Best homeowners insurance companies in Delaware for 2024

Compare the best homeowners insurance companies in Delaware

Our insurance editorial team used multiple factors to determine the four best Delaware homeowners insurance companies outlined below. Data gathered from Quadrant Information Services was used to determine the average annual rate for all major carriers working in the state. The average rate for Delaware homeowners insurance is $1,026 per year, or roughly $86 a month.

Financial strength is indicated by AM Best ratings, while customer service quality is reflected by each company's score per J.D. Power's 2023 Home Insurance Study. We also looked at the breadth of optional coverage types and discounts, plus how easy the websites and mobile apps are to use. All things considered, we awarded each carrier a Bankrate Score from 0.0 to 5.0, with 5.0 being the best. Top performers include Allstate, Travelers, State Farm and Nationwide.

The top four home insurance companies in Delaware

Additional Delaware home insurance companies to consider

Cumberland Mutual Fire Insurance Co.

Encompass

How Bankrate chose the best home insurance companies in Delaware

Bankrate's experienced insurance editorial team delved deeply into the world of Delaware homeowners insurance to help you find the best policy for your property. Our research is reflected by our Bankrate Scores, which are based on multiple factors from average rates to the number of available discounts. A high Bankrate Score indicates that a company excels across the board and may be worth taking a close look at when choosing an insurance provider.

Cheapest home insurance companies in Delaware

In the ever-evolving landscape of Delaware's insurance market, finding cost-effective home insurance can feel like navigating a maze. Fortunately, we've streamlined the search for you. Below, you'll find a table showcasing the most affordable home insurance companies in Delaware based on average rate data.

How to get cheap home insurance in Delaware

Although Delaware's average rates for homeowners insurance are low compared to other coastal states, no one wants to pay more than they have to for robust insurance coverage. Fortunately, you can take several steps to save money on your policy.

Here’s how to secure the best possible coverage for your property at the lowest possible rate:

• Shop around: Comparing quotes can help you get the best coverage at the lowest rate. Most experts recommend comparing 3-5 quotes to get an idea of how your rates could vary with different companies.
• Bundle policies: Most insurers will give you a discount on your premium if you purchase more than one policy, such as homeowners and auto insurance. But you might earn a discount by bundling other insurance products, too, such as RV coverage or renters insurance.
• Work on your credit score: A high credit score demonstrates the ability to pay your bills on time and in full. So if you have good credit, your insurer may reward you with a lower rate. The opposite is also true. You may end up paying more if your credit isn’t great.
• Choose a higher deductible: If you can afford a higher deductible — such as $1,000 rather than $500 — you may land a lower rate. That’s because your insurer would pay less in the event of a claim. However, you'll want to make sure you can still pay the amount out of pocket in the event you need to file a claim.

Best home insurance discounts in Delaware

In addition to the strategies we mentioned above, discounts are also a great way to save money on your policy. Most insurers offer at least a few, and many of them are easy to earn. Here are a few that you may be eligible for in Delaware.

How to save on home insurance policy renewals in Delaware

Renewing your home insurance policy in Delaware doesn't mean you have to stick with the same rates. There are several strategies homeowners can employ to secure better deals, ensuring comprehensive coverage without overstretching the budget. Here are some actionable steps to consider:

• Shop around:  Don't just renew without comparing. Obtain quotes from different insurers to see if you can get a better rate elsewhere.
• Bundle policies: Many insurers offer discounts when you bundle home insurance with other policies like auto insurance.
• Raise your deductible: By agreeing to pay a higher deductible, you can often reduce your premium. Just ensure you can comfortably cover the deductible should you need to make a claim.
• Ask about discounts: Insurers might offer discounts for home improvements, security systems or even being a long-term customer. Asking about discounts helps ensure you don't miss any savings opportunities.
• Review your coverage: Check that you're not over-insured. If certain assets have depreciated or you no longer own them, adjust your policy accordingly.
• Maintain a good credit score: Insurers use credit scores in Delaware to determine rates. A strong credit history can lead to lower premiums.

How much is home insurance in Delaware?

Delaware home insurance costs, on average, $1,026 per year for $300,000 in dwelling coverage. Compared to the national average of $2,151 per year, Delaware homeowners can expect to pay far less for home insurance. When compared to surrounding states like New Jersey and Maryland, Delaware typically wins in terms of affordability. Homeowners in New Jersey and Maryland pay averages of $1,102 and $1,599 per year, respectively, for the same amount of dwelling coverage.

Lower average crime rates and less property to insure may contribute to Delaware’s less expensive home insurance costs.

Delaware homeowners insurance rates by city

Within Delaware, homeowners insurance rates can differ significantly from one city to another. Factors such as a city's specific vulnerability to weather events, local crime rates and the average age and condition of homes can all play a role. Understanding these nuances is crucial for homeowners to ensure they're adequately covered without overpaying. Below, you'll find a detailed map and a searchable data table that provides a clearer picture of how rates vary across different cities in Delaware.

What does home insurance cover in Delaware?

In Delaware, home insurance serves as a critical financial safety net against a range of potential perils. Given the state's unique geographical location and its susceptibility to certain natural events, it's imperative for homeowners to understand what's typically covered.

Perils that are covered by a standard home insurance policy include:

• Fire and smoke damage: Protection against damage from house fires, wildfires and resulting smoke.
• Windstorm and hail damage: Covers damage caused by strong winds, tornadoes and hail storms.
• Theft and vandalism: Compensation for stolen items or property damage resulting from burglary or vandalism.
• Water damage: Covers certain types of water damage, but typically excludes flooding (which often requires a separate flood insurance policy).
• Personal liability: Financial protection in case someone is injured on your property or if you're found liable for damages to someone else's property.
• Falling objects: Damage caused by items falling onto the property, such as tree branches.
• Weight of snow, ice or sleet: Damage to the home due to the accumulation of winter weather elements.

Additional home insurance coverage types in Delaware

Delaware's distinct geographical and climatic factors may prompt homeowners to fortify their policies with endorsements. Given the state's vulnerability to certain natural events, there are endorsements and separate policy options tailored to address Delaware-specific losses. To fortify your financial protection, you may want to consider these policy add-ons:

• Flood insurance: Delaware's coastal position means many homes are in high-risk flood areas, but standard home policies do not cover damage from storm-related flooding. Delaware has witnessed significant flooding events in the past, especially during hurricane seasons. A separate flood insurance policy, available through the National Flood Insurance Program (NFIP) or private insurers, may be valuable for financial protection.
• Hurricane and windstorm deductibles: With the Atlantic coastline at its doorstep, Delaware homes are susceptible to hurricanes. It's not uncommon for insurers to have separate deductibles for hurricane or windstorm-related damages. Ensuring clarity on these deductibles and considering additional coverage, if necessary, may be crucial.
• Equipment breakdown endorsement: Given the increasing dependence on modern appliances and electronic systems in homes, an equipment breakdown endorsement may be important. This covers unexpected repairs or replacements of major systems and appliances that aren't covered under typical homeowners insurance policies.
• Sewer backup endorsement: Particularly relevant in areas prone to heavy rainfall or aging sewer systems, this endorsement covers damage caused by water backup due to blocked sewers or drains.

Common Delaware home insurance problems

For Delaware homeowners, securing an optimal home insurance policy can come with its own set of challenges. Given the state's distinct climate and geographical elements, there are hurdles in the insurance landscape that residents might uniquely face compared to those in other states.

Common coverage issues include:

• Limited availability: Due to Delaware's hurricane exposure, some insurance companies might be hesitant to provide policies, especially in highly vulnerable coastal regions. This can lead to reduced options for homeowners in certain areas.
• Higher premiums for coastal homes: Proximity to the coast can significantly affect insurance premiums. Homes located closer to the shoreline might experience elevated rates due to the heightened risk of flooding and wind damage.
• Exclusions and special deductibles: Homeowners often find that their policies have specific exclusions for events like flooding or may have separate deductibles for hurricane-related damages. This can lead to unexpected out-of-pocket costs if not addressed at the policy's inception.
• Rapid rate fluctuations: Given the evolving climate patterns and the increasing frequency of extreme weather events, insurance rates in Delaware can be subject to rapid changes, catching homeowners off guard.

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze April 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on married male and female homeowners with a clean claim history, good credit and the following coverage limits:

• Coverage A, Dwelling: $150,000, $300,000, $350,000, $450,000, $750,000
• Coverage B, Other Structures: $15,000, $30,000, $35,000, $45,000, $75,000
• Coverage C, Personal Property: $75,000, $150,000, $175,000, $225,000, $375,000
• Coverage D, Loss of Use: $30,000, $60,000, $70,000, $90,000, $150,000
• Coverage E, Liability: $500,000
• Coverage F, Medical Payments: $1,000

The homeowners also have a $1,000 deductible, a $500 hail deductible and a 2 percent hurricane deductible (or the next closest deductible amounts that are available) where separate deductibles apply. 

These are sample rates and should be used for comparative purposes only. Your quotes will differ.