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A home is the biggest asset most Americans have, so you’ll want to protect your dwelling by purchasing homeowners insurance.
Homeowners insurance is not required by law, but your lender will often require homeowners insurance to protect the home if you have a mortgage. Additionally, you may need additional coverage if you live in a disaster-prone area.
Insider looked at the top companies in size according to S&P Global data and customer satisfaction from J.D. Power and Associates. We also considered nationwide availability and the most recent credit rating from A.M. Best or Fitch Ratings.
Best for homeowners insurance overall: Amica
Amica homeowners insurance is a strong competitor in homeowners insurance customer satisfaction, earning the top spot in J.D. Power’s study of all widely available insurers. It’s available in 48 states.
According to Insurify, customers with Amica can expect to pay about $800 to $3,600 per year on their premiums. Your rate can be on par or slightly higher than the national average which is $1,272, according to the most recent data from the Insurance Information Institute. But, each home’s costs for insurance vary widely based on a variety of factors, including your home’s value
Read our Amica insurance review here.
Amica homeowners insurance
Best for military members: USAA
USAA Homeowners Insurance is only available to active military, veterans, and their families. It’s available in all states and consistently ranks at the top of claims and customer satisfaction surveys. USAA homeowners insurance features and discounts
According to Insurify, customers with USAA can expect to pay about $1,001 per year on their premiums. This is below the national average which is $1,272, according to the most recent data from the Insurance Information Institute. But, each home’s costs for insurance vary widely based on a variety of factors, including your home’s value
Read our USAA insurance review.
USAA Homeowners Insurance
Best homeowners insurance for customer satisfaction: State Farm
State Farm Homeowners Insurance is an established insurance industry and ranks in the top ten in claims and customer satisfaction. Home insurance policies are available in all 50 states. They’re also available to purchase on your own online without an agent.
According to Insurify, customers with State Farm can expect to pay about $2,500 to $4,000 per year on their premiums. This is more expensive than the national average for homeowners insurance which is $1,272, according to the most recent data from the Insurance Information Institute. But, each home’s costs for insurance vary widely based on a variety of factors, including your home’s value
Read our State Farm insurance review.
State Farm Homeowners Insurance
Best homeowners insurance for discounts: Auto-owners
Auto-owners Homeowners Insurance insures about 1.5% of America’s homes. A high financial strength rating, along with high marks for claims and customer service, helps this insurance company stand out.
Read our Auto-owners review here.
Auto-owners homeowners insurance
Auto-owners Homeowners Insurance
The best for affordable homeowners insurance: Allstate
Allstate Homeowners Insurance has been in business since 1931. You can get quotes online or through an agent.
According to Insurify, customers with Allstate can expect to pay about $1,295 per year on their premiums. This is slightly above the national average for homeowners insurance which is $1,272, according to the most recent data from the Insurance Information Institute. But, each home’s costs for insurance vary widely based on a variety of factors, including your home’s value
Read our Allstate insurance review.
Allstate Homeowners Insurance
Allstate Homeowners Insurance
Homeowners insurance companies ranked by affordability
The national average premiums for homeowners insurance is $1,272, according to the most recent data from the Insurance Information Institute. But, each home’s costs for insurance vary widely based on various factors, including your home’s value. Below are a few of the most affordable homeowners insurance companies across the nation:
Insurance CompanyAverage Annual PremiumAverage Monthly PremiumErie$992$83USAA$1,001$84Nationwide$1,221$102Allstate$1,295$108Travelers$1,304$109
Source: Insurify
Homeowners insurance companies ranked by customer satisfaction
The latest study from J.D. Power — a consumer research company that conducts consumer surveys — shows that a homeowners insurance company’s customer service and reputation are more important than price for homeowners.
Here’s how homeowners insurance companies ranked when consumers were asked about satisfaction overall:
Homeowners insurance companyJ.D. Power ranking out of 1,000 pointsUSAA*882Amica Mutual854Auto Club So California (AAA)840Erie Insurance835State Farm835Auto Club Group (AAA)834American Family Insurance831Auto-Owners Insurance831AIG830COUNTRY Financial830Allstate829CSAA (AAA)828ASI Progressive821Farmers813Nationwide812MetLife810Safeco810Liberty Mutual806Chubb801Travelers800The Hartford798Homesite779
*USAA is only for active military, veterans, and their families.
How did we decide the winners for the best homeowners insurance?
Insider looked at five factors to determine the best homeowners insurance: customer satisfaction ranking, claims satisfaction ranking, credit financial rating, and market share.
Customer satisfaction: We use J.D. Power’s homeowners insurance customer satisfaction survey to evaluate the quality of service a company provides to its customers. Home insurers that ranked No.1 through #11 in the survey are considered above the industry average in customer satisfaction.
Financial stability ratings: We use AM’s Best to determine a provider’s financial strength. AM’s Best is a credit rating agency that assesses an insurance company’s ability to pay claims to its policyholders. A company that receives an A++ to B+ is stable in financial strength, while anything lower than a B means that a company is unstable or unable to meet its financial obligations.
Market share: The higher a company’s market share, the more popular it is among policyholders nationwide. We gathered data on market shares from the S&P Global Market Intelligence.
Average premiums: While lower home and renters insurance premiums do not mean quality insurance, we do our best to balance a policy’s cost with the value an insurer provides. A good premium is on par with or below the average cost of homeowners insurance which is $1,272, according to the most recent data from the Insurance Information Institute.
Frequently asked questions — Best homeowners insurance companies
What is the average cost of homeowners insurance?
The average annual premium in the United States in 2019 was $1,272, according to the most recent data from the Insurance Information Institute.
But, each home’s costs for insurance vary widely based on a variety of factors, including your home’s value.
Here’s how much homeowners insurance costs on average by home value in the United States, according to the most recent release of the Homeowners Insurance Report by the National Association of Insurance Commissioners (NAIC):
Estimated home valueAverage annual homeowners insurance premium$49,999 and under$645$50,000 to $74,999$748$75,000 to $99,999$826$100,000 to $124,999$888$125,000 to $149,999$937$150,000 to $174,999$981$175,000 to $199,999$1,018$200,000 to $299,999$1,114$300,000 to $399,999$1,272$400,000 to $499,999$1,482$500,000 and above$2,148
What does homeowners insurance cover?
Homeowners insurance protects your dwelling, and your personal belongings. It also offers personal liability coverage for injuries that occur on your property.
Earthquakes, floods, government seizures, mudslides, ordinance updates, sewer backups, and sinkholes typically aren’t covered under standard homeowners insurance policy and will require add-on coverage using a rider policy.
CoverageIncluded with homeowners insurance?Dwelling/StructureYesPersonal liabilityYesPersonal belongingsYesLoss of Use (additional living expenses)YesHigh-end electronics/special jewelryLimited, requires add-on*Equipment breakdownYesElectrical outageYes*Service linesYes*Cyber liabilityYes*Water damageYesFloodNo**Wind or hailYes, but not high winds***EarthquakeNo*
*Available as add-on coverage if not part of your policy
**Flood insurance is available through the NFIP and approved insurers
***If you live in hurricane or tornado areas, an additional windstorm rider may be required
What are the different types of homeowners insurance?
The type of homeowners insurance necessary depends on the type of home you purchased: condo, townhome, single-family, rental, or mobile home. Your coverage will vary based on the type of policy you have.
PolicyDwellingLiabilityBelongingsPeril TypeHO-1: Basic*YesNoNoNamedHO-2: Broad*YesNoYesNamedHO-3: SpecialYesYesYesOpen/NamedHO-4: RentersNoYesYesNamedHO-5: Comprehensive**YesYesYesOpenHO-6:Condo/Co-opYes***YesYesNamedHO-7: Mobile HomesYesYesYesOpen/NamedHO-8: Older homesYesYesYesNamed
Townhomes can be HO-3 or HO-6
*Most lenders don’t consider this sufficient coverage
**Typically for brand-new homes only
***Covered under condo association’s master policy
How do I find homeowners insurance?
If you currently have homeowners insurance, review your policy coverage yearly. If your homeowners insurance company hasn’t provided the level of service you expected, maybe it is time for you to select a new provider.
Remember that a cheap price doesn’t mean good customer service. Focus on claims and customer satisfaction rankings, like those from J.D. Power, and comparison shop. This is especially important for those living in disaster-prone areas when good service can make all the difference.
Which homeowners insurance has the highest customer satisfaction?
According to the latest customer satisfaction survey from J.D. Power, USAA is the highest rated home insurance company. USAA is only available for military members, however, and the next highest-rated company is Amica Mutual.