Compare home insurance quotes for March 2023

Home insurance company reviews

• Allstate: Allstate’s average premiums are about the same as the national average. Customers may save even more with potential discounts for new home buyers, remaining claims-free, installing protective devices and more. Although Allstate came in just below the segment average in the 2022 J.D. Power Home Insurance Study, it does have a lower-than-expected NAIC Complaint Index. Policyholders seeking more robust coverage options may be interested in Allstate's endorsements for water backup, sports equipment coverage, business property and electronic data recovery. Its wide range of coverage options helped the company tie for a 2023 Bankrate Award for The Best Home Insurance Company Overall.
• American Family: Also known as AmFam, American Family’s average annual premiums are considerably lower than the national average. The company also offers savings opportunities, including a generational discount for policyholders aged 18 to 30 whose parents are also American Family members, and a discount for renovated homes. You could even get a discount on an ADT system and other smart home devices if you’re an American Family policyholder. This company, however, isn’t available in all states, so your eligibility may vary.
• Chubb: Based on our proprietary rate data provided by Quadrant Information Services, Chubb has higher-than-average annual premiums for its homeowners insurance. Chubb is known for providing insurance for high-value homes and its standard insurance package includes many add-ons that may be optional with other companies, including extended replacement cost coverage. However, note that Chubb scored lower than average for overall customer satisfaction in the 2022 J.D. Power Home Insurance Study.
• Erie: According to our research, Erie has some of the cheapest average homeowners insurance rates in states where it’s available. It also offers guaranteed replacement cost coverage, which aims to give homeowners the total cost to rebuild their home, regardless of the dwelling limit listed on their policy. Another perk that sets Erie apart is its pet coverage — while most providers exclude birds and fish, Erie offers up to $500 in coverage for animals, birds and fish included. However, Erie is only available in 12 states, so a homeowners insurance policy through Erie may not be an option for you.
• Farmers: With three packages available (Standard, Enhanced and Premier), Farmers could be an excellent option for people purchasing their first homeowners policy. Additionally, homeowners can modify these packages further with endorsements such as Eco-Rebuild, which would cover the cost of rebuilding your home with more environmentally-friendly materials following a covered loss. It is important to know that Farmers isn’t available in every state and it’s among the most expensive companies on our list, on average. Still, this company may be worth considering for people looking for a streamlined process when purchasing a homeowners insurance policy.
• Nationwide: Nationwide is one of the cheapest homeowners insurance companies on our list, on average, and offers add-ons such as Better Roof Replacement, which will replace your roof with higher-quality materials in the event of a covered claim. Nationwide may not be ideal for you if you’re more concerned with customer service than price, however, since it scored lower-than-average in customer satisfaction, according to J.D. Power.
• Progressive: If you own a home, you could consider bundling home and auto insurance together at Progressive to take advantage of its multi-policy discount. Progressive homeowners insurance is only available in 40 states, and its coverage options and add-ons are somewhat limited, but this could still be a great option for people looking for the ease of placing your auto and home with the same company. It also has some of the lowest average homeowners rates of the companies we analyzed.
• State Farm: State Farm is the largest homeowners insurance company in the country by market share — although it doesn’t currently offer homeowners in Massachusetts or Rhode Island — with a high customer satisfaction rating and superior financial strength. Additionally, State Farm’s average premium for homeowners insurance is on par with the national average.
• Travelers: Travelers scored third-lowest in overall customer satisfaction in the 2022 J.D. Power U.S. Home Insurance Study. Even so, if you own an environmentally-friendly home, Travelers could offer cheap home insurance through a green home discount. With this program, you could be eligible for a 5 percent discount if you’ve received a “green home” certification from the Leadership Energy and Environmental Design (LEED) organization.
• USAA: USAA is best known for its military-focused coverage, inexpensive premiums and high customer service ratings. Its well-rounded insurance offerings helped it tie for Best Home Insurance Company Overall in the 2023 Bankrate Awards.  Although it cannot be ranked due to eligibility restrictions, USAA earned a score of 884 in the 2022 J.D. Power Home Insurance Study — the highest score of all the companies included. USAA also has a lower-than-average premium for home policies with $250K in dwelling coverage, according to our proprietary rate data. However, USAA has strict eligibility requirements and is only available to military members, veterans and their eligible family members.

When in doubt, working with a licensed insurance agent can be incredibly helpful. An agent can help guide you when choosing coverage and policy features.

What homeowners insurance coverage is required in my state?

Unlike car insurance, home insurance isn’t required by law. However, your financial institution may require you to have an active insurance policy if you have a mortgage or lien on your home. When you have a mortgage, you technically don’t own your entire home; your financial institution owns part of it. Because of this, insurance is required to help ensure that the mortgage company’s stake in your home will be protected.  

Even if you’ve paid off your home or paid for it in cash, most insurance professionals recommend carrying a homeowners insurance policy. If your home is damaged by a covered loss, the insurance policy could step in to pay for home repairs so that you don't have to pay for the full cost out of pocket. If you are like most people, your home is the most expensive thing you own. Unless you have the money to repair or rebuild out of pocket without serious financial strain, home insurance can be an important safety net to help protect your financial health.

Average home insurance cost by state

The average annual home insurance premium for a home with a dwelling coverage amount of $250,000.

Home insurance coverage for other kinds of property

Depending on the type of home you have and how it’s used, there’s a specific type of property insurance policy you can purchase. These include:

• Renters insurance: If you rent your home, you won’t need to insure the structure of your home. Instead, renters insurance steps in to provide coverage for your personal belongings, as well as personal liability and some loss of use coverage.
• Landlord insurance: As a landlord, this type of policy will insure your property’s structure and provide liability coverage and cover loss of income if the home is uninhabitable due to a covered claim.
• Condominium insurance: As a condo owner, you’re responsible for the interior of your unit, instead of the entire building. This type of policy provides that, along with insurance for your belongings and personal liability.
• Mobile and manufactured homes: This type of property insurance is for mobile and manufactured homes, which comes with its own specific coverage. Importantly, most mobile and manufactured homes typically do not cover any damage while in transit.

How to insure your home in 4 steps

Shopping for home insurance can be relatively simple. Depending on your needs and specific preferences, it may require more research and comparison, but in most cases, insuring your home will follow these steps:

1. Request quotes from home insurance companies. After you’ve decided which companies you want to consider, you can request a home insurance quote from each one. It may be most beneficial to analyze quotes for policies with comparable coverage types and limits across companies for accurate pricing comparisons.
2. Make adjustments if needed. After speaking with multiple experts and resources, you may decide that you want a higher dwelling amount, more personal liability coverage or to add a unique optional coverage. By now, you may have also narrowed down your list of carriers to the top few, so you can go back to each carrier to request a revised quote based on your specifications or ask what unique coverage add-ons can be included.
3. Make a payment. Once you’ve decided which company you want to go with, all that’s needed to start coverage on your home is to make a payment. You can also provide your mortgage information at this point, and tell the insurance company if the payments will be coming from your financial institution.
4. Cancel your existing home insurance policy (if you have one). Once you have the new policy documents in hand, you can safely cancel your current home insurance. You can check with your current home insurance company on what the cancellation procedures are, and if you need to provide anything in writing to ensure you don’t have duplicate coverage.

3 tips and tricks to keep your home safe

Even though home insurance helps with insuring your home against specific perils, it’s important to also maintain your home to avoid any unnecessary claims. Here are a few tips that you could use to help keep your home safe:

1. Install home security devices. This could include fire and burglar alarms, as well as subscribing to a home monitoring service. A bonus is that having these in your home could make you eligible for additional home insurance discounts.
2. Maintain the exterior of your home. This includes clearing away debris and cutting down branches and trees that may fall on your home. If you live in an area that’s prone to storms or fires, you may also want to ensure your outdoor furniture is cleared away or bolted down so that it doesn’t damage your home. Additionally, if you have cracked pavement or uneven stairs, this would be something to fix so that no one is injured when visiting your home.
3. Check your smoke alarms regularly. A fire could destroy your home and belongings. Regularly checking your fire alarms to make sure they’re still working and taking precautions with potential fire hazards like candles could help you avoid a potential fire.

Methodology

Base profile

• 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

• Coverage A, Dwelling: $350,000, $450,000
• Coverage B, Other Structures: $35,000, $45,000
• Coverage C, Personal Property: $175,000, $225,000
• Coverage D, Loss of Use: $70,000, $90,000
• Coverage E, Liability: $300,000
• Coverage F, Medical Payments: $1,000