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The best homeowners insurance companies of May 2022

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A home is the biggest asset most Americans have, so you’ll want to protect your dwelling by purchasing homeowners insurance.

Homeowners insurance is not required by law, but your lender will often require homeowners insurance to protect the home if you have a mortgage. Additionally, you may need additional coverage if you live in a disaster-prone area.

Insider looked at the top companies in size according to S&P Global data and customer satisfaction from J.D. Power and Associates. We also considered nationwide availability and the most recent credit rating from A.M. Best or Fitch Ratings.

The best homeowners insurance companies

USAA — Best for military members

USAA Homeowners Insurance is only available to active military, veterans, and their families. It’s available in all states and consistently ranks at the top of claims and customer satisfaction surveys. USAA homeowners insurance features and discounts

USAA homeowner insurance features and discounts

  • Flood Insurance — Flood damage isn’t covered under standard homeowners insurance.
  • Earthquake insurance — Earthquake damage also requires separate coverage.
  • Connected Home — Discount for people who have a Connected Home water leak detection system.
  • Home-sharing rider — Provides coverage if you rent your home or a room in your home for short-term or long-term use.
  • Claim-free discount — Get 10% off when you have no claims for five or more years.
  • ADT discount — Get a protective device credit through USAA’s partnership with ADT.
  • Identity theft protection — Homeowners insurance policies automatically include up to $5,000 of identity theft coverage.

USAA homeowners insurance quotes

According to Insurify, customers with USAA can expect to pay about $1,001 per year on their premiums. This is below the national average which is $1,272, according to the most recent data from the Insurance Information Institute. But, each home’s costs for insurance vary widely based on a variety of factors, including your home’s value

Read our USAA insurance review.

USAA Homeowners Insurance

Amica — Best for homeowners insurance overall

Amica homeowners insurance is a strong competitor in homeowners insurance customer satisfaction, earning the top spot in J.D. Power’s study of all widely available insurers. It’s available in 48 states.

Amica homeowners insurance features and discounts

  • Dividend policy — Returns a portion of the money to you that you’ve already paid toward your insurance policy, known as a dividend payment. On average, payments are 5-20% of your annual premium.
  • Valuable Items Coverage — If you own higher-value items like jewelry, fine art, or furs, this coverage may offer broader protection for damage beyond fire and theft.
  • Identity Fraud Expense Coverage — Get personal help restoring your identity and be reimbursed for unauthorized use of your credit cards up to the policy limit.
  • Home Business Coverage — If you’re running a business from home or just completing an assignment for your employer there, be sure to insure yourself against the unexpected properly.
  • New/Remodeled home credit — Receive credit when you insure a new or remodeled home.
  • Alarm system — Receive a discount when you insure a home with burglar alarms, sprinkler systems, or fire alarms.
  • Automatic detection devices — Receive a discount if your home has a temperature monitoring system, a water leak, or a gas leak detection system installed.
  • Claim-free — Receive a discount when you’ve had no claims in the past 3 years.
  • Multi-line — Save up to 30% when you combine home with your auto, condo, renters, life, or umbrella policies.

Amica homeowners insurance quotes

According to Insurify, customers with Amica can expect to pay about $800 to $3,600 per year on their premiums. Your rate can be on par or slightly higher than the national average which is $1,272, according to the most recent data from the Insurance Information Institute. But, each home’s costs for insurance vary widely based on a variety of factors, including your home’s value

Read our Amica insurance review here.

Amica homeowners insurance

State Farm — Best homeowners insurance for customer satisfaction 

State Farm Homeowners Insurance is an established insurance industry and ranks in the top ten in claims and customer satisfaction. Home insurance policies are available in all 50 states. They’re also available to purchase on your own online without an agent.

State farm homeowners insurance features and discounts

  • Ting — Homeowners can receive an electrical fire detection system.
  • CEIDR — Protection from cyber liability and identity theft, known as “cyber event, identity restoration, and fraud loss” for an additional $25/year. 
  • Pet insurance — Medical coverage for your pet from State Farm and Trupanion
  • Home security discount — State Farm customers can receive a discount for having fire, smoke, or burglar alarms or any other home monitoring system.
  • Roofing discounts — Earn a discount if you use certain impact-resistant roofing products, like hail-resistant shingles or class 4 shingles.

State Farm homeowners insurance quotes

According to Insurify, customers with State Farm can expect to pay about $2,500 to $4,000 per year on their premiums. This is more expensive than the national average for homeowners insurance which is $1,272, according to the most recent data from the Insurance Information Institute. But, each home’s costs for insurance vary widely based on a variety of factors, including your home’s value

Read our State Farm insurance review.

State Farm Homeowners Insurance

Auto-owners — Best homeowners insurance for discounts

Auto-owners Homeowners Insurance insures about 1.5% of America’s homes. A high financial strength rating, along with high marks for claims and customer service, helps this insurance company stand out.

Auto-owners homeowners insurance features and discounts 

  • Identity theft — Provides up to $15,000 to restore credit after identity theft.
  • Guaranteed home replacement — Provides full replacement of your home if your coverage is too low.
  • Water backup — Coverage for backed-up sewers or drains.
  • Homeowners plus — Includes coverage for damage to your property caused by household appliance leaks increased coverage limits for food spoilage from power failures.
  • Equipment breakdown — Coverage for electrical and mechanical failures of equipment at your home, from air conditioners and heating units to computers and major appliances.
  • Protective devices discount — Receive a discount if you have protective devices, such as smoke detectors, deadbolt locks, and fire extinguishers.
  • Automatic backup generator discount — Get a discount if you have a qualifying backup generator.
  • Mortgage-free discount — Receive a discount if you do not have a mortgage or line of credit on your home.
  • Water shutoff discount — Get a discount if you have an approved and properly maintained whole-home water shutoff system that automatically turns off water supply throughout the entire home when a leak is detected.
  • Paid in full discount — Receive a discount if you pay your annual policy premium in full and on time.
  • Multiple policy discount — Get a discount when you bundle other policies.

Read our Auto-owners review here.

Auto-owners homeowners insurance

Auto-owners Homeowners Insurance

Allstate — The best for affordable homeowners insurance

Allstate Homeowners Insurance has been in business since 1931. You can get quotes online or through an agent.

Features and discounts include:

  • HostAdvantage — If you use your home for Airbnb or VRBO, additional protection for your belongings while renting out your home.
  • Flood insurance — Cover physical damage to your home and belongings from floods or related losses from rising water.
  • Identity restoration — Goes beyond typical identity theft protection to show you your digital footprint so you can understand who has your personal information.
  • Protective device discount — Save when your home has theft or fire protection devices.
  • Homebuyer discount — Save if you purchase a newly constructed home, or if you’re a recent homebuyer.
  • Claims free discount — Save up to 20% when you switch to Allstate without a recent claim.
  • Responsible payment discount — Get a discount for on-time payments or payments in full.
  • Multiple policy discounts — Save when you bundle homeowners with auto insurance.

Allstate homeowners insurance quotes

According to Insurify, customers with Allstate can expect to pay about $1,295 per year on their premiums. This is slightly above the national average for homeowners insurance which is $1,272, according to the most recent data from the Insurance Information Institute. But, each home’s costs for insurance vary widely based on a variety of factors, including your home’s value

Read our Allstate insurance review.

Allstate Homeowners Insurance

Allstate Homeowners Insurance

Best homeowners insurance based on claims satisfaction

A cheap homeowners insurance won’t be very effective if a carrier has poor marks for claims satisfaction. This is especially true if you live in disaster-prone areas. According to J.D. Power, a consumer research company that surveys customers, this is how homeowners insurance companies ranked in claims satisfaction:

Homeowners insurance company J.D. Power ranking out of 1000 points
USAA* 904
Amica 902
The Hartford 896
Farmers 893
Auto-owners 889
Nationwide 886
Erie Insurance 885
Allstate 882
American Family 881
Industry Average 881
State Farm 878
Liberty Mutual 877
MetLife 877
AIG 876
Safeco 875
Travelers 872
Chubb 871
Progressive 867
Auto Club Southern California 855

*USAA is only for active military, veterans, and their families.

Best homeowners insurance based on customer satisfaction

The latest study from J.D. Power — a consumer research company that conducts consumer surveys — shows that a homeowners insurance company’s customer service and reputation are more important than price for homeowners.

Here’s how homeowners insurance companies ranked when consumers were asked about satisfaction overall:

Homeowners insurance company J.D. Power ranking out of 1000 points
USAA* 882
Amica Mutual 854
Auto Club So California (AAA) 840
Erie Insurance 835
State Farm 835
Auto Club Group (AAA) 834
American Family Insurance 831
Auto-Owners Insurance 831
AIG 830
COUNTRY Financial 830
Allstate 829
CSAA (AAA) 828
ASI Progressive 821
Farmers 813
Nationwide 812
MetLife 810
Safeco 810
Liberty Mutual 806
Chubb 801
Travelers 800
The Hartford 798
Homesite 779

*USAA is only for active military, veterans, and their families.

How did we decide the winners for the best homeowners insurance?

Insider looked at five factors to determine the best homeowners insurance: customer satisfaction ranking, claims satisfaction ranking, credit financial rating, market share, and nationwide availability.

Customer satisfaction and claims satisfaction rankings were determined using J.D. Power’s 2020 surveys. Top insurance companies ranked No.1 through #11. These companies scored points above the segment average of 825 on a 1,000-point scale. 

Market share data was gathering from S&P Global Market Intelligence. Credit ratings are from A.M. Best and Fitch.

Frequently asked questions (FAQs)

What is the average cost of homeowners insurance?

The average annual premium in the United States in 2019 was $1,215, according to the most recent data from S&P Global.

One way to reduce your premium is to increase your deductible amount. Having a deductible higher than $1,000 reduces your annual premium. However, if you have a loss and make a claim, you will have a larger portion deducted from your payout. This can be significant if you have multiple claims in one year.

The age of your home, the age of your roof, the appraised value, your home’s size (square footage), your location, and whether you own pets are some of the determining factors in calculating homeowners premiums. 

If you live in weather zones or disaster prone areas e.g. flood zones, hurricanes, tornadoes, wildfires, mudslides, hail, and earthquakes, your monthly premiums will likely increase. This is because natural disasters is not included in basic coverage and will need to be add-ons riders and endorsements

Here’s how much homeowners insurance costs on average by home value in the United States, according to the most recent release of the Homeowners Insurance Report by the National Association of Insurance Commissioners (NAIC):

Estimated home value Average annual homeowners insurance premium
$49,999 and under $645
$50,000 to $74,999 $748
$75,000 to $99,999 $826
$100,000 to $124,999 $888
$125,000 to $149,999 $937
$150,000 to $174,999 $981
$175,000 to $199,999 $1,018
$200,000 to $299,999 $1,114
$300,000 to $399,999 $1,272
$400,000 to $499,999 $1,482
$500,000 and above $2,148

What does homeowners insurance cover?

Homeowners insurance protects the dwelling, your personal belongings, and offers personal liability coverage for injuries that events that happen on your property. Those events are known as “insurance perils.” Perils are specific events that cause damage to your home, like fire, theft, or a storm.

Earthquakes, floods, government seizures, mudslides, ordinance updates, sewer backups, and sinkholes typically aren’t covered under standard homeowners insurance policy and will require add-on coverage using a rider policy.

Coverage Included with homeowners insurance?
Dwelling/Structure Yes
Personal liability Yes
Personal belongings Yes
Loss of Use (additional living expenses) Yes
High-end electronics/special jewelry Limited, requires add-on*
Equipment breakdown Yes
Electrical outage Yes*
Service lines Yes*
Cyber liability Yes*
Water damage Yes
Flood No**
Wind or hail Yes, but not high winds***
Earthquake No*

*Available as add-on coverage if not part of policy

**Flood insurance is available through the NFIP and approved insurers

***If you live in hurricane or tornado areas, additional windstorm rider may be required

What are the different types of homeowners insurance?

The type of homeowners insurance necessary depends on the type of home you purchased: condo, townhome, single-family, rental, or mobile home. Your coverage will vary based on the type of policy you have.

Policy Dwelling Liability Belongings Peril Type
HO-1: Basic* Yes No No Named
HO-2: Broad* Yes No Yes Named
HO-3: Special Yes Yes Yes Open/Named
HO-4: Renters No Yes Yes Named
HO-5: Comprehensive** Yes Yes Yes Open
HO-6:Condo/Co-op Yes*** Yes Yes Named
HO-7: Mobile Homes Yes Yes Yes Open/Named
HO-8: Older homes Yes Yes Yes Named

Townhomes can be HO-3 or HO-6 

*Most lenders don’t consider this sufficient coverage

**Typically for brand-new homes only

***Covered under condo association’s master policy

How do I find homeowners insurance?

If you currently have homeowners insurance, review your policy coverage yearly. If your homeowners insurance company hasn’t provided the level of service you expected, maybe it is time for you to select a new provider.

Remember that a cheap price doesn’t mean good customer service. Focus on claims and customer satisfaction rankings, like those from J.D. Power, and comparison shop. This is especially important for those living in disaster prone areas when good service can make all the difference.

Read the original article on Business Insider

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