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By Mayra ParisJoan PabónJosé Omar Rodríguez and Norma Rodríguez
Updated: June 8, 2021 1:53 PM ET | Originally published: June 7, 2021
Best Online Company
Lemonade Home Insurance

Our Partner

Check Price
J.D. Power Satisfaction Score

N/A

A.M. Best Rating

N/A

Discounts

Homebuyer, 10% New Customer

Best Range of Coverage options
Erie Home Insurance

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J.D. Power Satisfaction Score

#4 of 23

A.M. Best Rating

A+

Discounts

Multi-Policy, Advanced Quote, Fire/Burglary Alarm/Sprinkler System Credit

Best for Claims-free Homeowners
Allstate Home Insurance

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J.D. Power Satisfaction Score

#6 of 23

A.M. Best Rating

A+

Discounts

Multi-Policy, Responsible Payment, Claims-Free, Welcome and Loyalty, Homebuyer, Protective Device, Early Signing

Best Customer Service
Amica Home Insurance

Check Price
J.D. Power Satisfaction Score

#2 of 23

A.M. Best Rating

A+

Discounts

Multi-Policy, Loyalty, Claims-Free, Auto Pay, E-discount

J.D. Power Satisfaction Score

N/A

#4 of 23

#6 of 23

#2 of 23

A.M. Best Rating

N/A

A+

A+

A+

Discounts

Homebuyer, 10% New Customer

Multi-Policy, Advanced Quote, Fire/Burglary Alarm/Sprinkler System Credit

Multi-Policy, Responsible Payment, Claims-Free, Welcome and Loyalty, Homebuyer, Protective Device, Early Signing

Multi-Policy, Loyalty, Claims-Free, Auto Pay, E-discount

Homeowners insurance pays to repair or replace your home and its contents if they are damaged by specific perils like fire, theft, or by a weather event such as wind or lightning. If you’re not familiar with home insurance coverage and its policies, you might end up paying more for inadequate coverage. To help you find a homeowners insurance policy that works for you, here are the six best home insurance companies of 2021.

Our Top Picks for Best Homeowners Insurance

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Best Home Insurance Reviews

Lemonade Insurance – Best Online Insurance Company

Pros Cons
Fast quotes in minutes Not available in all of 50 states
AI claims processing system
Flat fee on low monthly premiums
Demotech Financial Stability Rating: A

Lemonade Insurance is an online-only insurance company that uses artificial intelligence to provide seamless and fast home insurance quotes and home insurance services. Getting a quote takes only a few minutes and is as simple as filling out a form and choosing the coverage amount. A team of insurance professionals is available to guide you through the process if needed.

What makes Lemonade stand out is its approach to policy premiums and claim payments. The company will take a flat fee out of your monthly insurance premium, leaving the remaining money available to pay out any covered loss you may have during the year. In many claim situations, you’ll get paid in a matter of minutes.

With the Lemonade Giveback program, the company will pay up to 40% of the premium that hasn’t been paid out in claims to a non-profit organization you choose when you initially signed up for the policy.

Lemonade COVID-19 Response

Lemonade allows customers to go through financial hardship to defer premium payments for up to 60 days without losing coverage. They have also extended their grace period to 60 days for customers who have already fallen behind on their payments.

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Erie Insurance – Best Range of Coverage Options

Pros Cons
Customizable coverage deductibles Only available in 12 states
Discounts available when bundling with auto insurance
Add-ons include liability coverage, identity recovery, and service line protection
J.D. Power Ranking: 6th (out of 20)
A.M. Best Rating: A+

Erie Insurance homeowners insurance coverage includes the Guaranteed Replacement Cost coverage, which allows homeowners to rebuild their home the way it was before the incident, without a policy limit. They also have a Full Roof Replacement coverage that pays for the total replacement cost of a roof destroyed by a peril such as hail or a windstorm.

Erie offers insurance customers an 16% to 25% reduction for bundling insurance. You can also save money with this insurer if you install automatic sprinklers, smoke detectors, and burglar alarms.

Erie Insurance COVID-19 Response

Erie Insurance has granted extensions on policy provisions and other time limit requirements, as well as time extensions if a property repair has not been completed in the allotted time.

Allstate – Best for Claim-Free Homeowners

Pros Cons
Additional rebate when renewing your standard policy HostAdvantage feature is not available in all of 50 states
Rateguard option locks in your premium
HostAdvantage for home-sharing or renting
J.D. Power Ranking: 7th out of 20
A.M. Best Rating: A+

Allstate rewards homeowners who take good care of their property and are claim-free. If you switched to Allstate and didn’t file a claim with your previous insurer, you can get up to a 20% discount. Allstate will also lower your deductible amount for every additional year with zero insurance claims with the company.

As part of its wide array of insurance products, Allstate offers HostAdvantage, a program for homeowners who sometimes share their home or lease it out for the short term. This personal property coverage protects you against theft and damage to personal property by your guests.

Allstate COVID-19 Response

Allstate encourages policyholders to use the company’s mobile app to view policy information, start a claim, provide proof of insurance, or request 24/7 roadside assistance.

Amica Mutual – Best for Customer Service

Pros Cons
Contractor Connection database connects you with contractors Discounts are not available in all states
Discounts for claim-free customers Contractor Connection is not available in HI and AK
J.D. Power Ranking: 1st out of 20
A.M. Best Rating: A+

Amica Mutual has topped the J.D. Power Property Claims Satisfaction Study for nine consecutive years, which points to an extraordinary commitment to helping customers deal with the claim process during the aftermath of a potentially catastrophic loss.

This insurer also stands out for its Contractor Connection, a database that lists thousands of vetted, licensed, and insured contractors and guarantees their work with a five-year warranty.

Amica offers discounts to customers who have been with the company for at least two years and are claim-free for at least three years.

Amica COVID-19 Response

Amica is working with customers to establish repayment plans and keep their coverages in place. Check out their FAQ for more information.

USAA – Best for Military Personnel and their Families

Pros Cons
Get 10% off with a car insurance policy Only available for military personnel and their families
Home Sharing coverage available Home Sharing is not available in all of 50 states
Discounts for condo or renters insurance policyholders with no claims
A.M. Best Rating: A++

USAA is a highly rated insurance provider with many insurance options and additional coverage for military members and their families. This insurer covers personal belongings at today’s replacement cost, with no depreciation.

If you qualify for membership in USAA, it would be hard to find better home insurance rates and coverage for property damage.

USAA COVID-19 Response

Policy cancellations for non-payment have resumed, except in states where non-payment cancellations are prohibited. However, the insurance provider offers financial assistance to qualifying members who the pandemic has economically impacted.

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Hippo – Best for Fast Quotes

Pros Cons
Obtain an online quote in 60 seconds Discounts are available for homes with access to digital and smart systems
Purchase a policy online in around 5 minutes Coverage is not available nationwide
Get discounts when using Hippo’s Smart Home System
Offers home-care services

As an “insurtech” insurance company, Hippo uses technology to make the industry more efficient. To that end, customers can get a quote in as quickly as one minute, and Hippo offers a smart home monitoring system.

Hippo provides extra coverage for home electronics such as water heaters and air conditioners. Their policy discounts are subject to the use of a smart home kit, given at no cost to eligible policyholders.

Their HomeCare Expert program also stands out. This program provides remote assistance to policyholders who need repairs or maintenance at home and offers professional service recommendations that can be accessed via phone.

Hippo COVID-19 Response

This company doesn’t have available any information or article regarding measures taken to deal with the COVID-19 pandemic.

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Other Home Insurance Companies We Considered

As we analyzed home insurance companies, we emphasized financial stability and strong customer satisfaction ratings, plus the variety of coverage options each company offered.

The insurance providers we selected excelled in all of these categories, but that doesn’t mean there aren’t other home insurance providers that can offer the right coverage, price, and customer service for you. The companies below can offer the right coverage, price, and customer service for you.

StateFarm

  • Partnership with Ting to prevent electrical fires
  • Options to obtain a multi-policy covering personal liability, business liability, and pet insurance
  • Discounts for bundling policies and for the first time
  • Insurance agents available in most states
  • Customizable policies

Farmers Insurance

  • Farmers Smart Plan Home Policy offers three different types of coverage
  • Claims free discounts
  • Eco-rebuild coverage offers up to $25,000 to replace electronics and appliances with environmentally friendly products

Liberty Mutual

  • Offers an array of discounts for online purchases, auto policies, new homes, claim-free customers, automatic payments, and paperless options
  • Customizable policies and add-on options

Travelers Group

  • Coverage add-ons include identity fraud, green home coverage, water backup, and special personal property protection
  • Discounts for homeowners with protective devices such as home security systems, interior sprinklers, and fire alarms
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Home Insurance Guide

Homeowners insurance coverage is a type of property insurance that provides financial protection to a private residence against loss due to natural disasters, theft, and accidents.

Types of Home Insurance

There are several types of homeowners insurance policies. Which one is right for you will depend on the level of coverage you want.

H01

The most basic policy. It covers 10 basic perils, like fire, lightning, and theft.

H02

A step up in coverage from H01. It covers 16 named perils, including falling objects.

H03

The most common coverage. It covers all perils for the structure except those excluded (floods and earthquakes.) If you are unsure about needing flood coverage in your homeowners policy, take a look at our flood insurance guide.

H05

The highest level of coverage. It excludes some perils but covers the structure and your belongings on an all-peril basis.

H08

It covers older homes. This coverage is specifically designed for high-value houses that cost more to rebuild.

Many insurance companies offer customizable coverage as part of their homeowners insurance policy. Identity theft protection, work-related damages, and damages caused by rodents and domestic animals are part of the extra coverage options that can be added to a homeowners insurance policy.

What is Excluded from Homeowners Insurance

  • High-risk flood areas: If your area is deemed high-risk by FEMA, you will be required to purchase flood insurance for your property as an add-on to your policy. The National Flood Insurance Program (NFIP) provides flood insurance to property owners, renters, and businesses and is available for anyone living in one of the 23,000 participating NFIP communities. For more information about what’s covered, visit FloodSmart.gov.
  • Hail and wind: Depending on where you live, there may be additional weather-related exclusions. For example, homeowners insurance policies issued for coastal homes in Texas don’t cover wind or hail damage.
  • Dangerous dog breeds: Many insurance companies also limit losses and liability claims caused by some dog breeds.

The list of restricted breeds varies by the insurance company. Here are some dogs commonly associated with behavioral problems that might show up on your company’s bad-breeds list:

Pit Bull Terrier Chow Chow Cane Corso
Staffordshire Terrier Doberman Pinscher Great Danes
Rottweiler Akita Alaskan Malamute
German Shepherd Wolf hybrids Siberian Husky
Presa Canario Mastiff

Some insurance companies offer a third option. According to the American Kennel Club, a restricted breed dog may be covered under a home’s liability insurance if it undergoes (and passes) the AKC’s Canine Good Citizen program. This 10-step test assesses how well your dog responds to commands and how generally well-behaved they are.

Homeowners insurance in disaster-prone areas

For homeowners in climate-risky geographical areas, often the only choice is to obtain insurance through a Fair Access to Insurance Requirements (FAIR) plan.

These plans afford insurance to owners of properties at high risk for wind, wildfire, earthquake, and other damage types. However, these programs, also known as “last-resort insurance policies,” can be expensive.

Another possible solution to increasing premiums and unavailable coverage is climate data to help insurance companies and homeowners manage risk. We spoke to experts from the Insurance Institute for Business and Home Safety (IBHS) and the National Association of the Remodeling Industry (NARI) to bring you tips for mitigating disaster damage in your home.

Mitigate Fire Mitigate Wind and Water Damage
Keep a space of at least 5 feet around your home that’s free of materials that are prone to catch fire Install wind-rated doors and windows that can resist high-force winds
Keep the rest of your yard clear of flammable debris, too, like leaves Install a sealed roof deck, which will protect the interior of your home if high winds tear off the roof cover
Cut back any overhanging branches that could land on your roof Inspect your roof often for leaks, missing flashing, and loose tiles, and secure fittings like gutters, vents, and chimneys
Install fire-resistant siding and roof tiles Replace plastic or aluminum gutters and spouts with more durable steel gutters
Install fine-mesh screens in the vents of your house to prevent embers from igniting fires inside the structure

How to Choose the Right Homeowners Insurance Policy?

You don’t want to set your coverage limits too low because then you won’t be covered when it’s time to file a claim. But you also don’t want to overpay for coverage you don’t need.

Coverage limits usually boil down to a decision between “actual cash value” or “replacement cost” coverages.

  • Actual cash value: calculates the value of your home minus depreciation, taking into account any existing damage or wear. With this option, you’ll only receive a settlement for your home’s value at the time it was lost.
  • The home replacement cost: reflects the amount needed to rebuild your home to be as similar as possible to before. Home replacement costs are almost always higher than the actual cash value, which is why it’s the most expensive coverage option.

There isn’t a one-size-fits-all coverage choice. It all depends on the homeowner, the dwelling, and the location, among other factors.

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Home insurance discounts

When shopping for the best homeowners insurance, you should make it a point to ask about discounts.

Each company has options for helping you lower your insurance costs, but the following are the most common:

  • Bundling your home and life insurance policies with the same company
  • Living close to a fire station
  • Having a house newer than 10-50 years old
  • Signing up within a year of purchasing your home
  • Renewing your policy before it expires
  • Having a good credit score

Read our picks for the best life insurance and best renters insurance to find more information on policies you can bundle together.

Best Homeowners Insurance FAQ

How much is homeowners insurance a month?

The average cost for a single homeowners policy in the US is $1,200 per year or $100 per month. However, homeowners’ insurance rates may vary substantially depending on your home’s specifics, how much coverage you want, and where you live.

What does homeowners insurance cover?

Most standard policies include four types of coverage: 1) coverage for the structure of your home, also known as dwelling coverage; 2) coverage for your personal property; 3) liability protection; and 4) coverage for additional living expenses. A few providers offer identity theft coverage in their basic policies, but you will have to purchase an endorsement (also known as a rider) for an additional cost.

How are homeowners insurance claims paid?

In most cases, an adjuster will inspect the damage to your home and offer you a certain sum of money for repairs, based on the terms of your homeowners policy. The first check you get from your insurance company is often an advance against the total settlement amount, not the final payment. You may get multiple checks from your insurer as you make temporary payments, permanent repairs, and replace damaged belongings. Bear in mind that your lender or management company might have control over your payment, and some insurance companies may pay your contractor directly.

What is the 80% rule in homeowners insurance?

Though it is an “unwritten rule” in the homeowners insurance industry, in practice, this rule means that companies will only offer complete coverage after a disaster if — and only if — the policy is for at least 80% of the property’s total replacement value.

Do homeowners insurance policies cover loss of use or additional living expenses?

Loss of use — also known as additional living expenses — is included in most standard home insurance policies. This coverage will help policyholders pay for everything from groceries to hotel rooms while the damaged property is repaired.

How We Chose the Best Homeowners Insurance Companies

Our list of best homeowners’ insurers streamlines the shopping experience. To devise a methodology, we:

  • We looked through dozens of insurers and coverage options and narrowed our choices to the best ones based on a series of attributes
  • Used JD Power’s 2020 U.S. Property Claims Satisfaction Study to measure customer satisfaction ratings with claim settlement, claim process, First Notice of Loss (FNOL), estimation, and repair
  • We considered each underwriter’s complaint ratio for homeowners insurance based on data from the National Association of Insurance Commissioners (NAIC)
  • We eliminated companies with A.M. Best financial strength ratings below A+.

Best Homeowners Insurance Companies of 2021