MoneyGeek also ranked companies at a local level if you want to find which company provides the best service in your state. Whether you’re looking to insure a high-value home, want to find the best rates, or need a provider with flexible options, MoneyGeek’s list can help you find the best homeowners insurance for your needs.
THE BEST HOME INSURANCE COMPANIES FOR YOUR NEEDS
- Best Overall: Allstate
- Best for Military Families: USAA
- Best Online Tools: Lemonade
- Best for Range of Options: Erie
- Best Service: Farmers
- Best for Pricey Homes: Chubb
- Best for the Money: Allstate
- Best for Bundling: State Farm
- Best Company in Your State
Best Homeowners Insurance Companies Overall
If you’re looking for the best homeowners insurance company — and not just the cheapest home insurer — you should look for an insurer that balances price and service.
MoneyGeek’s rating system found that Allstate offers the best blend of affordability, customer satisfaction and financial stability. USAA scores highly in every category, but it is not included in this ranking because it is only available to military members, veterans and their families.
MoneyGeek combined data from J.D. Power and AM Best with overall affordability ratings to create a unique ranking scale for some of the most popular insurance companies in the country. Each individual factor is rated on a scale of up to five points, with an overall company rating out of 100.
MONEYGEEK’S RANKING OF THE BEST HOME INSURANCE COMPANIES
Collapse All Rankings –
1: State Farm, Score:90-
COMPARE QUOTES
4.6/5
Affordability
4/5
User Satisfaction
5/5
Financial Stability
MORE ABOUT STATE FARM
State Farm offers all the standard home insurance coverages, but it also offers additional coverage for home and garden items, as well as keepsakes and hobby items like cameras and sporting equipment. The company provides coverage for a variety of homes, including condos, manufactured homes, farms, ranches and rental properties. State Farm offers bundling discounts and an online quote system that allows you to get a quote on a policy anytime, day or night.Read MoneyGeek’s State Farm Home Insurance Review
2: Allstate, Score:88-
COMPARE QUOTES
4.7/5
Affordability
4/5
User Satisfaction
4.5/5
Financial Stability
MORE ABOUT ALLSTATE
Allstate offers various coverages that you can add to its standard homeowners policy, including yard and garden insurance, electronic data recovery and identity theft restoration. It also offers bundling discounts, allowing you to save money if you have multiple policies with the company. Additionally, Allstate has several online tools, including a rent vs. own calculator and an online quote feature to help you choose which coverage is right for you.Read MoneyGeek’s Allstate Home Insurance Review
3: Nationwide, Score:88+
4: MetLife, Score:88+
5: Chubb, Score:88+
6: Travelers, Score:87+
7: Farmers, Score:84+
Best Home Insurance Companies for Your Needs
Homeowners insurance protects what is likely your most significant financial asset — your home. Competition between insurance companies is fierce, so they try to make themselves stand out in different ways. Some companies target specific customers — like USAA and its focus on military members — while others focus on offering unique benefits you won’t be able to find anywhere else.
Best Homeowners Insurance Company for Military Families: USAA
USAA only offers coverage to active-duty military members, veterans and their families. Because they have such a specific customer demographic, they can charge lower average rates than most of their competitors in almost every category.
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In addition to offering affordable insurance, USAA provides resources to help people transition into and out of the military and helps those who are currently deployed. Its goal is to be a one-stop shop for American military members, so in addition to offering traditional insurance products (homeowners, renters, auto, etc.), it also has life, health, dental and vision coverage and personal banking and financial services for its customers.
USAA PROS AND CONS
Pros
- USAA tends to have the lowest average rates of any insurance company on the market.
- It offers health and life insurance, in addition to home and auto coverage.
- Coverage includes replacing military uniforms if they are damaged or destroyed due to a covered loss.
- Includes replacement cost coverage that pays out the current price of damaged/stolen items without depreciation.
Cons
- USAA products and services are only available to members of the military community.
- Identity theft coverage is not available in North Carolina.
USAA DISCOUNTS AND POLICY FEATURES
| Discount or Feature | What It Offers |
|---|---|
| Claims Free Discount | Homeowners with no claims for five or more years get 10% off their premium. |
| Bundling Discount | Members get a discount for having two or more policies in place with USAA. |
| Protective Device Discount | Members with an ADT security system may be eligible for a credit on their policy. |
| Home Sharing Coverage | This is coverage designed to protect you if you rent out part (or all) of your house. |
| External Discounts | USAA pairs with many companies to offer discounts to members, allowing them to save money on tires, security systems and more. |
| Flood Coverage | Flood coverage is part of their standard policy. |
Best Online Home Insurance Company: Lemonade
Lemonade, an insurtech startup, offers relatively low premiums and an artificial intelligence-driven approach to quoting new policies and quickly processing claims. Lemonade is a public benefit corporation, which means that it is legally allowed to prioritize its customers’ needs and wants over those of its shareholders.
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Lemonade will take a percentage of your premium to pay for company operations (salaries, overhead, etc.), and the rest is used to pay claims — you can donate anything leftover to a charity of your choosing. Keeping all of its business online helps Lemonade keep its overhead costs low. This distinctive approach to insurance, paired with its Demotech financial stability rating of A and excellent customer reviews, makes Lemonade one of the top digital homeowners insurance companies.
LEMONADE PROS AND CONS
Pros
- According to its customers, claims are paid out quickly, with one person stating that Lemonade paid their claim just seven seconds after they submitted it, likely due to Lemonade’s AI-driven approach.
- Its Giveback charitable donations increase every year, with donations totaling more than $1 million in 2020.
- Lemonade has 4.9 stars in the App Store and on Google Play, proving that its customers love the app and service.
Cons
- Only available online.
- Because it is a smaller company, you are less likely to find someone who is a customer, making it hard to find a word-of-mouth review of its coverage.
LEMONADE DISCOUNTS AND POLICY FEATURES
| Discount or Feature | What It Offers |
|---|---|
| Bundling Discount | It provides this discount if you have both pet, term life or auto and home insurance through Lemonade. |
| Fire Protection Equipment | Sprinkler systems, smoke alarms and other equipment could earn you a discount. |
| Material Discount | If your home is built of fire-resistant materials, you may be entitled to a discount. |
| No Deductible | For an additional fee, you can have a policy with a $0 deductible. |
| Extra Jewelry Coverage | Lemonade covers up to $1,500 for jewelry, so people who need more coverage than that can elect additional jewelry coverage. |
| Giveback | Because it takes a flat fee instead of keeping an additional premium as profit, Lemonade donates any leftover money at the end of the year to a charity of your choice. |
Best Homeowners Company for Range of Options: Erie Insurance Company
Typically, when people think of the best home insurance, they think of the lowest price or the most comprehensive coverage. Erie gives this concept a twist by offering a significant range of policy options for its customers.
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Though Erie provides the same basic packages as most other insurance companies (homeowners insurance, renters insurance, condo insurance, etc.), it also offers coverage for mobile homes and RVs.
While most companies encourage their customers to reach out to FEMA, for flood insurance, Erie offers flood insurance as one of the many coverages it carries. It even offers auto insurance for almost any vehicle, from your daily-use sedan to ATVs and golf carts.
ERIE PROS AND CONS
Pros
- AM Best gives Erie an A+ financial strength rating.
- Agents provide personal service to all Erie customers.
- Its personal liability protection coverage follows you anywhere in the world, not just in your home.
Cons
- Coverage is only available in 11 states and Washington, D.C.
- Discounts change from state to state, so you can’t know how much you will save until you speak with an agent.
- While it has 24/7 customer service available, having a personal agent means that many of your questions and concerns may have to wait until traditional business hours.
ERIE DISCOUNTS AND POLICY FEATURES
| Discount or Feature | What It Offers |
|---|---|
| Multi-Policy Discount | Members who bundle two or more policies through Erie can save anywhere from 16–25%. |
| Safety Features | Burglar alarms, sprinkler systems and other security features can earn you a discount. |
| Advanced Quote Discount | Getting a quote 7–60 days before your policy renews can earn you a discount. |
| 100% Guaranteed Replacement Cost | Erie provides guaranteed replacement cost instead of actual cash value for personal belongings. |
| Gift Card Reimbursement | If you purchase a gift card from a retailer that closes, Erie will reimburse you for your loss. |
| Animals, Birds and Fish | Eric provides up to $500 of coverage in the event of a covered loss. |
Best Homeowners Insurance Company for Customer Service: Farmers
When it comes to customer satisfaction, Farmers is at the top of the list. MoneyGeek’s research shows that Farmers ranks highly with J.D. Power for customer service, making it a great option if you prioritize customer support.
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Customers seem to love working with Farmers, in large part because Farmers uses an exclusive agent approach to selling insurance. Buying a policy or getting a quote online might be easy and convenient, but having a local agent who builds a relationship with you over time provides a top-notch customer service experience.
FARMERS PROS AND CONS
Pros
- Farmers agents offer superior customer service.
- Farmers offers coverage for a variety of unique properties, including manufactured homes and vacation homes.
- It provides identity theft protection and credit monitoring for only a few cents per day.
Cons
- Using local agents means service is not always available 24/7.
- At an average rate of $2,283 per year, Farmers is the most expensive company on MoneyGeek’s list of homeowners insurance providers.
- Though its website indicates you can get a quote online, it only takes your information and passes it on to an agent in your area.
FARMERS DISCOUNTS AND POLICY FEATURES
| Discount or Feature | What It Offers |
|---|---|
| Claims-Free Discount | Customers who go three years or longer without a claim are eligible for a discount. |
| Multi-Line Discount | If you have more than one insurance policy with Farmers (auto, homeowners, etc.), you can bundle your policies for a discount. |
| Claim Forgiveness | Customers who stay with Farmers for five years or more won’t see their premium increase because of one claim. |
| Declining Deductibles | Earn $50 toward your deductible each year your policy remains in force. |
| Cosmetic Damage | If you file a claim for functional damage, Farmers will cover cosmetic damage as well. |
Best Homeowners Insurance Company for High-Value Homes: Chubb
People with expensive or luxury property will find policies specifically designed to meet their needs at Chubb. A Chubb policy also has the option to select higher liability limits than standard homeowners insurance, with coverage of up to $100 million.
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The Chubb Masterpiece insurance policy covers many things that are important to wealthy clientele, including the restoration of electronic data destroyed by a computer virus and property management services. Chubb even has contracts with certified wildfire firefighters to help protect homes from the wildfires that are so common in the Western U.S.
Chubb claims its agents have the authority to pay a claim immediately but cannot deny a claim without a manager’s approval because they want to make filing a claim as painless as possible.
CHUBB PROS AND CONS
Pros
- Chubb offers home assessments for every client to make sure they have the exact coverages they need in case of an emergency.
- Masterpiece-level customers are allowed to choose their contractors and craftsmen to make repairs after a claim.
- Chubb offers a cash settlement option for people who don’t want to rebuild their property after a total loss.
Cons
- Chubb’s policies tend to be much more expensive than most of its competitors because they are designed for high-value properties.
- Policies are only available through an agent, preventing you from getting a quote online.
- Unless you are relatively wealthy, Chubb doesn’t design insurance plans to meet your needs.
CHUBB DISCOUNTS AND POLICY FEATURES
| Discount or Feature | What It Offers |
|---|---|
| Free Appraisals | Chubb offers home appraisals to all customers free of charge. |
| Bundling Discount | Insuring your primary home and vehicle through Chubb can get you a discount on your premium. |
| Gated Community | If you live in a gated community, you are eligible for a discount. |
| Lock Replacement | If your keys are lost or stolen, Chubb will pay to replace your locks. |
| Property Management | If you own a second home, property managers can help you take care of your property in case of an emergency, such as a wildfire or hurricane. |
| HomeScan | Scan your home using infrared rays to check for leaks, missing insulation and faulty electrical issues. |
Best Homeowners Insurance Company for the Money: Allstate
Allstate ranks first in this category because of its low overall rates. The average premium range for home insurance across the nation is $1,795–2,283 per year, with Allstate offering the lowest rates in that range. However, these rates are averages, and it’s important to get your own quote from at least three insurers to compare costs.
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Part of the reason Allstate’s rates are reasonable is the incredible discounts it offers, such as a multi-policy discount of up to 25% and a claim-free discount of up to 20%. Allstate also provides a responsible payment discount, a protective device discount and an early signing discount.
ALLSTATE PROS AND CONS
Pros
- Save up to 5% with its Easy Pay Plan.
- Allstate’s mobile app allows you to create a digital locker where you store pictures and information for all of your items in case you need to file a claim.
- Agents offer personal service to help guide you through the process of purchasing and maintaining your home insurance.
Cons
- Because Allstate uses agents to set up policies, some of its services are not available 24/7.
- The default coverage for personal property may be lower than that of other carriers.
- Its Deductible Rewards and Claim-Free Rewards programs provide smaller discounts than similar programs with competing companies.
ALLSTATE DISCOUNTS AND POLICY FEATURES
| Discount or Features | What It Offers |
|---|---|
| Multiple Policy Discount | This provides up to a 25% discount for bundling home and auto insurance. |
| Responsible Payment Discount | Allstate offers discounts for on-time payments and by payment type (escrow, in-full, etc.). |
| Claim-Free Discount | Enjoy a discount up to 20% when you switch to Allstate without a recent claim. |
| Claim RateGuard | Your premium won’t go up just because you file a claim. |
| Deductible Rewards | Get $100 off your deductible when you sign up and an extra $100 off your premium each year you don’t file a claim, up to $500. |
| HostAdvantage | Allstate covers your belongings even when you’re home-sharing. |
Best Homeowners Insurance Company for Bundling : State Farm
Bundling homeowners insurance and auto insurance with the same company is a great way to save money. But you’ll want to make sure you’re getting great rates and great service for both product types. Our pick for the best home and auto bundle company is State Farm, the nation’s largest home insurer.
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State Farm ranks above average for customer satisfaction for both home insurance and auto insurance, according to J.D. Power. You’ll get great value for your money, too, as State Farm is the most affordable widely-available insurance company when accounting for bundling discounts. MoneyGeek found that a State Farm auto and home bundle costs an average of $2,534 per year.
COMPARE HOME INSURANCE RATES
Ensure you’re getting the best rate for your home insurance. Compare quotes from the top insurance companies.Compare Quotes
Best Home Insurance Companies by State
Because laws and regulations vary from state to state, the best company in each state may vary. Just because a company has the best combination of rates and service in Texas doesn’t mean it also will in Michigan. Therefore, it’s essential to research which company has the best coverage and rates based on your location and circumstances.
MoneyGeek rated the best homeowners insurance companies based on insurance costs and customer service reputations within that state. The companies that ranked as the best in the most states include:
- Travelers (17 states)
- Allstate (eight states)
- Farmers (seven states)
This analysis excludes USAA because of its eligibility requirements. Homeowners who have a military background should look into USAA, which consistently rates as one of the best home insurance companies across the country for members of the military community.
In all, MoneyGeek found that 10 different companies rank as the best insurance company in at least one state. Find your state below and use our resources to learn more about the top homeowners insurance companies where you live.
BEST COMPANIES BY STATE – EXCLUDING USAA
| State | Best Company |
|---|---|
| Alabama | Farmers |
| Alaska | COUNTRY Financial |
| Arizona | Nationwide |
| Arkansas | Travelers |
| California | Allstate |
| Colorado | Auto-Owners Insurance Co |
Show more
Factors to Consider When Choosing the Best Homeowners Insurance
There are many factors you should consider when choosing an insurance company, including:
- Sufficient Coverage Levels: The most important part of choosing your homeowners insurance is making sure you have enough coverage to protect you in the event of a total loss.
- Cost: Make sure you choose a policy with a premium you can afford to pay each year. It doesn’t matter how good the coverage is if you can’t make the payment.
- Customer Reviews: Customer reviews are the best way to learn about a company’s reputation. If you want to know if a company is pleasant to deal with on the phone or pays out its claims on time, customer feedback can help you find that information.
- Financial Rating: The higher a company’s financial strength rating, the more likely it is to pay out claims in the future.
- Discounts: Sometimes, a company may seem too expensive, but it offers discounts that make the premium much more affordable.
- Claims Process: A company that is pleasant to deal with when you file a claim is great, and a company that pays claims on time and in full is even better. Pay close attention to this aspect when researching insurance companies.
- Special Circumstances: If you have specific needs — such as coverage for natural disasters common in your area or additional coverage for uncommon household features (wheelchair ramps, stair climbers, etc.) — you will want to choose an insurance company that can meet those needs.
Some of these things may be more important to you than others, so consider your priorities and research which companies offer the best coverage for your situation.
DO YOU NEED FLOOD INSURANCE?
All areas of the U.S. are at risk of flooding, and 90% of natural disasters involve flooding, according to the Insurance Information Institute. Flood insurance is not typically included in a standard home insurance policy. Homeowners can purchase a flood policy through the federally-backed National Flood Insurance Program or dozens of private flood insurers. — Mark Friedlander, Director, Corporate Communications, Insurance Information Institute
FAQ About Finding the Best Homeowners Insurance
A lot of factors should be taken into account when choosing a home insurance company. The following are some of the most common questions shoppers have about home insurance policies.COLLAPSE ALL
What Factors Impact Rates at the Best Home Insurance Companies?
Rates for homeowners insurance are determined based on various factors, which means that you and your neighbor could have identical houses but still pay different premiums to insure your property. The factors insurers use to determine your premium include your location, the age and construction cost of your property, your coverage limits, your claim history and your credit score.
How Much Does Home Insurance Cost at the Best Companies?
Since many factors go into determining your insurance rate (claims history, deductible level, roof condition, etc.), home insurance costs can vary significantly. The average rate of top home insurance companies in MoneyGeek’s study is $1,973 per year. You should compare insurance quotes from at least three companies before making a purchase to guarantee you are getting the best possible rate.
COMPARE HOME INSURANCE RATES
Ensure you’re getting the best rate for your home insurance. Compare quotes from the top insurance companies.Compare Quotes
OTHER HOME INSURANCE TOPICS:
- How to Buy Homeowners Insurance?
- How to Get a Homeowners Insurance Quote?
- Where to Shop for Homeowners Insurance?
- How Much Will Home Insurance Cost?
Expert Insight on Homeowners Insurance
Alan Himmel
Licensed/Bonded Public Insurance Adjuster and Founder of Florida Allstar Public Adjusting, Inc.BACK TO ALL EXPERTS
Are there any homeowners insurance endorsements (flood coverage, guaranteed replacement cost, etc.) that you recommend for most, if not all, buyers?
An endorsement of your policy changes the policy. In fact, that’s the whole secret to an endorsement. Moreover, endorsements are usually found at the back of your insurance policy, where you are unlikely to ever see them. In most cases, you will never know about them until you are trying to collect on an insurance claim.
That being said, I recommend that everyone who is buying an insurance policy look out for restrictive endorsements on their policy. Keep in mind that although you may see a small discount on your premium with certain endorsements, this comes with the cost of reducing your coverage. The two most damaging endorsements I see added to people’s policies are the $10,000 caps on water damage coverage and the endorsement to use only the insurance company’s preferred contractors for repairs.
The disaster of having a $10,000 cap on water damage is that no matter how much damage you have to your home, the insurance company will never have to pay more than $10,000. Imagine you take a weekend with your family, and you return to find a pipe broken inside your house and water cascading down your doorstep. Even if you have $100,000 in damage, your insurance company only has to pay $10,000 on your claim. All this for a $63 savings on your premium!
Is there a common mistake that first-time buyers make? If so, how can they avoid it?
As I have stated in previous discussions, I advise you never to miss getting a pre-purchase inspection and to always ask for a CLUE report. Unless you are a professional and know how to find problems, you must get a pre-purchase inspection. These experts will climb on your roof, look in your attic, check all the plumbing, including your water heater, check over your appliances and even inspect your heating and cooling systems.
They also take the emotion out of it and will look at the house objectively. If the inspector finds problems, then you can use this information to negotiate a better price or simply walk away from the deal. I also tell everyone to get a CLUE report. This report will tell you about previous insurance claims. A CLUE report stays with the property, and since you will be the new owner, you may have to pay a higher insurance premium or maybe not be able to get insurance at all.
Are there any homeowners insurance exclusions that might be surprising to a first-time buyer?
Although most homeowner policies cover water damage caused by a broken pipe and, in some cases, even roof leaks, the most obvious exclusion, which may be surprising to a first-time buyer or to someone who doesn’t have much experience or knowledge of homeowners insurance, is that homeowners policies don’t cover floods.
The confusion is that water leaks or pipe breaks, which leave an inch of water all over your floor in every room in your house, are generally covered under your homeowner’s policy. In contrast, flooding caused by rising water outside your home is not covered. There is a distinct difference between these two events, and in order to be covered for flood damage, you must have a separate policy for this type of loss.
Read More on Home Insurance
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Best Homeowners Insurance Companies
Methodology
To compile a list of the best home insurance companies, MoneyGeek reviewed dozens of insurance companies and ranked them for several factors:
POPULATION SERVED
We looked for companies that served a broad section of the U.S. Most of the companies have national or near-national coverage. Some — like USAA — serve a more limited population but have such excellent reputations that we included them. It’s an important reminder that some of the best insurers may be regional in scope, so check on local providers in your area.
FINANCIAL STABILITY
Your home is probably your most important asset, and you want to be sure the insurance company will be able to pay out if needed. For that reason, the financial strength of insurance companies is an important consideration. We only included companies with at least an A rating from AM Best rating agency.
CUSTOMER SATISFACTION
A financially stable company isn’t of much use if it doesn’t efficiently and fairly pay claims. We looked at customer satisfaction surveys from J.D. Power to determine how these companies treat their clients.
POLICY FEATURES
We made sure all of our top selections offered standard coverage options, including:
- Dwelling: To protect the physical structure of your home.
- Other Structures: To protect separate structures on your property, like a detached garage or a shed.
- Liability: To protect you in a lawsuit if someone is injured at your house.
- Personal Property: To protect things like furniture, electronic equipment, bikes, etc.
Remember, if you want earthquake or flood coverage, you will need a separate policy. And homeowners insurance never covers damage from termites or other pests.
Review MoneyGeek’s full methodology
About Rachael Brennan
Rachael Brennan is a professional freelance writer. She has been published on a number of websites, including Adweek, Glamour and Cracked. She has also worked in the insurance industry for more than a decade, earning her P&C license in all 50 states and her Life, Health and AD&D license in New York and the surrounding states.Read Full Bio »
SOURCES
- Federal Emergency Management Agency. “Flood Insurance.” Accessed October 8, 2020.
