How to Compare Home Insurance Quotes
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Finding the Best Homeowners Insurance (2024)

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Content was accurate at the time of publication.

Travelers, Farmers and State Farm have the best rates for home insurance. Finding the best home insurance for your needs requires a balance of cost, coverage and customer satisfaction.

Find the Cheapest Home Insurance Quotes in Your Area

State Farm is the top home insurance company overall. Travelers is the best company for cheap rates, and Allstate has the best policy discounts.

Best home insurance companies by rate

CompanyAverage annual rateJ.D. Power rating (out of 1,000)NAIC complaint index
Travelers$1,3847901.26
Farmers$1,8788001.22
State Farm$2,3238291.01
Erie$2,336N/A0.49
Allstate$2,5608091.80
Country$2,8278190.10
Chubb$2,8438010.09
American Family$3,2788130.49
Nationwide$3,3448120.95
USAA*$2,6438810.49

Sources: J.D. Power 2023 U.S. Home Insurance Study, NAIC Complaint Index

J.D. Power is a marketing research firm that creates reports in various industries. It publishes an annual home insurance study that measures policyholder satisfaction with each home insurer’s claims experience by tracking claim factors such as settlement, servicing and payout. The average satisfaction rating is 819. The higher a company’s satisfaction rating, the better.

The National Association of Insurance Commissioners (NAIC) rates and records an insurer’s claim-based complaints filed with state insurance departments compared to other insurers of a similar size. The current average complaint index is 1.0. The lower the index, the better.

Best company overall: State Farm

For the best combo of home insurance cost, coverage and customer service, State Farm is our top choice. Its average rate is $2,323. This is 17% cheaper than the average national rate of $2,793 for home insurance.

State Farm home insurance has many of the offerings you’ll see in a standard policy, but it also offers optional extended replacement cost coverage. This increases your dwelling coverage limit when rebuild costs go over the limit amount.

State Farm also has a J.D. Power overall customer satisfaction ranking of 829. This is the highest ranking of the companies available to most homeowners. USAA does have a higher ranking at 881, but its insurance products are limited to active military, veterans and their families.

ProsCons

  Cheap rates

  Strong online experience

  24/7 customer service

  Does not underwrite homeowners insurance policies in California or Florida

  Limited policy discounts compared to competitors

Cheapest rates: Travelers

Travelers has an average annual home insurance rate of $1,384. This is 50% cheaper than the national average rate of $2,793.

On top of affordable rates, Travelers offers excellent benefits for eco-friendly homes. Its perks for green homes or going green include:

  • Up to $25,000 for debris recycling for a covered peril
  • Up to $10,000 for green home certification after a rebuild
  • Discount for Leadership in Energy and Environmental Design (LEED) certified homes

ProsCons

  Low rates

  Great for green homes

  Good customer service

  Not available in all states

Best for luxury homes: Chubb

Chubb has an average rate of $2,843, which is just over the national average. It offers a wide variety of benefits tailored for high-end homes. Its Masterpiece policy includes:

  • Extended replacement cost coverage: This coverage handles costs over your limit on a rebuild to avoid underinsuring.
  • Cash settlement option: You can take your claim in cash instead of rebuilding, if you choose.
  • Use your own contractor: Use a contractor you’re familiar with instead of one off a contact list.
  • Replacement cost for contents: Replaces your belongings at cost without depreciation.

ProsCons

  Specializes in expensive homes

  Very low complaint rate

  Policy eligibility may be based on home value

Best discounts: Allstate

While Allstate doesn’t have the cheapest home insurance rate, with an average of $2,560, it has plenty of discounts to help lower your premium. These include:

  • Claims-free: Get a new Allstate home insurance policy with no recent claims in your history, and save up to 20%.
  • Bundling: Save up to 25% on your insurance costs when you bundle auto or life insurance with Allstate.
  • Early signing: Save up to 10% if you change over to Allstate at least seven days before your current home insurance expires.
  • Easy pay: If you set up autopay for your premium, you can save 5%.

ProsCons

  Many discounts

  No banned dog list

  Doesn’t offer guaranteed replacement cost coverage

  High NAIC complaint rating

Best for military: USAA

If you are active service or retired military, consider USAA for home insurance. Its average annual rate of $2,643 is just below the national average, but it has a great reputation. Many consider USAA the cream of the crop among insurance companies.

USAA tailors its home insurance policy offerings to military members. Current military members have their uniforms and military equipment covered under a standard policy. Your belongings are also covered if damaged in a war zone, something often excluded from home insurance policies.

USAA also gets high marks for customer satisfaction. Its complaint index rating and J.D. Power rankings are both above average. If USAA home insurance was available to everyone, it would be the best for overall satisfaction.

ProsCons

  Great choice for military personnel

  Strong customer satisfaction reputation

  Only available to active service military personnel, veterans and their families

The cost of home insurance in your state depends on many factors. Allstate offers the cheapest home insurance in Connecticut and Missouri, for example, with rates averaging $1,737 a year in Connecticut and $2,356 in Missouri. Missouri has higher home insurance rates because tornadoes and floods are more common there.

Cheapest home insurance companies by state

StateCheapest companyCheapest average rate
AlabamaAllstate$2,228
AlaskaUmialik$1,235
ArizonaState Farm$1,737
ArkansasEconomy Premier$2,519
CaliforniaUSAA$799
ColoradoGreat Northern$2,614
ConnecticutAllstate$1,737
DelawareNationwide$840
District of ColumbiaNationwide$1,409
FloridaFederal Insurance$2,294
GeorgiaASI$2,061
HawaiiFamily Security$370
IdahoMutual of Enumclaw$957
IllinoisNationwide$1,545
IndianaErie$1,453
IowaFarmers$1,830
KansasShelter$3,227
KentuckyCincinnati Insurance$2,030
LouisianaState Farm$1,274
MaineVermont Mutual$1,006
MarylandTravelers$1,384
MassachusettsNorfolk & Dedham Mutual$685
MichiganCitizens$1,004
MinnesotaNorth Star Mutual$2,001
MississippiMississippi Farm Bureau$3,249
MissouriAllstate$2,356
MontanaForemost$1,660
NebraskaAmerican Family$3,834
NevadaDepositors Insurance$1,065
New HampshireVermont Mutual$1,048
New JerseyAllstate$1,028
New MexicoState Farm$2,183
New YorkNYCM$529
North CarolinaState Farm$1,475
North DakotaNorth Star Mutual$1,947
OhioErie$1,242
OklahomaAmerican Farmers & Ranchers Mutual$4,466
OregonMutual of Enumclaw$782
PennsylvaniaAmerican Select$1,017
Rhode IslandState Farm$1,027
South CarolinaAllstate$1,274
South DakotaNorth Star Mutual$2,530
TennesseeErie$2,332
TexasTexas Farm Bureau$3,474
UtahFarm Bureau$1,230
VermontAllstate$768
VirginiaState Farm$1,483
WashingtonMutual of Enumclaw$907
West VirginiaUSAA$1,197
WisconsinErie$1,222
WyomingAmco$1,408

Other factors that can affect your home insurance quote include:

  • Age of your house
  • Construction materials used
  • Crime rate in your area
  • Extreme weather conditions

To find the best homeowners insurance company for you, you need to consider your coverage limits, calculate the worth of your belongings and compare quotes from several companies.

Choose dwelling coverage and liability limits

You want enough dwelling coverage to pay for a complete rebuild of your home, if needed. What you pay for your policy changes based on the amount of dwelling coverage you choose.

Coverage amountAverage annual rate
$350,000$2,491
$400,000$2,793
$450,000$3,102

Your liability limit impacts your premium, too. Most home insurance companies default to a $100,000 policy limit. While this may sound like a lot, an extended legal case or hospital stay due to injury or property damage you’re responsible for can easily pass that.

If legal or medical costs go over your limit, the rest comes out of your own pocket. Consider raising your liability limit to at least $300,000 if you can afford it.

Calculate personal property

The best way to calculate what all of your belongings are worth is to create a home inventory. It’ll also make sure you’re not overinsured or underinsured after a complete loss. Include in your inventory descriptions of your belongings, serial numbers and how much it would cost to replace them.

Some home insurance companies may have a different limit for expensive items like jewelry and art than your standard limit. Be sure you know what your coverage limits are before you sign on the line.

Compare quotes

To find the best company for your needs, compare quotes from multiple providers. Enter the same information for each company to get the best comparison.

Don’t forget to see how any discounts might change your rate, too. They could help make one insurance company better and cheaper for you than the others you’re considering.

Look at each insurer’s customer satisfaction ratings, too. While cost and coverage are important, so is how an insurance company handles claims. J.D. Power and the NAIC are excellent resources for this.

Pick your best company

Once you’re done with your research and compared quotes, pick the home insurance company that best suits your needs. Many providers offer online quotes and policy sign-up, but if you have any questions or prefer to speak to a person, they’re available by phone as well.

A standard home insurance policy usually covers the following:

  • Dwelling coverage: This coverage handles the repair or rebuild of the structure of your home, including your roof.
  • Personal property: This includes your clothing, furniture, and electronics.
  • Personal liability and medical payments: Personal liability covers damage and injuries you’re responsible for. Medical payments coverage covers medical bills for others, regardless of who is at fault.
  • Other structures: This provides coverage for tool sheds, garages, and structures not attached to the home.
  • Loss of use (LOU): LOU covers additional costs that can arise if you need to relocate while your damaged home is repaired or rebuilt. This can include extra rent, restaurant meals, laundry, and extra commute costs.

What does homeowners insurance not cover?

Home insurance doesn’t cover flood, earthquake or landslide damage. It also usually doesn’t cover damage from water or sewer backup.

Standard home insurance sometimes covers windstorm and mold damage, but not always or in every situation.

If you want flood, earthquake or landslide coverage for your home, you can buy additional insurance policies for it. You can buy add-on coverage for sewer backup and water damage, too. The same is true of windstorm damage, if needed.

Mold damage is tricky. If a covered peril causes the mold, your policy should pay to remove and remediate it. For example, if your water heater breaks and causes mold, your policy should cover it. It won’t cover many other cases, though.

Home insurance excludes certain kinds of damage and destruction to keep costs down. Home insurance coverage is meant for sudden and accidental damage. Damage caused by negligence or something that has built up over time is not covered.

Home insurance is not required by law. However, if you financed your home through a lender, it will require you to carry a policy for the duration of the mortgage to protect its investment.

Hazard insurance is the same thing as dwelling coverage in a homeowners insurance policy. It is part of a home insurance policy.

“HO-3” is the official term for a standard home insurance policy. There are eight types of policies, including ones tailored for rental homes, mobile homes, condos and older homes.