The Best Homeowners Insurance Companies 2023

Homeowners insurance is unavoidable when you own a home. The most important part of homeowners is making sure you understand what perils are covered and which are not. Knowing what risks you face is helpful to choosing a policy and ensuring you have what you need.

Once you understand the insurance itself you’ll need to choose a company. Financial strength and stability is important in an insurance company. You want to make sure they will still be paying claims in 20 or 30 years.

Also, consider how you want to interact with your insurance company. Do you want to be able to manage everything from an app or will you want to speak with a local agent? — Or maybe a mix of both.

10 Best Homeowners Insurance Companies

1. Lemonade

Lemonade was founded in 2015, the newest company on the list, and has a Financial Stability Rating of A-excellent with Demotech, Inc – an insurance rating company.

Lemonade prices start at just $25 per month. It’s a mobile-first insurance company which means you can manage your policy 100% through their app.

They also take their profits a little differently than traditional insurance companies. The company takes a flat fee from each policy and then uses all other income to run the company and pay claims. Any money left over is donated to charity. As they state on their website, this means they are not incentivized to deny claims, since they don’t earn more profit if their claims are less, they would donate that money to charity anyways.

The company’s low-cost products include homeowners, renters, car, pet, and life insurance, so if you have other insurance needs you can get them all in the same place.

As of this writing they are available in 37 states but adding more all the time.

Lemonade Pros and Cons

2. Allstate

Allstate has been around since 1931 and has a Financial Strength Rating of A+ (Superior) from AM Best.

They also have local agents. This is great if the “mobile first” model of Lemonade doesn’t suit you. Having an agent is a necessity if you want to be able to talk to someone in person. This can be nice if you have a complicated claim to make and need additional assistance. But don’t think Allstate doesn’t have its digital game together. The company also has a highly-rated mobile app.

Besides homeowners, Allstate offers a wide variety of property insurance products including renters, landlord, condo, and mobile and manufactured home insurance. Outside of property insurance, they have life, pet, business, umbrella, and vehicle insurance – which includes more than just car insurance, they insure everything from motorcycles to boats. They even have identity protection, travel insurance, event insurance and more. Basically, if you need it insured, Allstate will likely cover it.

Also, Allstate is the first major insurer to offer additional coverage for home-sharing hosts like those that use Airbnb or HomeAway. Their HostAdvantage policy can get you additional coverage for as little as $50 per year, though your costs may vary.

We like Allstate’s option to bundle home and car insurance, especially for a discount. They offer 25% off if you bundle your home and car insurance but have a lot of other discounts available as well, such as Drivewise, new car replacement, and safe driving. Your local agent can make sure you get every one you’re entitled to. However, lots of users report higher-than-average prices so you may need those discounts to bring the costs in line with other providers.

Allstate Pros and Cons

3. Liberty Mutual

If you like insurance companies that have been around for awhile then you’ll love Liberty Mutual’s. It was founded in Boston in 1912, the same year Fenway Park opened and it as a rating of A (Excellent) with Am Best.

They have a highly rated mobile app and the option to receive a quote online in minutes as well as local agents for those who want a more personal touch.

Liberty Mutual’s unique feature is that their plans are highly customizable. You may be familiar with their commercial saying “you only pay for what you need”. That’s because you don’t need to have more coverage than you need. They also offer many discounts and bundles to lower your rate even more. They offer a wide variety of insurance options, such as vehicle, life, business, accident, and more. Like Allstate, if you need it covered, Liberty Mutual probably has a policy for it.

Additional coverage options include Home Protector Plus to pay for unforeseen costs when rebuilding your home or replacing personal property and coverage for valuable art, jewelry, and even camera equipment. Another interesting option is Inflation Protection automatically adjusting your coverage limits at renewal time to keep up with inflation.

Liberty Mutual Pros and Cons

4. USAA

USAA is a highly rated and customer-loved insurance company. The problem? It’s only available to active military members and their families.

If you are lucky enough to have access to USAA you should definitely get a quote. Their AM Best rating is the highest offered at A++(Superior) and their customer service ratings are consistently high. They also have lower than average rates.

USAA offers more than homeowners insurance. They also offer renters, condo, mobile home, vehicle insurance (including motorcycles, RVs, boats, ect), business, life, pet, umbrella, and more. They also have health insurance which is not a common offering among insurance providers.

They also have a lot more than insurance. They have banking products, such as checking, savings, and credit cards, as well as investments. It’s really a one stop shop for all your financial needs.

It’s worth noting that USAA was purchased by Schwab in 2020.

USAA Pros and Cons

5. State Farm

State Farm has been around since 1922 and has a Financial Strength Rating of A++ (Superior) rating from AM Best – that’s as good as it gets.

State Farm has really good overall customer satisfaction and a wide variety of policy offerings. In addition to homeowners insurance they offer other property insurance, such as renters, condos, manufactured homes, and farms. Besides property insurance they have vehicle insurance, life, pet, and small business. They also offer health insurance as well as disability insurance. That’s not something you see with every insurance company.

Their rates are competitive but they don’t offer a ton of discounts. You’ll want to get a quote to see how their rates compare to others after any discounts.

You can manage your policy from their app but they also have local agents for those times when you need extra assistance.

State Farm Pros and Cons

6. Chubb

As the oldest insurance company on the list, Chubb was founded in 1882 – the same year electricity became commercially available. It has a Financial Strength Rating of A++ (Superior) from AM Best.

Chubb seems to cater to the higher-end market. While the rates tend to be higher, the coverage levels and customer service are also higher. For example, they offer extended replacement costs for homeowners. Which means that they will cover the cost to rebuild your home in the event of damage to the same trim levels as before, even if it means going over your policy limits. They even cover lost data if your computers are destroyed by a virus.

Besides homeowners, Chubb offers a full suite of insurance products including renters, condo, farm, car insurance (including classic cars), life, small business, umbrella and more.

The biggest drawback of Chubb is that you can’t get a quote online, you must speak to an agent. Which is a big departure from the other companies on this list.

Chubb Pros and Cons

7. Erie Insurance

Erie Insurance was founded in 1925 and has a Financial Strength Rating A+ (Superior) rating with AM Best. It also consistently ranks well for overall satisfaction and customer service. Plus it has very competitive rates.

Erie Insurance’s hallmark feature is that it offers guaranteed replacement cost. This means that if repairs need to be done they will cover the cost, even if those costs exceed the amount of your policy. It also has gift card reimbursement, which pays you the value of the gift card if the business closes before you can use. it. That’s a unique feature.

In addition to homeowners, they offer a full selection of insurance including renters, condo, mobile home, flood, vehicle life, small business, and more. Which is great because their bundling discounts are between 16% and 25%, so you could save some money if you have more than one policy with them.

You can get a quote online, manage your policy on the app, and they also have local agents if you want to speak to someone in person.

The drawback – they are only available in 11 states and the District of Columbia. So if you don’t happen to live in one of these states, Erie won’t be an option for you

Erie Insurance Pros and Cons

8. Amica

Amica was founded in 1907 and has a Financial Strength Rating of A+ (Superior) from AM Best.

They do have an app that allows you to manage your policy and they also have local agents. Amica is available in all states, except for Hawaii and Alaska.

While they don’t offer guaranteed replacement cost coverage they will go over your policy limit by 30% if the costs to rebuild your home exceed your policy limit.

Amica also offers a full suite of insurance products including renters, condo, life, pet, motorcycle, RV, umbrella, small business. And you can save up to 30% if you bundle your home and car insurance. They also offer dividend policies, which will return up to 20% of your premium back if certain conditions are met. (These conditions are likely that they made more money than expected due to lower claims or operating costs.)

They are one of the more expensive insurers on this list, but they also have lots of discounts available such as a loyalty discount and an autopay discount.

Amica has very low levels of complaints and reports of excellent customer service. So while you might be paying a bit more than you would with other policies, it could be worth it if it saves you headaches during an already stressful time.

9. American Family

American Family was founded in 1927 and has a Financial Strength Rating of A+ (Superior) with AM Best.

You can get a quote online or use a local agent. They also have an app that allows you to manage your policy on your phone.

You can add on extended replacement coverage which means that they will exceed the amount of your policy by 30% if the cost to rebuild goes over your coverage limits. They also offer full replacement coverage of personal property if it’s damaged in a covered loss. You also upgrade to guaranteed replacement costs which will rebuild your home regardless of the cost and it extends the covered perils on your personal property.

They offer a feature called Diminishing Deductible. If you have this coverage you will get $100 off your deductible for every year you don’t have a claim.

Like a lot of companies on this list, they also have a full selection of other insurance options, including renters, condo, farm, vehicle, life, umbrella and business. You can save up to 23% if you bundle your home and car insurance.

They have reports of average customer service but low levels of formal complaints. They are only available in 23 states.

10. Nationwide

Nationwide was founded in 1926 and has a Financial Strength Rating of A+ (Superior) with AM Best

Their unique offering is called Brand New Belongings, which will cover the cost of a brand new item if it’s damaged or lost in a covered event. You can also add on Dwelling Replacement Cost which will allow repair costs up to double your policy limits if rebuilding your home after a loss is more expensive than expected.

Nationwide has a full selection of both insurance and banking products. For insurance they offer renters, condo, vehicle, life, pet, long-term care, dental, umbrella, small business, and more. But they don’t stop at insurance. They also offer banking and investing services as well – both for personal and business.

They have an app that allows you to manage your policy on your phone as well as local agents. They are not available in every state.

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FAQs

What does homeowners insurance cover?

Every policy is different, but in general, homeowners insurance covers damage to your home due to a storm or fire. For example, if a tree falls on your house due to a storm, it’s likely that your insurance policy will cover the costs of repair. Some policies may also cover mold damage, roof leaks, foundation damage, roof repair, and even fences or sheds.

Oftentimes, your insurance will also pay for accommodations while your home is being repaired from a covered event, if needed.

Your belongings are also covered from damage and theft. If someone breaks into your home and steals your TV, it’s likely covered. Your possessions are also covered even when they are outside the home, so if your camera is stolen out of your car it could be covered. If you have very expensive individual items, such as jewelry, you will want to name them specifically on the policy and get a special rider to protect them.

Lastly, your homeowners insurance often offers liability protection. If someone is injured on your property their medical bills may be covered by your homeowners insurance.

Keep in mind that, even with the best homeowners insurance, if damage occurs to your home due to neglect it likely won’t be covered. For example, if a tree falls on your house due to a bad storm it’s probably covered. However, if it falls on your house because you’ve neglected to take care of an obvious hazard it likely will not be covered.

When you are signing up for a new policy, be sure to fully understand what is covered and what isn’t. If you are new to homeowners insurance you may want to consider an insurance company that has local agents. That way you can make sure that all your questions are answered about your specific policy.

What to look for in the best homeowners insurance

When you are looking to buy homeowners insurance, first, shop around a bit and get a few quotes from different companies. That will give you a good idea of what’s out there from a cost perspective. When you are shopping around, make sure the coverage limits and riders are the same. That way you are comparing apples to apples.

For example, let’s say one policy is $40 a month but doesn’t cover mold. Another policy is $42 a month but does cover mold. The first policy might be cheaper but it also doesn’t cover as much. You’ll want to make sure you understand the ins and outs of each policy to really get an idea of the true price.

You’ll also want to look for a company that is financially stable. AM Best and Demotech, Inc are both companies that rate the financial stability and strength of insurance companies. Every company on this list is highly rated and financially strong.

Finally, you’ll want to make sure that any perils you may face are covered. For example, if you live somewhere with a high risk of water damage, you’ll want to make sure you fully understand what types of water damage is covered and what isn’t. Or if you live in a high mold area you’ll want to make sure your policy covers mold.

How to lower your homeowners insurance premium

If you’ve shopped around and the policies are more than you’d like to pay, there are a few things you can do to lower your premiums.

First, look into raising your deductible. Homeowners insurance is there to cover catastrophic events, not small damages. If you have an emergency fund that can cover smaller repairs, consider raising your deductible to $1,000 or more. That can go a long way to lowering your premiums.

Another good way to get your overall insurance costs down is to bundle. Most companies offer discounts if you have all your insurance in the same place. So having your homeowners, car, and life insurance all at the same place may result in lower overall costs.

Lastly, talk to your insurance company and see what improvements around the house you can make to lower your bill. For example, they may offer a discount if you have an alarm system, storm shutters, or have your trees regularly trimmed. If you already have these things, make sure that your insurance company knows.

Summary

Homeowners insurance is a must-have if you own a home. There are a lot of options out there for coverage. Be sure to get a few quotes to compare and understand what coverage you want and what the policies are offering. Every company structures things a little bit differently and the cheapest option may not be the best deal.