate home damage | The default coverage amount for personal property is lower than with some other carriers |
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 their coverage needs. 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 may help you to assess the need for specific coverages on your policy.
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.
| Standard profile | With average credit | With alarm discount | |
|---|---|---|---|
| Allstate | $1,458 | $1,560 | $1,386 |
| National average | $1,312 | $1,433 | $1,255 |
Learn more: Allstate Insurance review
Additional providers to consider
Chubb
Why Chubb is worth considering: Policies are tailored specifically to the needs of high-value or luxury homes and risk consulting can reassure policyholders that their unique needs are met.
- Headquarters: Whitehouse Station, New Jersey
- Market share percentage: 2.82%
| Pros | Cons |
|---|---|
| Coverages tailored for high-value homes | Average premium is higher than the national average |
| HomeScan can help identify issues before they cause claims | Expensive for lower-value properties |
If you have a high-value or luxury home, you may want to 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 could 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.
| Standard profile | With average credit | With alarm discount | |
|---|---|---|---|
| Chubb | $1,630 | $1,751 | $1,560 |
| National average | $1,312 | $1,433 | $1,255 |
Learn more:: Chubb Insurance review
Safeco
Why Safeco is worth considering: Through its Guaranteed Repair Network feature, Safeco can guide clients through the claims process and guarantee home repairs with a material and labor warranty.
- Headquarters: Boston, Massachusetts
- Market share percentage: 6.34%*
| Pros | Cons |
|---|---|
| Home repairs are guaranteed and include a warranty if performed through the Guaranteed Repair Network | Below-average J.D. Power scores for overall satisfaction and claims satisfaction |
| Numerous endorsements allow you to customize your policy | No online quotes — policies are exclusively available through local agents |
A Liberty Mutual company, Safeco offers home, auto, umbrella and pet health insurance, among other products. Safeco offers numerous home insurance endorsements that could allow customers to tailor their coverage to their unique needs. Endorsements include equipment breakdown coverage, service line coverage and identity theft coverage.
If the unexpected does happen, Safeco stands ready to help. The company’s Guaranteed Repair Network connects policyholders to pre-qualified contractors to give estimates and perform repairs. Safeco guarantees the materials and labor performed by experts included in its Guaranteed Repair Network.
Learn more: Safeco Insurance review
*6.34% represents the homeowners market share for The Liberty Mutual Group of companies, of which Safeco is a part.
Why location matters when choosing home insurance
Insurance companies use multiple factors to determine your premium, and location — including state, city and ZIP code — can have a substantial impact. Different areas of the country come with different claims considerations. For example, a homeowner along the coastline may need to consider how hurricanes might affect their home, while someone in the Rocky Mountain region may need to consider the impacts of heavy snow.
Becoming familiar with your state’s conditions and common causes of loss could help you to make a more educated decision regarding your homeowners insurance coverages. Links to the best homeowners insurance providers in your state are included in the table below.
Frequently asked questions
What do homeowners insurance policies cover?
Homeowners insurance policy coverages vary based on which provider you choose, but standard coverage includes dwelling, other structures, personal property, liability protection and guest medical protection. The specific causes of loss that your policy covers will vary based on what type of home insurance policy you have. Working with a licensed agent could help you determine the type of policy and coverages that are right for you.
What is the typical cost of homeowners insurance coverage?
The average annual homeowners insurance premium in the U.S. for $250,000 dwelling coverage is $1,312. Keep in mind that home insurance is individualized and your specific rate will depend on which state you live in, the size of your home and what kinds of damage are common in your area, among other factors. Your homeowners insurance premium will also be influenced by your deductible; a higher deductible means a lower premium, but it also means you will have to pay more out-of-pocket if you file a claim.
Who is the best homeowners insurance company for bundling home and auto?
Many insurance providers allow policyholders to bundle home and auto insurance policies and often offer discounts for doing so. Although many insurance companies allow you to bundle multiple types of insurance policies, typically the greatest savings comes from bundling home and auto insurance. Getting quotes for both your home and auto insurance from several carriers might help you choose a company that fits your needs for both types of coverage.
Is flood insurance included with my homeowners policy?
No, flood insurance is not typically included with standard homeowners policies. However, floods can be common even in areas that are not near a coast or water source, so you may want to consider purchasing a separate flood insurance policy. You can purchase flood insurance through FEMA’s National Flood Insurance Program (NFIP) and through some private insurance carriers. A few home insurance companies offer flood coverage as an endorsement. Just like with home insurance, you may want to get quotes from a few providers to compare coverages and premiums.
How do you compare homeowners insurance companies?
Understanding what matters most to you when it comes to your home insurance coverage can help you compare companies. If you are on a strict budget, price might be the most important factor to consider. If you need specialized coverages, finding a company that provides the endorsements you need will be important. Although you will likely have a priority factor — like price, customer service or available coverages — you should review all aspects of a company before deciding if it is the right fit for you.
Methodology
Bankrate utilizes Quadrant Information Services to analyze 2021 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 will differ.
Credit: Rates were calculated based on the following insurance credit tiers assigned to our drivers: “poor, average, good (base), and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. The following states do not allow credit to be a factor in determining home insurance rates: CA, HI, MA. Maryland factors a few credit-related variables in determining rates but does not weigh those factors the same as other states.
Alarm discount:
Rates were calculated based on applying a discount for having a Central Station home alarm system.
Bankrate Scores
Bankrate Scores primarily reflect a weighted rank of industry standard ratings for financial strength (AM Best, S&P, Moody’s) and customer experience (J.D. Power, NAIC), in addition to average quoted rates from Quadrant Information Services. The J.D. Power studies utilized include the 2020 Home Insurance Study. Our Bankrate editorial team’s extensive research and analysis provided a secondary assessment of each insurer’s online and mobile resources, which also contributed to overall ratings.
Share