Best homeowners insurance companies of February 2023

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By

Pat HowardPat HowardManaging Editor & Licensed Home Insurance ExpertPat 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.

Edited by

Jennifer GimbelJennifer GimbelSenior Managing Editor & Home Insurance ExpertJennifer Gimbel is a senior managing editor and home insurance expert at Policygenius, where she oversees our homeowners insurance coverage. Previously, she was the managing editor at Finder.com and a content strategist at Babble.com.
Expert reviewedExpert reviewedThis article has been reviewed by a licensed Policygenius expert to ensure that sources, statistics, and claims meet our standard for accurate and unbiased advice.Learn more about oureditorial review process.

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Fabio Faschi, PLCS, SBCS, CLCSFabio Faschi, PLCS, SBCS, CLCSLicensed Property & Casualty Insurance ExpertFabio 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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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, here are our picks for the best home insurance companies in 2023.

Auto-Owners Insurance is our top pick for best homeowners insurance company of 2023, scoring 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 pick 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

Auto-Owners Insurance

Overall

$1,406

5.0 out of 5

USAA

Military families

$1,479

4.9 out of 5

State Farm

Widely available coverage

$1,887

4.8 out of 5

Amica

Customer service

$1,756

4.6 out of 5

Openly

High-value homes

$1,125

4.6 out of 5

Stillwater

Lapse in coverage

$1,589

4.5 out of 5

American Family

Customizable policy options

$1,692

4.5 out of 5

Erie

Comprehensive dwelling coverage

$1,284

4.5 out of 5

Farmers

Discounts and policy perks

$1,845

4.5 out of 5

Nationwide

Easy claims filing

$1,966

4.5 out of 5

Travelers

Bad credit

$1,568

4.4 out of 5

Allstate

Home sharing

$1,650

4.4 out of 5

AAA

New homeowners

$1,879

4.3 out of 5

Hippo

Smart home insurance

$1,138

4.3 out of 5

Foremost

High-risk homes

$2,484

4.2 out of 5

Neptune

Private flood insurance

$749

Not rated

Collapse table

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.

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Top 16 home insurance companies — explained

Continue reading for a brief but detailed breakdown of each insurer and find out why it may be the best homeowners insurance company for you. Plus, find runner-up picks for each category in case our first pick doesn't quite fit the bill for your unique needs.

Best overall company

Auto-Owners Insurance

Auto-Owners home insurance logo

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starFull orange star

5.0

AM Best rating 

A.M. Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A++

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

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. 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.

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.

Runner up: State Farm

Earning a near-perfect Policygenius rating, State Farm is our runner-up choice for the best company overall thanks to its nationwide availability, high marks on J.D. Power's customer satisfaction survey, and strong financial stability ratings.

Its robust coverage options include everything from extended replacement cost and home systems protection to flood, wildfire, and earthquake coverage for homeowners in areas at high risk of natural disasters. While its rates aren't the lowest in the industry, they're on par with the national average cost of home insurance in the U.S.

Best for military veterans

USAA

USAA logo

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.9

AM Best rating 

A.M. Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A++

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

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 and customer service.

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 every U.S. state and Washington D.C.

Runner up: Armed Forces Insurance

Founded in 1887, Armed Forces Insurance is only available to veterans, military members, and their families. It offers many of the same coverages and perks as USAA, including replacement cost coverage for your personal belongings, earthquake and flood insurance, water backup protection, and more.

It also has affordable rates — the average cost of home insurance with Armed Forces Insurance is $1,513 per year. This is 23% lower than the national average. Plus, you can save even more if you qualify for one of its many discounts, including if you live in a gated community or install burglar alarms and cameras in your home.

Learn more >> Best home insurance for veterans & military families in 2023

Best for widely available coverage

State Farm

State Farm logo

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.8

AM Best rating 

A.M. Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A++

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

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

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

  • 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

  • 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 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 homeowners in every corner of the country. If you're struggling to find coverage and you're in a bind, State Farm may be able to help.

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 $1,899 per year.

State availability

State Farm offers home insurance policies in all 50 states and Washington, D.C.

Runner up: Allstate

Allstate's high financial strength and customer satisfaction ratings, industry-best coverage options, and affordable rates make it a great pick for homeowners nationwide.

It offers policies in all 50 states and Washington, D.C., with average rates of $1,650 per year that are 13% cheaper than the national average. You also have the option to add on a slew of coverages for enhanced protection, including water backup, business property, and flood coverage.

Best customer service

Amica

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.6

AM Best rating 

A.M. Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A++

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

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

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. 

Runner up: American Family

American Family earns the second-highest score in J.D. Power's 2022 Home Insurance Study that measures customer satisfaction across everything from coverage options and cost to the billing process and ease of filing claims.

It stands out thanks to its customizable policy options (more on that below), affordable rates, and slew of discounts to help you save even more. We especially like its diminishing deductible feature, which takes $100 off your policy deductible each year you go without filing a claim. Unfortunately, American Family only offers policies in 19 states.

Best for high-value homes

Openly

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.6

AM Best rating 

A.M. Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A-

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

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 a long and extensive list of valuable coverage add-ons, including guaranteed replacement cost coverage for your home, scheduled personal property and blanket coverage for expensive belongings, earthquake protection, and loss assessment coverage with high limits if you live in an HOA community.

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.

Runner up: Chubb

Chubb earns our runner-up award for home insurance for high-value homes thanks to its robust policy add-ons, complimentary wildfire and hurricane mitigation services, and complimentary home inspections to detect potential issues lying dormant behind your home's walls and ceilings.

Read our full review of Chubb home insurance

Best for homes with a lapse in coverage

Stillwater

Stillwater Insurance logo

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.5

AM Best rating 

A.M. Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A-

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

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 insurers 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.

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.

Runner up: Travelers

Travelers is another home insurance company willing to work with homeowners who've had a lapse in coverage. It offers affordable rates that are 17% cheaper than the national average and has outstanding financial strength ratings with AM Best and S&P.

It also offers a dozen optional coverage add-ons, including everything from extended dwelling coverage to water backup protection to flood insurance through the National Flood Insurance Program (NFIP).

Learn more >> What happens when your home insurance lapses

Best for customizable policy options

American Family

American Family home insurance

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.5

AM Best rating 

A.M. Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

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.

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.

Runner up: Openly

Openly earns a perfect 5 out of 5 stars on our coverage options rating scale thanks to its slew of valuable policy offerings, 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.

This company is especially ideal for high-value homes looking for customizable coverage: It insures homes valued at up to $5 million.

Best for comprehensive dwelling coverage

Erie

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.5

AM Best rating 

A.M. Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A+

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

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 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.

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.

Runner up: AIG

AIG's base policy includes premier coverages you'd pay extra for with other companies, including: guaranteed replacement cost coverage for your home, replacement cost coverage for your personal belongings, water backup coverage, business property protection, and more. However, it only insures homes valued at over $750,000.

Read our full review of AIG home insurance

Best for discounts and policy perks

Farmers

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.5

AM Best rating 

A.M. Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

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 offers over a dozen discount opportunities and several policy perks, including a declining deductibles feature that trims $50 off your deductible each year you're a Farmers customer — making it the best company for those looking for long-term policy savings. 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.

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 $1,899 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.

Runner up: AAA

AAA is another home insurance company that offers a slew of discounts to shave money off your premiums, including savings for being a loyal AAA member, living in a renovated or smoke-free home, installing protective devices, and signing up for a qualifying payment plan.

And since home insurance with AAA requires a AAA membership, you'll also enjoy a ton of extra perks with your membership, including complimentary roadside assistance, identity theft protection reimbursement for home locksmith fees, and lots of discounts at restaurants and stores.

Best for hassle-free claims service

Nationwide

Nationwide logo

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.5

AM Best rating 

A.M. Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A+

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

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

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.

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 $1,899 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.

Runner up: Amica

Amica earns the top spot in J.D. Power's 2022 Property Claims Satisfaction Study that looks at customer experience across five key factors: settlement, claim servicing, first notice of loss, estimation process, and repair process.

You can file claims online, by phone, or through the live-chat feature on Amica's website. And it offers a Repair Assistance Program that can put you in touch with a pre-vetted contractor who's licensed, insured, and financially stable.

Amica will even work directly with the contractor to reach an agreed-upon price for repairs and oversee the whole process to help take the stress out of it for you.

Best for homeowners with bad credit

Travelers

Travelers home insurance logo

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.4

AM Best rating 

A.M. Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A++

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

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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 companies 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.

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.

Runner up: Hippo

Homeowners with bad credit who live in one of the 39 states Hippo works in might want to consider this tech-friendly insurer. Its average home insurance rates for homeowners with good credit versus poor credit only vary by around $400.

The national average cost of Hippo home insurance for policyholders with bad credit is $1,559 per year — this is still 20% cheaper than the national average for homeowners with good credit.

Plus, you can save even more if you qualify for one of Hippo's many insurance discounts, including those for smart homes, new homebuyers, and homeowners who live in an HOA.

Learn more >> How your credit score affects home insurance rates

Best for home sharing

Allstate

Allstate logo

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.4

AM Best rating 

A.M. Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A+

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

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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

  • Below-average digital experience rating with J.D. Power

More details

Why Allstate is our top pick for home sharing

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.  

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.

Runner up: State Auto

State Auto is another great choice for homeowners looking to add a home sharing endorsement to their home insurance policy for extra protection when they rent out their home.

You can add on coverage for your entire home if you rent it out for no more than six months of the year, though you can rent out individual rooms in your home for longer.

It includes protection for your home furnishings like your TV and furniture, your guests' belongings, theft from areas of your home that aren't being rented out like your garage or personal bedroom, and liability protection if a guest is injured on your property.

Read our full review of State Auto home insurance

Best for new homeowners

AAA

AAA logo

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.3

AM Best rating 

A.M. Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

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. 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 for your home, replacement cost 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.

Runner up: Progressive

Progressive earns our runner-up spot for the best home insurance for new homeowners thanks to the many discounts you might be able to qualify for as a new homeowner.

This includes discounts for being a new homebuyer, living in a gated community, purchasing a new construction build, installing qualifying smart home technology devices, and paying your policy in full up front every year.

Read our full review of Progressive home insurance

Best smart home insurance

Hippo

Hippo home insurance logo

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.3

AM Best rating 

A.M. Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A-

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

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 smart home insurance

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.

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.

Runner up: State Farm

In September 2022, State Farm announced a new partnership with ADT to explore new ways to use smart home technology in their insurance offerings in order to offer lower rates and help homeowners avoid claims.

It offers a discount to homeowners who have smart home security devices installed in their home that aim to decrease loss caused by water, fire, or theft. And every policyholder receives a complimentary Ting fire protection smart plug that monitors your home's electrical network and local utility grids for faults that could lead to house fires.

Best for high-risk homes

Foremost

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starEmpty gray star

4.2

AM Best rating 

A.M. Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

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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 many companies 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 slew 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.

Runner up: Allstate

Allstate earns a top spot on our list of the best high-risk home insurance companies thanks to its willingness to cover homes with a variety of high-risk features, including dangerous dog breeds, older homes, those that rent out their home on Airbnb or Vrbo, and homes with flat or wood roofs.

Learn more >> Best high-risk home insurance companies of 2023

Best private flood insurance company

Neptune

Neptune flood insurance logo

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starFull orange star

5.0

AM Best rating 

A.M. Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

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 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. 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.

Runner up: Wright

Wright earns the runner-up spot for the best private flood insurance company thanks to its affordable rates, high coverage limits, and waiting period that varies from as little as 0 days up to 30.

The average cost of flood insurance with Wright is $470 per year, making it the cheapest flood insurance company in our analysis. Depending on the insurer you're connected with, you may be able to get up to $1.25 million in building coverage and $875,000 in personal property coverage — higher than what's available through the NFIP.

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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.

Learn more >> Homeowners insurance company reviews

Best homeowners insurance rates

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

Narragansett Bay

$1,373

Auto-Owners Insurance

$1,406

USAA

$1,479

Homesite

$1,487

Travelers

$1,568

Safeco

$1,633

Allstate

$1,650

American Family

$1,692

Chubb

$1,706

Amica

$1,756

Farmers

$1,845

AAA

$1,879

State Farm

$1,887

Nationwide

$1,966

Collapse table

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.

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

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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 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 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 likely won’t cover you if termites or bed bugs infest 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

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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

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.  

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 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 home insurance rates provided by Quadrant Information Services.

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.

Best & cheapest homeowners insurance companies by state
StateAverage annual costHighest-rated insurerCheapest insurer
Alabama$1,982USAAUSAA
Alaska$1,398USAAWestern National
Arizona$1,762USAAArmed Forces Insurance
Arkansas$2,924USAAState Auto
California$1,436USAAAllstate
Colorado$2,472USAAState Auto
Connecticut$1,359USAAVermont Mutual
Delaware$928AllstateCumberland Mutual
District of Columbia$1,154USAAChubb
Florida$2,442State FarmSecurity First Insurance
Georgia$1,956USAACincinnati Insurance
Hawaii$486AllstateDB Insurance
Idaho$1,352USAAAmerican National
Illinois$1,775USAAAuto-Owners Insurance
Indiana$1,719USAAAllstate
Iowa$1,714USAAWest Bend Mutual
Kansas$3,094Auto-Owners InsuranceArmed Forces Insurance
Kentucky$2,622Auto-Owners InsuranceState Auto
Louisiana$2,507USAAArmed Forces Insurance
Maine$1,076Auto-Owners InsuranceVermont Mutual
Maryland$1,575USAABrethern Mutual
Massachusetts$1,285USAAQuincy Mutual
Michigan$1,550USAAAuto-Owners Insurance
Minnesota$1,937Auto-Owners InsuranceAuto-Owners Insurance
Mississippi$2,655USAAAllstate
Missouri$2,627USAAArmed Forces Insurance
Montana$2,213USAAChubb
Nebraska$3,741USAAAmerican Family
Nevada$1,209USAAUniversal Group
New Hampshire$967USAANGM Insurance
New Jersey$904USAACumberland Mutual
New Mexico$1,686State FarmFarmers
New York$1,139AllstateNYCM Insurance
North Carolina$1,580USAAKemper
North Dakota$1,890Auto-Owners InsuranceNorth Star Mutual
Ohio$1,297USAAWestfield Insurance
Oklahoma$4,230USAAAllstate
Oregon$905USAAMutual of Enumclaw Insurance
Pennsylvania$1,162USAACumberland Mutual
Rhode Island$1,358AllstateNarragansett Bay
South Carolina$1,696USAAUSAA
South Dakota$2,418USAAState Auto
Tennessee$2,242USAAState Auto
Texas$3,027USAAFarmers
Utah$923USAAAmerican Family
Vermont$900USAAAuto-Owners Insurance
Virginia$1,329Auto-Owners InsuranceCincinnati Insurance
Washington$1,216USAAAllstate
West Virginia$1,464USAAUSAA
Wisconsin$1,177USAAWest Bend Mutual
Wyoming$1,599USAAUSAA
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 and get the best home insurance rate 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.

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 three widely available discounts. 

  • Multi-policy: 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 to file a home insurance claim

Follow these steps to speed up the home insurance claims process

  1. 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. 

  2. 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.

  3. 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. 

  4. Make temporary repairs. If your home is water damaged, for example, find the source to prevent further damage to your things. 

  5. 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. 

  6. 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

Auto-Owners Insurance

5.0 out of 5

Overall

USAA

4.9 out of 5

Military families

State Farm

4.8 out of 5

Widely available coverage

Amica

4.6 out of 5

Customer service

Openly

4.6 out of 5

High-value homes

Stillwater

4.5 out of 5

Lapse in coverage

American Family

4.5 out of 5

Customizable policy options

Erie

4.5 out of 5

Comprehensive dwelling coverage

Farmers

4.5 out of 5

Discounts and policy perks

Nationwide

4.5 out of 5

Easy claims filing

Travelers

4.4 out of 5

Bad credit

Allstate

4.4 out of 5

Home sharing

AAA

4.3 out of 5

New homeowners

Hippo

4.3 out of 5

Smart home insurance

Foremost

4.2 out of 5

High-risk homes

Neptune

Not rated

Private flood insurance

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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?

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. 

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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

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.

Editor

Jennifer Gimbel is a senior managing editor and home insurance expert at Policygenius, where she oversees our homeowners insurance coverage. Previously, she was the managing editor at Finder.com and a content strategist at Babble.com.

Expert reviewer

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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