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Getting Started
Learn what to look for when shopping for home insurance to create a baseline of knowledge for comparing our top providers below.
Home insurance covers your home and belongings when they are damaged or lost due to a covered disaster, such as fire and lightning, hail, wind,vandalism, theft and much more. It also pays for legal fees when you’re liable for personal orproperty damage, medical bills for guests who get injured on your property andadditional living expensesin case you are displaced from your home due to a covered loss.
A standard home insurance policy won’t cover your dwelling or belongings against certain natural disasters and normal wear and tear without add-ons. According to American Family, the following perils are excluded from the popular HO3standard policy:
- Flooding
- Earthquakes, sinkholes and landslides
- Power failure
- War
- Nuclear hazard
- Intentional acts
- Enforcement of building codes
- Pollution
According to theInsurance Information Institute(Triple-I), the HO-3 form is the most commonhome insurance policy. It covers your home andpersonal propertyon anopen perilsbasis. This means that all perils are covered unless named as an exclusion on the policy.The HO-2 form only covers your home and property from 16named perils, instead. This means your home and belongings are covered for the specific risks named in your policy. It’s cheaper but less comprehensive than open perils coverage.
In short, no, homeowners insurance is not required by law. That being said, most banks and mortgagelendersrequire it to protect their investments. They may also require flood orearthquake insurance— which isn’t included in basic home insurance — if you live in an area susceptible to flooding, earthquakes or othernatural disasters.Even if you don’t have a mortgage, insurance professionals recommend financially protecting what may be your largest purchase from a wide variety of risks.
We get it. It’s easy to find thecheapest homeowners insurance policyand just be done with it. However, it’s important to do proper research and ensure your chosenhome insurance policyprovides adequate coverage for your needs.
- Gather information about your home.You may be asked for details about your home, such as the address,square footage, number of stories, safety systems and approximate dates of major renovations. You may also need to provide personal information, such as your Social Security number.
- Consider more than just cost.In our 2023 survey of 1,000 homeowners, cost was a key consideration for 41% while shopping, but it wasn’t the most important deciding factor — coverage was (44%). Finding the lowest price was only the deciding factor for 15% of respondents. While shopping, take time to compare coverage and find a policy, not just a price, that fits your needs.
- Estimatecoverage limits.The amount of coverage you purchase directly affects your policy’s cost. To ensure you’re getting accurate quotes, think about what it would cost to completely rebuild or replace your home and the value of yourpersonal belongings.
- Shop around.In our survey, only 56% of respondents shopped online for quotes. We recommend youcompare quotesfrom at least three companies to ensure you understand what is covered and excluded in the policy.Working with a local insurance agent may be beneficial in helping to obtain quotes and compare costs and coverages.
We at the Guides Home Team carefully analyzed and vetted 44 top home insurance companies through primary research on provider websites, speaking with representatives, reading customer reviews and collecting third-party data. Then we scored them against our objective rating methodology and narrowed our list to the 8 best providers.To help us provide authoritative rankings and recommendations, we collected AM Best ratings, customer satisfaction ratings from the 2023 J.D. Power Claims Satisfaction Survey, provider complaint ratios from the National Association of Insurance Commissioners (NAIC) and sample premiums from Quadrant Information Services and provider quote tools.This article features data from two proprietary consumer-facing surveys and was reviewed by a board of industry experts. Learn more about our scoring process in our methodology.
Top 8 Homeowners Insurance Providers
According to our analysis using our in-depth methodology, we came up with this list of the top 8 homeowners insurance companies:
- Allstate: Our pick for extended coverage
- State Farm: Our pick for new homeowners
- American Family: Our pick for helpful online resources
- Nationwide: Our pick for inclusive standard coverage
- Liberty Mutual: Our pick for discounts
- Farmers: Our pick for customizable coverage
- Erie: Our pick for best service
- USAA: Our pick for military members
Allstate
Our pick for extended coverage
4.8
Our Rating
Cost: 4.3
Availability and Ease of Use: 4.2
Brand Trust: 4.5
Coverage: 4.6
Our Review
A.M. BestA+J.D. Power809/1000Annual Cost$2,414.37
MONTHLY COST$201.20
Pros and Cons
Pros Nationwide network of local-exclusive and independent agents Extensive selection of endorsem*nts and discounts Has online insurance information and tools to educate potential customers Cons Doesn’t provide online quotes in some areas Has a below average J.D. Power claims satisfaction rating
Why We Chose Allstate
Allstate sells many extended coverage options to help customers create policies that fit their needs. The company lets policyholders upgrade their policies with up to nine riders, which helps it stand out among its competitors. Aside from its extensive add-ons list, the insurer offers many discounts to help lower your premiums.
Its additional coverage options include identity theft protection, electronic data recovery, green improvement reimbursem*nt, sports equipment, musical instruments and scheduled personal property coverage.
Cost
Allstate’s average annual premium is $96.88cheaper than the average annual premium in the United States. Sample rates are for illustrative purposes only. Your rates may vary.
*All quotes are based on $350,000 in dwelling coverage for 2023.
Allstate discounts include:
- Claim-free
- Early signing
- Easy pay plan
- Home buyer
- Multi-policy
- Protective device
- Responsible payment
- Welcome and loyalty
Brand Trust
Allstate is the second-largest home insurer in the U.S. according to Triple-Iand has served homeowners across the country since 1931. It’s an established provider in the insurance industry with an A+ (Superior) rating by AM Best, which is AM Best’s second-highest rating for financial stability.
We also tracked Allstate’s rating in the J.D. Power US Claims Satisfaction Study from 2013 to 2022. The provider ranks close to average in every year we analyzed.
*A.M. Best ratings accurate as of April 2024
State Farm
Our pick for new homeowners
4.8
Our Rating
Cost: 3.9
Availability and Ease of Use: 5
Brand Trust: 4.8
Coverage: 4.3
Our Review
A.M. BestA++J.D. Power829/1000Annual Cost$2,084.90
MONTHLY COST$173.74
Pros and Cons
Pros Standard policy includes extra protection Offers many online educational resources Average premium is lower than the national average Cons Instant quotes not available in all states Fewer discounts than many competitors
Why We Chose State Farm
State Farm is a suitable option for new homeowners due to its user-friendly website and straightforward quote process. It generally takes between 15 and 20 minutes to get a quote and while you wait, you can read online explainers about coverage types.
In addition to an easy application process, State Farm offers many coverage options and discounts to help you lower your premiums and select a policy that fits your needs.
Cost
State Farm’s average annual premium is $426.35 cheaper than the average homeowners insurance rates in the United States. Sample rates are for illustrative purposes only. Your rates may vary.
*All quotes are based on $350,000 in dwelling coverage for 2023.
State Farm discounts include:
- Bundling
- Claim-free
- Home security insurance
- Roofing
- Higher deductibles
- Automatic sprinkler
Brand Trust
State Farm is the largest writer of home insurance in the U.S. by direct written premiums, according to Triple-I, with $22.1 billion in 2021. Coupled with the best possible AM Best credit rating, A++, policyholders can rest assured that State Farm is financially ready for any disaster.
State Farm has 24/7 customer service for claims filing, making it easy for policyholders to initiate a claim. After a covered loss, you can initiate the claims process by calling your agent, calling State Farm’s dedicated claims number or filing online. State Farm consistently ranks average or above average in J.D. Power’s US Property Claims Satisfaction Study.
American Family
Our pick for helpful online resources
4.7
Our Rating
Cost: 3.5
Availability and Ease of Use: 5
Brand Trust: 3.4
Coverage: 3.9
Our Review
A.M. BestAJ.D. Power813/1000Annual Cost$2,740.93
MONTHLY COST$228.41
Pros and Cons
Pros Online quote process is streamlined and requires less information than other companies Features an extensive online coverage comparison tool and streamlined mobile app Offers an endorsem*nt for home system and appliance breakdown Cons You must purchase your policy through an exclusive American Family agent The full list of endorsem*nts is not available online
Why We Chose American Family
American Family helps to educate its customers with plenty of digital resources, an extensive online coverage comparison tool and a simple quote tool. You may benefit from American Family if you want to manage your homeowners policy on the go. Its MyAmFam app lets you file claims, track claim status, set up autopay and schedule a payment right from your phone.
Its website has guides on buying your homeowners policy, installing smart home technology and protecting your home. The insurer also has a handy home inventory template to help you create an inventory of your personal items.
Cost
American Family’s average annual premium for home insurance is $2,740.93, which is $229.68 more expensive than the national average. Sample rates are for illustrative purposes only. Your rates may vary.
*All quotes are based on $350,000 in dwelling coverage for 2023.
American Family discounts include:
- Bundle and save
- Insurance payment
- Safe, secure smart home
- Age of home
- Loyalty
- Renovated home
- Generational
- Paperless billing
Brand Trust
American Family holds an A+ rating with AM Best, suggesting it has highly stable credit and a strong ability to pay claims when needed.
While American Family offers 24/7 claims support, it receives more than the expected number of complaints filed with state insurance departments. This could mean that its claims experience varies by location. It fairly consistently ranks average to below average on the J.D. Power US Property Claims Survey over the 10 years we analyzed.
Nationwide
Our pick for inclusive standard coverage
4.6
Our Rating
Cost: 3.9
Availability and Ease of Use: 4.6
Brand Trust: 4.8
Coverage: 5
Our Review
A.M. BestAJ.D. Power812/1000Annual Cost$2,969.71
MONTHLY COST$247.48
Pros and Cons
Pros Flood and earthquake are optional coverages Provides ordinance or law coverage and credit card coverage in basic policies Offers a variety of unique discounts Cons Higher than average premium based on our sample quote Unable to provide a single-policy quote online
Why We Chose Nationwide
Nationwide’s standard homeowners plan includes many coverages that insurers typically offer as add-ons, which makes it ideal for those looking for a comprehensive policy. For instance, it provides ordinance or law insurance, which helps you rebuild your house according to updated building codes after a covered loss.
Nationwide also offers credit card protection that protects you from unauthorized transactions on your debit or credit card. For all of their benefits, Nationwide’s policies are relatively more expensive than its competitors.
Cost
Nationwide’s average annual premium is $458.46 more expensive than the average annual premium in the United States. Sample rates are for illustrative purposes only. Your rates may vary.
*All quotes are based on $350,000 in dwelling coverage for 2023.
Nationwide discounts include:
- Claims-free
- Gated community
- Home purchase
- Home renovation credit
- Multi-policy
- Prior insurance
- Protective device
- Roof rating
- Smart home
Brand Trust
Strong third-party ratings are indicative of Nationwide’s financial strength and customer satisfaction. The provider has an A+ rating with AM Best and has ranked above average in the 10 most recent J.D. Power US Claims Satisfaction Study reports.
Liberty Mutual Our pick for discounts
4.3
Our Rating
Cost: 4.3
Availability and Ease of Use: 4.6
Brand Trust: 4.5
Coverage: 3.9
Our Review
A.M. BestAJ.D. Power789/1000Annual CostN/A
Pros and Cons
Pros Live chat helps homeowners during the quote process Offers a 10% discount for shopping online Inflation protection add-on that adjusts replacement cost coverage each year to account for inflation Cons Lower deductible options than many competitors Fewer add-on options than many other insurers
Why We Chose Liberty Mutual
Liberty Mutual is our pick for homeowners looking for extra savings opportunities and discounts when signing up for a policy. During our research, we pulled dozens of sample quotes from the provider on homes across the country and found that it consistently offers impressive discounts, such as an online purchase discount and a discount for insuring the home to its replacement cost value. However, these discounts can vary depending on each homeowner’s personal details and location.
Liberty Mutual’s home insurance covers your belongings at replacement cost, meaning it will pay you the cost for a new item rather than the value of your used item minus depreciation. It covers your home for damage caused by perils like wind, hail, fire and hurricanes. Protection for damage caused by water backup and overflow is optional.
To get a quote: Use Liberty Mutual’s online quote toolor call 1-844-282-3839. Expect to have your Social Security number handy for this process.
Cost
We source provider cost data from Quadrant Information Services, the leading source of property and casualty insurance solutions and data. Quadrant is unable to provide sample premiums for this provider.
*All quotes are based on $350,000 in dwelling coverage for 2023.
Liberty Mutual discounts include:
- Claims-free
- Early shopper
- Insured to value
- Multi-policy
- New/renovated home
- New roof
- Newly purchased home
- Preferred payment
- Paperless
- Safe homeowner
Brand Trust
Liberty Mutual is a top-rated homeowners insurance company with more than 110 years in business nationwide and an A (Excellent) financial strength rating by AM Best. This isn’t as high as some other providers on this list but is still a positive reflection of the provider’s claims-paying ability. The provider also scored well for receiving fewer than expected complaints, according to the NAIC.
Because we can’t gain first-hand experience with provider claims processes, we rely on customer reviews and the J.D. Power US Property Claims Satisfaction Study to assess the overall consumer sentiment regarding claims. Liberty Mutual scored above average in J.D. Power’s claims study for six of the 10 years we analyzed.
Farmers
Our pick for customizable coverage
4.6
Our Rating
Cost: 4.3
Availability and Ease of Use: 5
Brand Trust: 4.5
Coverage: 4.6
Our Review
A.M. BestAJ.D. Power800/1000Annual Cost$2,835.72
MONTHLY COST$236.31
Pros and Cons
Pros Provides unique discounts to lower premiums Features customizable coverage options and flexible policy limits Offers online tools to file and manage claims Cons Pricing may be higher than some other providers Does not provide the same coverage in all locations
Why We Chose Farmers
Farmers homeowners insurance policies are all about customization. You can choose from standard, enhanced or premiere packages, which differ by coverage limits, features and cost.
The insurer’s standard policy includes personal property, temporary living expenses, medical payments and dwelling coverages. Some of its available endorsem*nts include identity theft, replacement cost, building ordinance or law and scheduled personal articles coverages.
Cost
Farmers’ average annual premium is $2,835.72, which is higher than the average annual premium of $2,511.25. Your rate may vary.
Discounts:
- Affinity
- Claims-free
- Connected home
- Good payer
- Green certification
- Home safety
- Multi-policy bundling
- New home
- Nonsmoker
- Paperless policy
- Preferred payment
- Protective device
- Rent-to-own
- UL-approved roofing materials
Brand Trust
Farmers have been in the business since 1928. It earned an A rating with independent credit rating agency AM Best, which shows the insurer can meet its financial obligations, including paying customer claims.
Farmers lets policyholders file claims through its claims team, website or mobile app. Based on the chart below, it has historically had high customer satisfaction for property claims.
Erie
Our pick for best service
4.5
Our Rating
Cost: 3.5
Availability and Ease of Use: 4.2
Brand Trust: 4.9
Coverage: 4.3
Our Review
A.M. BestA+J.D. Power856/1000Annual Cost$2,326.78
MONTHLY COST$193.90
Pros and Cons
Pros Offers high levels of coverage in its standard policy Local independent agents offer a personal touch Bundling policies saves up to a generous 20% Cons Quotes only available through agents, not online Has a banned dog breed list
Why We Chose Erie
Erie gets high marks for its customer service, which is reflected in its customer satisfaction score from J.D. Power. Its standard homeowner policy also offers higher levels of coverage than other insurers. For example, Erie pays up to $500 for a covered loss to birds, fish and many other pets.
In addition, Erie covers your personal property with replacement cost coverage, which means you won’t have to worry about the depreciation in the item’s value over time. However, Erie’s policies are not available in every state.
Cost
Erie’s average annual premium is $184.47 cheaper than the average annual premium in the United States. Sample rates are for illustrative purposes only. Your rates may vary.
*All quotes are based on $350,000 in dwelling coverage for 2023.
Erie discounts include:
- Advanced quote
- Fire, burglary alarm, sprinkler system credit
- Multi-policy
Brand Trust
Since its inception in 1925, Erie has grown into a Fortune 500 company with more than 6,000 employees and 6 million policies in force. The provider has solid financials, earning an A+ financial strength rating with A.M. Best.
Erie’s founders set out to create an insurance company that “emphasized customer service above all else.” That vision is evident in Erie’s high third-party ratings for customer service and claims satisfaction. It draws fewer than expected complaints filed with state insurance departments and consistently scores above average in J.D. Power’s claims satisfaction study.
File a claim by contacting your local Erie agent or calling a dedicated 24/7 claims line.
USAA
Our pick for military members
4.5
Our Rating
Cost: 3.7
Availability and Ease of Use: 4.6
Brand Trust: 5
Coverage: 3.6
Our Review
A.M. BestA++J.D. Power881/1000Annual Cost$2,409.42
MONTHLY COST$200.79
Pros and Cons
Pros Provides excellent member benefits Includes unique personal property coverage for military uniforms Premiums are lower than many competitors on average Cons Available only to active-duty military, veterans and immediate family members Some competitors offer more additional coverage options
Why We Chose USAA
USAA provides many military-specific coverages and discounts, making it ideal for active-duty military members, veterans and their families. With this insurer, you do not have to pay a deductible in case of a covered loss to your military equipment or uniform. It also offers replacement cost coverage as part of its standard policy.
You can save on your USAA policy by taking advantage of discounts for multi-policy bundling, customer loyalty, and protective and connected home devices.
Cost
USAA’s average annual premium is $101.83 cheaper than the average annual premium in the United States. Sample rates are for illustrative purposes only. Your rates may vary.
*All quotes are based on $350,000 in dwelling coverage for 2023.
USAA discounts include:
- Bundling
- Claims-free
- Connected home
- Protected home
Brand Trust
USAA has an A++ financial strength rating with AM Best, removing any doubt around its claims-paying ability. It also consistently scores higher than the national average and other providers on this list in the J.D. Power US Property Claims Satisfaction Study.
However, although J.D. Power publishes scores for USAA, it notes that USAA is not rank-eligible because of its coverage eligibility restrictions.
Homeowners insurance can feel overwhelming to the uninitiated, but it’s not difficult to find a great policy once you understand the basics. Here are three important aspects to remember as you compare providers:
Your cost for home insurance is dependent on factors such as your location, square footage and condition of your home, claims history, credit history and more. One way to reduce your premiums is to look for bundling discounts or savings for installing safety devices, paying annually and more.
Besides standard coverage for your dwelling, other structures, personal property, liability and medical payments, most insurers offer additional coverage for a fee. These add-ons, or endorsem*nts, include coverage for water backup, equipment breakdown, service line repair, identity theft, valuable personal property and more.
Hopefully you never need to file a home insurance claim, but if you do, you want the process to go quickly and smoothly without adding stress to your situation. In addition to asking company representatives about their claim turnaround times and communication channels for initiating claims, find out if the provider was scored in the 2023 J.D. Power Claims Satisfaction Survey. This annual study measures overall customer satisfaction with homeowner insurance property claims on a scale of 0 to 1,000. Satisfaction is based on settlement, claim servicing, first notification of loss, estimation process and repair process.
Compare the Best Homeowners Insurance Companies
| Provider | Star Rating | Our pick for | Average Annual Premium | A.M. Best | Learn More |
|---|---|---|---|---|---|
Our Top Pick
| 4.8 | Extended Coverage | $2,414.37 | A+ | Get Quote |
| 4.8 | New Homeowners | $2,084.90 | A++ | Learn More |
| 4.7 | Helpful Online Resources | $2,740.93 | A | Learn More |
| 4.6 | Inclusive Standard Coverage | $2,969.71 | A | Learn More |
| 4.3 | Discounts | N/A | A | Get Quote |
| 4.6 | Customizable Coverage | $2,835.72 | A | Get Quote |
| 4.5 | Best Value | $2,326.78 | A+ | Learn More |
| 4.5 | Military Members | $2,409.42 | A++ | Learn More |
| Provider | A.M. Best | Star Rating | Our pick for | Average Annual Premium | Learn More |
|---|---|---|---|---|---|
Our Top Pick
| A+ | 4.8 | Extended Coverage | $2,414.37 | Get Quote |
| A++ | 4.8 | New Homeowners | $2,084.90 | Learn More |
| A | 4.7 | Helpful Online Resources | $2,740.93 | Learn More |
| A | 4.6 | Inclusive Standard Coverage | $2,969.71 | Learn More |
| A | 4.3 | Discounts | N/A | Get Quote |
| A | 4.6 | Customizable Coverage | $2,835.72 | Get Quote |
| A+ | 4.5 | Best Value | $2,326.78 | Learn More |
| A++ | 4.5 | Military Members | $2,409.42 | Learn More |
No results were found.
*All quotes are based on $350,000 in dwelling coverage for Q4 2023.
How To Find the Best Home Insurance for Five Typical Situations
The cost of homeowners insurance and included coverage is custom to your specific needs, with your property, belongings, location and even credit history playing a role. Here’s how to find the right coverage across several circ*mstances:
Home Insurance for First-Time Homebuyers
For first-time homebuyers, it is important to take the time to understand home insurance fundamentals, terminology and coverage options. Look for providers that explain the basics, whether with informational content online or by speaking with an agent to understand your choices. Some providers also provide online tools to help policyholders create home inventories, estimate replacement value, understand local risks and more.
Insuring a Home in a High-Risk Area
Homeowners insurance will cost more in areas considered high-risk, including living in an area prone to natural disasters such as tornadoes, hurricanes or earthquakes, or a higher-crime area with elevated theft risk. You may need to purchase separate coverage for windstorms or hurricanes if you live in a coastal area. Having a newer roof can help keep your rates lower or improve your home's chances of insurability. If you get denied coverage by private insurers, you can look into your state’s Fair Access to Insurance Requirements (FAIR) plan, which subsidizes high-risk insurance.
Homeowners Insurance With a Dog
Standard policies typically cover damage caused by some dogs, but many insurers exclude specific pets with a history of biting or even exclude entire breeds. Providers that institute a banned breed list will refuse coverage for certain breeds perceived as aggressive, such as pit bulls and rottweilers. If this can affect your application, consider finding an insurer that does not ban animals or working with an agent to find a policy that meets your pet-related needs.
Insuring Valuable Items
Homeowners insurance also covers your personal belongings damaged by named perils such as fire, windstorms, theft and vandalism. But policies often enforce sub-limits of $1,500 to $5,000 on valuable items, such as jewelry, furs and original art. You may consider purchasing an endorsem*nt for scheduled personal property if the value of your luxury items exceeds your policy’s coverage limit. Scheduled items are covered for the appraised value if damaged by perils not included in standard coverage, such as accidental loss.
Home Insurance for an Older Home
Older homes built with outdated materials are riskier to insure because they may require more extensive plumbing, electrical or roofing repairs, or feature historical architecture that is difficult or expensive to replace. If you’re having trouble finding affordable coverage for an older home, consider updating the aging components of your home with modern materials and techniques. You can also look into local building codes to bring your home up to current standards. If either option is not doable for you, we recommend speaking with an insurance agent to learn more about available coverage.
How Much Homeowners Insurance Do I Need?
Generally, you need enough homeowners insurance to rebuild your home completely in the event of total damage, factoring in inflation’s impact on replacement costs. Many home insurance providers have detailed forms asking for information about your home to calculate estimated replacement costs. The Insurance Information Institute (Triple-I) also has information to help determine your home’s rebuilding cost and a home inventory guide to estimate the value of your belongings.
Here are some recommended coverage amounts to keep in mind when shopping for a home insurance policy:
| Coverage Type | Recommended Coverage* |
| Dwelling | Amount needed to replace or rebuild your home |
| Other structures | 10% of your dwelling coverage |
| Personal property | 50% of your dwelling coverage |
| Loss of use | 10% of your dwelling coverage |
| Liability | $300,000–$500,000 |
| Medical payments | $1,000–$5,000 |
*We obtained recommended coverage amounts from the Triple-I and Policygenius.
Frequently Asked Questions About Homeowners Insurance
A deductible is the amount of money that you are responsible for paying toward an insured loss and is subtracted from your claim payment. If your deductible is $1,000 and your repair costs $5,000, your insurer will subtract $1,000 from your claim payment, providing you with a net amount of $4,000. Many providers let you choose your deductible, and a higher deductible will result in a lower monthly premium. However, it’s important to choose a deductible that you will be able to afford in the wake of an incident.
Home insurance provides financial protection from disasters and accidents. Fire, theft, vandalism, smoke and personal injury will usually be covered. Earthquakes and flooding are not covered with most standard plans, but many companies offer protection for these events as an endorsem*nt. Flood and earthquake coverage can also be purchased separately. Repairs needed due to poor home maintenance are not covered.
Whether you’re purchasing a home and need to buy a policy for your new property or you’re looking to add coverage on the house you’ve owned for a while, buying a home insurance policy is a straightforward process. You’ll get a quote from the provider based on your specific needs either online or by consulting an insurance agent, then you’ll set up your policy for the start date you need.
Since homeowners insurance premiums depend on a wide range of factors, there could be multiple reasons for abnormally high prices. For example, as your home ages, it becomes more expensive to insure since its structure is more likely to need repairs after covered incidents. However, if you recently had your roof replaced, this cost can be considerably mediated. Additionally, your prices may be higher than usual if you have filed a home insurance claim previously, live in an area prone to natural disasters or have an unfavorable credit history. If none of these factors apply to you, your homeowners insurance may still increase due to the rising costs of construction materials and labor in the market as a whole.
While homeowners insurance isn’t required by law in the U.S., most mortgage lenders require it in their lending agreements with homeowners. If you have a loan on your property, you’ll likely need a policy with a certain amount of dwelling and liability coverage to protect it from unexpected events, such as natural disasters or fires. Speak with your lender and check your agreement for more information about how much coverage you need.
Many companies adhere to something called the 80% rule for home insurance. This unwritten rule means insurance companies will provide complete coverage after a disaster only if your policy equals at least 80% of your home’s total replacement value. If the amount of coverage purchased is less than 80%, the company may only reimburse you a proportionate amount. Be sure to ask your insurance provider or agent about this rule when purchasing your policy.
Other Insurance Resources From MarketWatch Guides
Discover our top recommendations for the following insurance types to find the providers that best meet your needs.
- Best Pet Insurance Providers
- Best Travel Insurance Companies
- Best Renters Insurance Companies
- Cheapest Renters Insurance Providers
- Best Term Life Insurance Providers
- Cheapest Homeowners Insurance Companies
Methodology: How We Chose the Best Homeowners Insurance Companies
Our team surveyed dozens of home insurance providers and created a scoring system to assess and compare each company’s quality and service. Here are the factors that account for our provider scores according to our home insurance rating methodology:
- Cost (27%): We compare cost data for homes nationwide to assess how competitively priced each provider is. We also consider each company’s available discounts when determining its overall cost of coverage.
- Coverage (28%): We analyze the comprehensiveness of each provider’s standard home insurance policy and compare optional policy endorsem*nts to determine the quality of coverage.
- Availability and ease of use (15%): We evaluate each company’s customer service options, such as live chat, a customer support phone line, and multiple channels for filing claims and generating quotes. Similarly, we score providers based on their digital resources, such as a mobile app or online customer portal.
- Brand trust (15%): We gauge reputation by evaluating consumer reviews and third-party financial strength and customer experience ratings, including from J.D. Power, AM Best and customer review aggregators.
Companies with the best customer service exhibit 24/7 availability, useful digital tools and a quick claims-filing process. Providers that offer extensive discount options, endorsem*nts, customizable coverage options and unique features score significantly higher than those that don’t, putting them toward the top of our recommendations to readers.
AM Best Disclaimer
Mike MillerSenior Writer
Mike Miller is a writer with a decade of experience producing product and service content to help consumers make informed purchasing decisions. Mike has a bachelor’s degree in creative advertising. In his spare time, Mike enjoys riding and fixing motorcycles, reading a good book and spending time with his wife and two cats.
Sabrina LopezSenior Editor
Sabrina Lopez is an editor with over six years of experience writing and editing digital content with a particular focus on home services, home products and personal finance. When she is not working on articles to help consumers make informed decisions, Sabrina enjoys creative writing and spending time with her family and their two parrots.
Mark FriedlanderAdvisor
Mark Friedlander is Director, Corporate Communications, at the Insurance Information Institute (Triple-I), a New York-based nonprofit research and education organization focused on providing consumers with a better understanding of insurance. Mark serves as a national spokesperson for the Triple-I, handling a wide array of insurance industry media issues. His responsibilities also include spearheading the association’s hurricane season communications strategy and its member company support and media outreach in Florida, where he is based.
