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Best homeowners insurance companies of September 2022

Allstate, Amica, Auto-Owners Insurance, and USAA earned the highest scores in Policygenius’ analysis of the best homeowners insurance companies for 2022.

Pat Howard 1600

By

Pat Howard

Pat Howard

Managing Editor & Licensed Home Insurance Expert

Pat Howard is a managing editor and licensed home insurance expert at Policygenius, where he specializes in homeowners insurance. His work and expertise has been featured in MarketWatch, Real Simple, Fox Business, VentureBeat, This Old House, Investopedia, Fatherly, Lifehacker, Better Homes & Garden, Property Casualty 360, and elsewhere.

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Expert reviewed

This article has been reviewed by a licensed Policygenius expert to ensure that sources, statistics, and claims meet our standard for accurate and unbiased advice.

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By

Fabio Faschi, PLCS, SBCS, CLCS

Fabio Faschi, PLCS, SBCS, CLCS

Licensed Property & Casualty Insurance Expert

Fabio Faschi is a licensed property and casualty insurance agent. His expertise on home and auto insurance has been featured on Forbes, Consumer Affairs, Realtor.com, Apartment Therapy, SFGATE, Bankrate, and Lifehacker.

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According to our study, Allstate and Auto-Owners Insurance offer the best homeowners insurance for most people. But our top overall picks may not necessarily be the best for every home or circumstance, so Policygenius curated a list of the best home insurance companies for a variety of coverage needs and scenarios.

How Policygenius chose the top companies & why you can trust our picks

At Policygenius, we work closely with customers all over the U.S. to help them find a homeowners insurance policy that suits their needs, so we understand what to look for and what to avoid in a homeowners insurance company.

Your home is likely your biggest investment and most expensive undertaking, so it’s important to protect it with a homeowners insurance company that offers a mix of affordable rates, financial stability, exceptional coverage, and reliable customer service. To ensure our top picks reflected these ideals, our team of licensed home insurance editors and operations specialists put together a carefully crafted methodology, being sure to weigh factors by order of importance.

After testing our methodology, we researched and analyzed over 30 large and small companies to come up with our list of the 10 best homeowners insurance companies of 2022. It was important for us that our top picks scored at or above average in each of our four main categories, so we made sure to exclude any company that scored lower than a 4 out of 5 from our final picks.

For a more detailed breakdown of the Policygenius scoring process and how we rated each company, check out our full methodology below.

Best homeowners insurance companies of 2022 — by the numbers

USAA, Allstate, Auto-Owners Insurance were the top three rated companies in our analysis, scoring at or near the top for each major category we looked at, including company affordability, financial stability, customer service reputation, and coverage quality. 

Company

Policygenius Rating

AM Best Rating

J.D. Power Rating

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USAA

4.7 out of 5

A++ (Superior)

882 out of 1,000

Auto-Owners Insurance

4.6 out of 5

A++ (Superior)

831 out of 1,000

Allstate

4.5 out of 5

A+ (Superior)

829 out of 1,000

Amica

4.4 out of 5

A+ (Superior)

854 out of 1,000

Hippo

4.4 out of 5

A- (Excellent)

Not rated

Erie

4.3 out of 5

A+ (Superior)

835 out of 1,000

State Farm

4.2 out of 5

A++ (Superior)

835 out of 1,000

Chubb

4.2 out of 5

A++ (Superior)

801 out of 1,000

Farmers

4.0 out of 5

A (Excellent)

813 out of 1,000

Nationwide

4.0 out of 5

A+ (Superior)

812 out of 1,000

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Allstate: Best company overall

Allstate

4.5

Policygenius rating

How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.

Allstate logo

Best company overall

Avg cost $300k dwelling

$1,650/year

Allstate is the best homeowners insurance company in our analysis thanks to its industry-best policy options and coverage add-ons, high financial strength and customer experience ratings, affordable rates, and nationwide availability.

Pros

  • Comprehensive and flexible policy options

  • Numerous discounts and additional ways to save

  • Excellent customer service and claims satisfaction ratings

Cons

  • Below-average digital experience rating

Allstate ratings

  • AM Best: A+ (Superior)

  • J.D. Power: 829/1,000 (Above average)

  • Customer complaints: Less than average

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More details about Allstate

Why Allstate is the best overall company

Allstate landed one of the highest scores in our analysis thanks to its relatively affordable rates, exceptional customer satisfaction and financial ratings, personalized coverage options, and several coverage perks. With tiered policy options ranging in price, potential customers can choose between the basic, standard, or enhanced coverage with many optional add-ons, including water backup and green improvements coverage.

Compare Allstate rates

CompanyAvg monthly costAvg annual cost
Hippo$95$1,138
Erie$107$1,284
Auto-Owners Insurance$117$1,406
USAA$123$1,479
Allstate$137$1,650
Chubb$142$1,706
Amica$146$1,756
Farmers$154$1,845
State Farm$157$1,887
Nationwide$164$1,966
Allstate discounts & availability

Discounts

  • Multi-policy
  • Responsible payment
  • Claim free
  • Loyalty
  • New homebuyer
  • Autopay
  • Protective device
  • Advanced quote

State availability

Allstate home insurance policies are available in all 50 states and the District of Columbia.

Auto-Owners Insurance: Best overall regional company

Auto-Owners Insurance

4.6

Policygenius rating

How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.

Auto-Owners Insurance logo

Best overall regional company

Avg cost $300k dwelling

$1,406/year

Auto-Owners Insurance is the second-highest rated company in our analysis, making it the best regional company for homeowners in the 25 states where it offers homeowners insurance policies.

Pros

  • One of the most affordable options for home insurance

  • Comprehensive and unique coverage add-ons

  • Up to 12 available discounts

Cons

  • Not able to file claims online

Auto-Owners Insurance ratings

  • AM Best: A++ (Superior)

  • J.D. Power: 831/1,000 (Above average)

  • Customer complaints: Less than average

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More details about Auto-Owners Insurance

Why Auto-Owners Insurance is the best overall regional company

Auto-Owners Insurance is our pick for best regional company in large part because it scored at least a 4 out of 5 in all but one of our major rating categories. Boasting some of the lowest home insurance rates in our analysis, Auto-Owners Insurance offers comprehensive policy options, several coverage perks, and multiple discount options to help further your savings.

Compare Auto-Owners Insurance rates

CompanyAvg monthly costAvg annual cost
Hippo$95$1,138
Erie$107$1,284
Auto-Owners Insurance$117$1,406
USAA$123$1,479
Allstate$137$1,650
Chubb$142$1,706
Amica$146$1,756
Farmers$154$1,845
State Farm$157$1,887
Nationwide$164$1,966
Auto-Owners Insurance discounts & availability

Discounts

  • Multi-policy
  • Responsible payment
  • Claim free
  • Loyalty
  • New homebuyer
  • Paperless billing
  • Protective device
  • Advanced quote
  • Automatic backup generator
  • Water shutoff system
  • Mortgage-free

State availability

Auto-Owners home insurance policies are available in the following 25 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, Wisconsin

Amica: Best for customer service

Amica

4.4

Policygenius rating

How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.

Amica logo

Best for customer service

Avg cost $300k dwelling

$1,756/year

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

  • Award-winning customer service and claims ratings with J.D. Power

  • Numerous policy perks, including a dividend and contractor referral program

  • Available everywhere except Hawaii and Alaska

Cons

  • Policy perks aren’t available nationwide

Amica ratings

  • AM Best: A+ (Superior)

  • J.D. Power: 854/1,000 (Above average)

  • Customer complaints: Less than average

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More details about Amica

Why Amica is the best company for customer service

Amica took home the top spot in J.D. Power’s 2021 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

While Amica can often be pricier than competitors, it may be worth the added expense when you consider the superior level of coverage and customer service you’re receiving.

Compare Amica rates

CompanyAvg monthly costAvg annual cost
Hippo$95$1,138
Erie$107$1,284
Auto-Owners Insurance$117$1,406
USAA$123$1,479
Allstate$137$1,650
Chubb$142$1,706
Amica$146$1,756
Farmers$154$1,845
State Farm$157$1,887
Nationwide$164$1,966
Amica discounts & availability

Discounts

  • Multi-policy
  • Claim free
  • Loyalty
  • Paperless billing
  • Autopay
  • Protective device
  • Home & systems monitoring
  • New or remodeled home

State availability

Amica home insurance policies are available in every state and the District of Columbia except Alaska and Hawaii.

Farmers: Best for home & auto insurance bundles

Farmers

4

Policygenius rating

How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.

Farmers logo

Best for home & auto insurance bundles

Avg cost $300k dwelling

$1,845/year

Along with saving around 20% when you bundle your home and car insurance with Famers, you also gain access to its extensive suite of discounts and unique policy credits and incentives that help put money back in your pocket.

Pros

  • Up to 32 potential discounts for both home and auto insurance policies

  • Low number of customer complaints

  • High claim satisfaction ratings

  • Covers a variety of home types in 42 states, including Florida and California

Cons

  • Below-average customer satisfaction and digital experience scores with J.D. Power

Farmers ratings

  • AM Best: A (Excellent)

  • J.D. Power: 813/1,000 (Below average)

  • Customer complaints: Less than average

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More details about Farmers

Why Farmers is the best company for bundling home & auto insurance

Farmers is our top pick for home & auto insurance bundling due to the significant savings and perks you can access. Depending on your state of residence, you can save up to 45% on your auto insurance, and up to 34% on home insurance when you bundle policies, according to Farmers.

Compare Farmers rates

CompanyAvg monthly costAvg annual cost
Hippo$95$1,138
Erie$107$1,284
Auto-Owners Insurance$117$1,406
USAA$123$1,479
Allstate$137$1,650
Chubb$142$1,706
Amica$146$1,756
Farmers$154$1,845
State Farm$157$1,887
Nationwide$164$1,966
Farmers discounts & availability

Discounts

  • Affinity
  • Multi-policy
  • UL-approved roofing
  • New home
  • Paperless billing
  • Protective device
  • Smart home
  • Green certifications
  • Claim free
  • Responsible payment
  • Claim free
  • Autopay
  • Rent to own

State availability

Farmers home insurance policies are available in the following 42 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 Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, Wisconsin, Wyoming

Erie: Best for guaranteed home replacement

Erie

4.3

Policygenius rating

How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.

Erie logo

Best for guaranteed home replacement

Avg cost $300k dwelling

$1,287/year

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, including guaranteed replacement cost and lost items coverage.

Pros

  • Base policy includes guaranteed replacement cost protection

  • Large number of coverage add-ons available

  • Cheap rates

  • Among the hightest rated companies in the industry for customer satisfaction

Cons

  • Only available in a handful of states

Erie ratings

  • AM Best: A+ (Superior)

  • J.D. Power: 835/1,000 (Above average)

  • Customer complaints: Less than average

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More details about Erie

Why Erie is the best company for guaranteed home replacement

Erie features the most comprehensive basic homeowners insurance policy of any company in our study, including guaranteed replacement cost coverage protection that covers any replacement amount in the event of a disaster. 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.

Compare Erie rates

CompanyAvg monthly costAvg annual cost
Hippo$95$1,138
Erie$107$1,284
Auto-Owners Insurance$117$1,406
USAA$123$1,479
Allstate$137$1,650
Chubb$142$1,706
Amica$146$1,756
Farmers$154$1,845
State Farm$157$1,887
Nationwide$164$1,966
Erie discounts & availability

Discounts

  • Multi-policy
  • Protective device
  • Advanced quote

State availability

Erie home insurance policies are available in the following 12 states and the District of Columbia:

Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Pennsylvania, Ohio, Tennessee, Virginia, West Virginia, Wisconsin

Hippo: Best for home security discounts

Hippo

4.4

Policygenius rating

How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.

Hippo logo

Best for home security discounts

Avg cost $300k dwelling

$1,138/year

Hippo's philosophy is simple: the best way to keep home insurance costs down is to prevent problems before they start. If you have a home security system or are interested in installing one, consider Hippo for its unique array of discounts and incentives.

Pros

  • Rates are the cheapest of the top companies in our analysis

  • Security monitoring & smart home device incentives and discounts

  • Base policies offer robust coverage and features

Cons

  • Not able to file claims online

Hippo ratings

  • AM Best: A- (Excellent)

  • J.D. Power: 813/1,000 (Below average)

  • Customer complaints: Less than average

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More details about Hippo

Why Hippo is the best company for home security discounts

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.

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.

Compare Hippo rates

CompanyAvg monthly costAvg annual cost
Hippo$95$1,138
Erie$107$1,284
Auto-Owners Insurance$117$1,406
USAA$123$1,479
Allstate$137$1,650
Chubb$142$1,706
Amica$146$1,756
Farmers$154$1,845
State Farm$157$1,887
Nationwide$164$1,966
Hippo discounts & availability

Discounts

  • Smart home
  • Claim free
  • New homebuyer
  • Protective device
  • Affinity
  • Roofing
  • HOA
  • Companion policy

State availability

Hippo homeowners insurance is available in the following 39 states and the District of Columbia:

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, Wisconsin

Chubb: Best for expensive homes

Chubb

4.2

Policygenius rating

How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.

Chubb logo

Best for expensive homes

Avg cost $300k dwelling

$1,706/month

Those with homes valued at more than $1 million should look no further than Chubb — our top rated high-net worth home insurance provider.

Pros

  • Base policies include extended replacement cost coverage for your home

  • No deductible on losses greater than $50,000

  • Cash-out claim settlement options after a loss

Cons

  • Will typically only insure homes valued at more than $1 million

  • Below-average customer satisfaction rating with J.D. Power

Chubb ratings

  • AM Best: A++ (Superior)

  • J.D. Power: 801/1,000 (Below average)

  • Customer complaints: Less than average

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More details about Chubb

Why Chubb is the best company for expensive homes

Chubb is best for high-net worth homeowners with other property insurance needs. A base policy with Chubb includes enhanced coverage for both your home and your personal property, and you don’t need to pay a deductible on property damage greater than $50,000. That means if your home is leveled in a storm or destroyed by a fire, you will not be financially responsible for any of the repair or rebuild costs.

Compare Chubb rates

CompanyAvg monthly costAvg annual cost
Hippo$95$1,138
Erie$107$1,284
Auto-Owners Insurance$117$1,406
USAA$123$1,479
Allstate$137$1,650
Chubb$142$1,706
Amica$146$1,756
Farmers$154$1,845
State Farm$157$1,887
Nationwide$164$1,966
Chubb discounts & availability

Discounts

  • Multi-policy
  • Claim free
  • New or renovated home
  • Mortgage-free
  • Protective device
  • Automatic backup generator
  • Gated community

State availability

Chubb home insurance policies are available in all 50 states and the District of Columbia.

State Farm: Best for high-risk homes

State Farm

4.2

Policygenius rating

How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.

State Farm logo

Best for high-risk homes

Avg cost $300k dwelling

$1,887/year

At a time when several major insurance companies 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 those who need it most.

Pros

  • Covers homes in all 50 states, including Florida and California

  • Excellent digital website, mobile app, and educational resources for homeowners

  • High financial strength and customer service ratings

Cons

  • Limited discount options

  • Among the most expensive rates of our top companies

State Farm ratings

  • AM Best: A++ (Superior)

  • J.D. Power: 835/1,000 (Above average)

  • Customer complaints: More than average

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More details about State Farm

Why State Farm is the best company for high-risk homes

State Farm is a highly-rated and nationally recognized company known for flexible underwriting, or willingness to cover a variety of home types and risks. If you're struggling to find coverage and you're in a bind, State Farm may be able to help.

Compare State Farm rates

CompanyAvg monthly costAvg annual cost
Hippo$95$1,138
Erie$107$1,284
Auto-Owners Insurance$117$1,406
USAA$123$1,479
Allstate$137$1,650
Chubb$142$1,706
Amica$146$1,756
Farmers$154$1,845
State Farm$157$1,887
Nationwide$164$1,966
State Farm discounts & availability

Discounts

  • Multi-policy
  • Protective device
  • Roofing
  • Higher deductible

State availability

State Farm home insurance policies are available in all 50 states and the District of Columbia.

Nationwide: Best for easy claims filing

Nationwide

4

Policygenius rating

How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.

Nationwide logo

Best for easy claims filing

Avg cost $300k dwelling

$1,966/year

Along with offering flexible home insurance coverage for every home type and income level, Nationwide also delivers when it comes time to pay out claims.

Pros

  • Excellent claims satisfaction ratings with J.D. Power

  • Low number of customer complaints

  • 24/7 support via the Nationwide mobile app

  • Up to 9 available discounts

Cons

  • Below average digital experience ratings

Nationwide ratings

  • AM Best: A+ (Superior)

  • J.D. Power: 812/1,000 (Below average)

  • Customer complaints: Less than average

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More details about Nationwide

Why Nationwide is the best company for easy claims filing

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

Nationwide's home insurance claim process is 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.

Compare Nationwide rates

CompanyAvg monthly costAvg annual cost
Hippo$95$1,138
Erie$107$1,284
Auto-Owners Insurance$117$1,406
USAA$123$1,479
Allstate$137$1,650
Chubb$142$1,706
Amica$146$1,756
Farmers$154$1,845
State Farm$157$1,887
Nationwide$164$1,966
Nationwide discounts & availability

Discounts

  • Multi-policy
  • New home
  • Prior insurance
  • Gated community
  • Protective device
  • Smart home
  • Home renovation
  • Roofing

State availability

Nationwide home insurance policies are available in the following 43 states and the District of Columbia:

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, Wyoming

USAA: Best for military veterans

USAA

4.7

Policygenius rating

How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.

USAA  logo

Best for military veterans

Avg cost $300k dwelling

$1,479/year

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

  • Several discounts and perks for members of the armed forces

  • Comprehensive base policy

  • Industry-best customer service and claims satisfaction ratings

Cons

  • Only available to military families

  • Doesn’t offer extended dwelling coverage options

USAA ratings

  • AM Best: A++ (Superior)

  • J.D. Power: 882/1,000 (Above average)

  • Customer complaints: Less than average

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More details about USAA

Why USAA is the best company for veterans of the military

USAA stands out for offering coverage solely to current members of the military, veterans, and their families. It’s consistently rated at the top of its class for claims satisfaction and customer service. Another perk? If your uniform is damaged or stolen and you’re on active duty or deployed, USAA will cover the cost without you having to pay a deductible.

Compare USAA rates

CompanyAvg monthly costAvg annual cost
Hippo$95$1,138
Erie$107$1,284
Auto-Owners Insurance$117$1,406
USAA$123$1,479
Allstate$137$1,650
Chubb$142$1,706
Amica$146$1,756
Farmers$154$1,845
State Farm$157$1,887
Nationwide$164$1,966
USAA discounts & availability

Discounts

  • Multi-policy
  • Protective device
  • Claim free
  • Higher deductible

State availability

USAA home insurance policies are available in all 50 states and the District of Columbia.

Still not sure which company is right for you? Let Policygenius do the work for you. Our team of homeowners insurance experts will compare policies and let you know which company offers you the most bang for your buck.

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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.

What is homeowners insurance?

Homeowners insurance works as 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.

What does homeowners insurance cover?

A standard homeowners insurance policy includes six coverages:

Dwelling coverage

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

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

Personal property coverage pays to repair or replace your belongings if they’re stolen or damaged by a covered peril.

Loss of use coverage

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

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

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.

→ Learn more about what homeowners insurance covers

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. 

How to find the best homeowners insurance company for you

  1. Determine your coverage needs

  2. Compare home insurance quotes from a few companies

  3. Research companies’ financial & customer satisfaction ratings

  4. Check for home insurance discounts

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.  

Knowing what types of coverage you’ll need can help you weed out insurers that don’t fit the bill.

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 companies’ financial & 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. [1]

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.

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How much does homeowners insurance cost?

Homeowners insurance costs an average of $1,899 per year, according to our analysis of 2022 home insurance rates provided by Quadrant Information Services. That said, rates vary greatly by state, city, and ZIP code. How much your homeowners insurance costs depends on a variety of factors, including:

  • The age and build of your home

  • Your roof's condition

  • Your credit score

  • Your loss history

  • How much coverage you purchase

→ Learn how to estimate your homeowners insurance costs

Home

Home insurance rates are up nationwide, but Policygenius can help you save

Home insurance premiums are up 12.1% compared to a year ago, according to the Policygenius Home Insurance Pricing Report. And homeowners in Arkansas, Washington, Colorado, and Texas have seen rates increase at more than double the rate of inflation.

That’s why now, more than ever, it pays to compare home insurance quotes from at least 3 companies to ensure you’re getting the best possible coverage at the lowest possible price.

Policygenius can help you do this. From sending you multiple quotes to handling all of the paperwork for you, we can help you save on home insurance when everyone else is paying more. And the proof is in the numbers: Our customers save an average of 30% on their homeowners insurance when shopping through us.

Did your rates go up? Ask about 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. 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 three widely available discounts. 

  • Home & auto bundle: Most major and regional homeowners insurance providers offer multi-policy discounts if you combine your home and auto insurance into a single policy package, or bundle. 

  • 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 provider to let them know.

  • Protective devices: Your insurance company will also reward you with savings if you take steps to protect your home against everything from burglary to extreme weather. Consider installing a security system or weather-proof features like storm shutters to save on coverage.

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 about actual cash value vs. replacement cost

Find the best homeowners insurance in your state

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 2022, 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 rate

Highest-rated company

Cheapest company

Alabama

$1,982

USAA

USAA

Alaska

$1,398

USAA

Western National

Arizona

$1,762

USAA

Armed Forces Insurance

Arkansas

$2,924

USAA

State Auto

California

$1,436

USAA

Allstate

Colorado

$2,472

USAA

State Auto

Connecticut

$1,359

USAA

Vermont Mutual

Delaware

$928

Allstate

Cumberland Mutual

District of Columbia

$1,154

USAA

Chubb

Florida

$2,442

State Farm

Security First Insurance

Georgia

$1,956

USAA

Cincinnati Insurance

Hawaii

$486

Allstate

DB Insurance

Idaho

$1,352

USAA

American National

Illinois

$1,775

USAA

Auto-Owners Insurance

Indiana

$1,719

USAA

Allstate

Iowa

$1,714

USAA

West Bend Mutual

Kansas

$3,094

Auto-Owners Insurance

Armed Forces Insurance

Kentucky

$2,622

Auto-Owners Insurance

State Auto

Louisiana

$2,507

USAA

Armed Forces Insurance

Maine

$1,076

Auto-Owners Insurance

Vermont Mutual

Maryland

$1,575

USAA

Brethren Mutual

Massachusetts

$1,285

USAA

Quincy Mutual

Michigan

$1,550

USAA

Auto-Owners Insurance

Minnesota

$1,937

Auto-Owners Insurance

Auto-Owners Insurance

Mississippi

$2,655

USAA

Allstate

Missouri

$2,627

USAA

Armed Forces Insurance

Montana

$2,213

USAA

Chubb

Nebraska

$3,741

USAA

American Family

Nevada

$1,209

USAA

Universal Group

New Hampshire

$967

USAA

NGM Insurance

New Jersey

$904

USAA

Cumberland Mutual

New Mexico

$1,686

State Farm

Farmers

New York

$1,139

Allstate

NYCM Insurance

North Carolina

$1,580

USAA

Kemper

North Dakota

$1,890

Auto-Owners Insurance

North Star Mutual

Ohio

$1,297

USAA

Westfield Insurance

Oklahoma

$4,230

USAA

Allstate

Oregon

$905

USAA

Mutual of Enumclaw Insurance

Pennsylvania

$1,162

USAA

Cumberland Mutual

Rhode Island

$1,358

Allstate

Narragansett Bay

South Carolina

$1,696

USAA

USAA

South Dakota

$2,418

USAA

State Auto

Tennessee

$2,242

USAA

State Auto

Texas

$3,027

USAA

Farmers

Utah

$923

USAA

American Family

Vermont

$900

USAA

Auto-Owners Insurance

Virginia

$1,329

Auto-Owners Insurance

Cincinnati Insurance

Washington

$1,216

USAA

Allstate

West Virginia

$1,464

USAA

USAA

Wisconsin

$1,177

USAA

West Bend Mutual

Wyoming

$1,599

USAA

USAA

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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?

Hippo has the cheapest homeowners insurance of any company in our analysis thanks to its $1,138 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?

Chubb and AIG top 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.

Methodology: How we evaluated the best homeowners insurance companies

At Policygenius, our educational guides are written and fact-checked by licensed home insurance experts and reviewed by our Financial Review Council to ensure autonomy, expertise, and accuracy.

To find the best home insurance companies in the U.S., we researched, analyzed, and rated companies across different ratings and metrics, including average annual premiums, AM  Best ratings, J.D. Power customer satisfaction and claims ratings, NAIC customer complaint numbers, and more. 

We converted each metric to a standardized amount (or z-score) to ensure we were rating the companies against each other and not some arbitrary baseline. This also made it possible to accurately combine rating metrics with different scales — such as the J.D. Power rating and NAIC index score — to come up with an overall rating for the larger customer experience category.

We rated over 30 companies in the following areas, weighted differently based on order of importance to customers in 2022.

Cost (35%)

  • Average annual premium (80%): We calculated each company’s average annual premium for a 40-year-old female homeowner with no claim history, good credit, a $1,000 deductible, and the following coverage limits:

    • Dwelling: $300,000

    • Other structures: $30,000

    • Personal property: $150,000

    • Loss of use: $60,000

    • Liability: $300,000

    • Medical: $1,000

  • Each company’s average annual premium is a national average, and amounts can often vary drastically from state to state. To ensure we were reporting the national average accurately, we created a weighted average based on companies’ market share presence from state to state.

  • Discounts (20%): Number of discounts offered by each company.

Financial confidence (25%)

  • AM Best rating (50%): We scored each company based on their rating with AM Best — the insurance industry’s leading credit rating agency.

  • S&P rating (25%): The S&P rates insurance companies’ long-term ability to pay out claims.

  • Moody’s rating (25%): Moody’s rates insurance companies’ ability to repay short and long-term debts.

Customer experience (20%)

  • J.D. Power customer satisfaction score (35%): Rates companies based on customer interaction, policy offerings, price, billing process and policy information, and claims.

  • J.D Power claims satisfaction score (35%): Rates companies based on claim settlement, claim servicing, final notice of loss, estimation process, and repair process.

  • J.D. Power digital experience score (15%): Rates companies based on desktop and mobile web experience by looking at the following factors: ease of navigation, speed, visual appeal, information, and content.

  • NAIC Customer Complaint Index (15%): Scores whether or not the company receives more or less complaints than the average company.

Coverage (20%)

  • The number and quality of coverage add-ons, tiers of coverage, and policy perks offered by each company

Once we determined each company’s Policygenius score, our team of insurance experts analyzed the list to choose the best overall option, best regional option, best for customer service, and more.


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. 

References

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Policygenius uses external sources, including government data, industry studies, and reputable news organizations to supplement proprietary marketplace data and internal expertise. Learn more about how we use and vet external sources as part of our

editorial standards.
  1. J.D. Power

    . "

    Home Insurers Struggle with Customer Loyalty as Boomers Flock to Rental Market, J.D. Power Finds

    ." Accessed January 28, 2022.

Author

Managing Editor & Licensed Home Insurance Expert

Pat Howard

Managing Editor & Licensed Home Insurance Expert

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Pat Howard is a managing editor and licensed home insurance expert at Policygenius, where he specializes in homeowners insurance. His work and expertise has been featured in MarketWatch, Real Simple, Fox Business, VentureBeat, This Old House, Investopedia, Fatherly, Lifehacker, Better Homes & Garden, Property Casualty 360, and elsewhere.

Expert reviewer

Licensed Property & Casualty Insurance Expert

Fabio Faschi, PLCS, SBCS, CLCS

Licensed Property & Casualty Insurance Expert

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Fabio Faschi is a licensed property and casualty insurance agent. His expertise on home and auto insurance has been featured on Forbes, Consumer Affairs, Realtor.com, Apartment Therapy, SFGATE, Bankrate, and Lifehacker.

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