The best home insurance companies of 2023
Your home is likely your biggest investment and most expensive undertaking, so it’s important to protect it with the best homeowners insurance for your needs. While price is important, you’ll also want to consider a company that offers a mix of great coverage options, reliable customer service, and the financial stability to pay out expensive claims after a disaster.
After researching and reviewing over 60 companies on each of these factors, Auto-Owners Insurance, USAA, and State Farm are the top-rated homeowners insurance companies in our analysis. They all score at or near the top for each of the four factors that make up the overall Policygenius rating: price, customer experience, coverage options, and financial strength.
We understand our top picks may not be the best for every home or circumstance, so we put together a list of the best homeowners insurance companies for a variety of different coverage considerations and needs.
Company | Best for | Average annual cost | Policygenius rating |
|---|---|---|---|
Overall | $1,406 | 5.0 out of 5 | |
Customer service | $1,756 | 4.6 out of 5 | |
Discounts and policy perks | $1,845 | 4.5 out of 5 | |
Easy claims filing | $1,966 | 4.5 out of 5 | |
High-risk homes | $2,484 | 4.2 out of 5 | |
Widely available coverage | $1,887 | 4.8 out of 5 | |
New homeowners | $1,879 | 4.3 out of 5 | |
Customizable policy options | $1,692 | 4.5 out of 5 | |
Comprehensive dwelling coverage | $1,284 | 4.5 out of 5 | |
High-value homes | $1,125 | 4.6 out of 5 | |
Lapse in coverage | $1,589 | 4.5 out of 5 | |
Bad credit | $1,568 | 4.4 out of 5 | |
Military families | $1,479 | 4.9 out of 5 | |
Airbnbs | $1,650 | 4.4 out of 5 | |
Smart home insurance | $1,138 | 4.3 out of 5 | |
Private flood insurance | $749 | 5 out of 5 |
Average annual cost is based on 2022 sample homeowners insurance quotes for a home with $300,000 in dwelling coverage and a $1,000 deductible.
Methodology
How we chose the best homeowners insurance companies
To find the best home insurance companies, our team of licensed home insurance experts and operations specialists reviewed over 60 companies using an extensive rubric of criteria, including 2022 average annual premiums from Quadrant Information Services, AM Best ratings, customer complaint data, coverage options, and more. See our full homeowners insurance ratings methodology.
Why you can trust Policygenius
As an online insurance marketplace, Policygenius works closely with homeowners all over the U.S. to help them find a home insurance policy that suits their needs — without bias or favor toward any one company. We don’t get paid for our company reviews, and our ratings reflect the latest pricing data, financial ratings, third-party reviews, and policy options from each company. In addition to using reputable external sources, we also leverage a vast library of internal resources, data points, and insights from our own team of home insurance experts.
Our ratings and company reviews can point you toward an insurer that you can rely on to protect your home and livelihood, but the best homeowners insurance company is based on several different factors. A licensed agent at Policygenius can guide you through your home insurance quotes and help you get the right coverage at the best price.
2023 Policygenius award winner
Auto-Owners Insurance
5.0
Bundle home & auto
Offers extended replacement cost
Offers flood insurance
Why we chose it
Auto-Owners Insurance is the highest rated homeowners insurance company in our analysis thanks to its mix of extensive policy and coverage options, high marks for financial strength and customer experience ratings, and affordable premiums.
Pros and cons
Pros
Affordable rates
Several additional coverage options
Up to 12 available discounts
Cons
Only available in 26 states
Not able to get quotes or file claims online
More details
Why Auto-Owners Insurance is our pick for best overall company
Auto-Owners Insurance is our pick for best overall home insurance company, scoring at least a 4 out of 5 for price, customer experience, coverage options, and financial strength, which earned it a perfect 5 out of 5 Policygenius rating.
With up to 23 policy endorsements — such as guaranteed replacement cost, inland flood coverage, and a comprehensive Homeowners Plus endorsement package — Auto-Owners offers excellent value for the coverage you're getting that surpasses competitors.
And if you find your quoted premiums are higher than you'd prefer, you can take advantage of up to 12 Auto-Owners discounts to get your rates back down. To put that into context, the average number of discounts the companies we reviewed offer is only 7.
How much does Auto-Owners home insurance cost?
The national average cost of an Auto-Owners home insurance policy is $1,406 per year, according to sample quotes provided to us by Quadrant Information Services. This makes Auto-Owners Insurance about 26% cheaper than the national average.
State availability
Auto-Owners home insurance is available in the following 26 states:
Alabama, Arizona, Arkansas, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Carolina, North Dakota, Ohio, Pennsylvania, South Carolina, South Dakota, Tennessee, Utah, Virginia, and Wisconsin.
2023 Policygenius award winner
Amica
4.6
Offers extended replacement cost
Bundle home & auto
Why we chose it
Amica remains the standard-bearer of customer satisfaction in residential property insurance, scoring highest in J.D. Power's customer experience survey in every year except one since 2002.
Pros and cons
Pros
Unique dividend policy option to earn up to 20% back on insurance premiums each year
Earned #1 ranking in J.D. Power’s claims and customer satisfaction surveys
Available everywhere except Hawaii and Alaska
Cons
Dividend policy isn’t available in high-risk states like Florida and California
More details
Why Amica is our top pick for customer service
Amica took home the top spot in J.D. Power’s 2022 Home Insurance Study, scoring a perfect 5 out of 5 in four key categories:
Coverage options
Clarity and accuracy of the billing process
Customer interactions
Claims experience
Even more, Amica earned a superior A+ rating from A.M. Best based on its financial strength and stability, as well as 20% fewer complaints with the National Association of Insurance Commissioners than other companies of its size in 2021.
While Amica can be pricier in some states than its competitors, it may be worth the added expense when you consider the superior level of coverage and customer service you’re receiving.
How much does Amica home insurance cost?
The national average cost of home insurance with Amica is $1,756 per year, according to sample quotes provided to Policygenius from Quadrant Information Services. This is around 8% cheaper than the national average. However, your actual rates will vary based on your home's location, size, the amount of coverage in your policy, claims history, and other factors.
State availability
Amica offers home insurance policies in every state and Washington, D.C. except Alaska and Hawaii.
2023 Policygenius award winner
Farmers
4.5
Offers extended replacement cost
Bundle home & auto
Smart home discounts
Why we chose it
Along with saving around 20% when you bundle your home and car insurance, Farmers also gives you access to its extensive suite of discounts, unique policy credits, and claim-free incentives that help put money back in your pocket.
Pros and cons
Pros
12+ discounts to save on rates
Extended and guaranteed replacement cost for your home
Shave $50 off your deductible each year you’re with Farmers
Cons
Below-average scores on J.D. Power’s overall customer satisfaction and digital experience surveys
More details
Why Farmers is our top pick for discounts and policy perks
Farmers home insurance stands out against competitors thanks to the slew of discount opportunities and policy perks available.
It offers 17 home insurance discounts — its competitors average just seven — and policy perks that aren't easy to come by, including:
Declining deductibles: Earn $50 toward your home deductible each year you have a home insurance policy with Farmers.
Claim forgiveness: Once you’ve gone five years without filing a claim, Farmers won’t raise your rate after that if you end up filing one.
Even more, depending on your state of residence, you can save up to 45% on your auto insurance and up to 34% on your home insurance when you bundle policies, according to farmers.
How much does Farmers home insurance cost?
The national average cost of home insurance with Farmers $1,845 per year, according to sample quotes provided to Policygenius from Quadrant Information Services. This is on par with the national average of $1,754 per year.
State availability
Farmers offers home insurance policies in the following 41 states:
Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, Wisconsin, and Wyoming.
2023 Policygenius award winner
Nationwide
4.5
Offers extended replacement cost
Bundle home & auto
Offers earthquake insurance
Why we chose it
Nationwide home insurance features a slew of comprehensive coverage options. It also received high marks for claims satisfaction with J.D. Power, indicating you can rely on Nationwide when it matters most.
Pros and cons
Pros
Multiple high-quality coverage options
Highly rated for claims satisfaction with J.D. Power
Available in most states
Cons
Below-average customer satisfaction and digital experience ratings
Won’t cover Airbnbs or other short-term rentals
More details
Why Nationwide is our top pick for hassle-free claims
Nationwide earned a top five ranking in J.D. Power's 2022 Claims Satisfaction Study, scoring well in five key categories:
Settlement process
Claim servicing
Final notice of loss
Estimation process
Repair process
Unlike many of its regional competitors that don't offer the option to file claims online or through a mobile app, Nationwide does — making its home insurance claim process strikingly transparent and easy to follow.
Once you file your claim, you'll be assigned a claims associate to help you through the process. You'll then be provided an estimate and settled either over the phone or in person, and Nationwide can even find you a contractor via its property repairs network.
How much does Nationwide home insurance cost?
The national average cost of home insurance with Nationwide $1,966 per year, according to sample quotes provided to Policygenius from Quadrant Information Services. This is on par with the national average of $1,754 per year.
State availability
Nationwide offers home insurance policies in the following 43 states and Washington, D.C.:
Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Michigan, Minnesota, Mississippi, Missouri, Montana, Nevada, New Hampshire, Nebraska, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.
2023 Policygenius award winner
Foremost
4.2
Why we chose it
Foremost is willing to insure high-risk homes that are older, showing obvious signs of wear and tear, or have an extensive claims history. And it’s not afraid to work with homeowners who have bad credit.
Pros and cons
Pros
Insures high-risk homes that are older, showing signs of wear and tear, or have a history of claims
Works with homeowners with bad credit
Offers guaranteed and extended replacement cost coverage for your home
Cons
Rates are 27% higher than the national average
More details
Why Foremost is our top pick for high-risk homes
Unlike competitors that shy away from working with older homes, those that are obviously rundown, and homes that have lots of claims on their record, Foremost doesn't.
But that doesn't mean you'll have to skimp on coverage. Foremost offers a wealth of policy add-ons, including guaranteed and extended replacement cost coverage for your home, equipment breakdown and water backup protection, and flood insurance through the National Flood Insurance Program.
How much does Foremost home insurance cost?
The national average cost of home insurance with Foremost is $2,484 per year, according to sample quotes provided to Policygenius from Quadrant Information Services.
This makes Foremost about 27% higher than the national average. However, this isn't surprising given that home insurance for high-risk homes is typically more expensive since you're more likely to file a claim.
State availability
Foremost homeowners insurance is available in all 50 states and Washington, D.C.
2023 Policygenius award winner
State Farm
4.8
Bundle home & auto
Offers extended replacement cost
All 50 states
Why we chose it
State Farm home insurance scores a near-perfect 4.8 out of 5 thanks to its slew of coverage add-ons, high marks on J.D. Power’s customer satisfaction surveys, and strong financial stability ratings.
Pros and cons
Pros
Save up to $1,127 per year when you bundle your home and auto insurance
Excellent line-up of policy add-ons, including extended replacement cost coverage
Cons
No longer sells home insurance policies in California
20% more complaints filed with the NAIC than other companies of its size
More details
Why State Farm is our top pick for widely available coverage
At a time when lots of competitors are no longer insuring homes in areas prone to wildfires or hurricanes, State Farm continues to offer its relatively affordable and highly rated home insurance to homeowners in every corner of the country.
And it doesn't skimp on coverage, offering flood, wildfire, and earthquake protection — one of few competitors that offers all three insurance policies to homeowners in high-risk states nationwide.
Plus, while many competitors don't have the financial strength to pay out claims after several natural disasters in the same year, State Farm isn't one of them. It earns the highest rating possible from A.M. Best for financial strength and stability — only six insurance companies out of nearly 70 we reviewed hold this title.
How much does State Farm home insurance cost?
The national average cost of home insurance with State Farm is $1,887 per year, according to sample quotes provided to Policygenius from Quadrant Information Services. This is on par with the national average of $1,754 per year.
State availability
State Farm offers home insurance policies in all 50 states and Washington, D.C.
2023 Policygenius award winner
AAA
4.3
New homebuyer discount
Mobile app
Bundle home & auto
All 50 states
Offers earthquake insurance
Offers flood insurance
Offers extended replacement cost
Why we chose it
AAA lands the top spot for new homeowners thanks to its new homebuyer discount that offers average savings of around 37% off your home insurance rates and robust coverage add-ons to ensure your new home is fully protected.
Pros and cons
Pros
Affordable rates, plus 15+ home insurance discounts available
20+ policy coverages and add-ons — including flood and earthquake insurance
Slew of other perks and discounts that come with AAA membership
Cons
AAA membership required to purchase home insurance
Coverages, discounts, and claims experience will vary by the regional AAA auto club you receive insurance through
Below-average customer satisfaction scores — and 4 times more NAIC complaints than similar home insurance companies
More details
Why AAA is our top pick for new homeowners
AAA takes the cake for new homeowners thanks to its steep new homebuyer discount that offers average savings of around 37% off your home insurance rates — far beyond what we've seen with competitors in our analysis.
You'll also save even more if you bought a brand-new home, purchased your policy before it needs to go into effect, or have an active AAA membership.
We also like AAA for new homeowners thanks to its stellar selection of coverage add-ons to insure your new home is fully protected, including extended replacement cost coverage for your home, replacement cost coverage for your personal belongings, water damage protection, flood insurance, earthquake coverage, and more.
How much does AAA home insurance cost?
The national average cost of home insurance with AAA if you're a new homeowner is $1,295 per year, according to sample quotes provided to Policygenius from Quadrant Information Services. This is 37% cheaper than if you didn't qualify for their new homeowner discount.
State availability
AAA homeowners insurance is available in all 50 states and Washington, D.C. through one of its regional auto clubs and insurance subsidiaries.
2023 Policygenius award winner
American Family
4.5
Offers extended replacement cost
Offers flood insurance
Bundle home & auto
Why we chose it
American Family home insurance has industry-best coverage options, high customer service ratings, and several discounts to compliment its already affordable rates, making it a great option in the 19 states where it’s available.
Pros and cons
Pros
Affordable rates and 11 available discounts
Ranked #2 in J.D. Power’s 2022 U.S. Home Insurance Study
Diminishing deductible feature to lower out-of-pocket claim costs
Cons
Only available in 19 states
Offers online quotes, but requires talking to an agent to complete the process
More details
Why American Family is our top pick for customizable policy options
When it comes to both the breadth and quality of home insurance policy options, there are few companies in the same league as American Family.
Choose from three comprehensive policy tiers with various levels of protection, or customize a policy to your liking with up to 15 additional coverage options, including inland flood, equipment breakdown, and service line coverage.
We especially like its rare diminishing deductible feature that takes $100 off your policy deductible each year you go without filing a claim — a perk few competitors offer.
While it only writes homeowners insurance in 19 states, American Family is the seventh largest home insurer in the United States — which indicates it’s a popular option in the places it operates.
How much does American Family home insurance cost?
The national average cost of home insurance with American Family is $1,692 per year, according to sample quotes provided to Policygenius from Quadrant Information Services. This makes American Family about 13% cheaper than the national average. e amount of coverage in your policy, claims history, and other factors.
State availability
American Family offers home insurance policies in the following 19 states:
Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Nevada, North Dakota, Ohio, Oregon, South Dakota, Utah, Washington, and Wisconsin.
2023 Policygenius award winner
Erie
4.5
Offers extended replacement cost
Offers flood insurance
Bundle home & auto
Why we chose it
Erie home insurance policies are among the most robust of any company in our analysis. A basic Erie policy comes with coverages that typically cost extra with other insurers, such as guaranteed replacement cost and lost or misplaced items coverage.
Pros and cons
Pros
Cheap rates
Guaranteed replacement cost comes standard on Erie policies
Excellent customer service and claims satisfaction ratings
Cons
Only available in 12 states
Just three available discounts
Can’t get quotes or file claims online
More details
Why Erie is our top pick for comprehensive dwelling coverage
Erie features the most comprehensive basic homeowners insurance policy of any company in our study, including guaranteed replacement cost coverage that pays any replacement amount in the event of a disaster — regardless of your coverage limits.
That means if your house is destroyed and construction costs suddenly spike due to high demand or inflation and your coverage limits aren’t high enough to cover the costs, Erie will reimburse you the full rebuild amount anyway.
Its standard coverages also include all-risk protection that extends coverage on your personal belongings to lost or misplaced items, as well as higher coverage limits for your jewelry, watches, and other expensive items.
With most competitors, you have to pay extra for these valuable coverage upgrades — but not with Erie.
How much does Erie home insurance cost?
The national average cost of home insurance with Erie is $1,284 per year, according to sample quotes provided to Policygenius from Quadrant Information Services. This makes Erie about 33% cheaper than the national average. However, your own rates will depend on your home’s location and how much coverage you need.
State availability
Erie offers home insurance policies in the following 12 states and Washington, D.C.:
Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, and West Virginia.
2023 Policygenius award winner
Openly
4.6
Offers extended replacement cost
Offers earthquake insurance
Why we chose it
Openly insures homes up to $5 million with its impressive lineup of customizable policy add-ons that come with high coverage limits — and the best part? Its rates are surprisingly affordable considering its high-net worth customer base.
Pros and cons
Pros
Offers up to $5 million in coverage for high-value homes
Robust lineup of policy add-ons with high limits to customize coverage to fit your needs
No restrictions on pools without fences or dangerous dog breeds
Cons
Only available in 21 states
Fewer home insurance discounts than competitors
Not included in J.D. Power’s customer satisfaction studies
More details
Why Openly is our top pick for high-value homes
Openly insurance is ideal for homeowners with high-value homes looking for a policy they can customize to fit their unique needs.
It offers the second-highest number of coverage add-ons of the nearly 70 competitor home insurance companies we reviewed, including:
Guaranteed replacement cost coverage for your home
Scheduled personal property and blanket coverage for expensive belongings
Water backup, equipment breakdown, and earthquake protection
Loss assessment coverage with high limits if you live in an HOA community.
And unlike many of its competitors, Openly doesn’t have restrictions on the types of dog breeds it’s willing to insure. You also won’t have an issue getting coverage if you have a pool — no matter if it has a diving board and slide, or no fencing around it.
However, two noticeable policy add-ons missing from Openly's home insurance that you'll find with competitors like Chubb and AIG are complimentary hurricane and wildfire mitigation services for homeowners in high-risk areas.
How much does Openly home insurance cost?
The national average cost of home insurance with Openly is $1,125 per year, according to sample quotes provided to Policygenius from Quadrant Information Services.
This is around 50% cheaper than the national average. But keep in mind that your actual rates will vary based on your location, your home's size, the amount of coverage in your policy, claims history, and other factors.
State availability
Openly offers home insurance policies in the following 21 states:
Alabama, Arizona, Georgia, Illinois, Indiana, Kansas, Kentucky, Maine, Massachusetts, Mississippi, Missouri, New Hampshire, New Mexico, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Utah, and Wisconsin.
Openly has plans to expand coverage to Connecticut and Virginia in 2023.
2023 Policygenius award winner
Stillwater
4.5
New homebuyer discount
Offers extended replacement cost
Offers earthquake insurance
Bundle home & auto
Mobile app
Why we chose it
Stillwater's willingness to insure homes that have gone without home insurance for any period of time makes it our top pick for homeowners who've had a lapse in coverage.
Pros and cons
Pros
Insures homes that had a lapse in insurance coverage
Rates lower than the national average, plus 15 discounts to save even more
Offers a slew of coverage add-ons
Cons
Doesn’t have as strong financial strength rating as other insurers
Wasn’t included in J.D. Power’s 2022 customer satisfaction surveys
Not available in Louisiana
More details
Why Stillwater is our top pick for homes with a lapse in coverage
Stillwater is one of the few home insurance companies willing to work with homeowners who've had a lapse in coverage — a rarity in the industry.
Most competitors consider homes that have gone without home insurance too risky to insure, since many lapses in coverage happen due to missed or late premium payments. But not Stillwater.
It also stands out thanks to the whopping 15 home insurance discounts it offers help you save on rates. To put this into context, competitor home insurance companies average just seven discounts.
How much does Stillwater home insurance cost?
The national average cost of home insurance with Stillwater is $1,589 per year, according to sample quotes provided to Policygenius from Quadrant Information Services. This makes Stillwater about 18% cheaper than the national average.
State availability
Stillwater homeowners insurance is available in all states except Louisiana.
2023 Policygenius award winner
Travelers
4.4
Bundle home & auto
New homebuyer discount
Mobile app
Offers extended replacement cost
Offers flood insurance
Why we chose it
Travelers earns our top spot for homeowners with poor credit thanks to its affordable rates that are only $200 more expensive than those for homeowners with good credit.
Pros and cons
Pros
Green home coverage and discounts
Offers short-term rental coverage for Airbnb hosts
Doesn’t require prior insurance on the home
Cons
Subpar customer service ratings with J.D. Power
Underwhelming number of available discounts
More details
Why Travelers is our top pick for homeowners with poor credit
Many home insurance competitors hike up rates as much as $2,000 if you have poor credit, since studies show you're more likely to file a claim. But not Travelers.
Its average home insurance rates for homeowners with good credit versus poor credit only vary by around $200. And you can save even more if you qualify for one of the five home insurance discounts it offers.
How much does Travelers home insurance cost?
The national average cost of home insurance with Travelers if you have poor credit is $1,789 per year, according to sample quotes provided to Policygenius from Quadrant Information Services.
This is still 6% cheaper than the national average. And rates are even lower if you have good credit, averaging $1,568 per year.
State availability
Travelers homeowners insurance is available in 48 states and Washington, D.C., but it's not available in Florida or California.
2023 Policygenius award winner
USAA
4.9
Bundle home & auto
Offers extended replacement cost
All 50 states
Why we chose it
USAA's robust coverages, high marks for customer service and claims satisfaction, and numerous policy perks for veterans make it the best home insurance company for members of the military and their families.
Pros and cons
Pros
Affordable rates
Over a dozen additional coverage options
Industry-best customer service and claims satisfaction ratings
Cons
Limited to people affiliated with the U.S. military
More details
Why USAA is our top pick for military veterans
USAA stands out for offering coverage solely to current members of the military, veterans, and their families. It’s consistently a top-rated home insurance company when it comes to claims satisfaction, customer service, and financial stability.
It scores a perfect A++ rating with A.M. Best — higher than over 60 competitors we reviewed — meaning it likely has the financial strength and stability to pay out claims in the wake of a disaster.
The top-rated insurer also received 50% fewer complaints in 2021 than expected for a company of its size. To put that into perspective, our runner-up pick Armed Forces Insurance earned nearly four times more than similar-sized competitors.
And finally, USAA stands out for its stellar coverage add-ons that you won't find with other home insurance companies, including a special perk where it won’t charge you a deductible for covered losses to your military uniform or equipment while you’re on active duty.
How much does USAA home insurance cost?
The national average cost of home insurance with USAA is $1,479 per year, according to sample quotes provided to Policygenius from Quadrant Information Services. This makes USAA about 22% cheaper than the national average.
State availability
USAA homeowners insurance is available in all 50 states and Washington, D.C.
2023 Policygenius award winner
Allstate
4.4
Bundle home & auto
Smart home discounts
All 50 states
Why we chose it
Whether you’re looking for bare-bones coverage on the cheap or a more comprehensive policy package with additional coverages and features like short-term rental coverage and deductible rewards, you’ll likely be able to find it with Allstate.
Pros and cons
Pros
High-quality and flexible policy options
Numerous discounts and features that help you save
Below-average customer complaints
Cons
No longer sells home insurance policies in California
Below-average digital experience rating with J.D. Power
More details
Why Allstate is our top pick for Airbnbs
If you rent out your property through a short-term rental service like Airbnb and a guest destroys or steals your property, Allstate’s HostAdvantage will pay up to $10,000 per rental host period to replace or repair your property.
And the best part? This coverage can be added directly onto your home insurance policy for a small additional fee. To put this into context, only about one-third of the nearly 70 home insurance companies we reviewed even offer home-sharing coverage at all.
How much does Allstate home insurance cost?
The national average cost of home insurance with Allstate $1,650 per year, according to sample quotes provided to Policygenius from Quadrant Information Services. This makes Allstate about 13% cheaper than the national average.
State availability
Allstate offers home insurance policies in all 50 states and Washington, D.C.
2023 Policygenius award winner
Hippo
4.3
Smart home discounts
Offers extended replacement cost
Usage-based discount
New homebuyer discount
Why we chose it
Hippo's philosophy is simple: the best way to keep costs down is to prevent problems before they start. If you're interested in smart home tech or ways to keep maintenance costs down, consider Hippo for its array of tech-friendly discounts and programs.
Pros and cons
Pros
Affordable rates
Several tech-friendly discounts and incentives
Complimentary home maintenance service
Cons
Not able to file claims online
Lack of industry reputation
Tech-forward approach may not appeal to everybody
More details
Why Hippo is our top pick for home insurance for smart homes
Insurance premiums are, to a certain degree, based on what we don't know and the risk that comes with that uncertainty.
Installing home security systems and other protective devices is one of the most effective ways to reduce this uncertainty and save money on homeowners insurance, and no company emphasizes this more than Hippo.
Not only will Hippo discount your rates up to 25% if you have security cameras or other connected devices installed in your house — but it actually includes its own smart home monitoring kit with each policy. For context, only a handful of competitors offer something like this.
While this type of homeowners insurance isn't for everybody, if you're interested in modernizing your home and saving money on insurance in the process, Hippo is a great option.
How much does Hippo home insurance cost?
The national average cost of home insurance with Hippo $1,138 per year, according to sample quotes provided to Policygenius from Quadrant Information Services. This makes Hippo about 40% cheaper than the national average.
State availability
Hippo homeowners insurance is available in the following 39 states and Washington, D.C.:
Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Georgia, Illinois, Indiana, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, and Wisconsin.
Neptune
5.0
Offers flood insurance
Why we chose it
If you live in a flood-prone area and you're interested in comprehensive flood insurance coverage with a short waiting period, look no further than Neptune flood insurance.
Pros and cons
Pros
Relatively affordable private flood insurance option
Offers up to $4 million in building coverage
Up to $10,000 in coverage for belongings in your basement
Cons
Possibly more difficult to obtain Neptune coverage compared to the NFIP
You'll likely pay more for Neptune flood insurance compared to the NFIP
More details
Why Neptune is our top private flood insurance pick
Most homeowners insurance policies won't cover flooding, which is why most homeowners turn to the National Flood Insurance Program (NFIP) to purchase coverage.
However, the NFIP limits how much flood insurance coverage you can purchase (up to $250,000 in building coverage, $100,000 in contents coverage). And if you need your policy right away — well tough luck, you'll have to wait 30 days before your coverage is active.
Alternatively, Neptune’s private flood insurance option offers higher coverage limits, more comprehensive protection for possessions, and a maximum waiting period of 10 days.
And unlike many of its private flood insurance competitors, Neptune writes policies in most areas of the country.
How much does Neptune flood insurance cost?
The national average cost of flood insurance with Neptune is $749 per year, according to policy data that Policygenius obtained from the National Association of Insurance Commissioners. This is on part with what homeowners pay for flood insurance through the NFIP.
State availability
Neptune offers flood insurance policies in every state and Washington, D.C. except Alaska, Arkansas, Idaho, Illinois, Kentucky, Louisiana, Montana, North Dakota, South Dakota, Utah, Vermont, and Wyoming.
Learn more >> Homeowners insurance company reviews
Best overall company: Auto-Owners Insurance
Coverage options: Auto-Owners offers a slew of coverage add-ons and supplemental policies, including guaranteed replacement cost, professional liability protection, and a Homeowners Plus package that rolls several policy endorsements into one.
Customer satisfaction ratings: Auto-Owners earned below-average scores on J.D. Power's digital experience and claims satisfaction studies. However, it did well on the National Association of Insurance Commissioner's (NAIC) National Complaint Index — it received 22% fewer customer complaints than other similar-sized home insurance companies.
Awards: Founded around 100 years ago in 1916, Auto-Owners has a longstanding history in the insurance space. While it's not one of the 10 largest home insurance companies in the U.S. by market share, it earns the top spot "Best overall company" on our list thanks to its mix of extensive policy and coverage options, high marks for financial strength and customer experience ratings, and affordable premiums.
Best customer service: Amica
Coverage options: Some of Amica's standout coverage add-ons include extended replacement cost coverage for your home, water damage protection, flood insurance through the NFIP, and loss assessment coverage if you live in a condo or gated community.
Customer satisfaction ratings: Amica took the top spot on J.D. Power's 2023 U.S. Insurance Digital Experience Study for overall customer satisfaction for service. It also received the second-highest score on J.D. Power's 2023 U.S. Property Claims Satisfaction Study.
Awards: Founded over 100 years ago in 1907, Amica is a veteran in the home insurance space and earns an A+ (Superior) rating from AM Best — the second-highest rating available — for its financial strength and stability.
Best for discounts and policy perks: Farmers
Coverage options: Farmers shines thanks to the wealth of coverage add-ons available, including both guaranteed and extended replacement cost coverage for your home, water backup protection, ordinance or law coverage, flood insurance through the NFIP, and earthquake coverage.
Customer satisfaction ratings: Farmers earned the second-highest score on J.D. Power's 2023 U.S. Insurance Digital Experience Study for shopping. However, it received below-average marks on the same study for service, as well as on J.D. Power's 2023 Property Claims Satisfaction Study.
Awards: Founded in 1928, Farmers earns a spot on our list of the Best Auto & Home Insurance Companies of 2023, as well as the No. 5 spot on our list of the Largest Home Insurance Companies in the U.S.
Best for hassle-free claims service: Nationwide
Coverage options: You have the option to add up to 14 additional coverages to your Nationwide homeowners insurance policy, including guaranteed and extended replacement cost coverage for your home, better roof replacement coverage, equipment breakdown, water backup protection, and more. You can also purchase separate umbrella, earthquake, or flood insurance to fill in important gaps in coverage.
Customer satisfaction ratings: Nationwide earned an above-average score on J.D. Power's 2023 U.S. Insurance Digital Experience Study for service, though its score for customers' shopping experience is slightly below average. It also received the No. 3 spot for claims satisfaction on J.D. Power's 2023 U.S. Property Claims Satisfaction Study.
Awards: Founded in 1926, Nationwide is the eighth largest home insurance company in the country, according to our list of the 10 Largest Home Insurance Companies in 2023.
Best for high-risk homes: Foremost
Coverage options: Foremost offers a plethora of additional coverage add-ons that rival competitors, including guaranteed and extended replacement cost coverage for your home, water backup and equipment breakdown protection, ordinance or law coverage, service line protection, home-sharing coverage, and flood insurance through the NFIP.
Customer satisfaction ratings: Foremost wasn't included on J.D. Power's 2023 Claims Satisfaction or Digital Experience surveys. However, it earned 27% fewer customer complaints than similar-sized home insurance companies in 2021, according to the NAIC's National Complaint Index.
Awards: Founded over 70 years ago in 1952, Foremost didn't earn a spot on our Cheapest Companies, Bundling, or Largest Companies lists in 2023.
Learn more >> Best high-risk home insurance companies of 2023
Best for widely available coverage: State Farm
Coverage options: State Farm's coverage options include everything from extended replacement cost and home systems protection to flood coverage for homeowners in areas at high-risk of natural disasters. You also add inflation guard coverage to your policy — a valuable coverage add-on that adjusts your coverage each year to compensate for increases in construction and labor costs in your area due to inflation.
Customer satisfaction ratings: State Farm earned above-average scores on J.D. Power’s 2023 customer satisfaction, claims, and digital experience surveys. Where it fell short is on the NAIC National Complaint Index — it earned around 20% more complaints than other home insurance companies of its size in 2021.
Awards: Founded over 100 years ago in 1922, State Farm is the largest home insurance company in the U.S. by market share, according to the NAIC. [1] It also earns a spot on our list of the Best Auto & Home Insurance Bundles of 2023.
Best for new homeowners: AAA
Coverage options: AAA offers a stellar selection of policy add-ons, including extended replacement cost for your home, replacement cost for your personal belongings, water damage, flood insurance through the NFIP, earthquake coverage through the California Earthquake Authority, and more.
Customer satisfaction ratings: AAA earned an above-average score on J.D. Power’s 2023 Digital Experience Survey for its shopping experience, but a below-average score for customer service and on J.D. Power's 2023 Claims Satisfaction Study. The company as a whole also earned over four times more complaints than similar-sized home insurance companies in 2021, according to the NAIC National Complaint Index.
Awards: Founded in 1902, AAA earned an A rating (Excellent) with AM Best, which proves it’s in a good position financially to pay out claims in the wake of a disaster.
Best for customizable policy options: American Family
Coverage options: When it comes to coverage options, there are few companies that do better than American Family. You can choose from three policy tiers with various levels of protection, or customize a policy to your liking with up to 15 additional coverage options, including inland flood, equipment breakdown, and service line coverage.
Customer satisfaction ratings: American Family ranked No. 2 on J.D. Power’s 2023 Digital Experience Survey for its outstanding shopping experience, however it scored slightly below average for service. The insurer also earned an above-average score in J.D. Power's 2023 Claims Satisfaction Study, and received fewer customer complaints from 2019 to 2021 than other companies of its size, according to the NAIC National Complaint Index Report.
Awards: Founded in 1927, American Family is the seventh largest home insurance company in the U.S. by market share, according to the NAIC.
Best for comprehensive dwelling coverage: Erie
Coverage options: Erie offers a comprehensive base policy that rivals competitors, which includes coverages like guaranteed replacement cost, all-risk protection, and never before seen coverages like gift card reimbursements. Erie customers can also take advantage of its three comprehensive policy packages that include additional protection for things like underground service lines and appliance breakdown.
Customer satisfaction ratings: Erie earned the highest score possible in J.D. Power’s 2023 customer and claims satisfaction study. It also earned an above-average score for shopping in J.D. Power's 2023 Digital Experience Survey, but a below-average score for customer service. However, it fared well on the NAIC National Complaint Index Report —it earned about 68% fewer customer complaints from 2019 to 2021 compared to other companies of its size.
Awards: Founded around 200 years ago in 1800, Erie has the longest history in the insurance industry than any other company on this list. While it's not one of the 10 largest home insurance companies in the U.S. by market share, it earns the title of "Best for comprehensive dwelling coverage" on our list thanks to its base policy that comes with coverages that typically cost extra with other insurers, such as guaranteed replacement cost and lost or misplaced items coverage.
Best for high-value homes: Openly
Coverage options: Openly insurance is ideal for homeowners with high-value homes looking for a policy they can customize to fit their unique needs. It offers a slew of valuable coverage add-ons, including guaranteed replacement cost coverage for your home, scheduled and blanket personal property protection, earthquake coverage, and loss assessment protection with high limits if you live in a community with an HOA.
Customer satisfaction ratings: Openly wasn’t included in J.D. Power’s 2022 overall customer satisfaction, claims satisfaction, or digital experience surveys since it’s such a new insurance company with limited reach. However, in 2021, Rock Ridge Insurance Company — the company that underwrites Openly’s policies — had 90% fewer complaints than similar insurance companies of its size, according to the NAIC's National Complaint Index.
Awards: Founded in 1975, Openly earned an A- rating (Excellent) with AM Best, which proves it’s in a good position financially to pay out claims in the wake of a disaster.
Best for lapse in coverage: Stillwater
Coverage options: Stillwater Insurance offers a slew of coverages you can add on to your policy, including extended replacement cost coverage for your home and replacement cost coverage for your personal belongings, water backup and service line coverage, inland flooding protection, inflation guard coverage, and more.
Customer satisfaction ratings: Stillwater Insurance wasn’t included in J.D. Power’s 2022 overall customer satisfaction, claims satisfaction, or digital experience surveys. However, in 2021, Stillwater had around 30% fewer complaints than similar insurance companies of its size in the NAIC's National Complaint Index.
Awards: Founded just over 30 years ago in 1990, Stillwater earned an A- rating (Excellent) with AM Best, meaning it likely has the financial means to pay out claims after a natural disaster.
Learn more >> What happens when your home insurance lapses
Best for poor credit: Travelers
Coverage options: In addition to offering all of the standard home insurance coverages, Travelers has up to 12 optional coverages, including extended dwelling coverage, water backup coverage, and standalone flood insurance through the NFIP.
Customer satisfaction ratings: Of the companies included in J.D. Power’s 2023 customer satisfaction, claims satisfaction, and digital experience surveys, Travelers scored below the industry average. However, Travelers made up for the lower-than-average J.D. Power ratings by scoring favorably in the National Association of Insurance Commissioners National Complaint Index Report. From 2019 to 2021, Travelers received about half as many complaints as expected for a company of its size.
Awards: In business for 170 years, Travelers takes the No. 6 spot on our list of the Largest Home Insurance Companies of 2023, with $5.6 billion in written premiums in 2022 and holds a 4.64% market share in the U.S.
Learn more >> How your credit score affects home insurance rates
Best for military families: USAA
Coverage options: USAA offers 15 optional policy add-ons, including extended dwelling coverage, protection for military uniforms, computers coverage, and standalone NFIP flood insurance and CEA earthquake insurance.
Customer satisfaction ratings: USAA earned the second-highest score in J.D. Power’s 2023 customer and claims satisfaction study, and had the third-highest score in its 2023 digital experience study for customer service.
Awards: Founded over 100 years ago, USAA takes the No. 3 spot on our list of the largest home insurance companies of 2023, with $8 billion in written premiums in 2022 and holds a 6.67% market share in the U.S.
Learn more >> Best home insurance for veterans & military families in 2023
Best for Airbnbs: Allstate
Coverage options: Allstate offers a complete standard policy package and nine available coverage endorsements, including valuable add-ons like water backup, business property, and short-term rental coverage. Allstate also offers umbrella insurance and flood insurance separately, helping potential customers fill two important coverage gaps.
Customer satisfaction ratings: Of the companies that were included in J.D. Power’s 2023 claims satisfaction and digital experience surveys, Allstate had below-average scores for both. But where Allstate made up ground was the below-average number of customer complaints it received from 2019 to 2021, according to the NAIC National Complaint Index Report.
Awards: Founded in 1931, Allstate takes the No. 2 spot on our list of the largest home insurance companies of 2023, with $10.5 billion in written premiums in 2022 and holds an 8.77% market share in the U.S.
Best for smart homes: Hippo
Coverage options: Hippo home insurance is a great option for homeowners willing to install smart home monitoring kits that detect everything from break-ins to water leaks in order to keep rates low. It's also a good choice if you're looking to get coverage for your home office, personal computers, and appliances without paying higher premiums. However, it doesn’t appear to offer flood insurance, ordinance or law protection, umbrella insurance, and other important coverages.
Customer satisfaction ratings: Hippo wasn’t included in J.D. Power’s 2023 overall customer satisfaction, claims satisfaction, or digital experience surveys. However, in 2021, Hippo received around 30% fewer complaints than similar insurance companies of its size in the NAIC's National Complaint Index.
Awards: Founded less than 10 years ago in 2015, Hippo earned an A- rating (Excellent) with AM Best, meaning it likely has the financial means to pay out claims after a natural disaster.
Best private flood insurance company: Neptune
Coverage options: Neptune offers comprehensive flood insurance with high coverage limits of up to $4 million for your home and $500,000 for your personal belongings. In addition to standard flood insurance coverage, Neptune provides up to $10,000 in coverage for belongings stored in your basement, temporary living expenses while your house is undergoing repairs after a flood, and pool refill and repairs coverage.
Customer satisfaction ratings: Neptune wasn’t included in J.D. Power’s 2023 overall customer satisfaction, claims satisfaction, or digital experience surveys. However, in 2021, Hippo received fewer complaints than similar insurance companies of its size in the NAIC's National Complaint Index.
Awards: As a newer company founded in 2016, Neptune flood insurance is financially backed by several industry-leading companies with an A rating (Excellent) or better from AM Best. This means it’s in an excellent position to pay out claims after a disaster — regardless of whether or not there’s an economic downturn.
Best homeowners insurance in your state
That said, homeowners insurance premiums can vary greatly depending on your state, city, or even ZIP code. You’ll find that states with more severe weather and natural disasters — like Florida, Texas, and Oklahoma — have higher homeowners insurance rates than states with more mild weather.
As of 2023, Hawaii residents have the cheapest average annual premiums, while Oklahoma residents pay the most, according to our latest analysis.
Find the best and cheapest home insurance companies in your state.
State | Average annual cost | Highest-rated insurer | Cheapest insurer |
|---|---|---|---|
$1,982 | USAA | USAA | |
$1,398 | USAA | Western National | |
$1,762 | USAA | Armed Forces Insurance | |
$2,924 | USAA | State Auto | |
$1,436 | USAA | Allstate | |
$2,472 | USAA | State Auto | |
$1,359 | USAA | Vermont Mutual | |
$928 | Allstate | Cumberland Mutual | |
$1,154 | USAA | Chubb | |
$2,442 | State Farm | Security First Insurance | |
$1,956 | USAA | Cincinnati Insurance | |
$486 | Allstate | DB Insurance | |
$1,352 | USAA | American National | |
$1,775 | USAA | Auto-Owners Insurance | |
$1,719 | USAA | Allstate | |
$1,714 | USAA | West Bend Mutual | |
$3,094 | Auto-Owners Insurance | Armed Forces Insurance | |
$2,622 | Auto-Owners Insurance | State Auto | |
$2,507 | USAA | Armed Forces Insurance | |
$1,076 | Auto-Owners Insurance | Vermont Mutual | |
$1,575 | USAA | Brethern Mutual | |
$1,285 | USAA | Quincy Mutual | |
$1,550 | USAA | Auto-Owners Insurance | |
$1,937 | Auto-Owners Insurance | Auto-Owners Insurance | |
$2,655 | USAA | Allstate | |
$2,627 | USAA | Armed Forces Insurance | |
$2,213 | USAA | Chubb | |
$3,741 | USAA | American Family | |
$1,209 | USAA | Universal Group | |
$967 | USAA | NGM Insurance | |
$904 | USAA | Cumberland Mutual | |
$1,686 | State Farm | Farmers | |
$1,139 | Allstate | NYCM Insurance | |
$1,580 | USAA | Kemper | |
$1,890 | Auto-Owners Insurance | North Star Mutual | |
$1,297 | USAA | Westfield Insurance | |
$4,230 | USAA | Allstate | |
$905 | USAA | Mutual of Enumclaw Insurance | |
$1,162 | USAA | Cumberland Mutual | |
$1,358 | Allstate | Narragansett Bay | |
$1,696 | USAA | USAA | |
$2,418 | USAA | State Auto | |
$2,242 | USAA | State Auto | |
$3,027 | USAA | Farmers | |
$923 | USAA | American Family | |
$900 | USAA | Auto-Owners Insurance | |
$1,329 | Auto-Owners Insurance | Cincinnati Insurance | |
$1,216 | USAA | Allstate | |
$1,464 | USAA | USAA | |
$1,177 | USAA | West Bend Mutual | |
$1,599 | USAA | USAA |
Learn more >> Home insurance rates by ZIP code
Best insurance companies for home and auto in 2023
Most major insurance providers offer significant savings when you bundle your home and auto insurance or purchase multiple types of insurance. On average, customers can save anywhere from 5% to 30% on home insurance premiums alone, according to our analysis of Quadrant Information Services bundling data.
Here are the best insurance companies for home and auto bundles, according to our 2023 analysis.
Company | Policygenius bundling rating | Average bundling rate for home & auto | Average savings |
Auto-Owners Insurance | 4.9 out of 5 | $2,405 | 12% |
USAA | 4.7 out of 5 | $2,434 | 6% |
State Farm | 4.7 out of 5 | $2,341 | 26% |
Erie | 4.5 out of 5 | $2,142 | 18% |
Farmers | 4.0 out of 5 | $3,450 | 18% |
Learn more >> The best home and auto insurance bundles of 2023
Best home insurance buyers guide
While purchasing homeowners insurance may seem overwhelming, comparing home insurance companies is a great way to ensure you’re selecting a company and policy that suits your needs.
In this section, we break down what homeowners insurance is, how much it costs, how to choose the best home insurance for you, and the highest rated and cheapest homeowners insurance companies in each state.
Scroll down or click on the links to jump further down the page.
How much does homeowners insurance cost?
Homeowners insurance costs an average of $1,754 per year, according to our analysis of home insurance rates provided by Quadrant Information Services.
Of the country's 15 largest insurers, Erie offers the best rates on homeowners insurance at $1,284 per year, according to our analysis of sample quotes in every state and ZIP code for a home with $300,000 in dwelling coverage.
If Erie home insurance isn't available where you live, consider the other affordable and top-rated companies below, including Narragansett Bay, Auto-Owners Insurance, USAA, and Homesite.
Company | Average annual cost |
|---|---|
Erie | $1,284 |
$1,373 | |
Auto-Owners Insurance | $1,406 |
USAA | $1,479 |
$1,487 | |
Travelers | $1,568 |
$1,633 | |
Allstate | $1,650 |
American Family | $1,692 |
Chubb | $1,706 |
$1,756 | |
Farmers | $1,845 |
AAA | $1,879 |
State Farm | $1,887 |
Nationwide | $1,966 |
Based on 2022 sample homeowners insurance quotes from Quadrant Information Services for a home with $300,000 in dwelling coverage and a $1,000 deductible.
Learn more >> The 10 cheapest home insurance companies in the U.S.
How to choose the best homeowners insurance
Not all home insurance companies are created equal. Follow these steps to compare your options and find a policy that’s a perfect fit for your coverage needs at the best home insurance rates.
1. Determine your coverage needs
Standard home insurance policies cover the structure of your home and detached structures, temporary living expenses after a disaster, and medical and legal expenses if you’re held liable for an injury on your property.
Your dwelling coverage amount should be equal to your home’s replacement cost, or the cost to rebuild after a total loss. This amount is determined by factors such as your home’s square footage and local construction costs — not the home’s market value or remaining mortgage amount.
You’ll also want to factor in any high-value belongings that you own — such as a jewelry collection, rare artwork, or expensive electronics — when setting your personal property coverage amounts. Depending on the quantity or value of the belongings you own, you may want to consider replacement cost personal property coverage or a personal articles floater for your policy.
Learn more >> How much home insurance do I need?
2. Compare home insurance quotes from a few companies
You know what you care about in a company and how much coverage you need. Now it’s time to shop around. We recommend comparing quotes from at least three different companies to help you find the cheapest policy you qualify for.
Our homeowners insurance experts at Policygenius can do all of the work for you — you simply need to enter some basic information about yourself and your home to get online quotes in just minutes.
When comparing costs, keep in mind that the average homeowner spends roughly $1,899 per year on homeowners insurance. But how much you pay will vary, as no two houses and homeowners are exactly the same.
You’ll also want to keep in mind that your quoted premium is just an estimate and might change after your home is inspected, your credit is checked, and discounts are applied to your policy.
3. Research financial strength and customer satisfaction ratings
Once you have your quotes, check the customer service and complaints ratings for each company.
You can do this by reading our detailed reviews of popular home insurance companies. In these, you’ll find each company’s J.D. Power rating, which is based on feedback from customer satisfaction surveys of over 10,000 homeowners and renters annually. [2]
4. Check for home insurance discounts
Dig into what discounts are available through each of the companies you received quotes from to maximize your savings.
You might be able to score a discount for bundling your home and auto policies, buying a new home, going years with no claims, paying your premiums in full for the year, installing safety devices through your home, and more.
No one company offers all of the same discount opportunities, so do your research to find the one that helps you score the best homeowners insurance rates for your coverage needs.
What is homeowners insurance?
Homeowners insurance is a financial safety net for your home, protecting your home and belongings from covered losses such as a fire or theft. It also shields your assets from expensive litigation in the event someone is injured on your property and you're ruled legally responsible.
Without homeowners insurance, if your house is damaged by a covered peril or you’re liable for someone’s legal or medical expenses, you’ll be left covering these costs out of pocket. For that reason, we recommend purchasing enough homeowners insurance to cover the full replacement cost of the home; and enough liability protection to cover the total value of your assets.
Learn more >> How does homeowners insurance work?
What does homeowners insurance cover?
A standard homeowners insurance policy includes six coverages:
Dwelling coverage: Pays to repair or rebuild your home and attached structures — like an attached garage — if it’s damaged by a covered peril, like a burst pipe.
Other structures coverage: Pays to repair or rebuild other structures on your property — like a shed or detached garage — if they’re damaged by a covered peril.
Personal property coverage: Pays to repair or replace your belongings if they’re stolen or damaged by a covered peril.
Loss of use coverage: Pays for additional living expenses — like hotel stays, restaurant meals, and gas — if you need to temporarily live elsewhere while your home is being repaired.
Personal liability coverage: Pays for someone else’s medical expenses or property damages if you’re legally responsible — like if your dog attacks a guest. Also pays for your legal fees if the injured party takes you to court over the matter.
Medical payments coverage: Pays for more minor medical expenses if a guest is injured at your home — like an ambulance ride or an X-ray — regardless of who’s at fault.
What does homeowners insurance not cover?
There are certain types of loss excluded from home insurance coverage. You may be able to add additional coverages, called home insurance endorsements, to your policy for a fee to cover these excluded types of loss. Or you may have the option of purchasing a separate insurance policy, like flood insurance.
Here are some common home insurance exclusions:
Flooding: Home insurance never covers damage caused by flooding, but some insurers may offer endorsements that you can add to your policy. You can also buy a separate flood insurance policy through the National Flood Insurance Program, a FEMA-backed organization, or on the private marketplace.
Earthquakes: Homeowners insurance excludes coverage for earthquakes. If you live in an area that is at risk for quake damage, consider adding earthquake protection to your homeowners policy or purchasing separate earthquake insurance.
Maintenance issues: Homeowners insurance is designed to cover sudden, accidental damage. If your roof is damaged due to maintenance issues like general wear and tear or gradual damage over time, you won’t be covered.
Pest damage: Pest infestations take time to occur, so home insurance typically doesn't cover bed bugs or termites infesting your home.
Sump pump and water backups: Home insurance excludes coverage for damage caused by drainage, sump pump, and water backups. However, most major insurers offer water backup coverage that you can add to your policy for an additional fee.
Learn more >> What home insurance covers — and what it doesn’t
What are the main types of homeowners insurance?
There are up to eight different kinds of homeowners insurance for various property types and coverage needs. But in most cases, if you own your home and you live there most of the year, you'll need one of the following policy types.
HO-3 – Special Form: An HO-3 policy is the most common form of homeowners insurance. It’s designed for standard homes and contains all of the coverages described above: dwelling, other structures, personal property, loss of use, personal liability, and medical expenses coverages.
HO-5 – Comprehensive Form: An HO-5 comprehensive form policy is just what it sounds like — it offers the most complete protection for single-family homes. An HO-5 is nearly identical to the HO-3, but with more comprehensive coverage for personal belongings.
HO-6 – Unit Owners Form: Also known as condo insurance, HO-6 policies are designed for people who own a condominium or live in a co-op. The amount of condo insurance you need will depend on your condo association’s HOA insurance.
Learn more >> 8 different types of homeowners insurance
Best home insurance coverages for natural disasters & inflation
Home construction costs are continuing to go up due to high inflation, ongoing labor shortages, and more destructive natural disasters.
Your homeowners insurance policy limits should be based on the home's replacement cost in case it's destroyed, so it's more important than ever to ensure your coverage amounts are keeping pace with these rising costs. [3] [4] Fortunately, many homeowners insurance providers offer optional coverages that you can add to your policy to protect against inflation and natural disaster-driven rebuild cost increases.
However, according to the 2023 Policygenius Home Insurance & Inflation Shopping Survey, many homeowners may be without this additional safety net — potentially putting their home and finances at risk.
More than half of homeowners (56%) said that they didn't review their policy in the last year to see how much coverage they had. And even fewer said that they had added valuable coverages to their policy to offset higher rebuild costs due to inflation and natural disasters.
When looking for homeowners insurance, consider a company that offers some or all of the following coverages. These are all especially valuable if you live in an area at high risk of hurricanes, wildfires, tornadoes, or other disasters.
Extended replacement cost: Extends your dwelling coverage limit an additional percentage (like 25% or 50%) in case your home is destroyed and the cost to rebuild exceeds the amount your home is insured for.
Guaranteed replacement cost: Pays the full cost to replace or rebuild your home in case it's badly damaged or destroyed — regardless of your policy limits.
Personal property replacement cost: Pays to replace your personal belongings with new items at today's prices.
Inflation guard: Automatically adjusts your coverage each year to compensate for increases in construction and labor costs in your area due to inflation.
Ordinance or law: Covers the increased cost of rebuilding your home to comply with local building codes or ordinances.
Learn more >> How to calculate the cost of home insurance
Best home insurance discounts
Most homeowners insurance companies will discount your premiums if you take steps to make your home safer or if you go a certain number of years without filing a claim.
So whether your homeowners insurance rate skyrocketed recently or you’re interested in taking proactive steps to keep costs down, make sure to ask your insurance agent about these widely available discounts.
Multi-policy: If you bundle your home and auto insurance — or another insurance policy offered by the company.
Claims-free: If you go a certain number of years without filing a claim, your insurance company may reward you with a generous discount. If you haven’t filed a claim in over five years and you don’t see this discount on your policy’s declarations page, be sure to contact your insurance company to let them know.
Loyalty: If you’ve insured your home with the same insurer for at least two consecutive years. Typically, the more time you’ve spent with the same company, the more you’ll save.
Protective devices: If you have burglar alarms, fire alarms, fire sprinklers, or other safety or security devices installed in your home.
New or remodeled home: If your home is a new build or recently underwent renovations.
Paid-in-full: If you pay your premiums for the year up front.
Advance purchase: If you purchase your home insurance policy a certain number of days before it goes into effect.
Paperless: If you sign up to receive your policy and documents electronically.
How to file a home insurance claim
Follow these steps to speed up the home insurance claims process.
Survey the damage and file a police report if needed. If your home was broken into or vandalized, you’ll need to file a police report in order to file a claim.
Contact your insurance company right away. You can do this via phone, email, online, or through a mobile app depending on your home insurance company.
Document the damage. It’s a good idea to take photos of the damage and even videos to provide proof when you file your claim.
Make temporary repairs. If your home is water damaged, for example, find the source to prevent further damage to your things.
Meet with the insurance adjuster and consider hiring a contractor. Once you file a claim, your insurance company will likely send out an adjuster to survey the damage and come up with an estimate of repair costs. You can also hire your own licensed contractor if you’d like a second opinion or think the insurance adjuster’s estimate is too low.
Receive a claim payout for repairs or to buy new things. Once your claim is submitted and approved, your insurance company will send a claim payment to you or your contractor to make repairs or replace damaged items.
How your home insurance claim is paid
The amount your homeowners insurance company reimburses you after a claim will depend on whether you have actual cash value or replacement cost coverage.
Actual cash value home insurance policies reimburse you for the depreciated value of your stolen or damaged property. That means if your 5-year-old TV is stolen, you'll be reimbursed for the value of a new TV minus five years of wear and tear or depreciation.
Replacement cost value home insurance policies reimburse you for the value of whatever was damaged or stolen without deducting for depreciation. That means if that same TV was stolen and you had a replacement cost policy, your claim payment would be the value of a new TV.
Learn more >> Actual cash value vs. replacement cost home insurance
Top-rated homeowners insurance recap
Company | Policygenius rating | Best for |
|---|---|---|
5.0 out of 5 | Overall | |
4.9 out of 5 | Military families | |
4.8 out of 5 | Widely available coverage | |
4.6 out of 5 | Customer service | |
4.6 out of 5 | High-value homes | |
4.5 out of 5 | Lapse in coverage | |
4.5 out of 5 | Customizable policy options | |
4.5 out of 5 | Comprehensive dwelling coverage | |
4.5 out of 5 | Discounts and policy perks | |
4.5 out of 5 | Easy claims filing | |
4.4 out of 5 | Bad credit | |
4.4 out of 5 | Airbnbs | |
4.3 out of 5 | New homeowners | |
4.3 out of 5 | Smart home insurance | |
4.2 out of 5 | High-risk homes | |
Neptune | Not rated | Private flood insurance |
Frequently asked questions
Do I need homeowners insurance?
While homeowners insurance isn't required by law, most mortgage lenders will require you to purchase a policy before extending you a home loan. But even if your lender doesn't have strict insurance requirements or your house is fully paid off, you'll want to keep your home insured anyway. Homeowners insurance covers everything from house fires to break-ins to burst pipes, giving you both peace of mind and a financial security blanket against losses both large and small. If your house is unexpectedly damaged and you don't have homeowners insurance, you'll be left paying for it out of your own pocket.
Which home insurance company has the highest customer satisfaction?
USAA and Amica have the highest customer satisfaction ratings of any home insurance company in our analysis. Amica was the highest ranked company in J.D. Power's 2021 customer satisfaction study. But Amica isn't just a one-hit wonder — in fact, this was the 19th time in the last 20 years that Amica has placed first in customer satisfaction.
To add to its accolades, Amica also placed first in J.D. Power's 2022 property claims satisfaction study, earning the top spot for claims handling for the 10th time in 11 years. While USAA had the highest overall score in both studies, it isn't officially eligible for a ranking since it doesn't meet the study's criteria.
Which company has the cheapest homeowners insurance?
Erie has the cheapest homeowners insurance of any company in our analysis thanks to its $1,284 average annual premium. However, the cheapest company for you will depend on factors like your deductible, coverage amount, add-ons, discounts you qualify for, and more.
Which insurance company is best for high-value homes?
Openly tops our list of the best homeowners insurance companies for high-value homes thanks to their robust coverage packages that offer extra protection for high-value homes with expensive property.
Who has the best homeowners insurance?
The best overall homeowners insurance company is Auto-Owners Insurance, according to Policygenius' analysis. However, the company that’s best for you will depend on your specific situation and coverage needs.
Who is the best insurance company for home and auto?
Policygenius rated Auto-Owners Insurance as the best insurer for home and auto bundles thanks to its low rates, slew of home and auto insurance discounts, and top-rated customer service. The average shopper saves around 12% on their home and auto insurance cost when they bundle their policies with Auto-Owners.
Policygenius prides itself on providing transparent, unbiased reviews of home insurance companies. Though we make money when you purchase a policy through our site, this does not affect our editorial independence and rigorous editorial standards.
