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 homeowners insurance policies cover the basics, like the building, personal contents, personal liability, medical payments to others, and additional living expenses. Good homeowners insurance will offer you options to add coverages for things normally excluded or limited and include as many perks or coverage benefits and discounts as possible.

To help you find the best coverage at the right price, we reviewed numerous companies and selected the best based on various criteria.

Best Homeowners Insurance Companies of May 2022

Best Overall : Amica Mutual

Amica Mutual Homeowners Insurance

Amica Mutual offers three different coverage options that cover both the building and the contents inside. 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. This dividend policy is available everywhere except California, Florida, Missouri, and North Carolina. 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.

  • J.D. Power 2020 Customer Service and Satisfaction Rating: 5 out of 5
  • AM 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: 1.34 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.

Runner-Up : State Farm

State Farm Homeowners Insurance

 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 have your home and auto or other insurance took 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.

  • J.D. Power 2020 Customer Service and Satisfaction Rating: 4 out of 5
  • AM Best Financial Strength Rating: A++ (Superior)
  • J.D. Power 2020 Claims Services Rating: 878 out of 1,000
  • 2019 NAIC Complaint Index: 1.28 out of 2.00
What We Like
  • Covers freezing of plumbing or heating system.

  • Replacement cost on building and personal property.

  • Bundling discounts across many insurance products.

  • High loss of use limits (up to 24 months).

What We Don't Like
  • Homeowners insurance discounts aren't available in every state.

Best for High-Value Homes : Chubb

Chubb Homeowners Insurance

 Chubb Homeowners Insurance

Chubb is a well-known high-value home insurer with coverage features geared at high-net-worth individuals. 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 and great higher deductible credits.

Chubb is a lifestyle insurer that offers clients additional coverage at reasonable costs, 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 2020 Customer Service and Satisfaction Rating: 2 out of 5
  • AM Best Financial Strength Rating: A++ (Superior)
  • J.D. Power 2020 Claims Services Rating: 871 out of 1,000 
  • 2019 NAIC Complaint Index: 0.67 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.

What We Don't Like
  • Price usually higher than average.

  • Coverage geared primarily toward high-value properties or high-net-worth individuals.

  • No online quotes.

Best for New Homeowners : Liberty Mutual

Liberty Mutual Homeowners Insurance

 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, including a long list of employers and universities. Liberty Mutual offers standard homeowners coverage as a base, but it also provides the option to add many upgrades, including well-priced blanket jewelry coverage and home computer and electronics upgrades. 

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

  • J.D. Power 2020 Customer Service and Satisfaction Rating: 2 out of 5
  • AM Best Financial Strength Ratings: A (Excellent)
  • J.D. Power 2020 Claims Service Rating: 877 out of 1,000
  • 2019 NAIC Complaint Index: 1.34 out of 2.00
What We Like
  • 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.

Read the full review: Liberty Mutual Homeowners Insurance

Best Regional : Erie Insurance

Erie Insurance Homeowners Insurance

 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. One of the highlights is that policies 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 2020 Customer Service and Satisfaction Rating: 5 out of 5
  • AM Best Financial Strength Rating: A+ (Superior)
  • J.D. Power 2020 Claims Services Rating: 885 out of 1,000 
  • 2019 NAIC Complaint Index: 1.34 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 an Washington D.C.

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

Compare Providers

Provider Why We Picked It
Amica Mutual Best Overall
State Farm Runner-Up
Chubb Best for High-Value Homes
Liberty Mutual Best for New Homeowners
Erie Insurance Best Regional

Do You Need Homeowners Insurance?

Homeowners insurance is not a legal requirement, but it is always a good idea 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 cannot 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 with coverage amounts listed next to them, which 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

We looked at Liberty Mutual quotes for a home in California during our research 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 per 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 J.D. Power's national studies. We then reviewed complaint trends with the National Association of Insurance Commissioners (NAIC) and verified AM Best financial stability rankings. 

Once we had the top home insurers with strong all-around 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.