A home is one of the biggest purchases you will make. Protecting your investment is essential, and homeowners insurance is a key part of that protection. Homeowners insurance is designed to assist you financially when certain unexpected events damage your home, such as a fire or windstorm. And if you purchase your home with a mortgage, homeowners insurance is more than just a smart purchase — it is a requirement to protect the loan.
Because homeowners insurance is such an important purchase, you should take the time to find the home insurance company that best fits your needs. The Bankrate insurance editorial team has reviewed and analyzed the best homeowners insurance carriers from across the nation based on average home insurance premiums, coverage options, customer satisfaction and available discounts. Armed with this knowledge, you may feel confident in choosing a home insurance company that may be suitable for both you and your home or lender’s needs.
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, extents of coverage, ability to handle claims and customer satisfaction. Bankrate utilized market share percentages, customer satisfaction ratings from the 2020 J.D. Power home insurance study and the 2021 property claims satisfaction study, as well as 2021 average quoted premiums from Quadrant Information Services to determine which are the best homeowners insurance companies to consider.
| Home insurance company | Bankrate score | 2020 J.D. Power score | AM Best Rating | Average annual premium for $250K dwelling |
|---|---|---|---|---|
| USAA | 4.60 | **889/1,000 | A++ | $992 |
| Lemonade | 4.60 | **Unavailable | **Unavailable | **Unavailable |
| Travelers | 4.40 | 803/1,000 | A++ | $1,269 |
| AAA | 4.20 | 820/,1000 | A- | $1,263 |
| Amica | 4.20 | 853/1,000 | A+ | $2,644 |
| MetLife | 4.00 | 824/1,000 | A+ | $1,252 |
| Allstate | 4.00 | 829/1,000 | A+ | $1,458 |
**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 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 as the best 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: Because USAA only sells insurance to current and veteran military members and their families, military-focused coverages are available.
- Headquarters: San Antonio, Texas
- Market share percentage: 6.67%
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 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: It is an innovative carrier using AI and online tools to help customer service their policies.
- Headquarters: New York City, New York
- Market share percentage: N/A
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, 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. The customer’s app is highly rated, with a 4.5 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%
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%
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: Consistently high-ranking claims service offers policyholders peace of mind knowing that they will be taken care of when it matters most.
- Headquarters: Lincoln, Rhode Island
- Market share percentage: 0.86%
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. 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.
| 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%
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.
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. However, MetLife was recently acquired by The Farmers Insurance Group, so changes to the home insurance product may be coming.
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%
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. 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.
| 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%
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, the claims 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%*N/A
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 the possibility of flooding 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 education 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. Your dwelling coverage pays to rebuild or repair the physical structure of your home if it is damaged by a covered peril. Dwelling coverage limits are based on the replacement costs, or cost to rebuild your home, and not on its current market value. Liability coverage financially protects you up to certain limits if you or another member of your household is found legally responsible for damage to another person or their property. Guest medical coverage helps pay for medical expenses if a guest is injured by an accident on your property. These standard coverage categories break down into particular events — even some that you may not expect — though it is recommended that you talk with a licensed agent to determine the coverages that are right for you. 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 $1,312 in the U.S. Keep in mind that home insurance quotes 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. 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. Choosing the best homeowners insurance provider will depend on your needs for specific coverage. However, many popular home and auto insurance carriers, including many of the providers mentioned above, offer this option.
Is flood insurance included with my homeowners policy?
No, flood insurance is not typically included with standard homeowners policies. However, as floods can be common even in areas that are not near a coast or water source, 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. Just like with home insurance, you may want to get quotes from a few providers to compare coverages and premiums.
Creating your home inventory
Keeping track of your possessions with a home inventory is an essential part of your home insurance. If the worst should happen, a home inventory helps ensure you are fairly compensated for as many possessions as possible, especially for high-quality or luxury items. Once you have completed your home inventory, it is best to speak with your insurance agent to review your coverage. This way you have the right personal property coverage, and additional coverage needed for any high-value or antique items.
How do I start a home inventory?
- Use a printable Home Inventory Worksheet, online spreadsheet or home inventory app to keep track of personal items.
- Make a plan for tackling all of your belongings. Write a list of areas of your home that should be inventoried, and plan to inventory them over a reasonable span of days to avoid overwhelm.
- Filing recent purchases is another easy way to start, since receipts and bills are usually more handy.
- Write down the details, including the make/model/product number, when you purchased them, how much you paid and a brief description.
- Take photos on your phone or other camera to capture details.
- Document any available serial numbers.
- Categorize belongings to condense and organize items that you own multiples of.
- Store copies or pictures of receipts, appraisals and other financial documentation to make sure you get a fair value for your possessions.
- Get in the habit of updating your inventory as you purchase new items. Consider adding “update home inventory” to your monthly to-do list.
- Don’t forget high-value items like electronics, items in storage at home or in a storage unit, such as furnishings like curtains and blinds, cell phones, musical instruments and appliances that may be easy to forget.
Home inventory apps
Home inventory apps are a great way to digitally store information about your possessions and share with a spouse or partner. Top home inventory apps include:
- BluePlum Home Inventory (iOS, $19)
- Home Contents (iOS, free)
- Magic Home Inventory (Android, free)
- Memento (Android & iOS, desktop, $3/month+)
- MyStuff (Android & iOS, free)
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.
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.
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