Best Homeowners Insurance Companies of 2022
Best Homeowners Insurance Companies of 2022
The best homeowners insurance companies for affordable rates and quality customer service are Nationwide, State Farm, Allstate, Farmers and USAA.
Find Cheap Homeowners Insurance Quotes in Your Area
No single home insurance company is the best fit for everyone. Different providers offer different coverage options and rates tailored to your unique needs and challenges as a homeowner. We've developed home insurance reviews for companies that fit a variety of customer profiles, whether you're looking for cheap prices or great customer service.
Most affordable rates: Nationwide
Insurer details
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Editor's rating:
- J.D. Power rank: 812
- Unique discount: Home renovation credit
Nationwide is the best choice for homeowners who want to reduce their home insurance costs without sacrificing quality. Nationwide’s low rates and national coverage give homeowners across the country access to affordable coverage. It offers the best homeowners insurance premiums across several states, including Arizona, Pennsylvania and Nebraska.
In addition to offering lower starting rates, Nationwide also provides a standard set of discounts and policy tweaks that can help you reduce your homeowners insurance premium.
Lowering your premium
Like many insurers, Nationwide offers discounts on your premium for bundling your home and car insurance policies. In addition, homeowners can get discounts for taking steps to reduce the risk of damage, like renovating your home’s plumbing, heating, cooling or electrical systems and living in a gated community.
Best customer service: State Farm
Insurer details
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Editor's rating:
- J.D. Power rank: 835
- Unique value: Inexpensive coverage with numerous add-ons available
State Farm is the best choice of insurer for any homeowner who prioritizes quality service. The company was ranked one of the top insurers by J.D. Power for its strong claims satisfaction rating. It also received an A++ Financial Strength Rating from AM Best, which indicates that AM Best believes the insurer has a "superior" ability to pay out claims, even in difficult economic times.
State Farm has a number of discounts available to help offset the cost of insurance, including a multipolicy discount, a home security discount and a roofing material discount.
State Farm also offers optional coverage add-ons like identity restoration, service line coverage and home systems protection.
Best for high coverage limits: Farmers
Insurer details
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Editor's rating:
- J.D. Power rank: 813
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Unique value: Discount for Energy Star, EPA or LEED certification
Homeowners looking to insure high-value properties should consider starting with a quote from Farmers. We found that Farmers usually offers the lowest rates for policies with coverage limits above $200,000.
Many of the improvements that qualify you for a Farmers premium discount also align with your long-term interests as a homeowner. These include swapping out heating and plumbing appliances for more energy-efficient versions, as well as building windows, walls or roofs that are specifically designed to withstand natural disasters.
Best for first-time homebuyers: Allstate
Insurer details
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Editor's rating:
- J.D. Power rank: 829
- Unique value: "Claim RateGuard" prevents rates from going up after a claim — for a fee
Among the largest homeowners insurance companies, Allstate offers the best educational resources for first-time homebuyers. Allstate’s Common & Costly Claims tool allows you to look up the most common home insurance claims in your ZIP code. This can be useful in helping first-time homebuyers identify which coverages are most important to them.
First-time homeowners at Allstate can also take advantage of multiple stacking discounts. The homebuyer discount and the 10% new customer welcome discount can help new homebuyers save hundreds of dollars per year.
Best for military families: USAA
Insurer details
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Editor's rating:
- J.D. Power rank: 882
- Unique value: Military-only rates and service on all products
The United Services Automobile Association (USAA) combines great features with outstanding service, which makes it the best homeowners insurance company for veterans and active service members. USAA offers policyholders a few features free of charge that other insurance companies do not.
USAA offers policyholders replacement cost coverage for damaged personal items. If you opt for replacement cost coverage, USAA will provide sufficient funds to replace a damaged item instead of the actual cash value of the item when it was destroyed.
Other benefits that cater to service members include the following:
- Property insurance extends to belongings in war zones.
- Uniforms are covered under homeowners personal property insurance, with no deductible.
USAA's awareness of the particular challenges of military life make it an ideal insurance option for those who have served in the military and their families. In addition to insurance, USAA also boasts a wide selection of other financial products, such as bank accounts and loan options. This makes it an excellent long-term choice for all of your personal financial needs.
Best companies for cheap rates
Erie offers the lowest home insurance rates among the largest insurers in the country at $883 per year. However, the company is only available in 12 states , meaning it won't be an option for many customers.
Nationwide and State Farm rounded out the top three for cheapest annual rates among top insurers.
Find Cheap Homeowners Insurance Quotes in Your Area
Company | Average annual rate |
|---|---|
| Erie | $883 |
| Nationwide | $1,227 |
| State Farm | $1,510 |
| USAA | $1,789 |
| Travelers | $1,802 |
| Allstate | $1,804 |
| American Family | $1,812 |
| Chubb | $2,030 |
| Farmers | $2,112 |
| Auto-Owners | $3,060 |
Although a company might be cheaper on average, it's important to check rates in your area. Different local insurers can be good options, and rates for larger companies can vary by location.
How to find affordable home insurance
One of the best ways to find cheap home insurance is to compare rates online from multiple companies. Each home insurance company prices risk in its own way, so you increase the likelihood of getting the best price as you compare more insurers. Getting a quote through an online form usually takes no more than 10 to 15 minutes.
Selecting a higher deductible for your structure and property coverages also leads to cheaper home insurance rates. However, raising your deductible means taking on more risk yourself. Make sure that your home insurance deductible is never greater than the amount you could pay out of pocket after an incident.
You can also save money on homeowners insurance by qualifying for insurer deals and discounts. Most home insurers offer significant deals for bundling multiple policies and for making home improvements to minimize your risk. Individual companies — particularly smaller insurers — often have unique discounts, as well.
Finally, consider newer insurers which may offer insurance coverage through different platforms. As in many other industries, tech-focused startups like Hippo may offer you a lower rate thanks to either reduced overhead or a need to fund growth.
Best-rated homeowners insurance companies
Once you've determined the coverage you need and found cheap quotes for homeowners insurance, you should also consider a company's ratings and reviews before purchasing a policy.
The best-rated home insurance company is USAA, according to J.D. Power's annual study.
Ratings of top homeowners insurance companies
Company |
Market share
|
JD Power
|
Editor's rating
|
|---|---|---|---|
| State Farm | 18% | 835 | |
| Allstate | 9% | 829 | |
| USAA | 7% | 882 | |
| Farmers | 6% | 813 | |
| Liberty Mutual | 6% | 806 |
If you're concerned about an insurer that has received mixed or below-average ratings, we recommend consulting multiple ratings sources, such as the National Association of Insurance Commissioners and online reviews.
Consider asking your friends, family and neighbors about their homeowners insurers, as well. Those who live near you are often subject to the same insurance risks as you — such as weather or crime — and their claims experience can help inform your decision. Homeowners insurance is a significant investment, and you should have confidence that your insurer will support you if you need to make a claim.
Why your home insurance customer service matters
Price is often the overwhelming factor in how homeowners pick their insurance, but customer service comes into play when you need the policy to work for you. It's often hard to calculate what that might be worth, only to find out down the line.
Better customer service can often mean a company handling elements of a repair, rather than putting it in your hands. It also often means quick response times instead of calling multiple numbers and working through a confusing phone system.
It's important to remember that you'll likely be dealing with your insurer when something catastrophic has happened and disrupted your life.
With that in mind, looking closely at how a company works with you, its customer, is crucial. Depending on how your policy operates, you likely won't have to deal too often with your insurer, but when you do, good customer service can make a world of difference.
What should a good homeowners insurance policy cover?
While home insurance companies offer an array of optional add-ons, like water backup coverage and identity theft protection, all policies are built on four core coverages:
Dwelling coverage provides compensation for damage caused to the structure of your home by a covered peril, such as a fire or windstorm.
Your dwelling coverage limit should fully cover the cost of rebuilding your house — in other words, your home's replacement cost. Make sure you calculate this value using prices for material that's equal in quality to your home's current structure. Actual cash value coverage is cheaper but reduces your claim for wear and tear.
Personal property coverage protects most of your movable belongings, excluding vehicles.
Personal property coverage in home insurance policies generally includes items like furniture, televisions, clothing and appliances. High-value goods like jewelry are often covered up to lower per-category limits.
Your policy details will list the specific limits — usually in the thousands of dollars — for high-value categories. However, at an additional cost, most insurers offer an option for scheduled personal property coverage, which increases the protection for these high-value items.
Liability coverage protects you if you're held responsible for injury to other people or their property. This applies to your legal fees and damages, up to policy limits. Typical personal liability limits in a home insurance policy range from $100,000 to $300,000, but you can buy more coverage for little extra cost.
Additional living expenses coverage, or loss of use coverage, reimburses you for costs incurred if your house becomes uninhabitable due to a covered event. Relevant situations include both accidental causes like fire and government evacuation orders during disasters. This coverage only applies to expenses that are above and beyond your normal living expenses.
What do homeowners want out of their insurance?
To better understand the relationships between homeowners and insurers, ValuePenguin conducted a national survey of home insurance customers and asked them a series of questions about their experience with providers. Among other findings, our data supported the idea that home insurance customers care more about rates than any other factor.
- Fifty-eight percent of homeowners said they chose their current insurer because it offered the best rate.
- Just under 40% of all homeowners said that they've switched insurers at least once.
- Among homeowners who switched insurers, 77% cited problems with rates as a reason for leaving.
- About 32% of homeowners with insurance said that they had filed a claim with their current insurer.
- Seventy-four percent of those who filed a claim reported hearing back from their home insurance company within one week.
Homeowners prioritize affordable coverage
According to the homeowners in our study, the cost of coverage was the strongest factor in how they chose their insurance company. When asked why they had selected their current provider, 58% cited the fact that the provider offered the "best rate" as one of their reasons. The quality of customer service came in at a distant second.
Reasons people gave for choosing their home insurer
Best rate | 58% |
|---|---|
| Customer service | 39% |
| Benefits (such as discounts) | 29% |
| Local office | 27% |
| Recommendations from friends/family | 22% |
| Online reviews | 10% |
| Recommendations from mortgage lender | 8% |
Survey asked: 'Why did you decide to use your current home insurance provider? Please select all that apply.'
When asked why they had left their old insurers, homeowners showed the same concern for finding the best home insurance rates. A combined 77% of those who switched explained their decision by saying that either rates had increased or their old insurer was no longer the most affordable option following a change in the homeowner's profile.
Reasons people gave for leaving their previous home insurer
Rates increased | 53% |
|---|---|
| Poor customer service | 27% |
| My details changed (e.g., moved, renovated my home, etc.) and they no longer offered the best rates | 24% |
| Mishandled my claim | 10% |
| No local office in my area | 10% |
| Insufficient benefits (such as discounts) | 9% |
| Denied my claim | 7% |
Survey asked: 'Why did you leave your previous home insurance provider? Please select all that apply.'
Other considerations, such as a negative claim experience or bad service, fell far behind the overriding importance of finding an affordable premium.
People who file claims generally report a positive experience
In contrast, our survey findings went against the common idea of homeowners leaving their insurers after a dispute over claims handling. Roughly 40% of insured homeowners in the survey said that they had switched insurers at least once. Of these, only 17% blamed the change on a mishandled or denied claim.
Homeowners insurance satisfaction vs. claim history
No claims | Filed a claim | All homeowners | |
|---|---|---|---|
| Extremely satisfied | 49% | 58% | 52% |
| Somewhat satisfied | 34% | 30% | 33% |
| Neither satisfied nor dissatisfied | 14% | 8% | 12% |
| Somewhat dissatisfied | 1% | 3% | 2% |
| Extremely dissatisfied | 1% | 1% | 1% |
Survey asked: 'Overall, how satisfied are you with your current home insurance provider?'
Meanwhile, those who did file a claim ended up happier with their choice of insurance provider than those who didn't. While all homeowners expressed satisfaction with their current insurance provider by an overwhelming majority (85%), satisfaction was even higher among those who had gone through at least one claim with their insurer (88%).
Frequently Asked Questions
What are the top five home insurance companies?
Nationwide, State Farm, Farmers, USAA and Allstate are all top options depending on what you're looking for in a home insurance company. Erie offers some of the cheapest rates but is not widely available.
How much does house insurance cost?
The average cost of home insurance is about $1,680 per year, assuming coverage for a home at the median national value. However, the rates that you see as a homeowner are affected by a number of factors, ranging from your property's characteristics and location to your own personal details, so your own cost may be very different.
Which insurer has the highest customer satisfaction?
Looking at multiple factors and ratings from sources like J.D. Power, State Farm and USAA received the highest customer satisfaction ratings among major insurance companies.
Does Geico have home insurance?
Homeowners can purchase insurance through Geico, however the company does not underwrite home insurance policies. Instead, your policy will be serviced by one of its 31 partners. However, purchasing a home insurance policy with Geico will earn you a multipolicy discount if your car is insured there, too.
Who has the cheapest home insurance?
Erie offers homeowners the cheapest rates — $883 per year, on average. Unfortunately, the company only sells insurance in 12 states, so most homeowners can't take advantage of its low rates. We recommend Nationwide and State Farm, both of which offer low-cost homeowners insurance, as well.
Methodology
There isn’t a single home insurance company that fits everyone’s needs, so evaluate what is most important to you when choosing a provider.
Company | Best for... |
|---|---|
| Nationwide | Best for cheap home insurance rates |
| Farmers | Best for high policy limits |
| State Farm | Top ratings and reviews |
| Allstate | Best for new homebuyers |
| USAA | Best for military and their families |
To evaluate the best homeowners insurance companies, we compared the largest home insurance companies based on rates, reviews, ratings and financial strength.
- Rates: Home insurance rates depend on a number of factors, including the location of the home being insured and a policyholder’s previous claim history. Due to the price variation that exists in the home insurance industry, our search for the best companies was focused on insurers that consistently offer low rates.
- Reviews and ratings: Customer reviews and ratings give insight into what can be expected of a company’s claims process. You’ll want to select an insurance company that is highly reviewed and rated in order to ensure a smooth experience should you ever need to file a claim.
- Financial strength: A home insurance company is only as good as its ability to meet its customers’ claims. A company with great financial strength won’t have any problems paying out claims, whether a claim is for $100,000 or $500,000. On the other hand, a poor financial strength rating indicates that the insurance company might struggle to pay a customer’s claims.
Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.