Best home insurance companies of August 2023
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BLUEPRINT
Published 3:01 a.m. ET Aug. 1, 2023
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Your house is likely one of your largest financial assets, which is why it’s important to pick the best home insurance for your needs. The best homeowners insurance companies have several things in common, including low rates, discounts, comprehensive coverage and solid customer service. Our team of insurance experts weighed these factors to determine the best home insurance companies.
Editor’s Note: This article contains updated information from a previously published story.
Why trust our insurance experts
Our team of experts evaluates hundreds of insurance products and analyzes thousands of data points to help you find the best product for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.
- 2,616 rates reviewed
- 140 coverage details evaluated
- 5 levels of fact-checking
Our verdict
American Family, USAA and Westfield have the best home insurance, according to our expert evaluation of 174 insurance companies. For low-cost coverage, consider Westfield or Progressive. If you have a high value house, check out State Farm.
Best home insurance companies
- Best for a high deductible discount: American Family
- Best for the military community: USAA
- Best low-cost coverage: Westfield
- Good for customer satisfaction: Erie
- Best for high-value home coverage: Nationwide
- Good for low rates: Progressive
- Good for home-sharing insurance: Allstate
- Best for home and auto insurance bundling: State Farm
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Best home insurance companies of 2023
Compare the best home insurance companies of 2023
| Home insurance company | Average monthly cost | Complaint level | Our rating | LEARN MORE | |||||
|---|---|---|---|---|---|---|---|---|---|
| American Family | $133 | Very low | 5.0 stars | Learn More | |||||
| USAA | $123 | Very low | 5.0 stars | Compare Rates | Compare rates offered by participating partners | ||||
| Westfield | $104 | Very low | 5.0 stars | Compare Rates | Compare rates offered by participating partners | ||||
| Erie | $138 | Very low | 4.5 stars | Compare Rates | Compare rates offered by participating partners | ||||
| Nationwide | $139 | Very low | 4.5 stars | Compare Rates | Compare rates offered by participating partners | ||||
| Progressive | $75 | Low | 4.5 stars | Learn More | |||||
| Allstate | $127 | Very low | 4.0 stars | Learn More | |||||
| State Farm | $151 | Very low | 4.0 stars | Learn More | |||||
| Auto-Owners | $170 | Very low | 3.5 stars | Compare Rates | Compare rates offered by participating partners | ||||
| Chubb | $176 | Very low | 3.5 stars | Compare Rates | Compare rates offered by participating partners | ||||
| Country Financial | $233 | Very low | 3.0 stars | Compare Rates | Compare rates offered by participating partners | ||||
| Farmers | $199 | Very low | 3.0 stars | Compare Rates | Compare rates offered by participating partners | ||||
| Shelter | $245 | Very low | 3.0 stars | Compare Rates | Compare rates offered by participating partners | ||||
| Travelers | $245 | Very low | 3.0 stars | Compare Rates | Compare rates offered by participating partners | ||||
| Based on the national average of policies with dwelling coverage of $200,000, $350,000, $500,000 and $750,000. Source: Quadrant Information Services | |||||||||
Methodology
Our insurance experts analyzed rates from 174 home insurance companies and evaluated companies on four key factors: rates, consumer complaints, availability of extended or guaranteed replacement cost coverage and the discount offered for raising your deductible.
Home insurance companies were eligible for 100 points, with each factor carrying a different weight.
- Rates: 60 points. Our home insurance experts analyzed home insurance rates from Quadrant Information Services. The average rates are based on policies with dwelling coverage of $200,000, $350,000, $500,000 and $750,000. The homeowner profile was someone with a good credit score and no claims history.
- Complaints: 25 points. Our team of experts collected complaint data from the National Association of Insurance Commissioners, which shows the volume of home insurance consumer complaints against each company. When a consumer lodges a complaint to their state’s department of insurance — often about an insurance company’s claims process, delays, denials or settlements — these complaints are logged.
- Extended/guaranteed replacement cost coverage upgrade: 10 points. Our experts evaluated whether or not a company offered extended and or guaranteed replacement cost coverage. This type of coverage extends dwelling coverage limits and is increasingly important as we see inflation and natural disasters affect rebuild costs across the country.
- High deductible discount: 5 points. Raising your deductible is one of the easiest ways to lower home insurance costs. Our experts evaluated the discount companies offer when you raise your deductible.
Why some companies didn’t make the cut
Of the 174 insurance companies evaluated, only eight make our rating of the best home insurance companies. Companies with high policy rates, high complaints, few discounts and coverage options didn’t make the cut. The same is true for companies that only offer home insurance in a few states.
Find the best home insurance in your state
Home insurance rates vary by state and even by ZIP code. The cost of home insurance is increasing around the country, according to data from S&P Global Market Intelligence, and states like Texas and Oklahoma are seeing significant rate increases.
The key drivers in home insurance cost increases are a surge in expensive weather disasters and an increase in labor and construction costs, according to the Insurance Information Institute.
To find the lowest rate for your needs, it’s a good idea to compare home insurance quotes. Here are the cheapest home insurance companies by state.
Compare home insurance rates by state
How to find the best homeowners insurance for your needs
When looking for the best home insurance, you’ll need to consider several factors.
- Your house’s rebuild value. You’ll need enough dwelling coverage to fully rebuild your house back to its prior state after a covered disaster, like a house fire.
- The value of your personal property. Take inventory of your personal belongings to make sure you have enough personal property coverage to repair or replace all your stuff.
- The value of your financial assets. You’ll want enough liability coverage to financially protect your assets in the event of an expensive lawsuit.
- Disasters and damage your house is at risk for. If you live in an area that’s at risk for earthquake damage, for instance, you may want a company that offers earthquake coverage.
- Cost and deductible offerings. It’s important to compare insurance companies to make sure you’re getting the best price possible for your needs. Also consider deductible options that the insurer offers, the higher your deductible is the lower your rates will be, but the less you’ll be paid out in the event of a claim.
- Discounts available. Many insurers offer discounts, but some offer more than others. Consider discounts that the company offers that you’re eligible for.
- The company’s reviews. Company reviews are important to understand how it handles claims and its financial standings. We include company complaints in our analysis.
- Type of homeowners policy. There are many different types of home insurance. Which one you’ll need depends on your house. For example, if you own a condo, you’ll need an HO-6 policy.
How much is homeowners insurance?
The average cost of home insurance in the U.S. is $1,935 per year. This is based on an average of rates for four amounts of dwelling coverage ranging from $200,000 to $750,000. How much you pay for home insurance depends heavily on how much dwelling coverage you need.
Dwelling insurance covers your house and its attached structures, such as a garage and deck. You’ll want enough dwelling insurance to pay to rebuild your house and its attached structures from the ground up.
Here is how much you’ll pay on average for different dwelling coverage amounts.
How to save on homeowners insurance
You may be able to lower your home insurance rates if you:
- Change home insurance companies. Get and compare home insurance quotes from different companies to see how much you might save by switching.
- Mitigate your house’s risk. Storm-proof windows and doors and add safety features like a burglar alarm — these actions may qualify you for a discount.
- Raise your deductible. This will lower your premiums, but keep in mind that a higher deductible means a smaller payout when you file a claim.
Home insurance discounts
Home insurance companies can offer multiple discounts to homeowners to reduce costs. These may include:
- Bundling discounts.
- New customer discounts (if switching companies).
- First-time buyer discounts.
- Safety feature discounts.
- HOA discounts.
- Green home or smart home discounts.
- Military discounts.
- Auto pay discounts.
- Senior discounts or discounts for retirees.
- Paperless statement discounts.
- Roof replacement discounts.
A qualified insurance agent should be able to tell you which discounts you might qualify for and how much you could save on coverage.
Cheapest homeowners insurance companies
Overall, the cheapest homeowners insurance can be found through Progressive, Westfield, USAA, Allstate and American Family.
If finding the lowest-cost policy is a priority for you, it’s important to remember that not all insurers operate in every state and the cost of your home insurance depends on a variety of factors, including your home’s location, age and roof type, as well as your credit score and claims history. Here’s how some of the cheapest home insurance companies compare.
What is homeowners insurance and how does it work?
Homeowners insurance is property insurance that pays out for eligible claims if you need to repair or rebuild your home or replace personal belongings. If you have a mortgage on your home, your lender will require you to have some type of homeowners insurance.
Policies include coverage for specific causes of damage, like fire, falling trees, weather-related damage, vandalism and theft. Exactly what’s covered will depend on the terms of your policy. If your home is damaged, you file a claim with your home insurance company and once the claim is approved you start the payout and repair or rebuilding process with your insurer. Your policy may also cover hotels, meals or temporary housing if you’re displaced while your home is being repaired or rebuilt.
A homeowners insurance policy also includes personal liability coverage to pay for medical bills if you’re responsible for someone else’s injury or property damage. Liability insurance can also cover your legal fees if you’re sued over the matter.
What does home insurance cover?
A standard home insurance policy includes six types of coverage. Here’s how each works.
Dwelling coverage
Dwelling coverage helps pay to repair or rebuild the structure of your home if it is damaged by a covered circumstance in your homeowners policy, like if a house fire or windstorm destroys your home. You should have enough dwelling coverage in your homeowners policy to cover the cost of rebuilding your house from the ground up.
The most common type of homeowners insurance protects the structure of your house and detached structures from “all risks,” meaning all causes of damage unless specifically excluded from your policy, such as floods and earthquakes.
Other structures coverage
Other structures coverage helps pay to repair or rebuild detached structures on your property, like a gazebo, detached garage or shed, if they’re damaged by a covered circumstance in your policy.
Personal property coverage
Personal property coverage pays to repair or replace your belongings, which can include furniture, clothing and home decor. There may be limits to personal property coverage with regard to certain items. For example, if your policy includes jewelry coverage, any losses stemming from theft may be capped at $1,500. If you keep high-value jewelry in your home, you may want to consider adding a floater or a stand-alone jewelry insurance policy to make sure those items are adequately protected.
Your personal property coverage pays to repair or replace your belongings if they are damaged by one of the 16 causes, or named perils, listed in your policy.
Types of damage covered by a standard homeowners insurance policy include:
- Fire and lightning.
- Windstorm and hail.
- Explosions.
- Riot or civil commotion.
- Damage caused by aircraft (not your own).
- Damage caused by vehicles (not your own).
- Smoke.
- Vandalism or malicious mischief.
- Theft and home break-in.
- Falling objects.
- Weight of snow, sleet or ice.
- Accidental discharge or overflow of water or steam.
- Sudden and accidental tearing apart, cracking or burning.
- Freezing.
- Sudden and accidental damage from artificially generated electrical current.
- Volcanic eruption.
Loss of use coverage
Loss of use coverage can reimburse you for additional living expenses that you accrue if you’re temporarily unable to live in your home because it’s been damaged or destroyed. This part of your policy can pay for hotels, meals or pet boarding while your home is being repaired or rebuilt.
Personal liability insurance
Liability insurance covers you for property damage or injuries to someone else that you are responsible for. If a friend comes to visit and falls down your front steps because of a faulty handrailing, for example, the liability portion of your home insurance policy could cover the cost of their medical bills.
Liability insurance is also designed to protect you financially if you’re sued. If your dog bites someone at the park and you get sued over the incident, for instance, personal liability insurance could help pay for your attorney fees and other legal expenses.
Medical payments coverage
Medical payments coverage falls under the liability insurance part of your homeowners insurance policy. It pays for more minor medical expenses for someone else’s injuries, regardless of who was at fault. Most standard home insurance policies contain up to $5,000 in medical payments coverage.
Does homeowners insurance cover damage from flooding?
No, standard homeowners insurance does not cover repairing your house after damage from a flood. In order to be covered for the cost of repairs after a flood damages your house, you’ll either need to add extra flood coverage to your homeowners policy or buy a standalone flood insurance policy. Depending on where you live, your mortgage lender or insurance company may require you to carry flood insurance.
Does homeowners insurance cover damage from fire?
Yes, homeowners insurance covers fire damage. This includes coverage for wildfires, so if your house is destroyed in a wildfire, you should be able to file a claim with your home insurance company. In high-risk wildfire areas, insurers may offer discounts if you take measures to fireproof your house.
Does homeowners insurance cover earthquake damage?
No, standard home insurance doesn’t cover earthquake damage, but you may be able to add coverage to your homeowners policy for an additional fee. You can also purchase separate earthquake insurance.
Does homeowners insurance cover storm damage?
Yes, homeowners insurance covers many types of storm damage, including tornadoes, thunderstorms and winter storms. Hurricane damage may be limited or excluded if you live in a high-risk area, which means you may have to purchase separate wind insurance and flood insurance to be reimbursed if a hurricane winds and storm-surge flood damages your house.
Does homeowners insurance cover mold?
No, mold is typically not covered by homeowners insurance. That’s because home insurance is designed to cover sudden and accidental damage. Since mold takes time to grow, it would be seen more as a general upkeep or maintenance issue, which isn’t covered by home insurance.
The only time an insurer may cover repairs for mold damage is if the mold was the result of a problem covered in your policy, like if a pipe bursts and the water damage causes mold to grow. Even in those instances, mold coverage may be limited. Check with your insurance company to see if you can add extra coverage for mold damage.
What are the types of homeowners insurance?
There are several types of homeowners insurance policies that are designed around specific types of houses and living situations. These include:
- HO-3 policy. The most common form of home insurance, an HO-3 insures your house against all types of damage unless specifically excluded. It also insures your belongings against 16 specific types of damage in your policy. This type of policy includes coverage for dwelling, other structures, personal property, loss of use, liability and medical payments to others.
- HO-4 policy. Also called renters insurance, this type of policy is designed for tenants who rent their home. It includes personal property, loss of use, liability and medical expenses to others coverage. It does not include dwelling coverage since the renter does not own the structure of the home.
- HO-5 policy. Also called comprehensive coverage, this is the most robust form of home insurance coverage. It includes the same coverages as a standard HO-3 policy, but insures your house and belongings against all types of damage unless listed as an exclusion.
- HO-6 policy. Known as condo insurance, this type of home insurance is designed for condo or co-op owners. It includes the same type of coverage as an HO-3 policy, but how much dwelling coverage you’ll need will depend on your HOA’s master policy. Condo owners contribute to the HOA’s master policy which pays for repairs to the structure of the condo and common areas. How comprehensive the master policy is will depend on your HOA.
Which home insurance policy do you need? Read about the 8 types of homeowners insurance.
Additional home insurance coverage considerations
Many home insurance companies offer optional, additional coverages that you can add to your policy to cover excluded causes of damage or upgrade your current coverage. Some common ones are listed below.
- Water backup or sewer backup coverage: Pays to repair water damage caused by sump pump, drainage, or sewer backups.
- Extended replacement cost coverage: Extends your dwelling coverage limit an additional 25% in the event that your standard dwelling coverage isn’t enough to fully rebuild your home after a disaster.
- Guaranteed replacement cost coverage: Pays to rebuild your home past your dwelling coverage limit no matter the cost. This comes in handy if a natural disaster spikes the cost of labor and materials needed to rebuild houses.
- Equipment breakdown coverage: Pays to repair your appliances, like a furnace, HVAC system, washer machine, if they break due to electrical or mechanical failure.
- Identity theft coverage: Pays restoration costs that come with restoring your identity, like replacement of government IDs, credit score restoration, and fraud specialist fees. However, this coverage does not reimburse you for stolen money or goods.
How to buy home insurance
Finding the best home insurance for you is a multi-step process and it’s important to consider all of your options before settling on a policy. After all, your home and everything in it have value, so you don’t want to shortchange your needs.
Here are a few tips for finding the best home insurance.
- Determine your coverage needs. The first thing to consider is how much coverage you’ll need for your dwelling, belongings, liability and loss of use. You want to make sure you have enough coverage to rebuild your home and replace the items in it if necessary, while giving yourself sufficient protection for liability. Loss of use coverage should also be enough to cover your living expenses if you’re displaced.
- Consider add-ons. Depending on where you live, it may be necessary to add coverage for floods or earthquakes to your home insurance policy. You may also want to bump up coverage for jewelry or liability, or add on special coverage for water back ups and sump pump damage. When considering what to add, remember to weigh any added premium costs.
- Shop for quotes. Getting multiple rate quotes is a no-brainer when shopping for the best home insurance. It’s an opportunity to see what you might pay with one company versus another. You may be able to get quotes over the phone, via email or online.
- Check for discounts. Discounts can lead to big savings on home insurance. When shopping for quotes, remember to ask about available discounts for things like bundling, smart homes, home security systems or having a newer home. You might also be able to snag discounts if you belong to certain membership or professional associations.
Best home and auto insurance bundles of 2023
Bundling your home and auto insurance — or buying both policies with one insurance company — can lead to some of the highest discounts offered by insurance companies.
“If you buy two types of insurance from the same insurer, such as auto and home (or auto and renters insurance, or auto and condo insurance), you can generate significant savings on each policy. The amount you can save depends on your insurer, but discounts typically run about 10% to 20% of the annual premium,” said Mark Friedlander, spokesperson for the Insurance Information Institute.
Here are the best home and auto insurance bundles, according to our expert analysis.
How to file a home insurance claim
Here are some steps to take when filing a home insurance claim.
- Contact your insurance company immediately to let them know you need to file a claim. You can do this over the phone or online depending on the insurance company.
- Document the damage with photographs or video footage. You should also take note of any damage to personal belongings and consult your home inventory if you have one. The more proof of damage you have the faster your claims process will likely be.
- Make temporary repairs to prevent further damage. If you need to buy materials to make the temporary repairs, save the receipt for reimbursement from your insurer.
- File a claim with your insurance company and prepare for the claims adjuster to arrive. If you’re filing a property damage claim, your insurer company will typically send out a claims adjuster to survey and confirm the damage.
- Begin the claims payout process once your claim is approved. Depending on the company, your insurer may send you a check or multiple checks for repairs, may help you find a contractor to fix the damage and set you up with a place to temporarily live if your home is uninhabitable.
To determine how much home insurance you need, first consider the cost of rebuilding your house from the ground up. That’s what your dwelling coverage limit is based on.
To figure out how much coverage you need for personal belongings, conduct a home inventory. There are several free apps that can help.
For liability insurance, a good rule of thumb is to have enough coverage to protect the total value of your assets, or what you could lose in a lawsuit.
Bundling your home and auto insurance could help you save money. Combining policies with the same insurer can also take some of the hassle out of paying premiums.
If you’re considering bundling insurance policies, it’s helpful to do some comparison shopping first to see which insurers offer the biggest discounts.
When comparing home insurance companies, look at the company’s consumer complaint level, in addition to its rates.
The best home insurance companies have a low level of complaints and high customer satisfaction ratings, which is a good indicator of how they handle and pay out claims.
Our team of home insurance experts analyzed complaint data logged with the National Association of Insurance Commissioners. This important customer satisfaction metric shows the volume of home insurance consumer complaints against each company. All the best home insurance companies in our rating have low or very low customer complaint levels.
Another good resource is J.D. Power, a data analytics company that annually ranks claims satisfaction by company.
If you have a mortgage on your house, you’ll need home insurance as lenders require it. Even if you don’t have a mortgage, you should still consider home insurance.
Forgoing a home insurance policy means you’re on the hook for paying to rebuild your house and replace all of your belongings if disaster strikes.
Without home insurance, you also miss out on liability coverage, which means you’ll have to pay out of pocket for any injuries or property damage to another party that you’re at fault for — and pay for your own legal defense if they sue.
Homeowners insurance is typically not tax deductible. The only time you might be able to deduct home insurance from your taxes is if you run a home business or rent out your house. However, you’d need extra home insurance coverage to do either of those things, as standard homeowners insurance doesn’t cover business practices.
Common exclusions from home insurance coverage include damage caused by earthquakes, floods, maintenance issues, wear and tear and pest infestations.
You can buy flood insurance and earthquake insurance to ensure you’re covered for damage caused by these problems.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
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