Best home insurance companies of 2020
Fact-checked with HomeInsurance.com
Article Highlights
Life is unpredictable, which is why your home insurance policy protects you in case the unthinkable happens. Your home is no small investment, and when disaster strikes, your losses can quickly accumulate. Home insurance helps to cover the cost of these losses while assisting in the process of restoring your home back to normal.
There are many companies that provide home insurance, but each varies in coverage or discount options, customer experience and average policy costs. When shopping for the best homeowners insurance companies, there are several factors to consider, but Coverage has collected our own list as a starting place to find the best home insurance companies of 2021.
The best home insurance companies
- Erie Insurance: Cheapest overall rates
- USAA: Best for military families
- Allstate: Best for new homebuyers
- Auto-Owners: Best customer service
- MetLife: Best policy options
- Nationwide: Best complete coverage
- State Farm: Best mobile tools
- Travelers: Best additional coverage
Top home insurance company ratings
| Company | Average rate ($200,000 dwelling coverage) | J.D. power overall satisfaction rating | AM Best | Policies offered | Standout quality |
|---|---|---|---|---|---|
| Erie Insurance | $884 | 839 / 1000 | A+ (Superior) | Liability Personal property Structures Replacement coverage Living expenses | Cheapest homeowners insurance |
| USAA | $1,210 | 889 / 1000 | A++ (Superior) | Dwelling Personal belongings Loss of use Home sharing Personal liability Separate structures Earthquake | Best for military families |
| Allstate | $1,211 | 829 / 1000 | A+ (Superior) | Dwelling Personal property Liability Guest medical protection Personal umbrella HostAdvantage®Manufactured/mobile home Flood | Best for new homebuyers |
| Auto-Owners | $1,270 | 843 / 1000 | A++ (Superior) | Dwelling Other structures Personal property Personal liability Medical payments to others Additional living expenses Guaranteed home replacement cost Water backup of sewers or drains Special personal property Ordinance or law Homeowners Plus Equipment breakdown Identity theft expense | Best customer service |
| MetLife | $1,044 | 824 / 1000 | A+ (Superior) | Dwelling Personal property Liability Medical payments Loss of use Identity theft Guaranteed replacement cost Scheduled property | Best policy options |
| Nationwide | $1,126 | 808 / 1000 | A+ (Superior) | Dwelling Contents Personal liability Medical payments to others Ordinance or law insurance Other structures Loss of use Credit card coverage Brand new belongings Better roof | Best complete coverage |
| State Farm | $1,211 | 829 / 1000 | A++ (Superior) | Dwelling Other structures Personal property Liability Guest medical Additional living expense | Best mobile tools |
| Travelers | $1,053 | 803 / 1000 | A++ (Superior) | Dwelling Other structures Personal property Loss of use Personal liability Special person property Contents replacement Additional replacement cost Protection coverage | Best additional coverage |
Erie Insurance: Best for cheapest homeowners insurance
When compared to Amica, Erie offers the cheapest home insurance, on average, for a $200,000 dwelling coverage policy. Erie is also backed by strong financials and receives high marks for customer satisfaction. There is also 24/7 customer service support with over 13,000 agents to offer personal support. However, Erie is not available in all states. If offered in your area, you may find Erie to be a great fit for homeowners insurance, with some of the following coverage options to protect your home.
Coverages offered:
The basic Erie home insurance policy includes both guaranteed replacement cost for your dwelling, as well as additional living expenses, if covered repairs temporarily displace your family. Erie also specializes in more unique protections, such as cash and precious metals (up to $500), gift card and gift certificate reimbursement coverage and insurance for pet owners, including birds and fish.
You will also find add-on coverages available, including water backup and sump overflow, identity recovery and sewer line protection. When you bundle your home insurance policy with other Erie policies, you can save up to 25%, depending on where you live.
- ERIE Rate Lock®
- Fire, burglary alarm, sprinkler system credit
- Advanced quote
- Multi-policy
- First accident forgiveness
- Diminishing deductible
- Vehicle storage
- Safety savings
- Payment perks
USAA: Best for military families
You must be an active member of the military, a veteran or a family member to benefit from USAA home insurance. If you qualify, USAA offers competitively priced home insurance in addition to a full suite of other insurance and financial products. It’s a company widely known for stellar customer service, consistently receiving top rankings. Its average homeowners insurance rates were not the most competitive among providers listed here, but it is still among the more affordable options given our studies, and your rate may be more competitive depending on your circumstances.
Coverages offered:
Dwelling, personal liability, personal belongings and loss of use coverage are all included with a USAA home insurance policy. Other structures coverage will also protect your detached garage, storage shed, fence and driveway for well-rounded protection. Additional options include earthquake coverage and home-sharing coverage, which is useful if you’re renting out any portion of your home.
Discounts:
- Bundle policy
- Protective device
- Claims-free
- Deductible
Allstate: Best for new homebuyers
Allstate also tops our list, particularly for new homebuyers; it offers a discount on your home insurance policy if you have purchased or rebuilt a new home within the last year. Optional coverage includes thoughtful additions like identity theft restoration, scheduled personal property, business property, sports equipment and yard and garden coverage.
Policies are competitively priced compared to other providers, and it receives strong ratings from AM Best for financial reliability. Allstate also earned above-average J.D. Power scores in the 2020 home insurance study, which indicates excellent customer support through its mobile tools and in-person agents.
Coverages offered:
The standard Allstate policy includes dwelling, personal property, liability and medical protection for any guest injuries on your property. Other optional protections you can elect to add to your homeowners policy include a personal umbrella policy, manufactured/mobile home insurance, flood insurance (offered through the National Flood Insurance Program) and HostAdvantage® coverage for home-sharing. If you’re not sure what coverage you need, local Allstate agents are available throughout the country who can help walk you through what you need.
- Multi-policy
- Responsible payment
- Claim-free
- Welcome and loyalty
- Homebuyer
- Easy Pay Plan®
- Protective device
- Early signing
Auto-Owners: Best for customer service
We recommend considering Auto-Owners home insurance for several reasons: its customer service is highly-rated, pricing is competitive and the standard policy includes several bonus protections that would cost you extra with other providers. Auto-Owners average annual premium for a $200,000 dwelling coverage limit isn’t the most competitive but is cheaper than other providers like Amica and The Hartford. Its long list of discounts means there’s a pretty good chance that you will find at least one that applies to you that can help lower your premium.
Coverages offered:
With Auto-Owners, you can select dwelling and other structures coverage with your home insurance policy, as well as personal property coverage that protects your possessions in the event of a covered loss. Personal liability protection is also available, which provides medical payments coverage in case a guest is injured in your home, and additional living expenses coverage if you are forced to stay somewhere else while your home is being repaired due to a covered loss.
- Multi-policy
- Life multi-policy
- Payment history
- Paid-in-full
- Green home
- Advance quote
- Protective devices
- Water shut-off system
- Automatic backup generator
- Mortgage-free
- Deductibles
- Favorable loss
MetLife: Best for policy options
MetLife policies are among the cheapest on average for homeowners insurance, but that doesn’t mean MetLife skimps on policy options, either. Policies include identity theft protection and guaranteed replacement cost coverage, regardless of policy limits. There is also an option for scheduled personal property protection, covering critical valuables like art and jewelry. MetLife has fairly average ratings for customer satisfaction according to the J.D. Power study, but 24/7 customer service is available if policyholders ever have a question or need help.
Coverages offered:
With MetLife, you can elect to have full-cost contents replacement. Its exclusive GrandProtect® coverage provides for higher coverage limits and blanket property coverage with worldwide liability coverage. Where other companies charge for identity theft protection, MetLife includes its Identity Protection Services with all homeowners policies. Plus, if you bundle with your auto insurance, MetLife indicages you could save an average of $855 a year.
Discounts:
- Home safety
- Multi-policy
- New home
- Mature homeowners
Nationwide: Best for complete coverage
Nationwide home insurance is a standout for its exclusive Brand New Belongings® protection. This accounts for the actual replacement cost value of your belongings, which guarantees that you don’t lose out on any money when you replace older belongings at today’s cost.
Coverages offered:
Nationwide home insurance policies include dwelling and other structures coverage, in addition to contents, personal liability and medical payments to others. Ordinance or law insurance, loss of use and credit card coverage can also help round out your complete home insurance protections.
Between guaranteed replacement, Valuables Plus® and Better Roof Replacement® value, nearly all of your possessions are covered by your Nationwide homeowners insurance policy. Nationwide also gives you the option to further customize your policy with identity theft, water backup, earthquake and flood insurance (NFIP) for multi-faceted protection.
- Multi-policy
- Protective device
- Claims-free
- Home renovation credit
- Roof rating
- Home purchase
- Prior insurance
- Gated community
State Farm: Best for mobile tools
State Farms provides homeowners insurance through largely affordable policies, especially considering competitors like Amica and the Hartford. It also boasts top ratings from AM Best, and above-average scores for customer satisfaction from J.D. Power.
State Farm doesn’t have the cheapest rates on our list, but they are still fairly competitive within the industry. You can further save with a roofing discount if you utilize impact-resistant roofing products and live within a participating state. State Farm was an early provider leaning into the mobile app and policy management realm, offering Drive Safe & Save™, Steer Clear® and Pocket Estimate 2.0 as supplemental additions to its core mobile app.
Coverages offered:
State Farm includes all of the standard home insurance protections, including enhanced replacement coverage. Plus, State Farm policyholders enjoy bonus coverage for frozen plumbing and heating pipes, a must if you live in those colder regions of the U.S. If you need sewer back-up protection, that is an a la carte service that you will have to purchase separately.
With options for life and auto insurance, State Farm provides local agents to help you bundle your insurance policies for better protection and even more savings.
- Multiple line
- Home alert protection
- Roofing
- Higher deductibles
Travelers: Best for additional coverage
Travelers is an established insurance provider of over 160 years, offering excellent coverage options with your homeowners insurance policy. However, its customer service rates are not the most outstanding, scoring just 803 out of 1000 in the 2020 J.D. Power home insurance study for customer satisfaction. However, Travelers receives top marks for financial stability from AM Best.
It’s easy to check your rates with an online quote and even easier to save with a few key discounts. There is an additional discount for new homebuyers who have purchased within the last year, and Travelers also rewards you with bonus savings if you have extra smart home tech or green home features.
Coverages offered:
Travelers offers the basic types of home insurance coverage, including protection for your dwelling and other structures on your property, like a garage or fence. Personal property and loss of use both come standard with personal liability protection, rounding out your Traveler’s home policy.
If you want some extra peace of mind, additional types of homeowners insurance coverage can be added, such as special personal property coverage, contents replacement cost and additional replacement cost protection coverage.
- Multi-policy
- Home Buyer
- Loss-free
- Protective device
- Green home
The best homeowners insurance companies rates
Homeowners insurance can quickly get expensive, depending on which provider you choose, preferred levels of coverage, unique geographical considerations and other variables, so it is always important to shop your options and compare pricing from multiple providers.
Our research shows that while some providers like Erie only charge $884 annually for the average home insurance policy ($200k dwelling coverage), other providers may charge significantly more. For example, The Hartford averaged $1,426 for its annual premium, and Amica’s average rate came in at $1,637 per year for the same dwelling coverage limit.
The average cost of home insurance nationwide is $1,124 per year for a policy with $200,000 in dwelling coverage. When you shop for your own homeowners insurance, you can use this average as a starting place to compare quotes, but keep in mind that your rates will likely be very different because of the many variables that ultimately determine rates.
| Company | Average annual premium ($200,000 dwelling coverage) |
|---|---|
| Allstate | $1,211 |
| American Family | $1,239 |
| Amica | $1,637 |
| Auto-Owners | $1,270 |
| Chubb | $1,142 |
| Erie | $884 |
| Farmers | $1,254 |
| MetLife | $1,044 |
| Nationwide | $1,126 |
| Progressive | $955 |
| State Farm | $1,211 |
| The Hartford | $1,426 |
| Travelers | $1,053 |
| USAA | $1,210 |
Quadrant information services, 2020
How to choose the best home insurance company
Although important, price is not the only thing to consider when you are shopping for a new home insurance policy. It’s essential that a company holds strong financial ratings, to ensure it is able to promptly pay insurance claims. Customer service ratings will also indicate whether you can count on a company in a pinch — a must for any insurance provider handling your emergency claim.
Before choosing the best home insurance provider for you, consider these factors.
Decide coverage
A standard home insurance policy, also known as an HO-3 policy, will pay for damages associated with covered events, such as fire, wind, hail and snow. It covers not just your home’s physical structure but also your belongings inside. There may be additional types of coverage that you need, such as water and sewer backup coverage, scheduled personal property coverage and equipment breakdown coverage. Determine what level of protection is best for your circumstances before obtaining quotes.
Compare quotes
As we’ve seen here, insurance rates vary significantly, depending on the provider that you choose. There are other factors that can change from provider to provider, such as the type of coverage that is available and a provider’s service area (Erie, for example). Not all providers are able to offer coverage in every state within the U.S., so be sure to check whether your address is eligible for coverage.
Consider financial strength
AM Best is a leading ratings provider with scores that denote an insurance provider’s financial strength. All of our providers here feature ratings from AM Best that are either A++ or A+ for superior strength, while A and A- indicate excellent scores.
Consider customer and claims satisfaction
When it comes to filing a claim or managing your policy, customer service and claims satisfaction are highly relevant. That’s why scores from organizations like J.D. Power are so critical, letting you know whether you can count on an insurance provider when you need it most.
How does homeowners insurance work
Homeowners insurance is a must-have when you own a home because it protects the investment of the physical structure, everything you own inside and your mortgage (if you have one). However, you have to have the right protection in order for your insurance provider to pay for your losses.
A general homeowners insurance policy, or an HO-3 policy, typically covers common losses like fire, lightning, hail and wind. Coverage isn’t just limited to damages from Mother Nature’s wrath, either. Theft and vandalism are also usually covered, but water damages from things like floods, earthquakes and sewer backup may all require additional coverages added to your regular homeowners insurance policy.
Homeowners insurance doesn’t only just cover physical losses. If a guest visiting your home experiences an injury on your property, medical payment coverage will handle not only the medical bills but also any related legal bills that may follow, up to policy limits. If you live in a high-risk area with local risks, you may need to purchase additional specialized coverage, such as flood insurance or earthquake insurance.
Do I need homeowners insurance?
Your home is one of the biggest investments you will make in your life, so it’s important that you protect it with homeowners insurance. If anything were to happen to your home, such as an accident or act of nature, your home insurance policy will ensure that you have help and financial support in paying for the losses.
For those homeowners who currently have a mortgage, your mortgage company will likely require you that you purchase a minimum amount of homeowners insurance. That way, if anything is damaged in an event like a fire or burglary, your home and the belongings inside of it are protected. If you have a mortgage but do not have homeowners insurance, your lender may legally purchase home insurance for you and charge you for the cost, according to the Consumer Financial Protection Bureau.
Other home insurance companies to consider
If the providers featured above are not available to you or you are looking for additional providers to consider, here are a few more worth investigating for your home insurance needs.
- American Family offers reasonable home insurance premiums with flexible policies and extra customized coverage.
- Amica tops the list with the second-highest scores for customer satisfaction in the 2020 J.D. Power Home Insurance Study.
- Chubb offers competitive pricing but lacks outstanding customer satisfaction scores.
- Farmers may cost a little more, but it is a great pick if you are looking for flexible policies that are customizable in coverage.
- Progressive specializes in fast claims processing with user-first mobile and web tools that make managing your policy a breeze.
The takeaway
- The best homeowners insurance companies have competitive rates, strong financials and high customer satisfaction.
- The cheapest average annual home insurance rates start at $884 for a policy with $200,000 of dwelling coverage.
- When shopping for insurance, consider additional ways to save through special discounts.
- Finding the best home insurance provider for you involves researching and comparing options for your circumstances and unique insurance needs.
There are many home insurance companies available in most states, but not all of them will be the right fit for you. It’s important to first consider what kind of coverage you need to fully protect your home and belongings, taking into account special items like valuables that could require additional insurance. Carefully shop your options and consider bundling your homeowners insurance with auto and life insurance for even more savings on your premiums each year.
Methodology
Coverage utilizes Quadrant Information Services to analyze rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:
- Coverage A, Dwelling: $200,000
- Coverage B, Other Structures: $20,000
- Coverage C, Personal Property: $100,000
- Coverage D, Loss of Use: $40,000
- Coverage E, Liability: $300,000
- Coverage F, Medical Payments: $1,000
The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).
These are sample rates and should be used for comparative purposes only. Your quotes may be different.
Rates are determined based on 2020 Quadrant Information Services data.
