State Farm: Best for Cheap Homeowners Insurance Rates
Consider this if you’re searching for low homeowners insurance rates from a large and reputable company.
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 house insurance. The discounts and policy modifications can provide savings on what are already considered the industry’s best rates.
- A++ (Superior) A.M. Best Financial Strength Rating
- Ranked sixth out of 29 companies for overall satisfaction by J.D. Power
- State Farm mobile: State Farm offers a free mobile app that allows you to submit claims and access your account information on the go
- Unique discount: Receive a discount if your roof’s construction materials are deemed to be impact-resistant
- Read our full review on State Farm
Amica: Best Homeowners Insurance Company for Great Ratings and Reviews
Consider this if you’re looking for a company with industry-leading 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 home insurance providers, 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.
- A+ (Superior) A.M. Best Financial Strength Rating
- Ranked first out of 29 companies for overall satisfaction by J.D. Power
- Highlight discount: The loyalty discount provides increased savings the longer you remain insured through Amica, with discounts beginning after year two of membership
- Read our full review on Amica
Farmers: Best Homeowners Insurance for Large Policy Limits
Consider this if you’re looking to insure a home worth over $200,000.
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 house insurance 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.
- A (Excellent) A.M. Best Financial Strength Rating
- Unique discount: Qualify for a homeowners insurance discount if your home is Energy Star-, EPA- or LEED-certified
Allstate: Best Homeowners Insurance for New Homebuyers
Consider this if you have a lot of questions about home insurance or if you’re looking for new home discounts.
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.
- A+ (Superior) A.M. Best Financial Strength Rating
- Ranked 10th out of 29 companies for overall satisfaction by J.D. Power
- Optional coverage: The “green improvement reimbursement” coverage provides you with a higher payout in the event of a loss so you can replace damaged items with more energy-efficient alternatives
- Other features: Policyholders who purchase Claim RateGuard won’t see their insurance rates go up even after filing a claim
- Read our full review on Allstate
USAA: Best Homeowners Insurance for the U.S. Military and Their Families
Consider this if you or a family member has U.S. Military ties.
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 house security systems and storage costs.
- A++ (Superior) A.M. Best Financial Strength Rating
- USAA mobile app: Report claims and contact a representative through USAA’s free mobile app
- Other features: Increase your policy’s deductible in order to decrease your annual home insurance rate
- Read our full review on USAA
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.
How to Find Cheap Home Insurance
In addition to coverage, cost is a key factor in choosing the best homeowners insurance, since quotes for the same policy can more than double depending on the insurer you choose. One of the best ways to find cheap home insurance is by comparing rates from multiple companies online. Each home insurance company rates risk differently, so you increase the likelihood of getting the best price as you compare more insurers, and it just takes a few minutes to get a quote through an online form.
You can also save money on homeowners insurance by qualifying for an insurer's deals and discounts. The percentage discount will change by insurer, but most companies offer significant deals if you bundle multiple policies, make home improvements to minimize potential damage from storms, or add security features. We recommend you review all available deals from an insurer and notify them which you might qualify for, as you might get a significantly cheaper home insurance quote. You may also want to consider updating your home or adding new security features, though you should weight the cost of these against a potential discount.
Selecting a higher deductible for building and contents coverage will also yield cheaper home insurance rates, but you should only choose a deductible you could pay in an emergency. If your deductible is greater than the amount you'd be able to pay out-of-pocket after a claim, you won't be able to rely on your insurer to cover the damage.
Homeowners Insurance Company Ratings
Once you've determined the coverage you need and found cheap quotes for home owners insurance, you should also consider a company's ratings and reviews before purchasing a policy. The best rated home insurance companies are Amica and USAA, according to JD Power's annual comparison, and these companies consistently receive very few complaints as compared to their market share.
As you can see below, few of the top home insurance companies receive poor customer satisfaction ratings, but most of the largest insurers are reviewed as average (a rating of 3).
Ratings of Top Homeowners Insurance Companies
|Insurer||Market Share||Customer Satisfaction Rating|
If you're concerned about an insurer that has received mixed or below-average ratings, we recommend consulting multiple ratings sources, such as the NAIC and online reviews. Given the cost of homeowners insurance, you should have confidence that your insurer will answer your questions and offer the support you need if you need to make a claim.
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 provider 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.
- Rates: Home insurance rates are dependent upon a great 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 for a customer’s claims.