Homeowners insurance can protect your finances against unexpected, damaging events that harm your home. Bankrate analyzed the top homeowners insurance companies in the U.S. to help you find the best option for you. We found that USAA is a great home insurance choice for the military, while Lemonade topped our list for providing tech-savvy and low-cost home insurance. Travelers also scored highly for agent accessibility.
Bankrate’s insurance editorial team reviewed dozens of homeowners insurance companies across the nation, paying particular attention to those that rank highly in key market areas. Using 2021 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 found six home insurance companies that could be great options for most homeowners.
- Lemonade and USAA tied for the highest Bankrate Score in our analysis, with scores of 4.6 out of 5.0.
- USAA’s average annual premium was the lowest on our list — totaling only $992 for $250K dwelling coverage.
- 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.
Comparing the best home insurance companies
When buying a homeowners insurance policy, you may want to consider several components of each company, including average annual premiums, available coverage options, 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 to search for the best homeowners insurance companies.
The rates below are for $250K in dwelling coverage, the primary coverage component of any standard homeowners insurance policy that helps repair or rebuild your home after a covered loss. 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.
| 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 |
*Not officially ranked by 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.
USAA
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. However, the provider is not eligible for official ranking because it is not available to everyone. In addition to its average premium being lower than the national average, USAA offers a range of homeowners insurance discounts, including savings for being claims-free for five years with USAA, purchasing multiple policies and installing security systems. There are also 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
Lemonade is a relatively new carrier, but its innovative style earned it a place on our list of the best homeowners insurance companies. This company offers insurance for homeowners on an all-digital platform with low-cost monthly insurance plans. Rather than maintaining brick-and-mortar agencies, Lemonade operates via an advanced mobile app, which earned a 4.4 out of 5.0 rating from Google Play and a 4.9 out of 5.0 rating from the App Store. Because it is a newer company, Lemonade is not yet rated by J.D. Power for home insurance service, but the carrier did receive a lower-than-average complaint index from the National Association of Insurance Commissioners (NAIC). A score of 1.00 represents an industry-average number of complaints; Lemonade’s homeowners insurance received a score of 0.88. This means the NAIC received fewer complaints than average regarding Lemonade’s homeowners insurance.
Learn more: Lemonade Insurance review
Travelers
With agents in all 50 states and Washington, D.C., Travelers is a highly accessible home insurance company that offers low average rates paired with 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 save up to 5% on their premium. Travelers also offers uncommon features for tech-savvy consumers, such as the ability to manage policies using Echo or Alexa.
| 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
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. In addition to its slightly below-average rates, the company offers several discounts that could help policyholders lower their premium even more. Discounts vary by state, so speaking with one of their insurance agents might help you learn more about the savings available to you.
| 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
If you are looking for home insurance coverage focused on customer service and peace of mind, Amica might be a fantastic option. Although its average annual premium is higher than the national average, Amica is consistently praised for its customer service, and its policyholders are continually impressed with the company’s claims service. Amica claimed the top spot in J.D. Power’s annual Property Claims Study for nine years between 2012 and 2020 before sliding to fourth place in the 2021 study. Amica also offers unique features, such as its dividend policy, allowing policyholders to recoup up to 20% of their home premium each year.
| 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
Allstate
Allstate’s home insurance stands out as one of the best homeowners insurance carriers for the way it helps policyholders navigate their coverage needs. The company offers educational resources on its website to help first-time buyers navigate the homeowners insurance buying process. For example, Allstate’s Common and Costly Claims tool provides information about the most common and expensive insurance claims by ZIP code, which can help you assess the need for specific coverage options on your policy.
| 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
If you have a high-value or luxury home, you may want to consider Chubb’s specialized homeowners insurance policies. To ensure you are adequately protected, Chubb offers risk consulting, where a trained risk consultant evaluates your home’s features to determine your home’s rebuilding cost. The consultant can also provide advice about fire prevention and home security. Chubb policyholders also have access to HomeScan, which can help them identify potential issues in their homes 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
A Liberty Mutual company, Safeco offers numerous home insurance endorsements that could allow customers to tailor their coverage to their unique needs, including 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 completed 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 make a more educated decision regarding your homeowners insurance coverage. 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 coverage varies 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 policy and coverage types 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.
What 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. Floods can be common even in areas 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 some private insurance carriers. A few home insurance companies offer flood coverage as an endorsement. Like with home insurance, you may want to get quotes from a few providers to compare coverage options and premiums.
How do you compare homeowners insurance companies?
Understanding what matters most to you regarding your home insurance coverage can help you compare companies. If you are on a strict budget, the price might be the most important factor to consider. If you need specialized coverage, 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 endorsements — 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 and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. We know it is important for drivers to be confident their financial protection covers the likeliest risks, is priced competitively and is provided by a financially-sound company with a history of positive customer support.
To determine how well the best car insurance companies satisfy these priorities, third-party agency ratings from J.D. Power, AM Best, S&P, NAIC, and Moodys had the most impact on the companies’ Bankrate Scores. As price is a common consideration for drivers, we analyzed quoted premiums based on 40-year-old male and female drivers with a 2019 Toyota Camry. This profile, assessed across more than 35,000 ZIP codes in the U.S., provided a basis on which drivers may compare each provider.
While coverage options, insurer availability, affordability and customer experience are often the top priorities, Bankrate also analyzed each insurer’s online and mobile resources for policy management and claims handling. Insurance is rapidly evolving to keep pace with our digital world, so these aspects also carried weight in determining Bankrate Scores.
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