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Best homeowners insurance companies for June 2023

Lemonade, Allstate and Auto-Owners are among the best homeowners insurance companies in 2023, according to Bankrate’s proprietary research.

Updated Jun 01, 2023
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Quick Facts
Moneybag
$382/year
average savings through Bankrate
Two Thirds
2 out of 3 homes
are underinsured
Insurance Home
1 out of every 20
insured homes makes a claim each year
Circle Check
100% of homes
need insurance before getting a mortgage
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Best home insurance companies in June 2023

USAA
Rating: 3.7 stars out of 5
3.7
Bankrate Score
Info
Best for
Best overall
J.D. Power
884
/1,000
AM Best
A++
Average annual premium*
$969
Get a quote
Allstate
Rating: 3.5 stars out of 5
3.5
Bankrate Score
Info
Best for
Best overall
J.D. Power
815
/1,000
AM Best
A+
Average annual premium*
$1,340
Get a quote
Lemonade
Rating: 4.1 stars out of 5
4.1
Bankrate Score
Info
Best for
Best for digital experience
J.D. Power
Not rated
AM Best
A
Average annual premium*
N/A
Read review
Chubb
Rating: 3.5 stars out of 5
3.5
Bankrate Score
Info
Best for
Best for high-value home coverage
J.D. Power
809
/1,000
AM Best
A++
Average annual premium*
$1,775
Get a quote
Amica
Rating: 3.5 stars out of 5
3.5
Bankrate Score
Info
Best for
Best for customer experience
J.D. Power
849
/1,000
AM Best
A+
Average annual premium*
$2,996
Read review
Travelers
Rating: 3.3 stars out of 5
3.3
Bankrate Score
Info
Best for
Best for add-on coverage options
J.D. Power
794
/1,000
AM Best
A++
Average annual premium*
$1,249
Get a quote
NJM
Rating: 3.2 stars out of 5
3.2
Bankrate Score
Info
Best for
Best for unique discounts
J.D. Power
Not rated
AM Best
A+
Average annual premium*
$371
Read review
Auto-Owners
Rating: 3.2 stars out of 5
3.2
Bankrate Score
Info
Best for
Best for budget home insurance
J.D. Power
825
/1,000
AM Best
A++
Average annual premium*
$1,049
Get a quote
State Farm
Rating: 3.2 stars out of 5
3.2
Bankrate Score
Info
Best for
Best for local agents
J.D. Power
829
/1,000
AM Best
A++
Average annual premium*
$1,462
Read review
Erie
Rating: 3.1 stars out of 5
3.1
Bankrate Score
Info
Best for
Best for robust coverage
J.D. Power
827
/1,000
AM Best
A+
Average annual premium*
$957
Get a quote
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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.

*Based on policies with $250K dwelling coverage for 2023
**USAA not officially ranked with J.D. Power due to eligibility restrictions

How Bankrate picked the best homeowners insurance companies

The home insurance market can be complicated, but Bankrate’s insurance editorial team used our unique perspective to bring readers the information they need to make educated decisions when shopping for new home insurance. Aside from average 2023 premiums provided by Quadrant Information Services, we also evaluated carriers based on other important metrics such as third-party customer satisfaction scores, endorsement options, nationwide availability and more. We then converted this data into a proprietary Bankrate Score, ranging from 0.0 to 5.0. The higher a carrier’s score, the better it ranked in each of our categories. To make our list of best homeowners insurance companies, we chose carriers that:

  • Earned a Bankrate Score of 3.0 or higher
  • Scored within 25 points of the segment average for customer satisfaction in the J.D. Power 2022 U.S. Home Insurance Study (for companies that were included).
  • Have an AM Best financial strength rating of A (Excellent) or better
  • Were ranked by Bankrate as the best company for specific market segments, based on the company’s unique features
 
Clock Wait
46
years of industry expertise
Search
122
carriers reviewed
Location
20.7K
ZIP codes examined
Dollar Coin
1.2M
quotes analyzed

The top 10 home insurance companies

USAA

USAA logo

Best overall

Rating: 3.7 stars out of 5
3.7 Bankrate Score
JD Power: 884 AM Best: A++

Average annual premium

$ 969 for $250k dwelling
USAA Review Get a personalized quote

Why USAA may be best overall: Although USAA only offers coverage to active-duty military and veterans, as well as their immediate families, the company has consistently high customer service scores, robust coverage options and low average premiums. It ranked as one of the best home insurance companies overall in our 2023 Bankrate Awards. Unique add-ons, such as coverage for military uniforms for active duty or deployed policyholders, are also offered.

Availability: Coverage is available in all states for policyholders that meet USAA’s eligibility criteria.

How to get started: You can get a USAA home insurance quote by calling 800-531-8722. Online quotes are also available for home insurance.

*Not officially ranked with J.D. Power due to eligibility restrictions

Allstate

Best overall

Rating: 3.5 stars out of 5
3.5 Bankrate Score
JD Power: 815 AM Best: A+

Average annual premium

$ 1,340 for $250k dwelling
Allstate Review Get a personalized quote

Why Allstate may be best overall: Allstate has an abundance of online tools and unique coverage options for homeowners who want to take a proactive approach to insuring their home. And for those that want help, Allstate also has an extensive network of local agents ready to help with any of your insurance needs.

Availability: Coverage is available in all states.

How to get started: Allstate offers online home insurance quotes. If you prefer working with an agent, you could call 866-702-6500 or visit a local Allstate agency.

Lemonade

Lemonade logo

Best for digital experience

Rating: 4.1 stars out of 5
4.1 Bankrate Score
JD Power: Not rated AM Best: A

Average annual premium

N/A for full coverage
Lemonade Review Get a personalized quote
Why Lemonade may be best for digital experience: Lemonade’s artificial intelligence and digital-first approach to underwriting home insurance is innovative and allows the carrier to offer useful online tools and, according to the insurer, lower-cost policies. Rather than maintaining brick-and-mortar agencies, Lemonade operates via a highly rated mobile app. The interface can process simple claims incredibly quickly; the fastest claim time recorded was just 3 seconds.
 
Availability: Coverage available in Arizona, Colorado, Connecticut, Georgia, Illinois, Indiana, Iowa, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Jersey, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Virginia, Washington, D.C. and Wisconsin.
 
*Rate data is unavailable for Lemonade, and it has not yet been reviewed or rated by J.D. Power or AM Best for home insurance. However, the company has been rated by Demotech for financial stability and received a letter grade of “A,” which is considered exceptional. J.D. Power also awarded Lemonade the second-highest position for renters insurance in its 2022 Home Insurance Study.
 
How to get started: Lemonade is known for its technology. Home insurance quotes can be obtained online or through the mobile app. If you need to talk to a representative, you can call 844-733-8666.

Chubb

Best for luxury home coverage

Rating: 3.5 stars out of 5
3.5 Bankrate Score
JD Power: 809 AM Best: A++

Average annual premium

$ 1,775 for $250k dwelling
Chubb Review Get a personalized quote

Why Chubb may be best for luxury home coverage: If you own a luxury home, Chubb’s specialized homeowners insurance policies offer risk consulting, which involves a trained risk consultant evaluating your home’s features to determine your home’s rebuilding cost. In addition, Chubb offers a HomeScan tool, which may help homeowners identify potential issues before they cause property damage claims.

Availability: Coverage is available in all states.

How to get started: Chubb sells its coverage exclusively through local independent agents. You can use the company’s Find an Agent tool to locate a Chubb office in your area.

Amica

Best for customer service

Rating: 3.5 stars out of 5
3.5 Bankrate Score
JD Power: 849 AM Best: A+

Average annual premium

$ 2,996 for $250k dwelling
Amica Review
Why Amica may be best for customer service: Amica’s highly rated claims and customer service may be ideal for policyholders seeking a positive customer service experience. The company earned the top spot in the 2022 J.D. Power Property Claims Study — a position it’s held for 10 consecutive years. Amica’s high customer satisfaction performance is coupled with “Superior” financial strength, as rated by AM Best.
 
Availability: Coverage is available in all states except Alaska and Hawaii.
 
How to get started: Amica has an online quoting tool that you can use, or you can call 800-242-6422 for a home insurance quote. To learn more about Amica, visit amica.com.

Travelers

Best for add-on coverage options

Rating: 3.3 stars out of 5
3.3 Bankrate Score
JD Power: 794 AM Best: A++

Average annual premium

$ 1,249 for $250k dwelling
Travelers Review
Why Travelers may be best for add-on coverage options: Although Travelers offers standard endorsements like coverage jewelry and valuables and water backup coverage, some unique options include its green home coverage and identity protection. It also has a free home history tool for home buyers to explore if considering a home. 
 
Availability: Available in all states except Alaska, Florida, Hawaii, Louisiana and West Virginia. 
 
How to get started: For quotes, interested homeowners should call 1-866-218-5587, contact a local Travelers agent or explore its website. 
 

NJM

Best for unique discounts

Rating: 3.2 stars out of 5
3.2 Bankrate Score
JD Power: Not rated AM Best: A+

Average annual premium

$ 371 for $250k dwelling
NJM Review Get a personalized quote
Why NJM may be best for unique discounts: New Jersey Manufacturers, or NJM, is a regional property and casualty insurer but may be one of the best home insurance companies for homeowners who want a host of savings opportunities. The company’s premiums are far below the national average, and several discounts are available — like savings for having a backup generator, a home alarm system or storm shutters (in some states). However, keep in mind that the specific type of generator, alarm system or storm shutters may affect the savings you receive.
 
Availability: Coverage available in Connecticut, Maryland, New Jersey, Ohio and Pennsylvania.
 
How to get started: You can get an NJM quote by calling 800-232-6600 or using the online quote tool.

Auto-Owners

Best budget home insurance company

Rating: 3.2 stars out of 5
3.2 Bankrate Score
JD Power: 825 AM Best: A++

Average annual premium

$ 1,049 for $250k dwelling
Auto-Owners Review Get a personalized quote

Why Auto-Owners may be for budget home insurance: Auto-Owners average premiums tend to be lower than the national average, as well as in the 26 states in which it operates. In addition, Auto-Owners also offers discounts to make home insurance even more affordable, but homeowners can still add optional coverage to build out their policy.

Availability: Auto-Owners is available in Alabama, Arizona, Arkansas, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Carolina, North Dakota, Ohio, Pennsylvania, South Carolina, South Dakota, Tennessee, Utah, Virginia and Wisconsin. 

How to get started: You can visit Auto-Owners’ website to locate a nearby agent to prepare a quote.  

 

State Farm

Best for local agents

Rating: 3.2 stars out of 5
3.2 Bankrate Score
JD Power: 829 AM Best: A++

Average annual premium

$ 1,462 for $250k dwelling
State Farm Review Get a personalized quote

Why State Farm may be best for local agents: State Farm is a highly rated, historically financially strong insurer with more than 19,000 local exclusive agents throughout the U.S. It tied with USAA for best home insurance companies overall in our 2022 Bankrate Awards. Compared to other home insurance companies, State Farm’s agency footprint is abundant, which might be attractive if you like handling your insurance needs locally and in person.

Availability: Coverage is available in all states except Massachusetts and Rhode Island.

How to get started: State Farm makes getting a homeowners insurance quote easy. You can get a quote online, call 800-782-8332 or visit a State Farm agency in your area.

Erie

Best for robust coverage

Rating: 3.1 stars out of 5
3.1 Bankrate Score
JD Power: 827 AM Best: A+

Average annual premium

$ 957 for $250k dwelling
Erie Review Get a personalized quote
Why Erie may be best for robust coverage: Erie offers numerous coverage options, from water backup to guaranteed home replacement coverage, to help you personalize a policy that fits your specific coverage needs. Erie is a regional insurer, so it is only an option for homeowners in 12 states and Washington, D.C. But if you live in an area that Erie services, you may find the insurer appealing for its array of optional coverage types, high overall customer satisfaction scores and strong financial standing.
 
Availability: Coverage is available in Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, Washington, D.C., West Virginia and Wisconsin.
 
How to get started: Erie only provides quotes through its distribution network of local independent agents. The company’s website has a tool that could help you find an agent and even select a preferred language.

The best home insurance companies by state

Thanks to a combination of high customer satisfaction scores, low average premiums, discount opportunities, coverage options and more, we’re confident that the companies on this list are an excellent starting point for many shoppers. However, depending on your state, some carriers will be more competitive than others. Your location may demand premiums much higher or lower than the national average homeowners insurance cost, and some of the companies on this list may not be available in your state at all.

The United States is huge. Risks (and insurance markets) vary from state to state. Florida, for instance, is grappling with a homeowners insurance crisis, and many of the carriers on this list are no longer writing new business in the state. Instead, Floridians may need to rely on smaller regional companies for coverage. No matter where you live, narrowing your research by looking into the best homeowners insurance company in your state could help you find the best coverage at the best price. 

Compare the best home insurance companies by state

To help illustrate how rates can differ depending on where you live, we created the interactive map below. Click on your state to see how much the average homeowners insurance policy costs in your area and how it compares to the national average. Please note that these average rates are based on policies with $250,000 in dwelling coverage. 

Average cost of home insurance by state

Finding the best homeowners insurance company for you

Insurance is highly individualized. Finding cheap homeowners insurance with good coverage can be tricky, but it may be possible if you know your needs and priorities, as well as how your circumstances can affect your rate.

For example, those who own a historic home will likely need different coverage options than someone who owns a new build. Additionally, home insurance companies typically use more than a dozen factors (that are personal to you) to calculate your rate. In most states, these factors include your credit score, ZIP code, claims history and marital status, among others. As a result, insurance rates, coverage options and savings opportunities differ from person to person (and company to company). When in doubt, you might find it helpful to speak with an independent agent who can request quotes from multiple companies on your behalf.

What are the types of homeowners insurance?

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:

  • HO-1: As the most basic type of home insurance, an HO-1 policy provides coverage for the structure of your home for named perils only. There is no coverage for your personal belongings, additional living expenses or liability. Insurers rarely use this policy form.
  • HO-2: This policy type offers expanded coverage for personal property, liability and additional living expenses, but for named perils only.
  • HO-3: Widely considered the standard home insurance policy, this policy type comes with all the coverage options in the HO-2 plus medical payments coverage. Unlike the first two types of home insurance policies, the dwelling in an HO-3 is covered on an open perils basis.
  • HO-4: An HO-4 is intended for renters as a solution to insure their personal belongings and provide liability coverage. As renters are not homeowners, this policy does not insure the structure of their home.
  • HO-5: As an open-peril policy, an HO-5 expands coverage for dwelling and personal belongings to all perils except those specifically excluded.
  • HO-6: A condominium owner’s policy insures the interior of their unit, as the exterior and shared spaces may be covered by the master condominium policy. It also insures the owner’s personal belongings and provides liability coverage.
  • HO-7: An HO-7 insurance policy is for mobile homes and manufactured homes, such as RVs, trailers, modular homes and sectional homes. It insures both the structure of the home, as well as personal belongings and liability, medical expenses and additional living expenses.
  • HO-8: The HO-8 policy type is a named peril policy that only covers 10 perils. It is intended for homes where the repair or replacement cost may be higher than its resale value, such as older or historical homes, or architecturally significant homes.

What does homeowners insurance cover?

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:

  • Dwelling coverage: This is the main coverage in homeowners insurance and covers your home and any attached structures for damage not specifically excluded in your policy.
  • Other structures coverage: Also called “detached structures coverage,” this is usually 10-20 percent of your dwelling amount and covers things like fences, sheds, gazebos, detached garages and in-ground swimming pools.
  • Personal property coverage: TThis part of your policy covers your belongings, like your furniture, clothing and decor. Your personal property coverage is generally 50 to 75 percent of your dwelling amount, although you might be able to increase it if necessary.
  • Medical payments coverage: This coverage pays for guest injuries regardless of fault, up to the coverage limit.
  • Liability coverage: If you damage someone’s belongings or if someone is hurt on your property and you are found at fault, your liability coverage may pay the damages and your legal fees.
  • Additional living expenses coverage: Additional living expenses (ALE), also known as loss of use, pays the costs of living while away from your home if it’s uninhabitable due to damage caused by a covered property claim.

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.

What does homeowners insurance not cover?

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.

How to buy homeowners insurance

Once you are ready to purchase homeowners insurance, here is an overview of steps to follow:

  1. Understand how much coverage you need. Dwelling coverage is usually the first to be established on a home policy since the coverage limits for other structures, personal property and loss of use are based on percentages of the dwelling's insured value. Most homeowners insurance policies cover the home's replacement cost value, which considers the cost of labor and building materials needed to repair the home — not the market value. Using a replacement cost estimator that calculates factors like square footage and building materials will give you a good idea of how much home insurance you need.
  2. Estimate what you need insured. Once you know how much you need for dwelling coverage, consider any other structures on your property, such as a fence, detached garage or inground swimming pool. Create a home inventory of your personal property, taking into account any high-value items that might benefit from a scheduled personal property endorsement. If you are concerned that your structures or personal property need additional coverage,  an insurance agent can help review the coverage limits to ensure you have the right amount of insurance. Depending on where your home is located, you may also need flood or earthquake insurance, which is purchased separately.
  3. Choose which insurance companies to request a quote from. Researching the top home insurance companies can reveal financial strength ratings and customer service reviews, which can help you narrow down your options. Requesting home insurance quotes will give you a better picture of policy offerings, estimated premiums and discount opportunities. Requesting quotes from more than one carrier will give you the best chance to see which company offers the best coverage for your needs and budget. Additionally, depending on how you want to manage your policy, this can be a great way to familiarize yourself with the company’s online services or connect with local insurance agents.
  4. Finalize the policy. Once you have made a decision, you’ll need to make a payment to bind, or finalize, the policy. If you are switching carriers, you can choose to have your new policy begin when the old one ends or to have your new policy start immediately. If the latter is the case, you’ll need to issue a request to your old insurance company to cancel the policy and request a refund for any unused premium.
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This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.
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Quick Facts
Moneybag
$382/year
average savings through Bankrate
Two Thirds
2 out of 3 homes
are underinsured
Insurance Home
1 out of every 20
insured homes makes a claim each year
Circle Check
100% of homes
need insurance before getting a mortgage
See more providers in
Choose from insurers in
Mortgage

Leaving so soon? Your custom quotes are just minutes away.

What customer satisfaction metrics should you consider?

Some homeowners are less concerned with cheap rates and instead prioritize top-notch customer service. But, how can you know what a company's customer service experience is like before you've purchased a policy? Fortunately, there are a few different metrics that can give you a glimpse into how current policyholders feel about their home insurance carrier, including:

J.D. Power scores: J.D. Power conducts annual insurance studies by surveying current policyholders, asking them to rate the customer service and property claims experience they've received from their company. You can also learn about a carrier's digital tools by reviewing the J.D. Power Insurance Digital Experience Study.   

NAIC Complaint Index: The National Association of Insurance Commissioners, or NAIC, records policyholder complaints and translates this data into a Complaint Index Score. Most insurance companies have an overall Complaint Index Score and a score for each line of insurance it sells. When interpreting this data, it's important to know that a company with an average number of complaints has a Complaint Index Score of 1.0. A score higher than 1.0 means the company gets more complaints on average and vice versa — a score less than 1.0 means fewer complaints than average.

Financial strength ratings: Although a company's financial strength rating may not be directly related to customer service, it's unlikely that a policyholder will be happy with their carrier if it doesn't have the funds to pay for a covered loss. Financial strength ratings issued by AM Best, Moody's, Standard & Poor’s and Demotech reflect a carrier's historical ability to pay out claims when needed. Most insurance agents agree that choosing a financially stable company is essential. 

Friends and family: Speaking with friends and family already insured with a company can be a powerful tool in understanding what to expect from a carrier. Word of mouth can go a long way, especially from loved ones. 

How do I save on 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 or buying a new home. In some states (Florida, for instance), you could get a discount for adding wind mitigation features to your home. 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.

Best home and auto insurance bundles

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 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 that might match your needs.
 
Home insurance company Potential typical bundle discount*
USAA Up to 10 percent
Allstate Up to 25 percent
Lemonade Not stated
Chubb Not stated
Amica Up to 30 percent
Travelers Up to 13 percent
NJM Not stated
Auto-Owners Not stated
State Farm Up to $1,127 annually
Erie 16 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.

How to file a homeowners insurance claim

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

  1. File a police report, if needed. Depending on the type of incident that has occurred, you may want to file a police report. If you’ve done this already, your insurance company may ask for the police report number as well.
  2. Notify your insurance company. Many insurance companies now offer the option to file a claim online or through their mobile app, but you can also call the claims hotline or reach out to your insurance agent.
  3. Document the damages. Take as many pictures as you can of the incident. You may also want to obtain security camera footage, if available, as well as speak to others who could serve as witnesses. 
  4. Minimize future damage. Depending on the severity of the incident, take appropriate actions to prevent further loss. Temporary repairs — such as boarding up windows, covering roofs and openings with plastic sheeting and moving items to a more secure location — are usually reimbursed by your insurer since it saves them money in the long run.

Home insurance industry trends

Signs show that our red-hot inflation could be cooling, but the economic situation remains uncertain. According to Bankrate’s 2023 annual emergency savings report, almost half of American adults have less money saved (or none at all) compared to last year.

Some homeowners may try to cut costs by saving on their home insurance, but this could prove challenging. According to proprietary premium data from Quadrant Information Services, the national average homeowners insurance rate for $250,000 in dwelling coverage rose 3 percent from 2022 to 2023 (from $1,383 to $1,428). However, rates in some states have risen more than in others. For instance, Florida’s average homeowners insurance rate increased by about 20 percent.

Historic labor shortages and inflation are some of the post-pandemic woes plaguing the home insurance market. An increased frequency of catastrophic weather events, excessive litigation and, in some states, rising insurance fraud are also factors. While shopping for a lower home insurance quote may still be worthwhile, finding a lower rate could take more work than in years past.

Bankrate continually monitors homeowners insurance rate trends to give our readers information they can use to make empowered, informed decisions about their policies. We also asked industry experts to shed some light on the current market and to provide tips that consumers might use to ease some of the pressure they may feel when receiving their policy renewal this year.   

Industry experts weigh in 

Bankrate spoke with three leading insurance industry experts for insight into different aspects of the current home insurance market: 

Caret Down

Cat Reese

Chief Claims Officer at SageSure

When asked for advice for those living in challenged home insurance markets such as Florida and Louisiana, Cat Reese suggests: "Work with insurance providers who specialize in your market. These providers understand the risks you face and can offer the appropriate coverage, like flood policies, to complement your homeowners policy. While other insurers may avoid storm-exposed states like Florida or Louisiana, these providers are often built to serve catastrophe-exposed markets for the long term."

Other than shopping with regional companies, we wondered if there was anything else homeowners in these markets could do. Reese recommends: “Invest in fortifying your roof. Homes in Florida and Louisiana face extreme temperatures and elevated catastrophe activity, both of which can accelerate roof aging. The age of an asphalt roof is often the most important variable in predicting roof performance in high winds. To fortify your home, repair any unsealed shingles, ensure you have a sealed roof deck, and replace the roof when it shows signs of aging. Doing so makes your home more wind resistant and may help lower insurance premiums.”

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Kelly Rush

Director of Home Solutions at LexisNexis Risk Solutions

Signs point to easing inflation, and Bankrate wanted to know if this may bring relief to homeowners in the form of lower average premiums. Kelly Rush says:  “While average inflation is easing, inflation is different in multiple areas of the economy. For example, increased lumber costs have subsided in 2023 vs. 2022, but labor costs have continued to increase. There appear to be continued increases in the underlying losses of dollars being paid. This is evidence that the overall underlying home insurance costs are still increasing, greater than overall average inflation, albeit at a lower rate than previously. These underlying cost increases will likely result in increased homeowners premiums. Further, home values have dramatically increased while catastrophic events are occurring more frequently. Also, due to labor shortages, such as [the] reduction of tradespersons due to retirement, home losses continue to rise. Finally, there has been increased home remodeling due to Covid (increased and changed home utilization). The combination of these [factors] will likely continue to push losses higher and likely result in higher homeowners insurance premiums.”
Kelly Rush: Director of Home Solutions at LexisNexis Risk Solutions

Mark Friedlander

Director of Corporate Communications at the Insurance Information Institute (Triple-I)

With climate change comes an increasing rate of natural disasters. We were curious if these catastrophic events could impact average rates across the board, even in areas that didn’t experience the disaster. Mark Friedlander explains: “Global economic losses from tornadoes, hurricanes, severe storms, wildfires, floods, and other natural disasters reached $270 billion in 2021. Of those losses, $111 billion were insured. Much of this loss trend is due to people moving into risk-prone areas. More people, homes, businesses and infrastructure means more costly damage when extreme events occur. More damage to insured properties means a higher claims volume and larger insured losses. 
 
Because of the way insurers are regulated, their options for responding to rising claims, other than by raising rates, are severely limited. Without substantial rate increases, they might have to draw heavily from their policyholder surplus. If surplus approaches defined regulatory thresholds, insurers will be required to raise rates, write less coverage, or, potentially, go out of business.
 
Based on the trends described above, we expect homeowners’ premiums to continue to rise significantly across the U.S. in the years to come. Even if general inflation levels off, labor and replacement costs will continue to rise, albeit more slowly than what we experienced from 2020 through 2022."
Mark Friedlander

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2023 rates for 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. Our base profile includes 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.

Bankrate Scores

Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories. 
 
Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.
 
  • Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
  • Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
  • Tier 3 (Support): To encompass the many ways a home insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.
Written by
Shannon Martin

Shannon Martin is a licensed insurance agent and content writer for Bankrate. With a Bachelor of Science from the University of Louisiana at Lafayette and 15 years in the insurance industry, she enjoys helping others navigate the insurance world by cutting through complex jargon and empowering readers to make strong financial decisions independently.

Edited by Insurance Editor
Reviewed by Director of corporate communications, Insurance Information Institute