Finding the Best Homeowners Insurance (2024)
- Expertise: Auto insurance, home insurance and renters insurance
- Education: Sonoma State University (BA in English)
Aaron Besson has worked at LendingTree for more than seven years and has been a staff writer for the last five years. He specializes in producing research-backed content about auto, home and renters insurance. Aaron enjoys the deep dig into insurance data to get the right answers to hard questions. His work has been cited by CBS, iHeart Radio, the Sacramento Bee and Yahoo.
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.
What are the top home insurance companies?
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
| Company | Average annual rate | J.D. Power rating (out of 1,000) | NAIC complaint index |
|---|---|---|---|
| Travelers | $1,384 | 790 | 1.26 |
| Farmers | $1,878 | 800 | 1.22 |
| State Farm | $2,323 | 829 | 1.01 |
| Erie | $2,336 | N/A | 0.49 |
| Allstate | $2,560 | 809 | 1.80 |
| Country | $2,827 | 819 | 0.10 |
| Chubb | $2,843 | 801 | 0.09 |
| American Family | $3,278 | 813 | 0.49 |
| Nationwide | $3,344 | 812 | 0.95 |
| USAA* | $2,643 | 881 | 0.49 |
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 about $500 cheaper than the average national rate of $2,801 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.
| Pros | Cons |
|---|---|
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 about $1,400 cheaper than the national average rate of $2,801.
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
| Pros | Cons |
|---|---|
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.
| Pros | Cons |
|---|---|
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%.
| Pros | Cons |
|---|---|
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.
| Pros | Cons |
|---|---|
Great choice for military personnel Strong customer satisfaction reputation | Only available to active service military personnel, veterans and their families |
Who has the cheapest home insurance in my state?
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
| State | Cheapest company | Cheapest average rate |
|---|---|---|
| Alabama | Allstate | $2,228 |
| Alaska | Umialik | $1,235 |
| Arizona | State Farm | $1,737 |
| Arkansas | Economy Premier | $2,519 |
| California | USAA | $799 |
| Colorado | Great Northern | $2,614 |
| Connecticut | Allstate | $1,737 |
| Delaware | Nationwide | $840 |
| District of Columbia | Nationwide | $1,409 |
| Florida | Federal Insurance | $2,294 |
| Georgia | ASI | $2,061 |
| Hawaii | Family Security | $370 |
| Idaho | Mutual of Enumclaw | $957 |
| Illinois | Nationwide | $1,545 |
| Indiana | Erie | $1,453 |
| Iowa | Farmers | $1,830 |
| Kansas | Shelter | $3,227 |
| Kentucky | Cincinnati Insurance | $2,030 |
| Louisiana | State Farm | $1,274 |
| Maine | Vermont Mutual | $1,006 |
| Maryland | Travelers | $1,384 |
| Massachusetts | Norfolk & Dedham Mutual | $685 |
| Michigan | Citizens | $1,004 |
| Minnesota | North Star Mutual | $2,001 |
| Mississippi | Mississippi Farm Bureau | $3,249 |
| Missouri | Allstate | $2,356 |
| Montana | Foremost | $1,660 |
| Nebraska | American Family | $3,834 |
| Nevada | Depositors Insurance | $1,065 |
| New Hampshire | Vermont Mutual | $1,048 |
| New Jersey | Allstate | $1,028 |
| New Mexico | State Farm | $2,183 |
| New York | NYCM | $529 |
| North Carolina | State Farm | $1,475 |
| North Dakota | North Star Mutual | $1,947 |
| Ohio | Erie | $1,242 |
| Oklahoma | American Farmers & Ranchers Mutual | $4,466 |
| Oregon | Mutual of Enumclaw | $782 |
| Pennsylvania | American Select | $1,017 |
| Rhode Island | State Farm | $1,027 |
| South Carolina | Allstate | $1,274 |
| South Dakota | North Star Mutual | $2,530 |
| Tennessee | Erie | $2,332 |
| Texas | Texas Farm Bureau | $3,474 |
| Utah | Farm Bureau | $1,230 |
| Vermont | Allstate | $768 |
| Virginia | State Farm | $1,483 |
| Washington | Mutual of Enumclaw | $907 |
| West Virginia | USAA | $1,197 |
| Wisconsin | Erie | $1,222 |
| Wyoming | Amco | $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
How do I find the best home insurance company?
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 amount | Average annual rate |
|---|---|
| $350,000 | $2,498 |
| $400,000 | $2,801 |
| $450,000 | $3,111 |
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.
What does home insurance cover?
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.
Other frequently asked questions
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.