It cannot be easy to find the right homeowners insurance. While there are numerous coverage options and companies to choose from, all homeowners insurance policies should include coverage for your primary residence, personal belongings, personal liability, medical payments to others, and additional living expenses. Good homeowners insurance will provide you with the ability to add coverages for items that are typically excluded or limited, as well as extra perks, coverage benefits, and discounts. We took a look at a lot of firms and chose the best based on several criteria to help you find the best coverage at the best price.
June 2022's Best Homeowners Insurance Companies
- Amica Mutual is the best overall.
- State Farm was the runner-up.
- Chubb is the best option for high-value homes.
- Liberty Mutual is the best option for first-time homebuyers.
- Erie Insurance is the best regional insurer.
Amica Mutual is the best overall.
Pros
- Smart device protection is enhanced with the Platinum coverage option.
- New home discounts, alarms, and automated detection
- Bundling home, auto, and other policies can save you up to 20%.
- Service of Contractor Connection
Cons
- California, Florida, Missouri, and North Carolina do not have dividend policies.
- In Hawaii and Alaska, homeowners insurance is not available.
- Personal property is only covered at actual cash value under standard home insurance.
Why Did We Pick It?
Amica Mutual provides two coverage options that cover the structure as well as the contents inside. It also includes replacement cost coverage for both and the option to add extended dwelling replacement coverage for up to 30% more coverage than your limit. These features can significantly increase the amount of money you get paid for claims. Amica also offers a variety of discounts and pays eligible homeowners up to 20% in dividends. With the exception of California, Florida, Missouri, and North Carolina, this dividend policy is available everywhere. Since Amica Mutual receives an A+ (Superior) Financial Strength Rating from AM Best and checks all the boxes for coverage, cost, cost-saving opportunities, claims service, and even value-added benefits like referrals to reputable contractors, it is named best overall among our best homeowners insurance providers. Customers recognized Amica's commitment to service by awarding it the highest overall customer satisfaction score (854 on a 1,000-point scale) in the J.D. Power 2021 Customer Service and Satisfaction Ratings in the homeowner's insurance segment.State Farm RUNNER-UP
Pros
- Covers freezing or unintentional water discharge from the plumbing system.
- Building and personal property replacement costs
- Combining discounts on a variety of insurance products
- Coverage for loss of use for up to 24 months
Cons
- In every state, not all homeowner's insurance discounts are available.
Why Did We Pick It?
Because of its high customer satisfaction rating, personalized service provided by local agents, and competitive pricing, State Farm receives our Runner-Up ranking. In the J.D. Power 2021 Customer Service and Satisfaction Ratings, policyholders ranked the company fourth out of 21 home insurers for overall customer satisfaction. It also receives AM Best's highest financial strength rating of A++ (Superior). If you want to deal with a local agent and have your home, auto, and other insurance handled by the same company, State Farm homeowners insurance is a good option. Not all insurers offer additional living expenses coverage for up to 24 months or replacement cost coverage in standard home insurance. State Farm also offers a variety of other insurance products, including life and health insurance, as well as several bundling discounts. State Farm's annual premium for your home is determined by where you live and your situation, as it is with all insurance companies.Chubb is best for high-value homes.
Pros
- Replacement for a longer period of time with full cash value settlement options
- Fine art, wines, and other high-value items are covered.
- Provides low-cost personal cyber-risk insurance.
- Excellent customer satisfaction rating for claims
Cons
- It's possible that the price will be higher than usual.
- Customer satisfaction is low.
- There are no quotes available on the internet.
Why Did We Pick It?
Chubb is a well-known high-value home insurer that offers coverage options tailored to the needs of high-net-worth individuals. Even if you decide not to replace your building or contents, claims are settled on a replacement cost basis. Although Chubb's home insurance is expensive, it offers a number of discounts and excellent higher-deductible credits. Chubb is a lifestyle insurer that provides valuable-item coverage, wine collection coverage, personal cyber risk coverage, and excess liability to clients at a reasonable cost. If you value these features, Chubb's offering is one of the best available, assuming you can afford the price. In the 2021 J.D. Power Property Claims Satisfaction Survey, the company, which has an outstanding Financial Strength Rating of A++ (Superior) from AM Best, came in third place out of 19 homeowner insurance companies. On the other hand, Chubb did not fare well in the J.D. Power 2021 Customer Service and Satisfaction Ratings for overall customer satisfaction in the homeowner's insurance segment. It was ranked 18th out of 21 homeowners insurance companies, with an 801 out of 1,000 scores.Liberty Mutual is the best option for new homeowners.
Pros
- Inflation protection is available as an option.
- Discount for insuring to the replacement value
- Discounts for newly purchased homes
Cons
- Unless upgraded, the actual cash value of the building and personal property.
- To get a clear understanding of the coverage offered, you'll need to call.
- Customer satisfaction is low.
Why Did We Pick It?
Liberty Mutual Insurance Company provides good coverage at a reasonable price. It provides a variety of ways to lower your pricing, including affiliation with over 14,000 affinity member groups, which include a long list of employers and universities. Liberty Mutual provides standard homeowners insurance as a starting point, but it also offers upgrades such as reasonably priced blanket jewelry coverage and home computer and electronics upgrades. Because of the inflation protection option and discounts available to new homeowners and recently renovated homes, we chose Liberty Mutual as the best option for new homeowners. The company has an A (Excellent) financial strength rating from AM Best. Still, in the J.D. Power 2021 Customer Service and Satisfaction Ratings, it was ranked below average in overall customer satisfaction in the homeowner's insurance segment. It received an 806 out of 1,000 possible points, placing 17th out of 21 homeowners insurance companies.ERIE INSURANCE AT ITS BEST REGIONALLY
Pros
- The cost of replacement is guaranteed.
- Protection for service lines is available.
- Back-up sewer and drain services are available.
- Bundling home, auto, and life insurance discounts can save you up to 25%.
Cons
- Only 12 states and Washington, D.C. are part of the regional network.
- There is no way to get a quote online; you must speak with a representative.
Why Did We Pick It?
Despite Erie Insurance only covering 12 states plus Washington, D.C., it makes our list of best regional homeowners insurers due to its high customer satisfaction ratings and coverage features. One of the benefits is that policies come with a 100 percent replacement guarantee, which means you won't have to pay out of pocket if you have a claim (aside from your deductible). The importance Erie places on customer service is reflected in its above-average No. 3 overall customer satisfaction ranking among 21 homeowners insurance companies in the J.D. Power 2021 Customer Service and Satisfaction Ratings. A.M. Best also gave it a reassuring A+ (Superior) Financial Strength Rating. Bundling discounts of up to 25% are available, as well as advanced quote discounts if you shop for insurance seven to 60 days before your renewal date. If you prefer personalised service from a neighbourhood agent who can get to know you and your needs and live in a state that the insurer covers, Erie is a good choice. Compare Service Providers WHY DID WE CHOOSE THIS PROVIDER?- Overall, Amica Mutual is the best.
- Runner-Up: State Farm
- Chubb is the best option for high-value homes.
- Liberty Mutual is the best option for first-time homebuyers.
- Best Regional Erie Insurance
Is Homeowners Insurance Required?
Homeowners insurance is not required by law, but if you have a mortgage, your lender will expect you to have it. It's also a good idea to safeguard the investment you've made in your home. Repairing or replacing your house can cost hundreds of thousands of dollars. Because many homeowners are unable to cover catastrophic expenses out of pocket, having an insurance company pay for such losses is often necessary.What Is Covered by Homeowners Insurance?
A list of the ABC's of your insurance policy can be found on the declaration page of your policy. The following items are frequently covered by home insurance:- The structure of the building (Coverage A)
- There are any other structures on the property that you should be aware of (Coverage B)
- Your personal effects (Coverage C)
- Loss of use or increased living costs (Coverage D)
- Your own personal responsibility (Coverage E)
- Payments for medical expenses to others who may be injured on your property (Coverage F)
- Actual cash value (claims are settled on a depreciated basis).
- Replacement cost (new for old when replaced).
- Guaranteed replacement.
- Extended replacement (pays to replace the building even if the insured value is higher).
Home Insurance Policy Exclusions
Certain things will be covered or excluded from all homeowner's insurance policies. A named perils policy will only cover you for the perils listed. In contrast, unless something is expressly excluded in your contract, an all-risk or open perils policy will protect you from all potential risks.What Factors Go Into Determining Homeowners Insurance Rates?
Homeowners' insurance premiums are determined by a number of factors, all of which contribute to the premium calculation: Information about the risk, such as the location, distance to the fire station, weather risks in the area, the insurer's claims experience, and local construction costs. In addition to the age and renovation information for the roof, plumbing, heating, and electrical systems, this data also includes information on the property's condition and age. Discounts are given for security systems, other preventative measures, such as sprinkler systems and water shut-off valves, as well as for the size of the house and other factors that affect reconstruction costs.. Additionally, raising your deductibles may result in a significant reduction in your premium. Base coverage or bare-bones protection with no add-ons can save you a lot of money compared to an all-risk policy or a policy with optional endorsements or riders. Your personal information: Your membership in a trade association, your employer, your insurance credit score, and your payment and claims history could all help you save money on your premium. During our research, we looked at Liberty Mutual quotes for a home in California and discovered that the base rate was $161 per month (or $1,932 per year) without any discounts. The premium was reduced to $53 per month (or $636 per year) after discounts were applied to the rate. The rate will be higher if you add optional items like $10,000 of blanket jewelry coverage, a green rebuild upgrade, identity theft coverage, and home computer and electronics coverage.How Did We Choose the Top Homeowners Insurance Companies?
To find the best homeowners insurance companies, we looked at the top-ranking insurers for both customer satisfaction and home property claims performance in J.D. Power's national studies, as well as the 25 largest insurers in the United States by premium volume. Following that, we checked complaint trends with the National Association of Insurance Commissioners (NAIC) and double-checked AM Best's financial strength ratings. We found the best coverage options and identified what set each insurer apart after we identified the top home insurers with strong all-around performance. We obtained independent quotes online and supplemented our research by contacting call centers, agents, state regulators, and home insurance marketplaces as needed. We were able to learn more about each insurance company's quote process, policy coverage options, exclusions, discount offers, pricing, and ease of interaction in this manner. Finally, we combed through the fine print and double-checked policy wordings and home insurance contracts (where available) to bring you our top-rated homeowner's insurance companies.