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Best Homeowners Insurance Companies of 2024

The best homeowners insurance companies for affordable rates and dependable customer service are State Farm, Erie and Amica.

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We gathered tens of thousands of quotes from the largest insurance companies in the country to determine the best home insurance companies. We also considered customer reviews and ratings, availability, coverage options and discounts.

Best homeowners insurance rates

Erie offers the cheapest home insurance rates among the largest insurance companies, with an average rate of $1,244 per year. However, the company is only available in 12 states, meaning it isn't an option for many customers.

State Farm and Allstate have the cheapest home insurance rates among widely available top insurance companies.

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Home insurance rates by company

Annual rate
Erie logo
State Farm logo
State Farm$1,363
Allstate logo
Nationwide logo
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USAA is only available to active-duty military members, veterans and their families.

Find the best homeowners insurance in your state

Best home insurance company overall: Erie

  • Editor rating

  • Annual rate

    $1,244 ?

Pros and cons

  • Affordable rates
  • Excellent customer service
  • Limited availability
  • Can't purchase a policy or file a claim online

Erie offers homeowners good insurance coverage and exceptional customer service at some of the most affordable rates in the country. However, Erie only offers home insurance in 12 states and Washington, D.C. which means that many homeowners aren't eligible.

An average home insurance policy from Erie costs $1,244 per year, which is $220 per year cheaper than the national average of $1,464. Along with cheaper rates, Erie's standard home insurance policy comes with extra coverage options that you won't find at most other companies, like guaranteed replacement cost coverage and theft coverage that includes lost items, a benefit that could come in useful if you have valuables that can easily be lost, like jewelry and small electronics.

Best national home insurance rates: State Farm

  • Editor rating

  • Annual rate

    $1,363 ?

Pros and cons

  • Cheap quotes
  • Dependable customer service
  • Widely available
  • Limited coverage add-ons

State Farm is the best choice for homeowners looking for cheap insurance without sacrificing quality. Its low rates and national coverage give many homeowners affordable policies. A standard State Farm home insurance policy costs $1,363 per year, on average, offering the cheapest homeowners insurance across several states, including Arizona, Illinois and North Carolina.

State Farm offers discounts for bundling your home and car insurance policies, as well as discounts for installing a security system or having an impact-resistant roof .

Best home insurance company for customer service: Amica

  • Editor rating

  • Annual rate

    $1,657 ?

Pros and cons

  • Quality customer service
  • Lots of discounts

  • Higher-than-average rates

Amica is the best homeowners insurance company for people who value great customer service. Having access to excellent service is very important as a homeowner — if you're in an emergency and you need to file a claim, you'll benefit from a company with an easy, quick process. Amica only gets 23% as many complaints as other insurance companies of a similar size, according to the National Association of Insurance Commissioners (NAIC). In addition, J.D. Power ranked Amica second for customer satisfaction among national home insurance companies after Erie Insurance, which is only available in 12 states.

Unfortunately, dependable service comes at a price. On average, home insurance from Amica costs $1,657 per year, which is 13% more expensive than the national average.

Best for extended coverage options: American Family

  • Editor rating

  • Annual rate

    $1,495 ?

Pros and cons

  • Lots of coverage add-ons
  • Diminishing deductible

  • Average rates
  • Below-average customer service

Homeowners looking for extra protection will find a number of additional coverage options with American Family (AmFam). A policy from AmFam costs an average of $1,495 per year, or $125 a month, which is $31 per year higher than the national average rate of $1,464 per year.

Although rates from American Family are just average, the company offers more discounts than most competitors, including a smart home security system discount, a renovation discount, an age-of-home discount, a loyalty discount and payment discounts. Combined, these discounts can help make a policy from AmFam more affordable.

The extra coverage options at AmFam make it an excellent option for homeowners who want more protection than a standard policy offers. Optional policy endorsements include:

  • Hidden water damage coverage protects your home from water leaks that are hidden within your walls, ceilings, cabinets or beneath flooring. These leaks are normally excluded from coverage and can cause lots of damage before you notice there's a problem.
  • If your siding is damaged, matching siding protection will pay up to $20,000 in additional costs to replace undamaged siding to ensure that the repairs match as closely as possible.
  • Equipment breakdown protection covers appliances, home systems and smart home devices if they're damaged due to mechanical, electrical or pressure systems breakdown.
  • Sump pump and water backup coverage protects your home and belongings from water damage due to backed-up pipes.
  • Identity theft protection monitors your credit through CyberScout to prevent fraud.
  • Diminishing deductible gives homeowners a $100 credit toward their deductible for every year that they're claim-free.

Best for bundling home and auto insurance: Allstate

  • Editor rating

  • Annual rate

    $1,369 ?
  • Bundling discount


Pros and cons

  • Best multipolicy discount
  • Short-term rental protection available
  • Car insurance can be expensive

Among the largest homeowners insurance companies, Allstate offers one of the biggest average discounts for bundling home and car insurance policies — up to 25%. The average cost of a home insurance policy from Allstate is $1,369 per year, which means homeowners could save around $324 per year for insuring their car with Allstate as well.

Not only does Allstate offer the largest discount for home and auto bundling, but its wide range of insurance products means that you can take advantage of additional discounts by bundling motorcycle or life insurance policies, too.

Allstate also offers discounts for switching insurance companies, buying a new home, paying automatically, installing fire and theft protection devices and signing up for a new policy at least seven days before your current policy expires.

Best home insurance for military families: USAA

  • Editor rating

  • Annual rate

    $1,518 ?

Pros and cons

  • Excellent customer service
  • Military-specific benefits
  • Expensive rates
  • USAA only offers homeowners insurance to active-duty military members, veterans and their families

The United Services Automobile Association (USAA) combines great features with outstanding service, which makes it the best homeowners insurance company for veterans and military members.

A policy from USAA costs $1,518 per year, which is more expensive than average. However, USAA offers customers a few features free of charge that other insurance companies do not. For example, a basic policy includes replacement cost coverage for damaged personal items. That means USAA will pay to replace a damaged item instead of paying the actual cash value of the item when it was destroyed. Most other insurance companies charge extra for this benefit.

Other benefits that cater to service members include:

  • Property insurance extends to belongings in war zones.
  • Uniforms are covered under homeowners personal property insurance, with no deductible.

USAA's understanding of the particular challenges of military life makes it an ideal insurance option for those who have served in the military and their families. In addition to insurance, USAA also offers 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.

How to find the best home insurance

  • One of the best ways to find cheap home insurance is to compare rates online from multiple companies. Each home insurance company calculates quotes in its own way, so you increase the likelihood of getting the best price as you compare more insurance companies.

  • Selecting a higher deductible for your dwelling and personal property coverages can also reduce your home insurance rates. However, raising your deductible means taking on more risk yourself. Make sure your home insurance deductible is never greater than the amount you can afford to pay out of pocket after an incident.

  • You can also save money on homeowners insurance by qualifying for insurance companies deals and discounts. Most home insurance companies offer cheaper rates for bundling multiple policies, like home and auto, and for making home improvements to increase the safety of your home. Individual companies — particularly smaller insurance companies — often have unique discounts, as well.

  • Finally, consider newer insurance companies, which may offer insurance coverage through different platforms. As in many other industries, tech-focused startups, like Lemonade, may offer you a lower rate thanks to either reduced costs or a need to grow.

Best-rated homeowners insurance companies

Once you've determined the coverage you need and have found cheap quotes for homeowners insurance, you should also consider a company's ratings and reviews before purchasing a policy. Choosing a company with well-regarded customer service can make a big difference if you ever have to make a claim. Excellent service can help reduce stress in a difficult situation and get your life back to normal quickly.

The best-rated home insurance company is USAA, according to J.D. Power's annual study. However, not everyone is eligible to purchase a policy from USAA — you have to be a member of the military, a veteran or their family member.

Amica offers the best widely available customer service for homeowners, according to J.D. Power.

Home insurance company ratings

Editor's rating
J.D. Power
State Farm
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Best home insurance companies by state

Where you live has a significant impact on your homeowners insurance quotes. That's because certain areas are more prone to weather-related damage, like tornadoes and snowstorms. To help you shop for the best rates, we found the cheapest home insurance companies in each state.

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Michigan homeowners can take advantage of the cheapest rates in the country — a policy from Auto-Owners costs only $249 per year. Homeowners in Colorado have some of the highest insurance costs in the country — the cheapest policy is from Chubb and costs $2,044 per year.

Cheapest home insurance rates by state

Cheapest companies
Cheapest annual rate
AlaskaCountry Financial$948
ArizonaState Farm$916
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How to compare the best home insurance

When shopping for homeowners insurance, it's important to consider the amount of coverage you need and the reputation of each insurance company before comparing insurance quotes.

1. Decide how much home insurance coverage you need

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:

The structure of your home refers to the walls, roof, siding, foundation and other fixed elements of your home's construction.

Dwelling coverage offers 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 materials that are equal in quality to your home's current structure.

Dwelling coverage is usually calculated based on either actual cash value or replacement cost. Actual cash value coverage is cheaper but reduces your claim payout because it factors in depreciation, or wear and tear.

Keep in mind that actual cash value coverage may leave you on the hook with a large out-of-pocket bill. Because actual cash value only pays for the cost of your home that includes wear and tear, you'll have to make up the difference between what your claim pays out and the amount you need to pay to repair your house.

For example, roofs lose 5% of their value per year on average. Imagine that a windstorm damages your roof, and the roof has a depreciated value of $7,000. If a new roof costs $10,000 then you'll pay the $3,000 difference in addition to your insurance policy's deductible .

Personal property coverage protects most of your movable belongings, excluding vehicles.

Personal property insurance policies for your home generally include items like furniture, televisions, clothing and appliances. The amount of coverage is usually calculated as a percentage of your dwelling replacement cost.

The base coverage differs between home insurance companies, so it's important to review the amount of coverage included in each quote and adjust it if necessary.

High-value goods like jewelry are often covered up to lower per-category limits. Your policy details will list the specific limits — usually in thousands of dollars — for high-value categories. Most insurance companies offer an option for scheduled personal property coverage, which increases the protection for these high-value items at an additional cost.

Liability coverage protects you if you're held responsible for injury to other people or damage to their property. This covers 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 a minimal extra cost.

Additional living expenses coverage, or loss of use coverage, pays you for costs incurred if your house becomes uninhabitable due to a covered event. This coverage only applies to expenses that are above and beyond your normal living expenses, like the cost of a rental home or hotel, or food costs if your temporary space doesn't have a kitchen.

It's important to decide how much of each of these coverages you would need in the event of a major catastrophe before comparing quotes. Understanding your limits will allow you to make an apples-to-apples comparison when getting homeowners insurance quotes.

2. Consider how important customer service is to you

Price is often the overwhelming factor when comparing insurance companies for your home, but customer service comes into play when you need the policy to work for you. It's often hard to put a price on the value of a good customer service experience.

Better customer service can often mean a company handling elements of a repair, rather than putting it in your hands, or quick response times instead of calling multiple numbers and working through a confusing phone system.

You'll likely be dealing with your insurance companies when something catastrophic has happened and disrupted your life. Better customer service means getting back to normal more quickly.

With that in mind, it's important to look at how companies treat their customers. Depending on how your policy operates, you likely won't have to deal too often with your insurance company. But, when you do, good customer service can make a world of difference.

If you're concerned about an insurance company that has mixed or below-average ratings, look at multiple rating sources, such as the National Association of Insurance Commissioners (NAIC) and online reviews.

Consider asking your friends, family and neighbors about their homeowners insurance companies, as well. Those who live near you often have the same insurance risks as you — such as weather or crime — and their claims experience can help you make a decision. Homeowners insurance is a significant investment, and you should have confidence that your insurance companies will support you if you need to make a claim.

3. Compare the best home insurance companies

Once you've determined the amount of insurance coverage that you need and the companies that have good customer service in your area, you can begin to compare homeowners insurance quotes. Most major insurance companies offer homeowners insurance quotes online. This allows you to gather multiple quotes quickly.

Compare multiple quotes to find the best home insurance rates, customer service and coverage options.

What's the most important factor in finding the best home insurance?

To better understand the relationships between homeowners and insurance companies, ValuePenguin conducted a national survey of home insurance customers and asked them a series of questions about their experience with insurance companies. Among other findings, our data supported the idea that home insurance customers care more about rates than any other factor.

  • 58% of homeowners said they chose their current insurance companies because it offered the best rate.
  • About 40% of all homeowners said that they've switched insurance companies at least once.
  • 53% of homeowners that switched insurance companies said rate increases were a reason for leaving and 24% said their insurance company was no longer the most affordable after a change to their profile.
  • About 32% of homeowners with insurance said that they had filed a claim with their current insurance company.
  • 74% 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 company, 58% said the fact that their company offered the "best rate" was one of their reasons. The quality of customer service came in at a distant second.

Reasons people gave for choosing their home insurance companies

Customer reason
% of customers
Best rate58%
Customer service39%
Benefits (such as discounts)29%
Local office27%
Recommendations from friends/family22%
Online reviews10%
Recommendations from mortgage lender8%

Survey asked: 'Why did you decide to use your current home insurance company? Please select all that apply.'

When asked why they had left their old insurance companies, homeowners showed the same concern for finding the best home insurance rates. Of those who switched, 53% explained their decision by saying that rates had increased and 24% said their old insurance companies was no longer the most affordable option following a change in the homeowner's profile.

Reasons people gave for leaving their previous home insurance companies

Customer reason
% of customers
Rates increased53%
Poor customer service27%
My details changed (e.g., moved, renovated my home, etc.) and they no longer offered the best rates24%
Mishandled my claim10%
No local office in my area10%
Insufficient benefits (such as discounts)9%
Denied my claim7%

Survey asked: 'Why did you leave your previous home insurance company? Please select all that apply.'

Other considerations, such as a negative claim experience, fell far behind the overriding importance of finding an affordable rate.

People who file claims generally report a positive experience

Our survey findings went against the common idea of homeowners leaving their insurance companies after an argument over claims handling. Roughly 40% of insured homeowners in the survey said that they had switched insurance companies at least once. Of these, only 10% blamed the change on a mishandled claim and 7% on a denied claim.

Homeowners insurance satisfaction vs. claim history

No claims
Filed a claim
All homeowners
Extremely satisfied49%58%52%
Somewhat satisfied34%30%33%
Neither satisfied nor dissatisfied14%8%12%
Somewhat dissatisfied1%3%2%
Extremely dissatisfied1%1%1%

Survey asked: 'Overall, how satisfied are you with your current home insurance company?'

Meanwhile, those who did file a claim ended up happier with their choice of insurance company than those who didn't. While homeowners who said they were happy with their current insurance company were an overwhelming majority (85%), satisfaction was even higher among those who had gone through at least one claim with their insurance company (88%).

Frequently asked questions

What are the top five best home insurance companies?

State Farm, Allstate, American Family and USAA are all top companies depending on what you're looking for in a home insurance company. Erie offers some of the cheapest rates but is not widely available.

Which homeowners insurance company has the best customer satisfaction?

Amica and USAA got the highest customer satisfaction ratings among major insurance companies, based on sources like J.D. Power.

Who has the cheapest home insurance?

Erie offers homeowners the cheapest rates — averaging $1,244 per year. Unfortunately, the company only sells insurance in 12 states, so most homeowners can't take advantage of its low rates. State Farm and Nationwide are widely available and offer affordable homeowners insurance as well.

What is the best insurance company for bundling home and car insurance?

Allstate is the best company for bundling home and auto insurance. The company offers the biggest bundling discount compared to other large insurance companies — 24% on average.


To find 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 several factors, including the location of the home being insured and your previous claim history. Because of the range of the prices for home insurance, the analysis of the best companies was focused on insurance companies 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 suggests 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.