Finding the best companies to handle your home insurance can be a taxing affair. After all, it involves researching loads of different companies for one that fits your preferences in terms of coverage, ratings, pricing, and more. You want companies that have the best current reviews from their customers too.
But homeowners insurance is anything but a luxury, and so you have got to have it for your home. It is likely that your home is the most valuable possession that you own, and protecting it from the potentially devastating consequences of loss should be a necessity.
Homeowners insurance is unlikely to be compulsory where you live. But if you are financing your home through a mortgage, your financial lender is almost certainly going to require that you purchase home insurance.
Like I said earlier, this can be a daunting process. But don’t worry about it, we’ve got your back. At Walletorama, we are all about making these processes way easier. And that is why I have drawn up this list for you.
It is the result of research carried out on a variety of criteria, such as coverage, average premium, reliable customer service, and others. But more on that later.
What Does Home Insurance Cover?
Home insurance basically covers your home from the risk of damages to it in the future. It serves as a shield from the devastating loss that unforeseen damages can cause to your property.
Home insurance covers a wide variety of risks. Countless events that can result in damage to your home include fire, smoke, vandalism, landslides, earthquakes, lightning, storms, riots, damage from aircraft, explosions, volcanic eruptions, falling objects, and many others. You may also suffer loss as a result of burglary or terrorism.
The company or plan that you decide on may cover all or a fraction of these risks. Most regular home insurance policies will cover the loss or damage to your possessions, like furniture and clothes. They provide medical cover for the people present in the house when the event takes place.
Home insurance comes in 8 different types, with some offering more coverage than the others. The different types range from HO-1 all the way to HO-8.
HO-3 insurance policies are by far the most common. They are also called “special form” policies. HO-3 policies cover your home from all of the unforeseen damages listed above, apart from such damages as floods or earthquakes.
The 7 Best Home Insurance Companies
This list will make choosing the best home insurance company for you from all the companies out there an easier task. All of the companies on this list were carefully selected after we carried out extensive research based on certain criteria.
Short on time? Here are the best home insurance companies.
| The 7 Best Home Insurance Companies in [year] |
| Amica |
| Chubb |
| Lemonade |
| Allstate |
| USAA |
| Hippo |
| State Farm |
Now let’s look at each of them in a little more detail.
1. Amica
Pros:
- Consistent top spot in the JD Power study for customer satisfaction
- Dividend payments, with a portion of premium payments refunded
- Business coverage endorsements for home workers
Cons:
- Not present in all states
- Amica does not offer landlord insurance
Amica is an insurance company based out in Rhode Island. While not the largest insurance firm out there, Amica enjoys immense popularity and is a favorite among customers.
You can gain an insight into this popularity on its position on the J.D. Power U.S. Property Claims Satisfaction Study. In 2020, and for the 9th straight year, it ranked top in property insurance claims experience. That study measures insurance customers’ satisfaction with property claims experience.
You can certainly find a more budget-friendly homeowners insurance company than Amica. But you can be sure that you will get great value for your money.
And how about this? Amica stands out from the other home insurance companies on this list as it actually returns a portion of your payments to you. On average, you are going to get back between 5-20% of the payments you have made towards your annual premium.
2. Chubb
Pros:
- Wide range of coverage, with endorsements
- Policies are suited for high-value homes
- Chubb is available nationwide
- Option to settle in cash
Cons:
- Premiums paid are high
- Policies are not suited for low or mid-value homes
Chubb’s homeowners insurance policies are great and offer extensive coverage, but they are not for everyone. If you own a home that is high-valued or luxurious, then this may be just what the doctor ordered.
You can get all of the industry-standard coverage with Chubb, but it doesn’t stop there. In addition, it offers a number of other not-so-common coverages
There’s also risk consulting included in its Masterpiece homeowners policy. Here, risk consultants will check your home for potential risks. Its HomeScan service uses infrared technology to detect potential problems that may arise as a result of issues like missing insulation, water leaks, and electrical issues.
Chubb offers cash settlements, unlike most other insurance companies. If you have decided to rebuild at another location or simply not to, you may decide to take the cash instead. This payment is up to your policy limit.
You even get a place to stay temporarily if your home is uninhabitable for the duration that it is worked on or rebuilt.
3. Lemonade
Pros:
- Free family coverage
- Homeowner policies are transparent
- Very affordable premium rates
- The Lemonade Giveback – money left over after a claims settlement gets donated to charity
Cons:
- Only available online
Lemonade has only been around since 2016, but it is already making a name for itself. Customers just love the ease-of-use and social consciousness.
What immediately sells this company to many users is its Giveback policy. Every user gets to pick a charity when they buy insurance with Lemonade. All of the leftover money after all claims have been paid is given away to the most picked charities. After a flat 20% gets deducted from premiums for operating costs, that is.
That means that the insurance process, which can be onerous, tends to be easier with Lemonade. Because it has no financial incentives for not paying out for claims, there is less red tape and no frustrating deductibles.
It is fast and entirely digital, operating online via its website and mobile apps. Claims can be paid out in a matter of minutes.
Lemonade offers renters insurance and homeowners insurance. Its homeowners insurance policies come with all of the standard coverage, including medical costs. It offers extended replacement coverage, which will pay if the cost of rebuilding your home is higher than anticipated.
4. Allstate
Pros:
- Nationwide coverage
- Several policy discounts available
- Ranked high for digital service
Cons:
- Quotes are not available online in all states
Allstate’s standard policy includes coverage for the usual. You get dwelling coverage, coverage for other structures, and personal property protection. There’s also liability coverage available.
There are several home insurance add-ons for options that are not included under the standard coverage. These include identity theft restoration, water backup, business property, sports equipment, yard and garden, electronic data recovery, and many more. These are endorsements, and they depend on your state.
One of the reasons that Allstate is on this list is the way that it helps its customers to handle their coverage and claims. There are several methods available for filing claims, including quality customer service and the mobile app. Allstate has a robust knowledge base for information on its policies and coverage.
It is also a very pocket-friendly home insurance company. On average, Allstate offers some of the lowest price ranges for home insurance in the entire country. This is partly due to all the incredible policy discounts that it has available.
5. USAA
Pros:
- Incredibly low price rates
- Very positive customer reviews
- In some years, it pays distribution to members
Cons:
- USAA is only available to active-duty military personnel, veterans, and their families
USAA could have been higher up on this ranking if it did not strictly cater to a particular demographic. Only active-duty military personnel, veterans, and their families can use this company. Customer survey reviews are favorable, and the pricing for its policies is among the lowest in the country.
Several discounts are on offer. For example, policyholders who have had no claims for five or more years get up to 10% off. There are also protective device discounts and discounts for bundling.
USAA’s standard home insurance covers the normal. You get dwelling coverage, coverage for other structures, and personal property coverage. There is also coverage for loss of use and personal liability coverage.
There are endorsements offered in its standard policies, such as home-sharing coverage, home protector, water backup, and special loss settlements for fire or windstorms. This is great because these get charged extra by many other insurers.
6. Hippo
Pros:
- Quotes process is very fast
- Wide variety of coverages
- Transparent pricing
- Easy-to-use website
Cons:
- No discounts for bundling
- Claims cannot get filed online
- Not present in all states
Like Lemonade, Hippo is a relatively new firm in the industry. It is a company that is heavily tech-focused.
Hippo has its goals tailored around modernizing home insurance, and that is emphasized in its operations. In many of the states that it is present in, Hippo’s home insurance policy offers a complimentary home monitoring system, called the Hippo Smart Home.
The devices that come with this system help in monitoring your home and prevent things like water and fire damage and break-ins.
There is a wide range of coverage options. The standard coverage includes dwelling, personal property, and liability coverage. There are also several endorsements to add to your policy. Among these are hurricane, flood, earthquake, water backup, catastrophe, and fire insurance.
There are also lots of discounts, even though there is none for bundling. The discounts on offer include:
- Early signing discount
- Smart home discount
- No claims discount
- New home discount
- HOA discount
- Gated community discount
7. State Farm
Pros:
- Personalized service by local agents
- Easy-to-use website
- Multiple lines of insurance coverage
- Nationwide coverage
Cons:
- It is not very pocket-friendly
- Discounts are limited
- Discounts vary per state
State Farm has been around for close to a full century and is a well-established company with a large customer base. In fact, it is the largest home insurance company in the US, insuring almost one-fifth of homeowners. It ranks number 33 on the Fortune 500 list of the largest companies.
State Farm has all the usual coverage options automatically included in its standard policy. There are also a ton of extras and endorsements.
There are not many discounts available, unfortunately. You get standard discounts that are available everywhere else, including multiple line discounts for bundling.
Claims can be made via multiple channels, including online, a toll-free number, and through a local agent. There are several thousand agents on employ, so getting in touch with one near you is unlikely to be a difficult task. There is a specialized tool to check the status of your filed claims.
Methodology – How We Ranked the Best Home Insurance Companies
There are several factors or components to watch out for before buying home insurance. These include the range of coverage, the annual premiums to be paid, the claims handling, and the extent of customer satisfaction.
These and other factors are considered extensively by J.D. Power, a consumer research company, and the National Association of Insurance Commissioners (NAIC). J.D. Power conducts surveys on thousands of homeowners every year. The NAIC, on its part, provides information on customer complaints to state regulators.
Both of these outfits hand out ratings to home insurance companies based on their research. This list makes use of those ratings, together with ratings from A.M. Best, which analyzes the financial strength of home insurance companies.
We also consider the extras, such as discounts offered, nationwide presence, and the ease-of-use of the available platforms for claims and quotes.
FAQs
Q: What does homeowners insurance cover?
Home insurance covers a range of risks or unforeseen damages that can befall your home. This includes partial damages or complete destruction of your residential property due to a variety of events like hurricanes, vandalism, terrorism, and fires.
Coverages differ from company to company, and it is important that you make a choice that fits your expected home needs. Typically, coverage includes property damage, personal property loss or damage, personal liability, and added living costs.
Q: Is home insurance required?
Home insurance is not compulsory in most states. But if you prefer to finance your home via a mortgage, then your lender is likely to demand that you buy one.
Even if neither of these scenarios applies, it is important that you purchase home insurance. This will insulate you from the potential loss or damage of your home and personal property.
Q: How much does home insurance cost?
This will depend on a variety of factors. The value of your home, for instance. Premiums vary, increasing or decreasing depending on the current value of a property.
Other factors include the state you live in, crime rates in your home area, and geographical conditions.
Summary
Home insurance is not a luxury but a necessity. To protect yourself from the potential losses, damages, and destructions that can come in the future, you should purchase insurance for your home.
But the process of choosing a provider can be a difficult one, with so many components to consider. And that is why I made this list of the best home insurance companies in [year]. All of these companies are highly rated in terms of service delivery and other areas, such as financial strength.