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Best Homeowners Insurance Companies

Homeowners Insurance Rates, Coverage, Discounts, and More

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Finding the right homeowners insurance can be challenging. While there are many coverage options and companies to choose from, all homeowners insurance policies should cover the basics, such as your primary dwelling, personal contents, personal liability, medical payments to others, and additional living expenses. Good homeowners insurance will offer you options to add coverages for things normally excluded or limited and may include extra perks or coverage benefits and discounts.

To help you find the best coverage at the right price, we reviewed numerous companies and selected the best based on several criteria.

Best Homeowners Insurance Companies of February 2023

Best Overall : Amica Mutual

  • Platinum coverage option offers added protection for smart devices

  • Discounts for new homes, alarms, and automated detection

  • Save up to 30% by bundling home, auto, and other policies

  • Contractor Connection service

  • Dividend policies not available in California, Florida, Missouri, or North Carolina

  • Homeowners insurance not available in Hawaii or Alaska

  • Standard home insurance only covers personal property at actual cash value

Why We Chose It

Amica Mutual offers two coverage options that cover both the building and the contents inside. It also offers replacement cost on both, and the option to add extended dwelling replacement coverage for additional coverage up to 30% more than your limit. These features can significantly increase how much you get paid for claims.

In addition, Amica offers a great selection of discounts and pays eligible homeowners up to 20% back in dividends. This dividend policy is available everywhere except California, Florida, Missouri, and North Carolina. Amica Mutual, which earns an A+ (Superior) Financial Strength Rating from AM Best, wins best overall for our best homeowners insurance companies because it checks all the boxes for coverage, price, cost-saving opportunities, claims service, and even value-added perks like referrals to trusted contractors.

Amica customers recognized the company's focus on service by giving it the highest score (854 on a 1,000-point scale) for overall customer satisfaction in the homeowners insurance segment of the J.D. Power 2021 Customer Service and Satisfaction Ratings.

Runner-Up : State Farm

State Farm Homeowners Insurance

 State Farm Homeowners Insurance

  • Covers freezing or accidental discharge of water from plumbing system

  • Replacement cost on building and personal property

  • Bundling discounts across many insurance products

  • Loss-of-use coverage up to 24 months

  • Not all homeowners insurance discounts are available in every state

Why We Chose It

State Farm gets our Runner-Up ranking due to its high customer satisfaction rating, personalized service offered by local agents, and great pricing. Policyholders ranked the company fourth among 21 home insurers for overall customer satisfaction in the J.D. Power 2021 Customer Service and Satisfaction Ratings. It also gets the highest A++ (Superior) rating for financial strength by AM Best.

State Farm homeowners insurance is a good choice if you want to deal with a nearby agent and have your home and auto or other insurance handled by one insurer. The additional living expenses coverage up to 24 months and replacement cost coverage are advantages that not all insurers offer in standard home insurance.

State Farm also offers several bundling discounts and a wide range of other insurance products, including life and health insurance. As with all insurance companies, State Farm’s annual premium for your home depends on where you live and your situation.

Best for High-Value Homes : Chubb

Chubb Homeowners Insurance

 Chubb Homeowners Insurance

  • Extended replacement with full cash value settlement options

  • Coverage for fine art, wines, or other high-value items

  • Offers personal cyber-risk insurance at a low cost

  • Price may be higher than average

  • Poor customer satisfaction ranking

  • No online quotes

Why We Chose It

Chubb is a well-known high-value home insurer with coverage features geared toward high-net-worth individuals. Claims are settled on a replacement cost basis, even if you decide you don't want to replace your building or contents. Although the cost of Chubb's home insurance is high, it offers various discounts and great higher-deductible credits.

Chubb is a lifestyle insurer that offers clients additional coverage at reasonable costs, such as valuable-article coverage, wine collection coverage, personal cyber risk coverage, and excess liability. If these items are important to you, then Chubb’s offering is one of the best available, if you can afford the price.

The company, which possesses an outstanding Financial Strength Rating of A++ (Superior) from AM Best, won only eleventh place out of 18 homeowners insurance companies ranked in the 2022 J.D. Power Property Claims Satisfaction Survey. Chubb also didn't fare so well for overall customer satisfaction in the homeowners insurance segment of the J.D. Power 2021 Customer Service and Satisfaction Ratings. It placed 18th among 21 homeowners insurance companies ranked, with a score of 801 out of 1,000.

Best for New Homeowners : Liberty Mutual

Liberty Mutual Homeowners Insurance

 Liberty Mutual Homeowners Insurance

  • Optional inflation protection coverage

  • Insure-to-replacement-value discount

  • Newly purchased home discounts

  • Actual cash value on building and personal property, unless upgraded

  • Need to call to get a clear understanding of the coverage offered

  • Poor customer satisfaction ranking

Why We Chose It

Liberty Mutual offers good coverage at a reasonable cost. It offers many opportunities to reduce your pricing, such as association with more than 14,000 affinity member groups, which includes a long list of employers and universities. Liberty Mutual offers standard homeowners coverage as a base, but it also provides the option to add upgrades, including well-priced blanket jewelry coverage and home computer and electronics upgrades. 

We chose Liberty Mutual as the best for new homeowners because of the inflation protection option and the discounts offered for new homeowners and recently renovated homes.

The company holds an A (Excellent) Financial Strength Rating from AM Best, but was ranked below average in overall customer satisfaction in the homeowners insurance segment of the J.D. Power 2021 Customer Service and Satisfaction Ratings. It placed 17th out of 21 homeowners insurance companies, earning an 806 score out of 1,000 possible points.

Best Regional : Erie Insurance

Erie Insurance Homeowners Insurance

 Erie Insurance Homeowners Insurance

  • Guaranteed replacement cost

  • Service line protection available

  • Sewer and drain back-up coverage available

  • Bundling discounts up to 25% for home, auto, and life insurance together

  • Regional, only available in 12 states and Washington, D.C.

  • No online quote available; you must speak to an agent

Why We Chose It

Erie Insurance only offers coverage in 12 states plus Washington, D.C., but it makes our list for best regional homeowners insurer because of its high customer satisfaction rankings, as well as the coverage features it offers. One of the highlights is that policies include 100% guaranteed replacement, which means you won’t be left paying out-of-pocket in a claim (aside from your deductible).

The value Erie places on customer service shows in its above-average No. 3 rank among 21 homeowners insurance companies for overall customer satisfaction in the J.D. Power 2021 Customer Service and Satisfaction Ratings. It also received a reassuring A+ (Superior) Financial Strength Rating from A.M. Best.

It offers generous bundling discounts, up to 25%, and advanced quote discounts if you shop your insurance seven to 60 days before your renewal date. Erie is a solid choice if you prefer personalized service by a local agent who can get to know you and your needs, and you live in a state that the insurer serves.

Compare Providers

Provider Why We Picked It
Amica Mutual Best Overall
State Farm Runner-Up
Chubb Best for High-Value Homes
Liberty Mutual Best for New Homeowners
Erie Insurance Best Regional

Do You Need Homeowners Insurance?

Homeowners insurance is not a legal requirement, but if you have a mortgage, the lender will require you to have home insurance. Plus, it is always a good idea to protect the investment you have made in your property. Costs to repair or replace your home can run into the hundreds of thousands of dollars. Having an insurance company pay for such losses is often essential, since many homeowners can't cover catastrophic expenses out of pocket.

What Does Homeowners Insurance Cover?

When you look at the declaration page of your insurance policy, you will see a list of the ABC’s of your insurance policy. Home insurance often covers:

  • The building structure (Coverage A)
  • Any additional structures on the property (Coverage B)
  • Your personal belongings (Coverage C)
  • Loss of use or additional living expenses (Coverage D)
  • Your personal liability (Coverage E)
  • Medical payments to others who potentially could get injured on your property (Coverage F)

Besides the basic coverages, which describe the primary limits of the policy, there are also special limits of insurance on certain items, such as jewelry, sports equipment, electronic equipment, and other items determined (and limited) by your insurance company. 

There are three levels of coverage options when buying insurance: Actual cash value (claims settlement on a depreciated basis), replacement cost (new for old, when replaced), guaranteed replacement, and extended replacement (pays to replace the building, even if it's more than the insured value). When purchasing insurance, ask about the basis of claims settlement on the building versus your personal property, because the basis of the settlement could vary.

Exclusions in Home Insurance Policies

All homeowners insurance policies will have certain things that are not covered or excluded. An all-risk or open perils policy will cover you for everything unless it is explicitly excluded in your contract, whereas a named perils policy will cover you only for the perils listed.

How Are Homeowners Insurance Rates Determined?

Homeowners insurance rates are based on five sets of factors that all contribute to the calculation of the premium

  1. Information about the risk itself: The location, distance to the fire station, weather risks that impact the area, claims experience of the insurer in the region, and local costs of construction. 
  2. Information about the building: The condition of the property, age of the building, and renovation details for the roof, plumbing, heating, and electrical systems. 
  3. Discounts: Alarm systems and other preventive measures, such as water shut-off valves and sprinkler systems; the size of the home and features that determine the reconstruction costs. Also, if you take increased deductibles, that could decrease your premium significantly.
  4. Level of protection: If you take base coverage or bare-bones protection with no add-ons, your premium may be significantly lower than if you get an all-risk policy or take a policy with optional endorsements or riders.
  5. Your personal information: Association membership, your employer, your insurance credit score, and payment and claims history may all provide the opportunity for a lower premium.

For example we looked at Liberty Mutual quotes for a home in California during our research and found the base rate to be $161 per month (or $1,932 per year), with no discounts added. Once discounts were applied to the rate, the premium dropped to $53 per month (or $636 per year).

If you add optional items such as $10,000 of blanket jewelry coverage, a green rebuild upgrade, identity theft, and home computer and electronics coverage, the rate will be higher. 

How We Chose the Best Homeowners Insurance Companies

To select the best homeowners insurance companies, we reviewed the 25 largest insurers in the U.S. by premium volume, and top-ranking insurers for both customer satisfaction and home property claims performance as ranked by consumers in J.D. Power's national studies. We then reviewed complaint trends with the National Association of Insurance Commissioners (NAIC) and verified AM Best Financial Strength Ratings. 

Once we had identified the top home insurers with strong all-around performance, we found the best coverage options and identified what set each insurer apart. We ran independent quotes online and did additional research as needed by contacting call centers, agents, state regulators, and home insurance marketplaces. In this way, we gathered more information about each insurance company’s quote process, policy coverage options, exclusions, discount offers, pricing, and ease of interaction.

Finally, we dug into the small print and cross-checked policy wordings and home insurance contracts (where available) to present you with our review of the best homeowners insurance companies.

Luxury traditonal-styled home
David Papazian/ Digital Vision/ Getty Images
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