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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
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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.

Best home insurance companies in February 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
*Based on policies with $250K dwelling coverage for 2023
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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:
884 /1,000
AM Best:
A ++
Avg. annual premium for 250k dwelling
$ 969

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

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:

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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:

  1. 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.
  2. 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.
  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 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 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.
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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.

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 its mobile app, but you can also call its 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. 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.

Frequently asked questions

Written by
June Sham
Insurance Writer

June Sham is an insurance writer for Bankrate. Before joining the team, she worked for nearly three years as a licensed producer writing auto, property, umbrella and earthquake policies.

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