7 Best Home Insurance Companies in usa – Homeowners insurance provides coverage to repair or reconstruct your residence and replace its belongings in the event of specific risks, such as fire, theft, or weather occurrences like wind or lightning.
Lacking knowledge about home insurance coverage and its policies could result in overpaying for insufficient protection. To assist you in locating the most suitable homeowners insurance policy, presented below are the top seven home insurance companies in 2023.
Our Top Picks for the Best Homeowners Insurance
- Lemonade – Best Home Insurance Company for Online Service
- Hippo – Best Home Insurance Company for Added Features
- Erie Insurance – Best Home Insurance Company for Range of Coverage Options
- State Farm – Best Home Insurance Company for Nationwide Coverage
- Amica Mutual – Best Home Insurance Company for Customer Service
- USAA – Best Home Insurance Company for Military Members
- AIG – Best for High-Value Homes
Your home is your biggest asset, protecting it should be a top priority
Best Home Insurance Company for Online Service: Lemonade
PROS
- Unusually fast quotes and claims payments
- Unused claims money is paid to a non-profit of your choice
- Flat fee for administration, in addition to low monthly premiums
- Demotech Financial Stability Rating: A
CONS
- Not available in all 50 states
- Financial strength hasn’t been rated by A.M. Best
- Auto insurance only available in three states, which limits bundling options
HIGHLIGHTSF
| Financial rating: | A on Demotech |
| Discounts: | Bundling; with ‘Get Discounts Now’ program, homeowners could save on premiums by updating their home’s status regarding renovations, security systems and more |
| Bundle options: | Renters, car, pet and life insurance |
Why we chose Lemonade: Lemonade Insurance, an exclusively online insurance company, employs artificial intelligence to simplify and expedite the process of obtaining insurance quotes and filing claims. Within minutes, Lemonade can generate a quote by completing a straightforward form on their website and selecting the desired coverage amount.
Filing claims is equally effortless: users can simply press the claim button on the app and provide the necessary information. Leveraging AI technology further accelerates the claims process, with many reimbursements being issued within minutes, according to the company.
Lemonade also distinguishes itself through its innovative approaches to funding operations and utilizing company profits. A flat fee added to the policy’s premium contributes to their operational funding. Moreover, through their Lemonade Giveback program, they pledge to donate up to 40% of unclaimed premiums to a non-profit organization of the policyholder’s choice.
Lemonade also offers a Standard selection of coverage options, including:
- Dwelling coverage
- Other structures coverage
- Personal property coverage
- Personal liability
- Medical payments
- Loss of use
While Lemonade expresses its intentions to extend its operations to additional states and countries, it is currently accessible in only 24 states. Furthermore, it’s important to note that not all policy types are offered in those states. For instance, auto insurance is solely available in three states. This limited availability may restrict your ability to bundle different insurance policies depending on your place of residence.
Best Home Insurance Company for Added Features: Hippo
PROS
- Obtain an online quote in 60 seconds and purchase in as little as 5 minutes
- Ample coverage for electronics and office supplies
- Get discounts for using Hippo’s free Smart Home System
- Home-Care Expert program offers referrals to contractors and other providers
CONS
- Discounts are available for homes with access to digital and smart systems
- Coverage is not available nationwide
HIGHLIGHTS
| Financial rating: | A- on A.M. Best |
| Discounts: | Smart home, three or five years loss-free, recent homebuyer, theft protection devices, getting Hippo through certain qualifying providers, hail resistant roof, HOA, bundling |
| Bundling options: | Auto |
Why we chose Hippo: Hippo’s utilization of technology, both for customer service and enhanced home security, positions them as a preferred choice for homeowners who embrace technology.
Hippo enables customers to complete the entire quote process online, with the possibility of obtaining a quote in as little as a minute and receiving a policy within five minutes, as claimed by the company.
Moreover, Hippo offers a smart home discount to customers who opt to install and utilize a complimentary smart home monitoring system. This system is available in various levels, featuring increasingly advanced equipment.
According to the company, customers can save an average of $64 per year by installing the basic self-monitoring kit, which includes detectors for smoke, CO2, and water leaks. Furthermore, opting for the pro monitoring kit, which includes 24/7 monitoring and emergency dispatch services, can result in savings of $91 per year.
Hippo’s standard policy encompasses coverage of up to $10,000 for computers and home office equipment, a significantly higher amount compared to most other policies’ coverage for electronics. This aspect becomes particularly noteworthy for individuals with home businesses or remote working positions.
In addition, Hippo offers the Home Care Expert program, providing policyholders with professional service recommendations over the phone when they require repairs or maintenance.
In addition to standard home insurance coverage, Hippo can cover:
- Computers and home office equipment
- Appliances and electronics
- Smart home upgrades
- House cleaners and sitters
- Water backup
- Service line protection
- Enhanced rebuilding
- Full replacement costs
- Costs for local ordinance changes
Best Home Insurance Company for Range of Coverage Options: Erie Insurance
PROS
- Guaranteed Replacement Cost coverage standard with all policies
- Many add-ons include liability coverage, home-sharing coverage, identity recovery and service line protection
- J.D. Power Ranking: #7 out of 19
- A.M. Best Rating: A+
CONS
- Only available in 12 states
- Not as many discounts as competitors
HIGHLIGHTS
| Financial rating: | A+ on A.M. Best |
| Discounts: | Bundling, smoke alarm, burglary alert, automatic sprinkler system, advance quote |
| Bundling options: | Auto |
Why we chose Erie: Erie Insurance stands out as one of the nation’s leading insurers in terms of customer service and claims satisfaction. It consistently ranked within the top five in the J.D. Power Customer Satisfaction and Claim Satisfaction studies between 2018 and 2021, although it dropped to the 7th position in 2022.
One notable feature of Erie’s homeowners insurance is the inclusion of Guaranteed Replacement Cost coverage as part of its standard policy. This valuable addition allows homeowners to rebuild their property to its original state before the incident, without being subjected to a depreciated amount based on the age of the home.
Erie’s policy also covers roof damage; however, full replacement may require an additional cost.
While Erie falls slightly behind its competitors in terms of discounts, it does offer a bundling discount ranging from 16% to 25%. Additionally, homeowners can enjoy additional discounts by installing automatic sprinklers, smoke detectors, and burglar alarms.
Another distinguishing feature is Erie’s offering of home-sharing coverage, which is available at an additional cost. This coverage serves as an alternative to purchasing insurance specifically through Airbnb or Vrbo. It is important to note that damages caused by paying guests are generally not covered under standard homeowners insurance policies.
However, one downside of Erie Insurance is its limited availability. The company operates in only 12 states, making it one of the most geographically restricted insurers on our list.
Erie’s base policy also covers these other items, which cost extra with many other companies:
- Valuables and hard-to-replace items
- Gift card and gift certificates
- Animals, birds, and fish
- Cash and precious metals
You can also add the following coverage to any Erie policy:
- Water backup and sump overflow
- Personal liability coverage
- Identity recovery services
- Service line protection
Best Home Insurance Company for Nationwide Coverage: State Farm
PROS
- Available in all states and Washington, D.C.
- J.D. Power Ranking: #6 out of 19
- Partnered with Wildfire Defense Systems to provide free fire prevention and risk management
- Big variety of coverage types, great for bundling discounts
CONS
- Fewer discounts than other large insurers
- Only accessible through exclusive State Farm agents
- No longer accepting applications from California residents
HIGHLIGHTS
| Financial rating: | A++ on A.M. Best |
| Discounts: | Bundling, home security systems, resistant roofing |
| Bundling options: | Auto, renters, life |
Why we chose State Farm: State Farm stands out as the largest home insurance company in the United States, offering a comprehensive range of policies in all 50 states, including Washington, D.C. The company’s extensive coverage options encompass various areas such as life, auto, condo, and renters insurance.
State Farm’s broad range of policy offerings provides customers with opportunities to bundle multiple policies, resulting in potential discounts and a more streamlined overall experience.
It is important to note that while State Farm offers a diverse array of policies, bundling is limited to car, condo, life, and renters insurance. Nonetheless, the savings achieved through bundling can be significant. For instance, State Farm claims potential yearly savings of up to $1,127 when combining home and auto insurance.
In terms of customer service, State Farm receives high ratings in the J.D. Power consumer satisfaction survey. In fact, it holds the highest nationwide ranking, currently placed 6th in the Overall Customer Satisfaction Study.
However, compared to other major insurers in the country, State Farm offers fewer discounts. These discounts include the conventional multi-policy discount, as well as discounts for having security systems like fire and smoke alarms. It’s worth noting that eligibility for certain safety measures may vary depending on the state, so it’s advisable to consult with an agent. Additionally, State Farm provides a discount for utilizing high-quality roofing protection.
One drawback of State Farm is its exclusive agent system, meaning policies are only available through their network of agents. However, the company boasts an extensive agent network, estimated to be close to 19,000 agents, covering nearly every state. It is important to mention that as of May 27th, 2023, State Farm will no longer accept new applicants from California but will continue to serve existing customers.
Best Home Insurance Company for Customer Service: Amica Mutual
PROS
- Offers database listing vetted and licensed contractors
- Discounts for claims-free customers
- J.D. Power Ranking: #1 out of 19
- A.M. Best Rating: A+
CONS
- Not available in Hawaii
HIGHLIGHTS
| Financial rating: | A+ on A.M. Best |
| Discounts: | Bundling, loyalty, claim-free, autopay, electronic bill, alarm system, detection devices |
| Bundling options: | Auto, renters, life, umbrella |
Why we chose Amica Mutual: Amica Mutual excels in customer service, arguably setting the industry standard, and provides a comprehensive contractor database that simplifies the process of finding the necessary assistance.
Amica Mutual is widely recognized for its exceptional customer service in claims, having consistently ranked first in the J.D. Power Property Claims Satisfaction Study for nine consecutive years, as well as in the Overall Customer Satisfaction survey.
Another noteworthy feature of the company is its Contractor Connection database, which contains a vast selection of carefully vetted, licensed, and insured contractors. Amica Mutual ensures the quality of their work by offering a five-year warranty.
Similar to other insurers, Amica Mutual offers loyalty discounts to customers who have been with the company for a minimum of two years. Additionally, it provides discounts to policyholders who remain claim-free for at least three years.
Regrettably, homeowners insurance from Amica Mutual is currently unavailable in Alaska and Hawaii. However, it is accessible in all other states, providing coverage to a wide range of customers.
For customers who require additional coverage, Amica offers:
- Valuable items coverage
- Catastrophic coverages
- Identity fraud expense coverage
- Home business coverage
Best Home Insurance Company for Military Members: USAA
PROS
- 10% bundling discount when paired with car insurance policy
- Home Sharing coverage available
- A.M. Best Rating: A++
CONS
- Only available to military personnel and their families
- Home Sharing is not available in all 50 states
HIGHLIGHTS
| Financial rating: | A++ on A.M. Best |
| Discounts: | Bundling, protection devices, detection devices, multi-product (bundling with auto earns 10% discount, additional policies earn 5% discount), loyalty, claim-free |
| Bundling options: | Auto |
Why we chose USAA: USAA excels in providing a winning combination of affordable premiums and extensive coverage tailored for military members, accompanied by a strong reputation for trustworthiness and financial stability.
USAA, highly regarded in the insurance industry, boasts exceptional financial stability and customer service. While its limited availability prevents inclusion in J.D. Power customer satisfaction rankings, the company offers a wide range of coverage options specifically designed for military members and their families, including veterans’ children and active-duty personnel.
An outstanding feature of USAA is its inclusion of Guaranteed Replacement Cost coverage as a standard component in its homeowners insurance policies. This unique offering allows homeowners to rebuild their property to its pre-incident condition, without being subjected to a depreciated amount based on the age of the home.
USAA is also renowned for its competitive premiums. If you meet the eligibility requirements for USAA membership, it would be challenging to find a better combination of home insurance rates and comprehensive coverage for property damage.
Additionally, USAA joins a select group of insurers, including Erie and Allstate, in providing optional home-sharing coverage at an additional cost. This coverage serves as an alternative to purchasing insurance specifically through platforms like Airbnb or Vrbo. It is important to note that damages caused by paying guests are generally not covered under standard homeowners insurance policies.
Best for High-Value Homes: AIG
PROS
- Coverage for homes up to $100 million
- Robust cybersecurity coverage
- Coverage for properties outside the United States
- Lower premium average than high-end competitors
CONS
- Low customer service ratings
- Customers have to buy more than one policy with the company
- No homeowners insurance coverage in California
HIGHLIGHTS
| Financial rating: | A on A.M. Best |
| Discounts: | Undisclosed |
| Bundling options: | Undisclosed |
Why we chose AIG: AIG specializes in providing comprehensive coverage for high-value properties, catering to affluent individuals with assets worth up to $100 million.
Renowned as a luxury insurer, AIG offers a range of extensive coverage options, including dwelling protection and cybersecurity, tailored to meet the unique needs of high net-worth individuals.
One notable feature is AIG’s guaranteed replacement cost coverage, which applies without any limitations. This coverage extends to homes valued from $750,000 up to an impressive $100 million, providing an “all-risk” basis that encompasses all perils, except for a few specifically excluded ones.
AIG also offers the flexibility of ultra-high deductibles, allowing policyholders to choose deductibles as high as $100,000. Opting for such deductibles can significantly lower premiums; however, it also means assuming a greater portion of out-of-pocket expenses in the event of a claim.
To obtain homeowners insurance with AIG, it is necessary to hold one of the company’s other policies. Fortunately, AIG offers a wide range of policies tailored for high net-worth customers, including collection insurance, yacht insurance, auto insurance, and even private aircraft insurance.
In addition to coverage, AIG provides various services aimed at accident prevention and expedient resolution. These services include background check services for domestic staff, private firefighting units, cybersecurity measures, and more.
It is important to note that as of January 31st of this year, AIG has ceased offering home insurance coverage in California due to the high risk of wildfires and the state’s regular seismic activity. However, existing insurance policies with AIG will remain in effect, and the company will continue to provide other forms of insurance coverage in California.
In addition to standard coverage, AIG offers services such as:
- Kidnap, ransom and extortion coverage
- Landscaping coverage
- Crisis management and reputation restoration
- Multinational property coverage
- Business property coverage
Homeowners Insurance FAQ
How much is homeowners insurance?
The typical annual expense for homeowners insurance in the United States amounts to $1,200, equivalent to an average monthly cost of $100 per policy. Nevertheless, it is important to note that the rates for homeowners’ insurance can significantly differ based on factors such as the unique characteristics of your home, its condition, the desired coverage amount, and your geographical location.
Is homeowners insurance required?
While homeowners insurance is not mandated by state or federal law, nearly all lenders will insist on homeowners insurance as a condition of your mortgage agreement. It serves as a crucial requirement imposed by lenders to protect their investment in your property.
What is homeowners insurance?
Homeowners insurance is designed to provide coverage for residential properties, offering compensation for the repair of damages caused by a range of perils, including storms, fires, vandalism, and more. The extent of coverage and the specific causes and costs included in the policy depend on the individual policy and any additional add-ons chosen by the policyholder.
Does home insurance cover mold?
Similar to many situations, homeowners insurance covers mold damage if it is caused by a peril listed in your policy. However, if the mold arises from a cause that is not specified in your policy, such as flooding, or if it is due to the negligence of the homeowner, it will not be covered.
What type of water damage is covered by homeowners insurance?
Most homeowners insurance policies will provide coverage for water damage caused by a covered peril, such as a pipe breakage resulting from a vehicular accident. However, if the cause of the water damage is not listed in the policy, such as a hurricane or a do-it-yourself home renovation accident, it will not be covered.
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