Best Homeowners Insurance Companies

Homeowners insurance rates, coverage, discounts, and more

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Finding the right homeowners insurance can be challenging because there are so many coverage options and companies to choose from. All homeowner insurance policies cover the basics, like the building, your personal contents, your personal liability, medical payments to others, and additional living expenses. That’s the easy part—the best insurance company is the one that will give you the best coverage for each of these items. Good homeowners insurance will offer you options to add coverages for things that are normally excluded or limited, and will include as many perks or coverage benefits and discounts as possible.

To help you find the best coverage at the right price, we partnered with QuinStreet to bring you homeowners insurance rates from a variety of companies. And below the table, we’ve rounded up our picks for the best homeowners insurance companies.

Best Homeowners Insurance Companies of 2020 

  • Amica Mutual: Best Overall
  • State Farm: Runner-Up
  • Chubb: Best for High-Value Homes
  • Liberty Mutual: Best for Green Homes and New Homeowners
  • Erie Insurance: Best Regional

Amica Mutual: Best Overall

Amica Mutual Homeowners Insurance

Amica Mutual offers customized coverage options and an all-risk coverage on both the building and contents inside in their Extended Home Insurance Coverage. It also offers replacement cost on both, and the option to add extended dwelling replacement coverage for additional coverage up to 30% more than your limit. These are all huge advantages in how much you get paid in a claim.

In addition, Amica offers a great selection of discounts, and pays eligible homeowners up to 20% back in dividends (must be enrolled in autopay). Amica Mutual wins best overall for our best homeowners insurance companies because it really checks all the boxes, for coverage, price, cost-saving opportunities, claims service, and even value-added perks like referrals to trusted contractors.

Amica Mutual’s annual cost depends on your location. We looked at sample quotes for homeowners insurance on a home in California (26 to 40 years old) with coverage up to $500,000. The base premium was between $1,600 and $1,700 per year, depending on location, before individual-specific discounts. 

  • J.D. Power 2019 Customer Service and Satisfaction Rating: 5 out of 5
  • A.M. Best Financial Strength Rating: A+ (Superior)
  • J.D. Power 2020 Claims Services Rating: 902 out of 1,000, top-ranked by J.D. Power nine years in a row
  • 2019 NAIC Complaint Index: 0.22 out of 2.00
What We Like
  • Platinum coverage option offers added protection for smart devices

  • Discounts for new homes, alarms, and automated detection

  • Save up to 30% by bundling home, auto, and other policies

  • Contractor Connection service

What We Don't Like
  • Dividend policies not available in California, Florida, Missouri, or North Carolina

  • Homeowners insurance not available in Hawaii or Alaska

  • Standard home insurance only covers personal property at actual cash value

State Farm: Runner-Up

State Farm Homeowners Insurance

State Farm gets our Runner-Up award due to its high customer satisfaction rating, personalized service from a local agent, and great pricing. State Farm homeowners insurance is a great choice if you want to deal with a local agent, and want to have your home and auto or other insurance taken care of by one insurer. The replacement cost coverage and 24-month additional living expense coverage are advantages that not all insurers offer on the standard home insurance offering. They offer great bundling discounts and a wide range of other insurance products including life insurance.

Like all insurance companies, State Farm’s annual premium for your home depends on where you live and your situation. We looked at sample quotes for homeowners insurance on a home in California (26 to 40 years old) with coverage up to $500,000. The base premium was between $1,300 and $2,300 per year, depending on location, before individual-specific discounts.

  • J.D. Power 2019 Customer Service and Satisfaction Rating: 4 out of 5
  • A.M. Best Financial Strength Rating: A++ (Superior)
  • J.D. Power 2020 Claims Services Rating: 878 out of 1,000
  • 2019 NAIC Complaint Index: 0.35 out of 2.00
What We Like
  • High loss of use limits (up to 24 months)

  • Higher than average personal property limits

  • Covers freezing of plumbing or heating system

  • Replacement cost on building and personal property

  • Extended replacement cost available up to 20%

  • Bundling discounts across many insurance products

What We Don't Like
  • Sewer back-up is not covered

  • Alarm system discounts were not very high

Chubb: Best For High-Value Homes

Chubb Homeowners Insurance

Chubb is a well known high-value home insurer with coverage features geared at high-net-worth individuals. Coverage is all risk and claims are settled on a replacement cost basis, even if you decide you do not want to replace your building or contents. Although the cost of home insurance is high, it offers various discounts for home security systems, gated communities, and great higher deductible credits

We looked at sample quotes for a homeowner’s policy on a home in California (26 to 40 years old) with a value of $500,000. The base premium varied anywhere from $1,800 to over $3,000, before individual-specific discounts were applied. 

Chubb is a lifestyle insurer that offers additional coverage at reasonable costs to clients, such as valuable article coverage, wine collection coverage, personal cyber risk, and excess liability. If these items are important to you, then Chubb’s coverage offering is one of the best available when you can afford the price.

  • J.D. Power Customer Service and Satisfaction Rating: 2 out of 5
  • A.M. Best Financial Strength Rating: A++ (Superior)
  • J.D. Power 2020 Claims Services Rating: 871 out of 1,000 
  • 2019 NAIC Complaint Index: 0.31 out of 2.00
What We Like
  • Excellent claims and customer service reputation

  • Extended replacement with full cash value settlement options

  • Coverage for fine art, wines, or other high-value items

  • Offer personal cyber risk insurance at a low cost

  • Home inspection to verify value

  • Coverage for building codes

What We Don't Like
  • Price may be higher than average

  • Coverage only available for high-value properties or high-net-worth individuals

  • No online quotes

Liberty Mutual: Best for Green Homes and New Homeowners

Liberty Mutual Homeowners Insurance

Liberty Mutual offers good coverage at a reasonable cost. It offers many opportunities to reduce your pricing, including association with over 14,000 member groups which include a long list of employers and universities. We looked at sample quotes on a $500,000 home in California (age 26 to 40 years old) and found the annual base premium ranged from $1,800 to over $3,000. We also looked at quotes with and without discounts on a $350,000 home in California and obtained over $100 a month-off the premium when we applied all the discounts. 

Liberty Mutual offers standard homeowners coverage as a base, but it also offers the option to add many upgrades, including well-priced blanket jewelry coverage, home computer and electronics upgrades, and identity theft. 

We chose Liberty Mutual as the best for green homes and new homeowners because of the green rebuild option, inflation protection options, and the high discounts offered for new homeowners and renovated homes.

  • J.D. Power 2019 Customer Service and Satisfaction Rating: 2 out of 5 
  • A.M. Best Financial Strength Ratings: A (Excellent)
  • J.D. Power 2020 Claims Service Rating: 877 out of 1,000
  • 2019 NAIC Complaint Index: 0.64 out of 2.00
What We Like
  • Higher than average business property away from the home limit

  • Includes $5,000 sewer back-up

  • Includes building code upgrades

  • Inflation protection coverage

  • Insure-to-value discount

  • Newly purchased home discounts

What We Don't Like
  • Actual cash value on building and personal property unless upgraded

  • Need to call to get a clear understanding of the coverage offered

Erie Insurance: Best Regional

Erie Insurance Homeowners Insurance

Erie Insurance only offers coverage in 12 states plus Washington D.C., but it makes our list for best regional homeowners insurer because of its high customer satisfaction and claims service rankings, as well as the coverage features it offers. Some of the highlights are all-risk coverage including mysterious disappearance and policies that include 100% guaranteed replacement, which means you won’t be left out-of-pocket in a claim. It offers generous bundling discounts, up to 25%, and advanced quote discounts if you shop your insurance with them seven to 60 days before your renewal date. Erie is a great choice if you prefer personalized service by a local agent who can get to know you and your needs.

  • J.D. Power 2019 Customer Service and Satisfaction Rating: 5 out of 5
  • A.M. Best Financial Strength Rating: A+ (Superior)
  • J.D. Power 2020 Claims Services Rating: 885 out of 1,000 
  • 2019 NAIC Complaint Index: 0.26 out of 2.00
What We Like
  • Guaranteed replacement cost

  • Service line protection available

  • Sewer and drain back-up coverage available

  • Work with an agent for personalized service

  • Bundling discounts up to 25% for home, auto, and life insurance

What We Don't Like
  • Regional, only available in 12 states and D.C.

  • No online quote available, you must speak to an agent

Do You Need Homeowners Insurance?

Homeowners insurance is not a legal requirement but it is always a good idea when you want to protect the investment you have made in a property. If you have a mortgage, the lender will require you to have home insurance. You do not need to have homeowners insurance, but having an insurance company pay for loss or damage to your property if you run into any issues is helpful, especially if you could not afford to cover emergency expenses yourself.

What Does Homeowners Insurance Cover?

When you look at the declaration page of your insurance policy, you will see a list of the ABC’s of your insurance (and DEF’s) with coverage amounts listed next to them. These coverages make up the basic coverages of a home insurance policy. Home insurance often covers:

  • The building structure (Coverage A)
  • Any additional structures on the property (Coverage B)
  • Your personal belongings (Coverage C)
  • Loss of use or additional living expenses (Coverage D)
  • Your personal liability (Coverage E)
  • Medical payments to others who could potentially get injured on your property (Coverage F)

Besides the basic coverages, which describe the primary limits of the policy, there are also special limits of insurance on certain items, such as jewelry, sports equipment, electronic equipment, or other items determined (and limited) by your insurance company. 

There are three levels of coverage options when buying insurance: Actual Cash Value (claims settlement on a depreciated basis), Replacement Cost (new for old, when replaced), and Guaranteed Replacement or Extended Replacement (pays to replace the building, even if it's more than the insured value). When purchasing insurance, ask about the basis of claims settlement on the building vs. your personal property because the basis of the settlement could vary.

Exclusions in Home Insurance Policies

All homeowners insurance policies will have certain things that are not covered or excluded. An all-risk or open perils policy will cover you for everything unless it is excluded, whereas a named perils policy will cover you only for the perils listed

How Are Homeowners Insurance Rates Determined?

Homeowners insurance rates are based on five sets of factors that all contribute to the calculation of the premium

  1. Information about the risk itself: The location, distance to the fire station, weather risks that impact the area, claims experience of the insurer in the region, and local costs of construction 
  2. Information about the building: The condition of the property, age of the building, and renovation details for the roof, plumbing, heating, and electrical systems 
  3. Discounts: Protection measures like alarm systems, or other preventive measures like water shut-off valves, and sprinkler systems; the size of the home and features that determine the reconstruction costs; and if you take increased deductibles could decrease your rate significantly
  4. Level of protection: If you take base coverage or bare-bones protection with no add-ons, your premium may be significantly lower than if you get an all-risk policy, or take a policy with optional endorsements or riders
  5. Your personal information: If you are a member of associations, or qualify for employer or educational related discounts, your insurance credit score or payment and claims history may all provide the opportunity for a lower premium

According to a 2019 study by the National Association of Insurance Commissioners (NAIC), the average homeowner’s insurance premium in 2017 was $1,211. During our research, we looked at Liberty Mutual quotes for a home in California, and found the base rate to be $161 per month (or $1,932 per year), with no discounts added. Once discounts were applied to the rate, the premium dropped to $53 a month (or $636 per year).

If we were to add scheduled items like $10,000 of blanket jewelry coverage, green rebuild upgrade, identity theft, and home computer and electronics coverage, the rate would be higher. 

How We Chose the Best Homeowners Insurance Companies

To select the best homeowners insurance companies, we reviewed the 25 largest insurers in the U.S. by premium volume, and top-ranking insurers for both customer satisfaction and home property claims performance as ranked by consumers in national studies. We then reviewed complaint trends with the National Association of Insurance Commissioners (NAIC) and verified financial stability rankings. 

Once we had the top home insurers with all-around strong performance identified, we found the best coverage options to look for in a home insurance policy to see what each one offered and what set them apart from the rest. We ran independent quotes online and did additional research as needed by using call centers, agents, state regulators, and home insurance marketplaces to verify each insurance company’s quote process, policy coverage options, exclusions, discount offers, pricing, and ease of interaction.

We looked into home insurance companies overall ability to provide service, how they handled claims, what online services they offered, and which had the best product selection at a fair price for people in different circumstances and with different needs, Finally, we dug into the small print and cross-checked policy wordings and home insurance contracts (where available) to present you with our review of the best homeowners insurance companies.

Article Sources

The Balance requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy .
  1. Amica Mutual. "Home Insurance Coverages." Accessed June 2, 2020.

  2. Amica Mutual. "Dividend Policies." Accessed June 2, 2020.

  3. Erie Insurance. "About Erie Insurance." Accessed June 2, 2020.

  4. Erie Insurance. "Homeowners Insurance." Accessed June 2, 2020.

  5. Insurance Information Institute. "Facts + Statistics: Homeowners and Renters Insurance." Accessed June 2, 2020.