Best home insurance company overall
- J.D. Power:
- 884 /1,000
- AM Best:
- A ++
- Avg. annual premium for 250k dwelling
- $ 969
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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.
Best homeowners insurance companies for February 2023
USAA, State Farm and Erie are among the best homeowners insurance companies in 2023, according to Bankrate’s proprietary research
Updated Feb 01, 2023
The Bankrate promise
At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict , this post may contain references to products from our partners. Here’s an explanation for . Our content is backed by Coverage.com LLC, a licensed entity (NPN: 19966249). For more information, please see our
What To Know First
Bankrate’s insurance editorial team includes three licensed insurance agents, and we’ve reviewed more than 50 homeowners insurance companies across the nation, paying particular attention to those ranked highly by third parties in key market areas. We’ve worked closely with customers and we understand the needs, wants and questions that shoppers often have. Our expertise helps us analyze the home insurance market through a specialized lens. You can rest assured that we stay focused on the consumer during our research; our goal is to help you understand how to shop for and choose the best home insurance company for your needs.
We chose our picks for the best home insurance companies in the country based on a range of metrics that we know are important to shoppers. Using 2023 average annual premiums from Quadrant Information Services, available coverage options, discounts, overall customer satisfaction and financial strength as measures — along with our proprietary Bankrate Score — we identified property insurers that may be great options for homeowners across the U.S. Based on this extensive research, we found that USAA and Allstate may be great choices for many homeowners, while Lemonade topped our list for providing tech-savvy home insurance.
Best homeowners insurance companies in 2023
- USAA: Best overall
- Allstate: Best overall
- Lemonade: Best for digital experience
- Chubb: Best for high-value home coverage
- Amica: Best for customer experience
- Travelers: Best for add-on coverage options
- NJM: Best for unique discounts
- Auto-Owners:Best for budget home insurance
- State Farm: Best for local agents
- Erie: Best for robust coverage
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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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Insurance Disclosure
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.
Quick Facts
$382/year
average savings through Bankrate
2 out of 3 homes
are underinsured
1 out of every 20
insured homes makes a claim each year
100% of homes
need insurance before getting a mortgage
Leaving so soon? Your custom quotes are just minutes away.
Best home insurance companies in February 2023
| Insurance company | Best for | J.D. Power | AM Best | Average annual premium* | |
|---|---|---|---|---|---|
|
USAA
3.7
Bankrate Score
|
Best for
Best overall
|
J.D. Power
884
/1,000 |
AM Best
A++
(Superior)
|
Average annual premium*
$969
|
Get a quote |
|
Allstate
3.5
Bankrate Score
|
Best for
Best overall
|
J.D. Power
815
/1,000 |
AM Best
A+
(Superior)
|
Average annual premium*
$1,340
|
Get a quote |
|
Lemonade
4.1
Bankrate Score
|
Best for
Best for digital experience
|
J.D. Power
Not rated |
AM Best
A
(Excellent)
|
Average annual premium*
N/A
|
Read review |
|
Chubb
3.5
Bankrate Score
|
Best for
Best for high-value home coverage
|
J.D. Power
809
/1,000 |
AM Best
A++
(Superior)
|
Average annual premium*
$1,775
|
Get a quote |
|
Amica
3.5
Bankrate Score
|
Best for
Best for customer experience
|
J.D. Power
849
/1,000 |
AM Best
A+
(Superior)
|
Average annual premium*
$2,996
|
Read review |
|
Travelers
3.3
Bankrate Score
|
Best for
Best for add-on coverage options
|
J.D. Power
794
/1,000 |
AM Best
A++
(Superior)
|
Average annual premium*
$1,249
|
Get a quote |
|
NJM
3.2
Bankrate Score
|
Best for
Best for unique discounts
|
J.D. Power
Not rated |
AM Best
A+
(Superior)
|
Average annual premium*
$371
|
Read review |
|
Auto-Owners
3.2
Bankrate Score
|
Best for
Best for budget home insurance
|
J.D. Power
825
/1,000 |
AM Best
A++
(Superior)
|
Average annual premium*
$1,049
|
Get a quote |
|
State Farm
3.2
Bankrate Score
|
Best for
Best for local agents
|
J.D. Power
829
/1,000 |
AM Best
A++
(Superior)
|
Average annual premium*
$1,462
|
Read review |
|
Erie
3.1
Bankrate Score
|
Best for
Best for robust coverage
|
J.D. Power
827
/1,000 |
AM Best
A+
(Superior)
|
Average annual premium*
$957
|
Get a quote |
*Based on policies with $250K dwelling coverage for 2023
Powered by Coverage.com (NPN: 19966249)
Advertising Disclosure
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.
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
**USAA not officially ranked with J.D. Power due to eligibility restrictions
How Bankrate picked the best homeowners insurance companies
To find the best homeowners insurance companies, Bankrate’s insurance experts first looked at each carrier’s market share percentages, customer satisfaction ratings from the 2022 J.D. Power U.S. Home Insurance Study and 2022 J.D. Power U.S. Property Claims Satisfaction Study, and financial strength ratings from major credit rating agencies. We also reviewed average premium information to assess each carrier’s affordability, as well as discount opportunities to maximize further savings. Our final list of the best homeowners insurance companies includes carriers that feature a variety of coverage options, a combination of competitive rates and discount options, plus unique options that allow you to personalize your policy to your needs.
The top 10 home insurance companies
Best home insurance company overall
- J.D. Power:
- 815 /1,000
- AM Best:
- A +
- Avg. annual premium for 250k dwelling
- $ 1,340
Best home insurance company for digital experience
- J.D. Power:
- Not rated
- AM Best:
- A
- Avg. annual premium for 250k dwelling
- N/A
Best home insurance company for luxury home coverage
- J.D. Power:
- 809 /1,000
- AM Best:
- A ++
- Avg. annual premium for 250k dwelling
- $ 1,775
Best home insurance company for customer service
- J.D. Power:
- 849 /1,000
- AM Best:
- A +
- Avg. annual premium for 250k dwelling
- $ 2,996
Best home insurance company for add-on coverage options
Travelers
3.3 Bankrate Score- J.D. Power:
- 794 /1,000
- AM Best:
- A ++
- Avg. annual premium for 250k dwelling
- $ 1,249
Best home insurance company for unique discounts
- J.D. Power:
- Not rated
- AM Best:
- A +
- Avg. annual premium for 250k dwelling
- $ 371
Best budget home insurance company
- J.D. Power:
- 825 /1,000
- AM Best:
- A ++
- Avg. annual premium for 250k dwelling
- $ 1,049
Best home insurance company for local agents
- J.D. Power:
- 829 /1,000
- AM Best:
- A ++
- Avg. annual premium for 250k dwelling
- $ 1,462
Best home insurance company for robust coverage
- J.D. Power:
- 827 /1,000
- AM Best:
- A +
- Avg. annual premium for 250k dwelling
- $ 957
How to compare the best home insurance companies
Each of the home insurance companies listed here have unique strengths, but not all of them will be the best fit for your needs. Although comparing homeowners insurance carriers can seem daunting, you might find this list of steps helpful to keep you on track:
- Decide how much coverage you need. Home insurance is individualized, and a coverage package that’s best for you might not be for another. Determine what level of coverage and optional add-ons you need to best tailor your quote for your unique circumstance. If you’re in doubt, you may find it helpful to seek advice from an insurance professional.
- Consider your priorities. Are you looking for diverse policy options? Do you need the cheapest rates and, thus, plentiful discount opportunities? Perhaps customer service is at the top of your mind. Knowing what you need in a homeowners insurance policy can help narrow down the list of companies from which to request a quote.
- Request quotes. Many companies will allow you to request quotes online, but others may require you to speak directly with an agent. Regardless of how you request your quote, you may want to be consistent and ask for the same (or similar) coverage options from one carrier to the next. This can help you compare home insurance quotes apples-to-apples.
- Ask questions. Home insurance can be complex, but taking the time to ask questions about the carrier’s coverage details may help you make the most informative choice about your policy’s inclusions.
- Make a list of pros and cons. Once you have your quotes in hand, making a list of pros and cons for each company may help you find one company that stands out from the rest.
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: This part of your policy covers your belongings, like your furniture, clothing and decor. Your personal property coverage is generally 50-75 percent of your dwelling amount, although you might be able to increase it if necessary.Your personal property coverage is generally 50-75 percent of your dwelling amount, although you might be able to increase it if necessary.
- Medical payments: 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: 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
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.
How much does home insurnace cost?
Nationally, the average cost of homeowners insurance is $1,428 per year for $250,000 in dwelling coverage. While this is useful for comparison, the typical cost of homeowners insurance will vary widely depending on personal rating factors, including the state you live in, the year it was built and square footage. Requesting quotes from multiple carriers will give you a range of how much your home insurance is expected to cost.
Learn more: How to estimate the cost of home insurance
Average cost of home insurance by state
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, being a new home buyer or buying a new home, and more. Stacking home insurance discounts could mean significant savings on your home insurance premium. Be sure to ask your insurance agent about all available discounts you qualify for to make sure you don’t miss out on savings opportunities.
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 for your needs is to make a list of the features you are looking for in both your home and auto insurance policies. Then you can get quotes from several carriers who might match your needs.
| Home insurance company | Potential typical bundle discount* |
|---|---|
| USAA | Up to 10 percent |
| State Farm | Up to $1,127 annually |
| Erie | 16 to 25 percent |
| NJM | Not stated |
| Lemonade | Not stated |
| Amica | Up to 30 percent |
| Nationwide | Up to 20 percent |
| Allstate | Up to 25 percent |
*Note that potential discount amounts for bundling are taken directly from the carrier website and are subject to change. Additionally, there is no guarantee that you would receive the discount advertised by the insurance company. If you want more information about bundling discounts from your insurance company, contact your insurance agent.
How to buy homeowners insurance
Once you are ready to purchase homeowners insurance, here is an overview of steps to follow:
- Estimate what you need to be insured. Starting with your home, consider the square footage, remodels or renovation and any external structures like a swimming pool or detached garage that needs to be insured. Also take inventory of personal belongings, especially if you have any high-value items that might benefit from a scheduled personal property endorsement.
- Calculate how much coverage you need. After thinking about what and how much you own, you can start to determine your dwelling, personal property and liability coverage amounts. You don’t need to work up exact figures, but having an idea of how much home insurance you need might help you ensure your quotes are at a proper level. An insurance agent can also 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.
- 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 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.
- 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 you have your new policy start immediately. If that’s 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.
Advertising Disclosure
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.
Compare home insurance rates
Answer a few questions to see personalized rates from top carriers.
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Insurance Disclosure
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.
Quick Facts
$382/year
average savings through Bankrate
2 out of 3 homes
are underinsured
1 out of every 20
insured homes makes a claim each year
100% of homes
need insurance before getting a mortgage
Leaving so soon? Your custom quotes are just minutes away.
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:
- 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.
- Notify your insurance company. Many insurance companies now offer the option to file a claim online or through its mobile app, but you can also call its claims hotline or reach out to your insurance agent.
- 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.
-
Assess the damage. Depending on the severity of the incident, you may need to make repairs immediately. If possible, try to speak to your claims adjuster first, as they may also want to send an inspector to view the damage. Also save any receipts for reimbursement if you paid out-of-pocket.