Many companies featured on Money advertise with us. Opinions are our own, but compensation and
in-depth research may determine where and how companies appear. Learn more about how we make money.

By:
Editor: and
Updated by:
Published: Feb 09, 2024 29 min read
Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer
Our Partner
Company Highlight
TOP PARTNER
Our Partner

Bundle your home & auto policies & save even more

  • Exceptional customer service experience
  • Provides financial protection for your home, both inside and out
  • Condo & townhouse policies available
  • Choose from various add-on protection options
Our Partner

Compare competitive rates from top insurers

  • Tens of millions of users have used QuoteWizard to find the best rate
  • List of affiliated insurance agents from across the nation
  • Offers quotes for home, auto, life, renters, and health insurance

Save time comparing quotes from multiple companies

  • Partners with dozens of established insurers nationwide
  • Variety of coverage options
  • Get help choosing the right policy for you 

Partners with over 70 home insurers

  • Get a quote online
  • Coverage options for any budget
  • Variety of home types covered
  • Get help choosing the right policy for you
Our Partner

Complete range of coverage options, including flood and earthquake 

  • Customize a policy to suit your needs and budget
  • Get a quote, file a claim, and pay your bill online
  • Get personal service from a farmers agent
  • Wide range of discounts available
  • Convenient, time-saving mobile app 

Homeowners insurance pays to repair or rebuild your home and replace its contents if they’re damaged by specific perils like fire, theft or weather events such as wind or lightning.

To find the best homeowners insurance companies on the market, we evaluated 20 insurers based on factors such as coverage options, customer satisfaction ratings and financial strength. Based on our research, the best home insurers include Lemonade (best for online service), Hippo (best for added features) and Erie (best for a range of coverage options).

Money’s main takeaways

  • Homeowners coverage can vary significantly, but most standard policies will cover your primary residence structure, personal belongings, personal liability and additional living expenses.
  • When choosing a policy and company, you must start by assessing your home insurance needs. The age of your home, the value of your belongings, and whether or not you live in an area prone to natural disasters all should factor in.
  • Shop around. Some companies offer coverage options as standard that others will include only as costly add-ons.

Our Top Picks for the Best Homeowners Insurance

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer
Your home is your biggest asset, protecting it should be a top priority
Select your state to get a free home insurance quote from Progressive and make sure that you're fully protected.
HawaiiAlaskaFloridaSouth CarolinaGeorgiaAlabamaNorth CarolinaTennesseeRIRhode IslandCTConnecticutMAMassachusettsMaineNHNew HampshireVTVermontNew YorkNJNew JerseyDEDelawareMDMarylandWest VirginiaOhioMichiganArizonaNevadaUtahColoradoNew MexicoSouth DakotaIowaIndianaIllinoisMinnesotaWisconsinMissouriLouisianaVirginiaDCWashington DCIdahoCaliforniaNorth DakotaWashingtonOregonMontanaWyomingNebraskaKansasOklahomaPennsylvaniaKentuckyMississippiArkansasTexas
View Rates
Pros
  • Unusually fast quotes and claims payments
  • Unused claims money is paid to a non-profit of your choice
  • Flat fee for administration, in addition to low monthly premiums
  • Exceptional Demotech Financial Stability Rating
Cons
  • Home insurance only available in 23 states and Washington, D.C.
  • Financial strength hasn't been rated by A.M. Best
  • Auto insurance only available in six states, which limits bundling options
  • Doesn't insure properties that are rented out
HIGHLIGHTS
Financial rating:
A (Exceptional) on Demotech
Discounts:
Bundling; discounts for home upgrades like security systems
Bundle options:
Renters, car, pet and life insurance

Why we chose Lemonade: Lemonade’s streamlined online services and use of AI make the process of getting quotes and filing claims easier and faster.

Lemonade Insurance is an online-only insurance company that uses artificial intelligence to provide notably fast home insurance quotes and claim payments. The company can provide a quote in a few minutes — you simply fill out a form on its website and choose the coverage amount you want.

It’s also just as easy to file claims: you just press the claim button in the app and proceed to fill out any necessary information. The use of AI also makes this claims process unusually quick, with many reimbursements paid in a matter of minutes, the company says.

It’s important to note that, as of now, Lemonade is only available in 23 states and D.C.

Read our full review of Lemonade Homeowners Insurance.

See rates on Lemonade's Secure Website >>

Pros
  • Ample coverage for electronics and office supplies
  • Get discounts for using Hippo's free Smart Home System
  • Home-Care Expert program offers referrals to contractors and other providers
  • Obtain an online quote in 60 seconds and purchase in as little as 5 minutes
Cons
  • Some discounts are available only for homes with access to smart systems
  • Coverage is only available in 39 states
HIGHLIGHTS
Financial rating:
A- (Excellent) on A.M. Best
Discounts:
Smart home, three or five years loss-free, recent homebuyer, theft protection devices, getting Hippo through certain qualifying providers, hail resistant roof, HOA, bundling
Bundling options:
Auto

Why we chose Hippo: Hippo offers a host of additional features and coverage options when compared to the other companies we considered.

Hippo’s standard policy includes up to $10,000 in coverage for computers and home office equipment, which is considerably higher than most other companies. Hippo policies can also cover appliances and electronics, smart home upgrades, water backup, and more.

Hippo also provides two smart home monitoring system offerings which can save customers money. The first level monitoring system includes smoke, CO2 and water-leak detectors. The Professional system adds 24/7 monitoring and emergency dispatch services.

Read our full review of Hippo Homeowners Insurance.

See rates on Hippo's Secure Website >>

Pros
  • Many add-ons, including home-sharing coverage, identity recovery and service line protection
  • Guaranteed Replacement Cost coverage standard with all policies
  • Highest-ranking home insurer in the latest J.D. Power studies
  • Superior A.M. Best Financial Strength Rating
Cons
  • Only available in 12 states and Washington, D.C.
  • Not as many discounts as competitors
HIGHLIGHTS
Financial rating:
A+ (Superior) on A.M. Best
Discounts:
Bundling, smoke alarm, burglary alert, automatic sprinkler system, advance quote
Bundling options:
Auto

Why we chose Erie: Erie’s standard policy includes guaranteed replacement cost and an array of add-ons that usually cost extra — all valuable additions to an already solid insurance package.

In addition to being among the handful of homeowners insurance companies that include Guaranteed Replacement Cost coverage as part of its standard coverage, Erie’s base policy also covers items which usually cost extra with other companies. These include:

  • Valuables and hard-to-replace items
  • Gift cards and gift certificates
  • Animals, birds, and fish
  • Cash and precious metals

You can also add the following coverage to any Erie policy:

  • Water backup and sump overflow
  • Personal liability coverage
  • Identity recovery services
  • Service line protection

Erie Insurance is also one of the country’s top insurers when it comes to customer service and claims satisfaction. It ranked highest in the latest J.D. Power U.S. Home Insurance Study as well as the Property Claims Satisfaction Study.

Read our full review of Erie Homeowners Insurance.

See rates on Erie's Secure Website >>

Pros
  • Available in 47 states and Washington, D.C.
  • Ranks above average in J.D. Power's Property Claims Satisfaction Study
  • Partnered with Wildfire Defense Systems to provide free fire prevention and risk management
  • Large variety of coverage types, great for bundling discounts
Cons
  • Fewer discounts than other large insurers
  • Only accessible through State Farm agents
  • No longer accepting applications from California residents
HIGHLIGHTS
Financial rating:
A++ (Superior) on A.M. Best
Discounts:
Bundling, home security systems, resistant roofing
Bundling options:
Auto, renters, life

Why we chose State Farm: State Farm home insurance offers a wide variety of policies in 47 out of 50 states and is among the highest-ranked nationwide insurers in J.D. Power’s latest U.S. Property Claims Satisfaction Study.

State Farm is the largest home insurance company in the United States and offers a wide variety of policies, from life to car to condo. This gives customers the chance to bundle in a variety of ways and not only get discounts, but get a more streamlined experience overall.

One drawback to State Farm, though, is that the company only works through captive agents. However, its agent network is extensive — close to 19,000 by some estimates — that cover almost every state. So prospective customers should have no trouble finding assistance with their applications.

See rates on State Farm's Secure Website >>

Pros
  • Offers database listing vetted and licensed contractors
  • Discounts for claims-free customers
  • Ranks highly in JD Power's studies
  • Superior financial strength ratings
Cons
  • Not available in Hawaii
HIGHLIGHTS
Financial rating:
A+ (Superior) on A.M. Best
Discounts:
Bundling, loyalty, claim-free, autopay, electronic bill, alarm system, detection devices
Bundling options:
Auto, renters, life, umbrella

Why we chose Amica Mutual: Amica Mutual’s customer service is, arguably, the best out there, and its comprehensive contractor database can streamline the process of finding the help you need.

Amica Mutual stands out for customer service. It received the second-highest rating in the latest J.D. Power U.S. Property Claims Satisfaction Study as well as the U.S. Home Insurance Study.

Another standout aspect of the company is its Contractor Connection database, which lists thousands of vetted, licensed and insured contractors and guarantees their work with a five-year warranty.

Like many insurers, Amica also offers loyalty discounts, in its case to customers who have been with the company for at least two years and those who are claim-free for at least three years.

Read our full review of Amica Homeowners Insurance.

See rates on Amica Mutual's Secure Website >>

Pros
  • 10% bundling discount when paired with car insurance policy
  • Home Sharing coverage available
  • Superior financial strength ratings
Cons
  • Only available to military personnel and their families
  • Home Sharing coverage not available in all 50 states
HIGHLIGHTS
Financial rating:
A++ (Superior) on A.M. Best
Discounts:
Bundling, protection devices, detection devices, multi-product (bundling with auto earns 10% discount, additional policies earn 5% discount), loyalty, claim-free
Bundling options:
Auto

Why we chose USAA: For those who qualify, USAA offers a great combination of low premiums and broad coverage, along with outstanding customer satisfaction and financial stability ratings.

USAA is among the few home insurers that include Guaranteed Replacement Cost coverage as standard, which allows homeowners to replace items rather than receive the depreciated value.

The company is also known for its low premiums. If you qualify for membership with USAA, it would be hard to find better home insurance rates and coverage for property damage.

The company is one of the few — along with Erie and Allstate — to offer, at additional cost, home-sharing coverage as an alternative to buying such insurance through Airbnb or Vrbo. As a rule, damage from paying guests is not covered under a standard homeowners insurance policy.

Read our full review of USAA Homeowners Insurance.

See rates on USAA's Secure Website >>

Pros
  • Coverage for homes up to $100 million
  • Robust cybersecurity coverage
  • Coverage for properties outside the United States
  • High rating in J.D. Power's Home Insurance Study
Cons
  • Customers have to buy more than one policy with the company
  • No homeowners insurance coverage in California
HIGHLIGHTS
Financial rating:
A (Excellent) on A.M. Best
Discounts:
Undisclosed
Bundling options:
Undisclosed

Why we chose AIG: AIG provides comprehensive coverage for high-value properties worth up to $100 million.

AIG is known as a luxury insurer that provides high net-worth individuals with comprehensive coverage, from dwelling to cybersecurity insurance.

It offers guaranteed replacement cost (without any limits, according to the company) for homes valued from $750,000 all the way up to $100 million on an “all-risk” basis — meaning its policy covers all perils except the few specifically excluded.

It also offers the option of ultra-high deductibles (up to $100,000). This could help significantly lower your premium, but you’ll also pay a lot more out of pocket.

In addition to standard coverage, AIG offers services such as:

  • Kidnap, ransom and extortion coverage
  • Landscaping coverage
  • Crisis management and reputation restoration
  • Multinational property coverage
  • Business property coverage

Read our full review of AIG Homeowners Insurance.

See rates on AIG's Secure Website >>

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer
Need to insure your home or looking to lower your rate?
QuoteWizard provides free quotes tailored to your needs with support from licensed agents, helping you get insurance coverage fast so you can get on with life. Click below to get a free quote.
View Rates

Other homeowners insurance companies we considered

The following insurance companies didn't quite meet one or several of our methodology criteria. However, they still offer features and benefits that could make them a good choice for some customers.

Read on to see if one of these companies might fit your specific needs.

Allstate

Pros
  • HostAdvantage add-on available for home-sharing or renting
  • A+ (Superior) A.M. Best Rating
  • Discounts for paying on time
Cons
  • Below-average ranking in J.D. Power studies
  • HostAdvantage feature is not available everywhere

Allstate provides discounts to homeowners who take good care of their property, pay on time and are claim-free. There are also discounts for being a loyal customer, setting up AutoPay and renewing coverage before your policy expires.

Why it didn’t make the cut: Allstate didn’t make our list because it fell slightly short in terms of customer satisfaction and overall features when compared to competitors. It also recently announced that it will no longer accept applicants from the state of California.

Read full review>>

See rates on Allstate's Secure Website >>

Nationwide

Pros
  • Notion smart kit helps detect water leaks and qualifies users for additional discounts
  • Valuables Plus and Brand New Belongings add-ons help better protect your possessions
  • Basic policy might cover new city building codes after a disaster
Cons
  • Below-average rating on J.D. Power's Home Insurance Study

Nationwide offers home insurance in 46 states and Washington D.C. It also provides a wide range of coverage options and discounts.

Why it didn’t make the cut: Nationwide it fell a hair short of its competitors due to a below-average score on the most recent J.D. Power U.S. Home Insurance Study. Nevertheless, it ranked above average in the U.S. Property Claims Satisfaction Study.

See rates on Nationwide's Secure Website >>

American Family

Pros
  • Lower-than-average premiums
  • Uncommon standard coverage such as sewer backup damage
  • Generous discounts for bundling and for new and renovated homes
  • Below-average ranking on J.D. Power's Home Insurance Study
Cons
  • Only available in 19 states

American Family offers comprehensive coverage and discounts, and its customer satisfaction ranking was slightly above average in the latest J.D. Power U.S. Property Claims Satisfaction Study.

Why it didn’t make the cut: American Family's limited availability (only 19 states) kept it out of our main list. It also ranked below average in the most recent J.D. Power U.S. Home Insurance Study.

See rates on American Family's Secure Website >>

Country Financial

Pros
  • Superior A+ AM Best rating
  • Farm coverage for hay, grain, livestock, machinery accidents and more
  • Various security and renovation-related discounts
  • J.D. Power Ranking: #5 out of 19
Cons
  • Only available in 19 states

Honoring its name, Country Financial is a great option for customers who live in rural areas and, specifically, farmers.

Why it didn’t make the cut: Unfortunately, there is little publicly available information on Country Financial's customer satisfaction ratings, and it’s only available in 19 states.

See rates on Country Financial's Secure Website >>

Liberty Mutual

Pros
  • Wide array of discounts for online purchases, new homes and more
  • Comprehensive mobile app
  • Customizable policies and add-on options
Cons
  • High number of complaints with the NAIC
  • J.D. Power scores are well below average

Over a century old, Liberty Mutual offers multiple discounts and one of the best apps out of any insurer.

Why it didn’t make the cut: A high number of complaints with the National Association of Insurance Commissioners (NAIC) kept Liberty Mutual out of our main list. It also ranked well below average in the most recent J.D. Power surveys, both the U.S. Home Insurance Study and the Property Claims Satisfaction Study.

See rates on Liberty Mutual's Secure Website >>

Travelers Group

Pros
  • Add-ons include coverage for identity fraud, green home and water backup
  • Discounts for homeowners with security systems
Cons
  • Higher prices than competitors for policy limits above $75,000
  • Below-average J.D. Power ratings

Travelers Group rewards you with discounts for a wide variety of maintenance and security measures — from having a sprinkler system to installing security cameras.

Why it didn’t make the cut: Its low ranking in both J.D. Power studies and the fact it charges higher premiums than competitors kept it out of our top picks.

See rates on Travelers Group's Secure Website >>

Chubb

Pros
  • Masterpiece homeowners policy covers properties valued at over $1M
  • Coverage for traumatic experiences such as child abduction and home invasions
  • Superior A++ AM Best Rating
Cons
  • More expensive than average, focuses more on high-end customers
  • Only sells through local agents
  • Below-average ranking in J.D. Power's Home Insurance Study

Chubb’s coverage for high-net-worth customers is top-notch and includes a long list of add-ons and policies you can pair with your home coverage.

Why it didn’t make the cut: However, Chubb's high price and low ranking in the latest J.D. Power U.S. Home Insurance Study eliminated it from our list.

See rates on Chubb's Secure Website >>

Progressive

Pros
  • HomeQuote Explorer® tool allows you to compare quotes by many companies
  • Wide array of discounts include bundling, going paperless and insuring newly constructed homes
Cons
  • Policies are underwritten by several different insurers
  • Lower-than-average rating in J.D. Power studies

Why it didn’t make the cut: Progressive uses an independent network of companies to underwrite its home insurance policies. How you purchase coverage — whether directly through Progressive or an independent agent or broker — determines the insurance underwriters available to you. Each insurer is responsible for its claims processing, so customer experiences will vary.

See rates on Progressive's Secure Website >>

Branch

Pros
  • Handles claims quickly
  • Exceptional Demotech rating of A
  • Discount of up to 15.5% when customers use SimpliSafe security systems
Cons
  • Not ranked by JD Power

Branch is a fast-growing insurtech company that has been expanding its array of services and discounts in the past six years.

Why it didn’t make the cut: However, the young company's absence in J.D. Power's studies left it out of our top list for now.

See rates on Branch's Secure Website >>

Homeowners Insurance Guide

While every homeowners insurance policy is unique, there are several factors that they all have in common. These are important to understand when you’re trying to find the right policy.

Read on to learn more about how homeowners insurance works and how to choose the coverage you really need.

What is homeowners insurance?

Homeowners insurance coverage is a type of property insurance that provides financial compensation if your home is damaged by certain natural disasters, theft and/or accidents. This type of insurance does not cover flooding or earthquakes, which require a different type of coverage.

Additionally, it’s important to keep in mind that home insurance is often required by mortgage lenders when you’re financing a new home.

How to choose the best homeowners insurance

In order to choose the best homeowners insurance company, there are a few factors you should keep in mind. These include the price of the policy and what it covers, the value of your home and personal belongings, and more.

Here are some steps to take before making a decision:

Learn about coverage types

Home insurance policies can vary widely in terms of coverage. A basic policy will usually cover your dwelling (main residential structure), personal belongings, other structures (tool sheds, fences, etc.), personal liability and additional living expenses if you need to stay elsewhere while your home is being repaired.

Keep reading to learn what is and isn’t covered depending on the policy and what you can do to get the best coverage possible.

Assess your home insurance needs

Before you can select the right type and level of coverage, you have to assess your home insurance needs. When doing so, take into account the following:

  • Your area: If you live in a flood zone or a state like Florida or California where natural disasters are a frequent concern, you may need additional coverage.
  • Home features: If you live in a historical building or made recent, expensive renovations, you might need a policy that offers guaranteed replacement cost so you can rebuild your home as close to its previous state as possible.
  • Belongings: Make an inventory of your belongings and invest in additional coverage for precious items such as jewelry or collectibles. While most policies cover personal belongings, there’s generally a limit, and high-value items won’t be covered in full.

An insurance package tailored to your situation can cost you less and guarantee you better coverage in an emergency.

Find the best homeowners insurance companies in your state

While most companies operate in several states, only a handful work throughout the entire United States.

Your first goal should be to find the insurers, both national and local, that work in your state. Then, look at the coverage they offer, their financial strength ratings, customer satisfaction scores, complaints, and so on.

You can find insurers in your state or county through your local government’s insurance department — their contacts can be found on the pages of the National Association of Insurance Commissioners (NAIC) or the Insurance Information Institute.

Additional home insurance expenses to keep in mind

Depending on your living situation, standard insurance products might not be enough.

When you’re ready to choose a homeowners insurance policy, see what types of endorsements — also known as insurance riders or add-ons — each company offers. These will increase your annual premium, but it might be worth it if it means protecting valuable assets such as jewelry or collectibles.

With certain companies, you can also get protection for more specific issues such as water damage, cybersecurity threats and even kidnapping.

What does homeowners insurance cover?

Homeowners insurance policies offer various types and levels of coverage, and the right one for you will depend on your risk profile.

Many insurance companies offer customizable homeowners insurance coverage. For example, depending on the insurer, you could add identity theft protection and work-related damage coverage to your policy.

Nevertheless, most standard policies cover the following:

Dwelling coverage: This covers the main structure of the property — namely, the actual house — from ten basic perils: fire, lightning, hail, windstorms, explosions, civil unrest, aircraft damage, vehicle damage, smoke damage, vandalism, theft and volcano eruption.

Personal belongings coverage: Standard insurance will typically cover personal belongings up to a certain percentage of your overall home insurance coverage. This percentage will vary from policy to policy. Homeowners should consider an add-on to cover valuable items like jewelry, art collections, and other precious possessions.

Personal liability: Liability protection covers injuries suffered by non-residents of your household while on your property. It could cover medical and legal costs, depending on the policy.

Other structures: This covers detached structures such as fences, gazebos or tool sheds affected by covered perils.

Additional living expenses (ALE): When a covered loss makes your home unlivable, most homeowners insurance policies will reimburse you for temporary housing, like hotels or rentals, up to your coverage limits.

What does homeowners insurance not cover?

The perils listed in the table below are typically excluded from standard homeowners insurance policies.

Weather-related coverage exclusions

While most home insurance policies cover some weather-related perils such as hail and windstorms, there are many natural disasters most policies won't cover. Here are the main ones you should keep in mind.

Flooding: If the Federal Emergency Management Agency (FEMA) deems your area a flood zone, you’ll 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 for property owners, renters, and businesses and is available to anyone living in one of the 23,000 participating NFIP communities. Visit FloodSmart.gov for more information about what’s covered and how to purchase flood insurance.

When it comes to water damage, coverage will depend on the cause. If the source of the damage is flooding, only flood insurance will cover it; if the damage is caused by a peril mentioned in your homeowners’ insurance policy (such as a car crashing into your home and breaking water pipes), it might very well be covered, although it will be subject to investigation.

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.

However, in Eastern coastal states, hurricanes and windstorms often have a special type of deductible based on a percentage of your chosen coverage amount. This is mostly regulated by state laws. To read more about your specific state, check out the Insurance Information Institute.

Earthquakes: Earthquake damage is typically excluded from home insurance policies. You can get coverage for this peril through a rider or by buying a separate policy. In a place like California — probably the most prone to seismic activity in the United States — this type of coverage is especially important. Checking with the largest earthquake insurer in the state, the California Earthquake Authority, is a good start.

Power outages: Coverage for losses associated with power outages, including spoiled food or frozen pipes, can vary depending on the specific terms of your homeowners insurance policy. Unlike perils like floods or earthquakes where coverage is more clearly defined, coverage for power outages may be less standardized. Review your policy details or directly inquire with your insurer to understand the scope of your coverage.

In the meantime, protect your appliances with surge protectors and check if your refrigerator protection plan is still valid, which can cover the loss of food.

Wildfires: Most home insurance policies tend to cover damages caused by wildfires. However, some companies have stopped offering this type of coverage in places with a higher risk of wildfires or made adjustments involving this specific peril.

Check locally available insurance companies to see if they still offer wildfire coverage in your area or explore alternative options like your state's FAIR Plan (e.g., California FAIR Plan).

Types of homeowners insurance

There are several types of homeowners insurance policies. The most basic of which covers only ten perils: fire, lightning, hail, windstorms, explosions, civil unrest, aircraft damage, vehicle damage, smoke, vandalism, theft and volcanic eruptions.

Other policies cover more perils or are specialized. For example, H04 policies are renter’s insurance, and H07 policies cover mobile homes (not to be confused with RV insurance).

To learn more about the different types of homeowners insurance policies, read our guide on what homeowners insurance is and how it works.

H01

The most basic, bare-bones policy. It only covers damage inflicted by these 10 perils: fire, lightning, hail, windstorms, explosions, civil unrest, aircraft damage, vehicle damage, smoke, vandalism, theft, and volcanic eruption.

H02

It covers the ten basic perils plus six more, including falling objects, snow, water discharge (not flooding), sudden cracking, bulging or burning of a built-in appliance, accidental damage from electrical currents and freezing.

H03

The most popular policy. It covers all perils except for floods and earthquakes. If you’re unsure about whether you need flood coverage in addition to your homeowners policy, take a look at our guide to flood insurance.

H04

This is renter’s insurance, which of course doesn’t apply to homeowners. However, if you’re looking for this type of insurance, make sure to check out our reviews on the best renter’s insurance companies.

H05

The highest level of coverage. It covers most perils, the structure, and your personal belongings at replacement cost regardless of rebuilding cost or which included peril caused the damage.

H06

This covers condos. While condo structures and common areas are generally covered by homeowners’ associations, with an H06 you can cover your belongings and the inside of your home.

H07

This coverage is for mobile homes or manufactured homes, meaning homes built elsewhere and moved or brought into a land plot after manufacture.
It’s not to be confused with RV insurance, which is a type of automobile insurance. (If you have an RV, make sure to check out the best RV insurance companies).

H08

The most limited form of coverage, but often the only one available for low-value, older homes. It’s not available in all states and it only offers actual cash value reimbursement (which takes into account depreciation).

How much does home insurance cost?

The national average cost of homeowners insurance is around $100 a month or $1,200 a year. Premiums vary from company to company, but will also depend on the location, style, square footage and age of your home. Personal factors such as your credit score and claims history will also affect your rates.

Factors that impact your homeowners insurance premium

From the coverage amount you select to your claims history, insurance companies take into account several different factors when determining your homeowners insurance premium. Each of these reflect the risk associated with insuring your property.

How to save on home insurance

Homeowners insurance can be costly, depending on where you live and other factors. Thankfully, most insurers offer a selection of discounts to help you save on premiums.

Bundle auto and home insurance

One of the most common discounts among insurance companies is the multi-policy discount or bundling discount. In some cases, this could save you over $1,000 a year.

While there are companies that let you bundle more than two types of policies, including life insurance and even pet insurance, the most common are auto and home insurance bundles. Being, arguably, the two most common and essential insurance policies, bundling both is common practice and should be an important factor when choosing an insurer.

If auto insurance is a priority for you, check out our list of the best car insurance companies to see how insurers stack up. Our list of the best home and auto insurance bundles can also be a great place to look for top companies offering this type of discount.

Homeowners Insurance Company

Potential Savings by Bundling Home and Auto

Lemonade

Undisclosed

Hippo

Undisclosed

Erie

16% to 25%

State Farm

Up to $1,073

Amica

Up to 30%

USAA

Up to 10%

AIG

Up to 20%

Additional homeowners insurance discounts

To save even more money on your policy, ask about other discounts when shopping for the best homeowners insurance. Each company has options to help you reduce your insurance costs.

The following are some of the most common home insurance discounts:

  • Automatic payment discount: Set up automatic payments from your bank account or credit card.
  • Paperless discount: Receive your statements electronically.
  • Advance payment discount: Pay the entire amount of your annual policy at once instead of on a monthly basis.
  • Claims-free discount: You could save if you go accident-free (that is, you don’t file any claims) within a certain amount of time — usually three to five years.
  • Protective devices discount: Install a burglar alarm, surveillance system, sprinkler system, water shut-off system or smoke alarms to help prevent losses.

How to file a home insurance claim

While each insurer will have its own claim-filing process, there are aspects of the process that are the same across the board.

While each insurer has its own claim-filing process, some aspects of the process are the same across the board.

1. File a police report: If your claim is the result of a criminal act, the first thing you’ll want to do is file a police report. This will provide you with evidence for the insurer and can help you in the process of recovering stolen property.

2. Contact your insurer: For a smooth claims process, contact your insurer as soon as possible after a loss. Ask detailed questions and promptly provide the information requested of you in the claims form.

3. Document everything: Have pictures of your home and a list of your most valuable possessions. In the event of a loss, document the damage and any missing items for when an inspection takes place.

4. Keep the receipts: In case you need to take care of urgent repairs or find accommodations elsewhere, keep the receipts so that your insurance provider can reimburse you later on.

How are homeowners insurance claims paid?

In most cases, an adjuster will inspect the damage to your home and offer you a certain amount of money for repairs, based on the terms of your policy. The insurance company will then typically send an advance, before sending the final payment. In fact, you may get multiple checks as you make permanent repairs and replace damaged belongings.

Cash value vs. replacement cost

Policies vary widely in how (and how much) they’ll pay for damages to your property. Depending on the policy you choose, you’ll get actual cash value, replacement cost or guaranteed replacement cost:

Actual cash value

Replacement cost

Guaranteed replacement cost

Pays according to the current value of your home, including depreciation

Covers the amount needed to rebuild your home as close as possible to how it was before

Your dwelling will be repaired or even rebuilt to its original state regardless of how much it costs to do so

You’ll only receive an amount equivalent to your property’s value at the time it was lost

Significantly more expensive than actual cash value coverage

Included in some standard policies, but mostly available as an add-on

More About Homeowners Insurance

Homeowners Insurance FAQs

How much is homeowners insurance?

chevron-down
chevron-up
The average cost of homeowners insurance in the US is $1,200 per year or $100 per month. However, homeowners' insurance rates vary substantially depending on your home's specific situation and condition, how much coverage you want, and where you live.

Is homeowners insurance required?

chevron-down
chevron-up
Homeowners insurance is not required by state or federal law. However, practically all lenders will require homeowners insurance as part of your mortgage agreement.

Does home insurance cover mold?

chevron-down
chevron-up
As with many issues, mold is covered by homeowners insurance if the cause is a covered peril. If the mold is caused by a peril that's not listed in your policy (such as flooding) or negligence by the homeowner, it will not be covered.

Does homeowners insurance cover water damage?

chevron-down
chevron-up
Water damage caused by a covered peril (for example, a vehicular accident breaking a pipe) will be covered by most homeowners insurance policies. If the cause is something that's not listed in the policy, such as a hurricane or a DIY home renovation accident, it will not be covered.

What is the 80% rule in homeowners insurance?

chevron-down
chevron-up
Most insurers abide by the 80% rule, which states they will only reimburse you for the full cost of damages to your home if your coverage equals at least 80% of the property’s value.

However, even a policy that covers 100% of your home’s value won't guarantee the insurer will pay the full amount needed to repair your home. Read your policy carefully and consult with an agent if you have questions.

Which is the best home insurance company?

chevron-down
chevron-up
If you focus solely on customer satisfaction, the best home insurance companies are Amica Mutual and Erie Insurance. However, Lemonade and Hippo offer streamlined claims processing and allow you to purchase coverage online in just a few minutes. In short, the best insurer will depend on what you're looking for and where you live, as not all companies are available nationwide.

How We Chose the Best Homeowners Insurance Companies:

To select the best homeowners insurance companies, we focused on the following methodology factors:

Coverage options and discounts: While coverage, riders and discounts vary by company, we prioritized insurers offering a broad selection of coverage options, multiple ways to save or customizable policies that could be tailored to the needs of different homeowners.

Customer satisfaction ratings: We used J.D. Power’s 2023 U.S. Property Claims Satisfaction Study and the 2023 U.S. Home Insurance Study to gauge customer satisfaction with the insurers on our list. With few exceptions, we mostly selected companies with above-average ratings.

Customer complaints: We evaluated each underwriter’s homeowners insurance complaint ratio based on data from the National Association of Insurance Commissioners (NAIC).

Financial strength rating: We looked at financial ratings from agencies like AM Best and Demotech to ensure the companies on our list are on a strong financial footing and have an excellent ability to meet their insurance obligations.

Summary of Best Homeowners Insurance Companies of February 2024