The Best Homeowners Insurance Companies of 2024

Hello, my friend, hello again; today we come together to talk about The Best Homeowners Insurance Companies of 2024 and hope the blog can help you.

The best homeowners insurance companies offer reliability, flexibility, and multiple coverage options to appeal to a wide range of homeowners.

Purchasing a home is a major investment, so it’s wise for homeowners to do what they can to protect it. Unfortunately, it’s impossible for a homeowner to predict how and when their home could sustain damage, whether it’s from a burst pipe, a fire, a storm, or another event. Having a policy from one of the best homeowners insurance companies can provide homeowners with the coverage they need to restore their damaged home to good condition without having to drain their savings.

When shopping for homeowners insurance coverage, homeowners will want to look for the most comprehensive coverage they can afford from a quality company they can trust. The best home insurance company for each homeowner will depend on their individual needs and preferences. While some people like to work directly with an insurance agent to find their ideal policy, others prefer to research and purchase their homeowners insurance policy online. Customers may want to bundle their policy with other insurance products (such as auto), or they may want to purchase specific add-on options to get the right amount of coverage for their unique needs. As such, it’s imperative for homeowners to carefully research the best home insurance companies so they can find the right one for them. The companies featured in this roundup have proven themselves as some of the best homeowners insurance companies out there, providing a good starting-off point for homeowners looking for a policy.

1. BEST OVERALL: State Farm
2. RUNNER-UP: Amica
3. BEST FOR HOME AND AUTO: Allstate
4. BEST FOR BUNDLING: Nationwide
5. BEST DIGITAL EXPERIENCE: Lemonade
6. BEST FOR DISCOUNTS: NJM
7. BEST FOR MILITARY MEMBERS: USAA

What to Consider When Choosing the Best Homeowners Insurance

There are several factors for homeowners to consider when researching the best homeowners insurance companies. For example, homeowners may want to ask the following questions:

• What does homeowners insurance cover with a standard policy?
• Do providers offer add-on policies to increase coverage?
• Can customers bundle homeowners insurance with their other existing insurance policies?
• Does the company have the financial strength to guarantee its policies?
• Do home insurance companies provide coverage in the customer’s location?
• Does the company have a reputation for providing great customer service?

These are just a few examples of questions homeowners may have when shopping for the best homeowners insurance. The following sections will explain these factors in more detail to aid homeowners in their understanding of what to look for when shopping for homeowners insurance.

Coverage Area

One of the key factors insurance companies look at when pricing a homeowners insurance policy is the property’s location. Not every homeowners insurance company will offer coverage in every state—and in some cases, availability will vary by ZIP code—so homeowners will want to first check that the policy they’re interested in is available where their home is located before proceeding with a quote. If they find that the company they’re considering doesn’t offer coverage in their area, they can cross it off the list and move onto the next option.

Homeowners insurance for properties in major cities often costs more than policies covering rural homes. One reason for this is that homes in big cities generally have higher property values, so repairing or rebuilding the home is likely to be more expensive for the insurance company. That expense is passed onto the consumer in the form of higher premiums.

Additionally, homeowners who live in areas known for natural disasters such as tornadoes, hurricanes, or earthquakes could pay higher rates since they face a greater risk of property damage (and homeowners may need to take out additional coverage if they want to be able to make a claim following an earthquake). Some insurers may decline to offer coverage in certain high-risk areas (such as Florida) entirely. Homes located in high-crime areas that are at higher risk for theft may also be more costly to insure than those in areas with low crime rates.

While searching for a homeowners insurance provider, residents of certain states may find homeowners insurance options to be more limited compared with other areas of the country.

• Editor’s note: As of 2024 several insurance companies, such as Allstate, Nationwide, USAA, and State Farm, have dropped their property insurance offerings in California, and other providers could follow suit. Similarly, some providers are limiting new policies in Florida.

Coverage Amount

Coverage limits on a homeowners insurance policy can vary from one company to another and across different types of coverage. Homeowners insurance typically includes dwelling, personal property, and personal liability protection among its standard terms, each of which will provide coverage up to a certain limit. For instance, personal property coverage limits may be based on a percentage of the policy’s dwelling coverage amount. Other forms of insurance included with a homeowners insurance policy, such as loss of use and other structures coverage, will likely adhere to specific coverage limits as well. As such, it’s important that homeowners check on these caps when selecting an insurance company, especially if they know they need more insurance to protect their home, their belongings, or their finances.

Policy Options

Beyond the standard forms of coverage that are included with most homeowners insurance policies, customers may also have the option to purchase endorsements that expand coverage to include more losses. Add-on options, including both the type of endorsement and the amount of coverage available, will depend on the insurance provider. Also, some endorsements such as earthquake protection may only be available in certain locations. The best insurance companies for home coverage may offer add-on policy options that can include:

• Water backup protection, in case of overflowing drains, sewer backups, and other causes of water damage not typically covered by a standard homeowners insurance policy.
• Scheduled personal property coverage, which insures certain high-value items (artwork, jewelry, musical instruments, sports equipment, etc.) beyond a policy’s standard terms of coverage.
• Identity theft protection, in case the policyholder falls victim to a data breach, identity theft, or fraud and requires remediation services.
• Earthquake coverage, which can protect homes situated in areas at high risk of seismic activity from damage directly caused by ground tremors.
• Sinkhole coverage, in the event that the home or personal property sustains sinkhole damage that would otherwise not be covered under the terms of a standard homeowners insurance policy.

Deciding which, if any, add-ons are worth purchasing may depend on the policyholder’s location, as some endorsements may be more useful for certain circumstances that are more likely to occur in some parts of the country but not others—earthquakes, sinkholes, and flooding water, for instance. By taking advantage of endorsements, homeowners can expand their insurance policies to better suit their needs.

Insurance Premiums

Cost is a major consideration when homeowners are deciding on an insurance provider, and shoppers will likely find that insurance premiums can vary quite a bit from one company to another. Rates are based on a wide variety of factors, including the size, age, and condition of a home; the policyholder’s claims history; local crime rates; any protective devices installed on the premises; and the home’s proximity to the nearest fire station. Coverage selections will also play a big part in determining insurance premiums, since prices will rise as customers add more coverage to their homeowners insurance policy. Because there can be so much variance in insurance rates across different companies, it’s worth shopping around and comparing prices with multiple insurance providers.

Quote Process 

Not all home insurance quotes from every provider will be the same. Each insurance company looks at a number of factors such as the age, location, and value of the home to determine how much a homeowners insurance policy will cost. To find the best rates, it’s important for homeowners to shop around and get a homeowners quote from multiple companies to compare and determine which one best fits their needs and their budget.

It’s recommended for customers to provide identical information to each company, preferably on the same day, to yield comparable homeowners insurance quotes. In addition, keeping the terms of the homeowners insurance policy—amount of coverage, deductible, add-ons, etc.—the same can provide a more accurate comparison.

Different companies also offer different methods of getting a homeowners insurance quote, whether that’s online, over the phone, or in person through an agent. The process of getting the best home insurance quotes may largely depend on what kind of experience a customer is looking for. Agents have extensive knowledge of available policies and can answer any questions that homeowners may have, but visiting a branch office may not be the most convenient solution for someone looking to get a quote quickly. In that case, customers may give preference to companies that offer a quick online quote process. However, they’ll want to keep in mind that they may get a more accurate quote by speaking to an agent rather than through an online quote tool since the agent can build a quote tailored to the customer’s precise coverage needs.

Claims Process

Filing an insurance claim can be stressful, especially following a major loss involving a fire, storm, or theft, among other perils. The best-rated homeowners insurance companies may be able to offer more streamlined claims processes that allow policyholders to quickly and easily submit a claim on a covered loss. There could be multiple ways to submit a claim, from going online and uploading documents to the customer’s dedicated account, to speaking with an agent over the phone and walking through the claim submission process step by step. Finding the right approach will depend on each homeowner’s individual preferences and whether they would prefer the convenience of a digital claim platform or the hands-on support of working directly with an agent.

Deductibles

Insurance deductibles refer to the amount of money that is deducted from a claim payout before funds are disbursed to the policyholder. There is a common misconception that policyholders need to pay their deductible out of pocket, but that’s not the case with homeowners insurance as the insurance provider will deduct the customer’s selected deductible from the total payout. Even so, deductible options can be an important factor to consider when choosing a homeowners insurance company as they may impact both the size of a future claim payout and the initial cost of coverage. Selecting a lower deductible will typically result in higher insurance premiums and vice versa. Finding the right balance between up-front costs and potential claim payouts will come down to each policyholder’s particular preferences and financial circumstances.

Additional Policies

While homeowners insurance covers the structure and contents of the home, there are some specific types of damage that will likely not be included in a standard policy. For instance, customers living in areas prone to floods may need to take out a flood insurance policy in addition to their homeowners policy. This is true, too, for areas known for earthquakes. Homeowners may want to add an earthquake endorsement to their coverage, or take out a separate earthquake insurance policy to make sure they are covered if disaster were to strike. Earthquake insurance covers the home and its contents if it’s damaged or destroyed by seismic activity.

Homeowners insurance also typically covers certain water damage (such as due to a burst pipe), but not from a sewer backup or drain overflow. In this case, customers will need to purchase water backup coverage to help pay for repairs. While some homeowners insurance policies will include loss of use as standard coverage, other policies may only offer this coverage as an additional endorsement. Homeowners can ask their insurance agent to provide specific coverage details and to determine whether this coverage is standard or additional.

Other add-on policies worth considering include homeowners insurance coverage to repair or replace the utility lines that run from the house to the street, coverage for repairs due to sinkholes, and coverage for scheduled personal property such as jewelry and antiques. Policyholders who conduct business activities on the property may need to purchase additional home business coverage. Identity theft coverage is another policy option that some companies offer as an endorsement. Finally, umbrella insurance can help cover liability above and beyond what the standard homeowners insurance policy covers.

Discounts

One of the most common ways for homeowners to get a discount on their insurance coverage is to bundle multiple policies under the same provider. Many insurance customers opt for one of the best auto and homeowners insurance bundles, which can save them a significant amount of money on their insurance rates in some cases. The exact amount will vary by the provider and the customer, so it’s worth homeowners asking their insurer for the specifics if they are interested in bundling their coverage.

Customers who don’t own a car may be able to get a multipolicy discount by bundling their homeowners insurance with other coverage such as umbrella insurance, term life insurance, or even boat or pet insurance. Bundling home and auto insurance or other types of policies also results in easier policy management because all policies are with the same company; this makes it easier for the policyholder to file a claim or ask questions because they have one point of contact for all their coverage rather than a different point of contact for each type of insurance.

Beyond bundles, insurance companies often offer other ways to save money on insurance for eligible policyholders. Discounts that may be available through the best homeowners insurance companies include:

• Claim-free
• New customer
• Customer loyalty
• Automatic payments
• Paperless billing
• Protective device

By taking advantage of opportunities such as the best auto and home insurance bundles, homeowners can reduce the total cost of coverage and save money on their homeowners insurance.

Actual Cash Value vs. Replacement Cost Coverage

Figuring out how much homeowners insurance policyholders need to cover replacement or rebuild and repair costs can be more complicated than it might initially appear. Homeowners insurance reimburses policyholders for property damage using one of two values:

• Actual cash value pays claims based on the depreciated value of the items, meaning what those items are currently worth, not what the policyholder paid for them or how much it would cost to replace them.
• Replacement cost coverage pays claims based on how much it would cost to repair or replace the home or an item based on current pricing, rather than a depreciated value.

Homeowners insurance policies with replacement cost coverage are typically more expensive because this type of coverage typically pays out a higher claim amount than actual cash value coverage. Homeowners will need to weigh the pros and cons of each type of coverage to determine which option is best for them.

AM Best Rating

When researching home insurance agencies, homeowners may want to look for companies that have good AM Best insurance ratings. AM Best is a credit rating agency that reviews insurance carriers to determine their financial strength and credit information. AM Best looks at a number of factors to evaluate each insurance company’s financial and risk management, and then assigns a letter rating between A++ (“Superior”) and D (“Poor”), with A++ being the highest rating. This information provides some insight into a company’s ability to pay out claims to its policyholders.

Although a good AM Best rating does not guarantee a company’s performance, it is an indicator of the service quality policyholders may expect to receive. Combining an AM Best rating with other tools such as Better Business Bureau ratings and customer reviews could help prospective customers decide whether a particular homeowners insurance company is right for them. However, it’s important for homeowners to remember that many times, customers are more likely to write a review after a negative experience than after a positive one, so a number of negative reviews for any particular company doesn’t necessarily mean that potential customers will have negative experiences. Potential customers can look to see whether the insurance companies have responded to negative reviews to try and resolve the issue; this shows that the company is willing to work with customers to make sure they are satisfied with their service.

Occasionally, a homeowner will come across an insurance company that doesn’t have an AM Best rating. This isn’t a reflection of the company’s financial standing; rather, the insurer may be new to the market or a small local provider that hasn’t yet been rated. Checking other financial stability rating agencies, such as Demotech, can provide customers with a well-rounded view of all the companies on their shortlist.

Complaints

Reviewing customer complaints for home insurance agencies can provide insight into how reliable the company is when paying out claims, as well as how responsive and supportive the company’s customer service may be. A good resource for checking customer complaints is the National Association of Insurance Commissioners (NAIC), which maintains a Company Complaint Index. Prospective customers can enter the insurance company name, type of insurance, and the state they live in to pull up the Complaint Index Report.

Another source to review customer satisfaction is J.D. Power, which uses consumer insights, data, and other tools to evaluate a company in relation to its competitors. Each year, it issues rankings through its U.S. Home Insurance Study, which lists the top homeowners insurance companies. Homeowners can use this as a resource when comparing different insurance providers.

At-a-Glance Comparison

	Coverage Area	Quote Process	Claims Process	Additional Policies	Multipolicy Discount	AM Best Rating
State Farm	47 states and Washington, D.C.	Online, phone, agent	App, online, phone, agent	Vehicle, life, umbrella, health, small business	Up to $1,073 per year	A++
Amica	48 states and Washington, D.C.	Online, phone, agent	App, online, phone, agent	Vehicle, life, umbrella, small business	Up to 30 percent	A+
Allstate	49 states and Washington, D.C.	Online, phone, agent	App, online, phone, agent	Vehicle, life, umbrella, small business, pet, travel	Up to 25 percent	A+
Nationwide	43 states and Washington, D.C.	Online, phone, agent	App, online, phone, agent	Vehicle, life, umbrella, pet, travel, dental, personal injury protection, identity theft	Up to 20 percent	A+
Lemonade	23 states and Washington, D.C.	Online	App	Vehicle, life, pet	Unknown	Not rated
NJM	5 states	Online, phone	Online, phone	Vehicle, umbrella	Unknown	A+
USAA	50 states and Washington, D.C.	Online (for USAA members), phone	App, online, phone	Vehicle, life, umbrella, health, pet, travel	Up to 10 percent	A++

Our Top Picks

The best homeowners insurance companies for each individual homeowner depends on their specific needs. Some homeowners may want a company that checks most boxes—such as a large coverage area, strong financial rating, and user-friendly quote process—or some may prefer a company with a specific strength or area of expertise.

Best Overall

State Farm

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Why It Made the Cut: In addition to being highly rated for financial strength and customer satisfaction, State Farm typically offers lower pricing than the national average.

State Farm touts that it offers great rates for everyone, and the company backs that up with pricing for its policies that is typically lower than the national average. To further reduce costs, State Farm homeowners insurance customers may have limited opportunities to take advantage of discounts, as the company only offers a few discounts on homeowners insurance policies. However, discounts on home and auto bundles are especially generous, and eligible customers could save up to $1,073 each year on multipolicy bundles. Customers are encouraged to work with a local agent to determine exactly which discounts they might qualify for.

State Farm has a strong history of being reliable—as evidenced by its A++ AM Best financial strength rating—and providing excellent customer satisfaction, per the NAIC. Plus, it offers other insurance products such as car, life, and umbrella insurance, so customers can work with one company for all of their insurance needs. State Farm’s website is also simple to use and navigate, helping customers quickly find online resources and policy information when necessary. This helps alleviate frustration at a time when emotions might be high, such as when the home has sustained damage and the homeowner is trying to make an insurance claim.

Specs

• Coverage area: 47 states and Washington, D.C.
• Quote process: Online, phone, agent
• Claims process: App, online, phone, agent
• Additional policies: Vehicle, life, umbrella, health, small business
• Multipolicy discount: Up to $1,073 per year
• AM Best rating: A++

Pros

• Prices typically fall below national average
• Generous home and auto bundle discount up to $1,073
• A++ AM Best rating
• User-friendly and easy-to-navigate website
• Excellent customer satisfaction ratings

Cons

• Limited discount opportunities

Runner-Up

Amica

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Why It Made the Cut: With a claims process that is simple and efficient, Amica has been awarded the highest customer satisfaction rating by J.D. Power.

Offering coverage nationwide (with the exception of Alaska and Hawaii), Amica ranks high for customer satisfaction on account of its reliable claims processes and good customer service. When purchasing homeowners insurance from Amica, customers may note that a standard homeowners policy also includes credit card coverage, which pays up to $500 if their credit cards or bank cards are stolen and used for unauthorized purchases. This coverage (which is typically an add-on with other insurers) helps give customers peace of mind that they would be protected i