Best home insurance company overall
- J.D. Power:
- 834 /1,000
- AM Best:
- Avg. annual premium for 250k dwelling
- $ 1,046
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With so many home insurance companies on the market, it can be tricky to know which one is best for you. To help you make a decision, Bankrate’s insurance editorial team researched over 50 home insurance companies. We compared carriers based on average annual premiums, policy features, financial strength and customer service rankings, and more to build a curated list of the best home insurance companies.
Based on our findings, USAA and State Farm tied for best overall home insurance company, while Lemonade might be the ideal choice for tech-enabled low-cost home insurance. But it’s important to find a home insurance carrier that fits your needs and coverage requirements, so if these carriers don’t work for you, check out our full list of property insurers that may be great options for the majority of homeowners across the U.S.
|Company name||Best for||AM Best rating||J.D. Power rating|
|State Farm||Overall||A++ (Superior)||835/1,000|
|Erie||Robust coverage||A+ (Superior)||835/1,000|
|NJM||Unique discounts||A+ (Superior)||Not rated|
|Lemonade||Digital experience||Not rated||Not rated|
|Amica||Customer service||A+ (Superior)||854/1,000|
|Nationwide||High-value home coverage||A+ (Superior)||812/1,000|
|Allstate||Educational insurance resources||A+ (Superior)||829/1,000|
*Not officially ranked with J.D. Power due to eligibility restrictions
Best home insurance company overall
How to get started: You can get a USAA home insurance quote by calling 800-531-8722 or visiting one of its few office locations. Online quotes are also available for home insurance.
Best home insurance company overall
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.
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.
Best home insurance company for unique discounts
How to get started: You can get an NJM quote by calling 800-232-6600 or using the online quote tool.
*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 awards Lemonade the top position for renters insurance in its 2021 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.
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.
Best home insurance company for high-value home coverage
How to get started: You can get a homeowners insurance quote from Nationwide in a few ways, such as by using the online quote feature, calling 877-669-6877 or by working with a local independent agent that represents the company.
Best home insurance company for educational insurance resources
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.
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.
How to get started: Safeco allows you to start quotes online, but policies must be purchased from an independent agent.
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 2021 J.D. Power U.S. Home Insurance Study and 2021 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.
Each of the home insurance companies listed here have unique strengths, but not all of them will be the best fit for your needs. Before comparing the carriers, first consider your priorities. Whether that includes diverse policy options, discounts or quality customer service, knowing what your expectations are helps narrow down the list of companies from which to request a quote. During the quoting process, you’ll be able to get an estimate of how much your homeowners insurance policy might cost. You can also ask any questions about a carrier’s coverage details so that you can make the most informed choice about your policy’s inclusions.
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%|
|State Farm||Up to $1,127 annually|
|Erie||Up to 20%|
|Amica||Up to 30%|
|Nationwide||Up to 20%|
|Allstate||Up to 25%|
*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.
Homeowners insurance protects your finances if your home is damaged or destroyed by a covered peril. Your policy will likely also include liability coverage, which provides you with essential financial protection if someone is hurt on your property or their belongings are damaged and you are found at fault.
Home insurance isn’t required by law, but if you have a mortgage or home loan, your lender will likely require you to have a policy. Even if your home is paid off, industry experts strongly recommend you consider purchasing home insurance coverage. A home insurance policy is designed to help you avoid financial stress or devastation if your home is extensively damaged by a covered loss.
Home insurance covers damage to your home, detached structures and personal property from the losses indicated in your policy. Your liability exposure is likely also covered. Standard policies typically contain these coverage types:
Most standard home insurance policies also include medical payments to others coverage, which pays for guest injuries regardless of fault, up to the coverage limit. Keep in mind too 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.
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:
Most major home insurance companies offer home insurance discounts that could help lower your premium. Some common categories include:
Dozens of home insurance companies might be available in your area, so how do you choose the right provider for you? Here’s a few steps you can take:
Working with a licensed insurance agent can be very helpful during the process of purchasing homeowners coverage. An agent can assess your needs and help you choose the options that are best for you.
Once you are ready to purchase homeowners insurance, here is an overview of steps to follow:
Nationally, the average cost of homeowners insurance is $1,383 per year for $250,000 in dwelling coverage. This is up about $70 from 2021. While this is useful for comparison, the typical cost of homeowners insurance will vary widely depending on personal rating factors, such as the location of your home, 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.
Home insurance companies use multiple rating factors to determine your annual premium, and location — including state, city, ZIP code, claims history and proximity to a fire station and fire hydrants — can have a substantial impact on the cost of home insurance coverage. Nationally, the average cost of homeowners insurance is $1,383 per year for $250,000 in dwelling coverage. However, different areas of the country come with distinct risk factors, which affect premiums. For example, a homeowner living along the coastline may need to consider how hurricanes might affect their property, while someone in the Rocky Mountain region may need to consider the impacts of heavy snow and wildfires.
Becoming familiar with your state’s risks and common causes of loss could help you make a more educated decision regarding your homeowners insurance coverage. Links to Bankrate’s picks for the best homeowners insurers in your state are included in the table below.
|Average cost of home insurance by state|
|State||Average annual premium*||Average monthly premium*|