Best Homeowners Insurance Companies of 2018

Farmers: Best Homeowners Insurance for Large Policy Limits

Home insurance shoppers who are looking to purchase a policy for an expensive home or one that is rapidly increasing in value due to home improvements should look to Farmers. Farmers offers the best rates for high policy limits and a few home upkeep discounts that could help you save on top of Farmers’ already great home insurance rates. For instance, Farmers offers its policyholders a discount for replacing their roofs. Additionally, Farmers provides discounts for renovating a home’s heating, electrical or plumbing systems.

Another added benefit of being insured through Farmers is that the company is well-reviewed for its customer service. Should you ever have to file a claim, you’ll benefit from the company’s friendly agents. Also, you can rest easy knowing that the company is financially strong—Farmers’ financial strength indicates that it would have little difficulty in meeting customer home insurance claims.

Allstate: Best Homeowners Insurance for New Homebuyers

Among the largest homeowners insurance companies, Allstate offers the best educational resources for first-time homebuyers by far. The highlight of Allstate’s educational resources is the Common and Costly Claims tool, which allows users to input their ZIP codes in order to receive a list of the most common home insurance claims in their area. For first-time homebuyers, the tool serves as a great guide for which coverages they should consider including in their home insurance policies.

While Allstate offers discounts to all homebuyers, first-time homeowners can take advantage of a few key discounts for huge savings. The homebuyer discount and the welcome discount each offer up to 10% savings on annual home insurance costs. To qualify for the discounts you must have recently purchased a new home and be a new customer to Allstate, two qualifications that new homebuyers are likely to meet. Together, the two discounts can save new homebuyers hundreds of dollars per year.

State Farm: Best for Cheap Homeowners Insurance Rates

State Farm is the best choice for homeowners who are looking to find the cheapest rates for home insurance. State Farm’s low rates, combined with its national coverage, mean that homeowners across the country are likely to find it to be the most affordable homeowners insurance company. The company offers the best homeowners insurance rates across several states, including some of the nation’s largest like Illinois and California.

In addition to having the best rates, State Farm offers its customers access to a standard set of discounts and policy modification options that lead to savings. For example, State Farm gives its customers the option to choose higher deductibles, resulting in lower annual costs for homeowners insurance. The discounts and policy modifications can provide savings on what are already considered the industry’s best rates.

Amica: Best Homeowners Insurance Company for Great Ratings and Reviews

Homeowners who are searching for an insurer with the best customer reviews and strong ratings will find that Amica is the best choice. Amica consistently receives top marks for its customer service, including being named the best home insurance company for overall customer satisfaction by J.D. Power for 16 years in a row. Amica’s Contractor Connection program is proof of how Amica goes above and beyond for its customers: The program helps policyholders find contractors for home repairs or upgrades at no cost. Additionally, any home repairs or upgrades made through the program benefit from a three-year workmanship warranty.

Another benefit of being insured through Amica is that it’s a mutual insurance company, meaning that it’s owned by its policyholders. Instead of returning profits to stockholders like other insurance companies, Amica has the ability to distribute dividends to its policyholders. In order to qualify for the dividends, which can be as much as 20% of your annual home insurance costs, you must purchase a dividend policy. While dividends aren’t guaranteed, Amica has a strong track record of distributing dividends.

USAA: Best Homeowners Insurance for the U.S. Military and Their Families

The United Services Automobile Association (USAA) combines great features with outstanding service, which makes it the best homeowners insurance company for U.S. military members, veterans and their families. USAA offers its policyholders a few features free of charge that other insurance companies do not. For instance, USAA provides all of its policyholders with replacement cost coverage for damaged personal items. The feature ensures that claims for damaged items are paid without a deduction for depreciation.

The largest benefit of obtaining homeowners insurance through USAA is that the company is focused on U.S. military members, and it is aware of some of the difficulties that military members encounter. Other insurance companies aren’t as focused on one specific segment of customers. For example, USAA knows that U.S. military members can be deployed overseas on short notice, so the company offers discounts on home security systems and storage costs.

Why Price Shouldn’t Be the Sole Determining Factor

Homeowners insurance is meant to protect one of your largest assets, so be sure to carefully consider what your insurance policy covers and the policy’s limits. Adding endorsements and raising your policy’s limits will often increase your annual insurance costs, but remember that the cost is actually helping you expand coverage of a valuable asset.

If you’re concerned that you’re paying too much for home insurance, you should examine the average home insurance rates in your state of residence. Most insurance companies have similar endorsements, so switching insurance companies won’t necessarily cause you to have to decrease certain coverages.

Results Overview and Methodology: Best Homeowners Insurance Companies

There isn’t a single home insurance company that fits everyone’s needs, so evaluate what is most important to you when choosing the best company for you:.

To evaluate the best homeowners insurance companies, we compared the largest home insurance companies based on rates, reviews, ratings and their financial strength.