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Best homeowners insurance companies
We look at J.D. Power, A.M. Best, and Consumer Reports ratings to determine the best homeowners insurance companies around.
Every standard homeowners insurance policy has the same basic coverage, but some companies provide more comprehensive coverage and additional protection at a better value than others.
When you're shopping for homeowners insurance, you'll want to find an insurer that strikes a balance between affordable rates and quality coverage. It’s a good idea to look into companies’ financial ratings, customer service and claims satisfaction ratings, policy discounts, and additional coverage options.
IN THIS ARTICLE
It’s no wonder that in 2019, Amica took home the top spot in J.D. Power’s Home Insurance Study for the 18th year in a row. Amica scored a perfect 5 out of 5 in four key categories: coverage options, clarity and accuracy of the billing process, customer interactions, and the claims experience.
Amica certainly charges more for homeowners insurance than its competitors, but it may be worth the added expense when you consider the superior level of coverage and customer service you’re receiving. When changing and renewing your policy or filing a claim with Amica, you can be sure it’ll be pain-free, mark it down.
|- Best-in-class claims handling and customer satisfaction ratings||- Certain types of additional coverage offerings and perks (like dividend policy payments) aren’t available in some states|
|- Outstanding perks, including a dividend program and network of contractors||- Coverage endorsement offerings are rather limited|
|- Personal belongings are insured at their replacement cost|
➞ Read our full review of Amica here
A big advantage of insuring your home with Safeco is that they offer guaranteed replacement cost coverage in most states. That means if you lose your home, you’ll be reimbursed for the full rebuild amount regardless of how much construction prices spike in the wake of a disaster.
Guaranteed replacement cost coverage is particularly valuable if your home is in a disaster-prone region where the cost of labor and construction materials tend to go up after a natural disaster.
|- Robust coverage options||- Below average customer service ratings|
|- Straightforward claims process||- Fewer ways to save than competitors|
|- Variety of other insurance products|
➞ Read our full review of Safeco here
When it comes to cost-saving opportunities, Allstate may be in a league all by itself. Featuring eight discounts total, there is no shortage of ways to trim your insurance premiums. If you bundle your home and auto policies with Allstate, you can save up to 25%. If you haven’t filed a recent claim, you can save up to 20%.
|- Simple, easy-to-use website and digital tools||- Slightly below-average claims satisfaction scores|
|- Wide range of discount opportunities||- Policy offerings are limited|
|- Decent customer ratings|
➞ Read our full review of Allstate here
With Travelers green home coverage endorsement, you get additional protection that will repair, replace, or rebuild your home with designated green materials after a covered loss.
Additionally, Travelers offers a green home discount which lets you save up to 5% if your home is certified by LEED (Leadership in Energy and Environmental Design), a program within the U.S. Green Buildings Council and one of the leading green home rating systems in the world.
|- Range of policy options to choose from||- Some subpar customer service ratings|
|- Modernized coverage and rate-saving opportunities||- Below average claims satisfaction ratings|
|- Multiple unique endorsements and coverage enhancements|
➞ Read our full review of Travelers here
If you’re a first-time homebuyer who’s never had to deal with an insurance company before, State Farm may be your best bet. With a helpful website featuring industry-best educational resources, a quick and easy quoting process, and a stellar mobile app where you can view your policy, pay your bill, and file claims, State Farm offers an incredibly user-friendly experience.
|- Great for first-time homebuyers||- Limited discounts|
|- Strong financial ratings|
➞ Read our full review of State Farm here
Hippo takes the top prize for a stunningly quick and seamless home insurance quoting experience. The application process with Hippo is actually quite remarkable—you’re promised a quote in 60 seconds, but it’s really closer to 30. To apply, all you do is type in your address, and Hippo almost instantly shoots you an estimate along with information about your home’s specs.
|- Online quotes in minutes||- No option for filing claims online|
|- Multiple robust, modern policy options||- Only available in 20 states|
|- Several coverage endorsements included in the base policy|
➞ Read our full review of Hippo here
USAA only sells policies to current and former members of the military and their families and is consistently rated at the top of its class by A.M. Best with an A++ financial strength rating. It doesn’t have an official customer service rating with J.D. Power, but USAA is noted by J.D. as providing “claims satisfaction and shopping satisfaction”.
A perk of USAA is if your uniform is damaged or stolen in an event your policy covers and you are on active duty or deployed, USAA will reimburse you without you having to pay a deductible.
|- Perfect customer service and claims ratings with J.D. Power||- Only available to people affiliated with the military|
|- Industry-leading financial ratings||- Doesn't offer extended or guaranteed replacement cost dwelling options|
|- Several discounts available|
➞ Read our full review of USAA here
|HOMEOWNERS INSURANCE COMPANY||POLICYGENIUS RATING||AVERAGE MONTHLY COST||J.D. POWER RATING||A.M. BEST RATING|
|Plymouth Rock||8||$97||Not rated||A-|
|State Auto||7.6||$135||Not rated||A-|
|Tower Hill||7.5||$145||Not rated||A-|
|Esurance||Not rated||N/A||Not rated||A+|
|The Hartford||Not rated||N/A||3/5||A+|
|Kemper||Not rated||N/A||Not rated||A-|
|Liberty Mutual||Not rated||N/A||2/5||A|
|Orchid||Not rated||N/A||Not rated||A-|
|Pacific||Not rated||N/A||Not rated||A-|
|Selective||Not rated||N/A||Not rated||A|
Whether you’ve been insured through the same company for a decade or you’re a first-time homebuyer, you should focus on getting the best coverage at the best value.
For example, insurance company A charges $1,300 a year to insure your home, while company B charges $1,200. But if company A includes a number of additional coverages and higher policy limits that either aren’t offered or would cost extra through company B, the higher-cost policy may be worth it.
Here are the main areas you’ll want to analyze when comparing companies and insurance policies.
A.M Best rating
A.M. Best ratings indicate an insurer’s overall financial health: A++ and A+ are considered superior, while A and A- are excellent. There are five other designations for insurers: good (B++, B+), fair (B, B-), marginal (C++, C+), weak (C, C-) and poor (D).
J.D. Power score
J.D. Power measures customer satisfaction and results are listed by designation: among the best; better than most; about average; and the rest. There’s also an overall winner. Overall performance is calculated on a 1,000-point scale that accounts for policy offering, price, billing, interaction and claims.
Consumer Reports score
Consumer Reports measures customer satisfaction with insurance companies based on a number of benchmarks: ease of reaching an agent, agent courtesy, promptness of response, damage amount, and how timely the companies’ payments are.
While A.M. Best, J.D. Power, and Consumer Reports can tell us a lot about a company and how it treats its customers, the best homeowners insurance policy is one that provides you with the coverage you need for your specific situation. A licensed representative from Policygenius can help you compare homeowners insurance policies and quotes until you find a policy that works for you.
One way to find out the quality of an insurer’s customer service is by simply reading testimonials and reviews online. Policygenius has detailed reviews of several of the top home insurance companies in the industry. Once you’re done reading up on companies, you should consider doing a little more digging.
Call the insurance company and see what the hold time is and what the service is like when you wait to speak to a representative about a general inquiry. If the hold time is three hours and they don’t seem accommodating, you’re probably not going to want to deal with them after you just lost your house and have to file a claim.
Find out how the company handles the claims process, as the single biggest indicator of home insurance customer satisfaction is the company’s damage estimates. If they have a reputation for not covering the agreed-upon replacement costs of property or dropping customers from their policy for filing a single claim, you should probably avoid that company.
The best companies will also have several supplemental coverage options, or endorsements, that you can add to your homeowners policy.
Perhaps the most essential endorsement is replacement cost contents coverage, which reimburses you for personal property loss without subtracting the items' depreciation from the claim check.
"Replacement cost will always represent better value because it makes your personal property coverage that much more usable and functional in terms of what you want it to do," said Fabio Faschi, property and casualty team lead at Policygenius. "You want your insurance to work for you, so in the event that you need to file a claim, what are you going to get back for it?"
One distinct advantage of adding endorsements rather than seeking coverage through a separate insurer is that you have all of your coverages in one place. Furthermore, if you have, say, home and flood insurance with the same company and you need to file a home and flood claim, some insurers may only require a single deductible for coverage to kick in. Here are some common endorsements offered by insurance companies:
If you’re looking for another way to save money and limit the paperwork and confusion of having policies with multiple insurers, you should look for companies that can bundle your home and auto policies.
Certain companies have low rates because they offer high-deductible policies. To keep your insurance costs down, it may be worth looking into your insurer’s high-deductible options. Just make sure that, in the event of a loss, you can afford whatever deductible you choose.
A good home insurance company offers bundles, loyalty discounts, and will even reward you if you file infrequent claims, but you can also lower your monthly home insurance costs by increasing the number of safety and security features in your residence, such as:
Check with your home insurance company to see what kind of discounts are offered, or speak with a licensed representative at Policygenius who can walk you through the different ways to cut down costs on your home insurance policy.
Looking for the best home insurance company in your state? For the best options and lowest rates, check out our state-by-state guide to homeowners insurance.
Unfortunately, there isn't a single best homeowners insurance company. The best home insurance company for you will be the one that fits your needs. It should be affordable, cover the right amount for your home and possessions, and match your circumstances, whether you're a first-time homebuyer or looking for specific discounts. Comparing multiple home insurance carriers side-by-side can help you quickly find the right fit.
Bundling home and auto can help you save a lot on your total costs. Most major insurers, like Allstate, Geico, and Nationwide, provide discounts for bundling. However, you still might be better off buying your home insurance and auto insurance from separate companies if they're cheaper individually. An independent licensed expert can help you identify the best combination of products so you get the most affordable option, even if it's with two different companies.
The cheapest home insurance will depend on the individual. Things like your deductible, coverage amount, additional endorsements, and more will affect your cost. You should always be on the lookout for discounts to lower your premiums. The average annual home insurance premium is around $1,200.
The amount of home insurance coverage you need depends on how at-risk your home is to damage, the rebuild cost of your home, the value of your property and posessions, liability risks, and more. You should purchase as much coverage as you need to feel financially comfortable - you'll be on the hook for replacing whatever your insurance doesn't cover.
About the authors
Pat Howard is an Insurance Editor at Policygenius in New York City, specializing in homeowners insurance. He has been featured on Property Casualty 360, MSN, and more. Pat has a B.A. in journalism from Michigan State University.
Fabio Faschi is the property and casualty team lead at Policygenius in New York City. He is a certified Personal Lines Coverage Specialist (PLCS) and Commercial Lines Coverage Specialist (CLCS). Fabio has worked in the insurance and real estate industry for more than five years as an independent agent and broker representing more than 40 carriers in property and casualty products across the United States. He previously worked in real estate settlements and title insurance negotiating insurance requirements with banks, realtors and new home buyers. Fabio is also a notary of the state of New Jersey and a huge fan of the Juventus Italian soccer club.
Policygenius’ editorial content is not written by an insurance agent. It’s intended for informational purposes and should not be considered legal or financial advice. Consult a professional to learn what financial products are right for you.
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