Top 10 Best Homeowners Insurance Companies [Updated List]

Explore the best homeowners insurance options with our comprehensive guide, highlighting top-rated companies based on NerdWallet's 5-star rating system. Each company offers unique advantages, and our detailed reviews provide insights into their pros and cons. Read on to make an informed decision about the best insurance coverage for your needs.

Best homeowners insurance companies: Pros and cons

1. USAA: Best Home Insurance Company Overall (Tie)
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Overview: Discover why USAA, despite exclusively serving active-duty military, veterans, and their families, stands out with consistently high customer service scores, robust coverage options, and low average premiums. USAA's unique add-ons, such as coverage for military uniforms, contribute to its ranking among the best home insurance companies in the 2023 Bankrate Awards.

Pros and Cons:

• Pros: Low average premiums, military-focused coverage options.
• Cons: Limited to military members, veterans, and qualifying family members.

Standout Features:

• Replacement cost value included.
• Identity theft coverage included.
• Valuable personal property insurance available.

How to Get Started with USAA: Obtain a personalized quote by calling 800-531-8722 or through the online quoting tool.

2. Allstate: Best Home Insurance Company Overall (Tie)
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Overview: Explore Allstate's abundance of online tools and unique coverage options. While the company boasts a network of local agents, note the recent restriction on new home insurance policy applications in California.

Pros and Cons:

• Pros: Educational insurance information online, common and costly claims tool.
• Cons: Below-industry-average J.D. Power customer satisfaction score.

Standout Features:

• Above-average NAIC complaint index.
• Yard and garden coverage available.
• Sports equipment property coverage available.

How to Get Started with Allstate: Obtain online quotes or call 866-702-6500 to connect with a local Allstate agency.

3. Lemonade: Best for Digital Experience
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Overview: Learn about Lemonade's innovative use of technology, providing a digital-first approach to underwriting home insurance. Discover its unique features and availability in specific states.

Pros and Cons:

• Pros: Innovative use of technology, AI-approved claims payout.
• Cons: Limited third-party rankings, availability in 23 states and Washington, D.C.

Standout Features:

• Below-average NAIC complaint index.
• Swimming pool coverage available.
• Equipment breakdown coverage available.

How to Get Started with Lemonade: Obtain quotes online or through the mobile app, or call 844-733-8666 to speak with a representative.

4. Chubb: Best for Luxury Home Coverage
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Overview: Explore why Chubb may be the best choice for luxury home coverage, offering specialized policies and unique tools like HomeScan.

Pros and Cons:

• Pros: Coverage tailored for luxury homes, HomeScan tool.
• Cons: Lower-than-average overall customer satisfaction from J.D. Power.

Standout Features:

• Below-average NAIC complaint index.
• Extended replacement cost coverage included.
• Wine and spirits coverage available.

How to Get Started with Chubb: Locate a local independent agent using the Find an Agent tool on Chubb's website.

5. Amica: Best for Customer Service
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Overview: Discover why Amica excels in customer service, earning high ratings in the 2023 J.D. Power Property Claims Study and offering unique features.

Pros and Cons:

• Pros: High customer satisfaction, dividend policies.
• Cons: Higher-than-average premiums, limited coverage for certain structures.

Standout Features:

• Below-average NAIC complaint index.
• Special computer coverage available.
• Credit card coverage available.

How to Get Started with Amica: Use the online quoting tool at amica.com or call 800-242-6422 for a home insurance quote.

6. Travelers: Best for Add-On Coverage Options
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Overview: Explore Travelers' unique coverage options, including green home discounts and open house tools, while noting its availability in specific states.

Pros and Cons:

• Pros: Unique green home discount, free home history tool.
• Cons: Not available nationwide, below-average J.D. Power satisfaction score.

Standout Features:

• Below-average NAIC complaint index.
• Personal articles floater available.
• Additional replacement cost protection available.

How to Get Started with Travelers: Call 866-218-5587, contact a local Travelers agent, or explore the website for quotes.

7. NJM: Best for Unique Discounts
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Overview: Learn about NJM's regional focus and numerous discount opportunities, with coverage available in specific states.

Pros and Cons:

• Pros: Low average rates, numerous discounts.
• Cons: Limited third-party data, no mobile app for homeowners insurance.

Standout Features:

• Below-average NAIC complaint index.
• Assisted living care coverage available.
• Earthquake coverage available.

How to Get Started with NJM: Obtain a quote by calling 800-232-6600 or using the online quote tool.

8. Auto-Owners: Best Budget Home Insurance Company
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Overview: Explore why Auto-Owners won the 2023 Bankrate Award for the best budget home insurance company, offering lower-than-average premiums in specific states.

Pros and Cons:

• Pros: Lower-than-average premiums, local agents.
• Cons: Not available nationwide, limited digital tools.

Standout Features:

• Below-average NAIC complaint index.
• Ordinance/law coverage available.
• Home cyber protection available.

How to Get Started with Auto-Owners: Visit Auto-Owners' website to locate a nearby agent for a quote.

9. State Farm: Best for Local Agents
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Overview: Discover why State Farm, with its extensive network of local agents, excels in customer satisfaction and offers a variety of coverage options.

Pros and Cons:

• Pros: "Superior" financial strength rating, higher-than-average J.D. Power score.
• Cons: Fewer discounts, not available nationwide.

Standout Features:

• Below-average NAIC complaint index.
• Home systems coverage available.
• Green improvement reimbursement.

How to Get Started with State Farm: Get a quote online, call 800-782-8332, or visit a State Farm agency in your area.

10. Erie: Best for Robust Coverage
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Overview: Explore Erie's extensive coverage options and high customer satisfaction scores, available in specific states.

Pros and Cons:

• Pros: Low average premiums, top rankings in J.D. Power studies.
• Cons: Limited mobile app accessibility, not available nationwide.

Standout Features:

• Below-average NAIC complaint index.
• Identity theft coverage available.
• Service line coverage available.

How to Get Started with Erie: Obtain quotes through Erie's network of local independent agents, using the website's agent locator tool.

How to Choose the Right Home Insurance

A. Assessing Coverage Needs

Understanding your coverage needs is the first step in choosing the right home insurance. We'll guide you through assessing the value of your home, evaluating personal belongings, and determining the appropriate coverage limits.

B. Reviewing Customer Feedback

Real experiences from other homeowners can provide valuable insights. We'll discuss how to navigate customer reviews, what to look for, and common red flags.

C. Comparing Premiums and Deductibles

Affordability is crucial. Learn how to strike the right balance between premiums and deductibles, ensuring you get comprehensive coverage at a reasonable cost.

Common Home Insurance Mistakes to Avoid

A. Underestimating Coverage Needs

One common pitfall is underestimating the coverage needed. We'll explore scenarios where homeowners may fall short and how to avoid this critical mistake.

B. Ignoring Policy Exclusions

Policy exclusions can lead to unpleasant surprises during a claim. We'll uncover the common exclusions and strategies to address them proactively.

C. Overlooking Additional Coverages

Beyond basic coverage, additional coverages can provide added protection. We'll highlight commonly overlooked coverages and why they matter.

Tips for Lowering Home Insurance Premiums

A. Bundling Policies

Bundling your insurance policies can lead to substantial savings. Discover how combining home and auto insurance, for example, can result in a more budget-friendly premium.

B. Increasing Deductibles

Adjusting deductibles is a strategic move. We'll discuss how increasing deductibles can lower premiums while ensuring you're financially prepared in the event of a claim.

C. Home Security Measures

Investing in home security not only protects your property but can also lead to insurance discounts. Explore effective security measures and their impact on your premiums.

Conclusion

In conclusion, selecting the right home insurance company is a pivotal decision for homeowners. By considering coverage options, customer satisfaction, and emerging trends, you can make an informed choice that safeguards your haven. Remember, your home is not just a place; it's a sanctuary deserving of the best protection.