Best Homeowners Insurance Companies for September 2024

Many companies sell homeowners insurance in the US. However, the 10 largest home insurance companies account for over half the overall market share. So if you’re looking for coverage, chances are you’ll get a quote and consider buying coverage from one of those leaders.

Our review includes seven of those 10 insurers. Compare their costs, third-party rankings, and more.

Our recommendations for best homeowners insurance companies

Best homeowners insurance companies compared

Methodology

We reviewed each company's website for detailed information about coverages, discounts, and service options.

Pricing information is from a recent review of homeowners insurance costs by The Zebra. Note that these are sample rates. Your cost of homeowners insurance may vary from what is shown.

We also gathered information produced by third-party sources related to the homeowners' insurance industry.

• AM Best is an independent, trusted provider of analytics and ratings specializing in the global insurance industry. Its letter ratings indicate an insurance company’s financial strength and ability to pay claims. Ratings range from A++ (Superior) to D (Poor). Note that we primarily accessed these ratings on individual insurance company websites.
• The J.D. Power 2023 U.S. Property Claims Satisfaction Study rated 22 major homeowners insurance companies on a 1,000-point scale based on claims settlement, claim servicing, first notice of loss experience, estimation process, and repair process.
• The J.D. Power 2023 U.S. Home Insurance Study rated 19 major insurers on a 1,000-point scale based on customer interaction, policy offerings, price, billing process, and claims.
• The National Association of Insurance Commissioners (NAIC) publishes annual complaint indexes for homeowners insurers. An index below 1.0 means the NAIC receives fewer than average consumer complaints about a particular company. The index is weighted to ensure companies of different sizes are judged fairly.
• Trustpilot is a review site where ordinary consumers can rate companies based on their experiences. Its star rating system is based on a scale of zero to five.

What is homeowners insurance?

Homeowners insurance protects the investment you’ve made in your home. A standard policy consists of five coverages.

• Coverage A (Dwelling). Pays to help repair the main structure of your home if it’s damaged or destroyed by fire, storm, vandalism, or other incident.
• Coverage B (Other structures). Pays to help repair structures not attached to the home, such as a detached garage, if damaged or destroyed.
• Coverage C (Personal property). Pays to replace or repair items such as furniture, electronics, clothing, or sporting equipment if damaged or destroyed.
• Coverage D (Additional living expense). Helps pay for food, lodging, and other essentials if your home cannot be occupied due to a covered incident.
• Coverage E (Personal Liability). Protects you against lawsuits related to incidents that occur on your property.

Each of these coverages has a limit, which is the maximum amount the insurer will pay to repair or replace your home or property. Coverages typically have deductibles, which is the amount of money you pay toward your repair or replacement costs if you have a claim.

This is a very brief overview of homeowners insurance. Check your policy to understand better what it does and doesn’t cover. If you have any questions, contact your agent or insurer.

How to file a homeowners insurance claim

The first step to filing a homeowners claim is to decide whether or not you even should file. This often comes down to your deductible. If the cost to repair or replace the item is equal to or less than your deductible, then a claim makes no sense whatsoever. You might even consider not filing if the value of the damage is only a little bit more than your deductible, as the claim will likely cause your policy premium to increase at the next renewal.

However, if you’re facing a significant financial loss and decide to file a claim, check your policy paperwork or the insurer’s website to see how to proceed. Many insurers offer tools that allow you to file a claim online, and many also offer a toll-free phone number.

However you choose to file your claim, be sure to follow any and all instructions you receive regarding repair estimates, documentation, and deadlines. Staying on top of your claim “to-do list” helps avoid any delays in its processing.

How to choose the best homeowners insurance policy

Homeowners insurance is not only a complex product, but it protects a significant piece of your financial picture—the investment you’ve made in your home. When shopping for coverage, consider the following tips.

Consider the cost to rebuild your home, not its market value

One of the most important things you can do when buying homeowners insurance is to ensure your coverage limits are based on the cost to rebuild your home, not its market value. The fact is that these two numbers can vary dramatically (it may be much more expensive to rebuild). Having adequate coverage in place means you’ll have less to pay out of pocket should you ever need to file a claim.

Look at optional coverages that fit your needs

Many companies offer additional, optional coverages that you can add to a standard policy. A common option, for example, is scheduled personal property. This provides extra coverage for valuables such as jewelry, artwork, antiques, or expensive electronics.

Be aware also that most standard homeowners policies do not include coverage for earthquakes or flooding. Fortunately, these coverages are often readily available, but you may need to purchase a separate policy. If you live in an area prone to these events, contact your insurer or agent to discuss your options.

Shop around

Prices vary between insurers. In our review of the seven largest home insurance companies, the cheapest policy costs more than $1,000 less per year than the most expensive. So you owe it to yourself to shop around to make sure you’re getting the best combination of coverage and price.

Check out trusted, third-party ratings and rankings

It can be challenging to differentiate between insurance companies. However, expert reviews such as J.D. Power and consumer reviews such as those on Trustpilot can help you better understand which companies tend to stand out from the pack.

Talk to an agent

With all that’s riding on your homeowners' insurance, you may want to consider talking to an agent. Insurance agents should understand the needs of homeowners in your area and be well-versed in the “ins and outs” of the companies they represent. A good agent can be your ally in navigating the complex world of insurance for your home, car, business, and life.

Bundling homeowners and auto insurance

Bundling your home and auto insurance means you get both policies from the same company. It’s a common practice, and it provides you with two main benefits.

First, you’ll likely save money. Insurance companies like it when customers bundle (they’d rather sell you two policies than just one), so they tend to offer generous discounts that might apply to the auto policy, the homeowners' policy, or both. All the insurers in our review offer a bundling discount.

Second, you’ll simplify your life a bit. Rather than having to keep track of two insurance companies, two sets of policy paperwork, and two sets of payments, you can streamline things by bundling.

Alternatives to homeowners insurance

If you have a mortgage, you’ll need homeowners insurance—there’s typically no way around that fact. Your lender will require coverage as long as it has a financial interest in your property.

Homeowners insurance is optional once you’ve paid off your home. Nevertheless, considering all that’s at stake financially, you’ll likely want to maintain coverage. According to the Insurance Information Institute, 88 percent of homeowners do carry insurance.

If you’re concerned about the rising cost of coverage, first check with your current insurer to see if you’re eligible for any additional discounts that may help you save. If that doesn’t bring down your costs, check with three or four other companies to see if they offer lower rates. As noted already, the cost of coverage can vary significantly between companies. You might also want to see if your state offers any programs to help homeowners afford coverage.

Another option is self-insurance. In this method, you drop your home policy and set aside money for repairs for which you’d otherwise file an insurance claim. Self-insurance is a rising trend in states such as Florida, where insurance rates for high-risk properties have spiked dramatically in recent years.

Note that we do not recommend self-insurance. But we want to point out that it is an alternative to traditional homeowners coverage.

TIME Stamp: Shop around before you decide on a homeowners insurance policy

While there are many homeowners insurance companies, a majority of Americans rely on just a handful of them for coverage. So if you’re in the market for a policy, you owe it to yourself to check with at least three or four of them to make sure you’re getting the coverage you need at a price that works for your budget.

Frequently asked questions (FAQs)

What is the 80% rule in homeowners insurance?

The 80% rule states that you should insure your home for at least 80% of its total replacement cost to avoid being underinsured.

What homeowners insurance is the most commonly purchased?

On a national scale, State Farm is the most commonly purchased homeowners policy. The company has an 18.4% market share, making it the largest home insurer in the US.

How much does homeowners insurance cost in New York?

According to a recent study by Moneygeek, a policy with $250,000 of coverage costs $1,854 in New York.