Finding the best home insurance company is an important part of securing your home, as it protects your most valuable asset. With so many insurance home insurance companies to choose from, it can be overwhelming trying to find the right policy for your needs and budget.
How Home Insurance Coverage Works
Home insurance, also known as homeowners insurance, provides financial protection for your home against damages and losses. A standard policy usually includes these main types of coverage:
Dwelling coverage – pays to repair or rebuild your home if it’s damaged or destroyed.
Personal property coverage – pays to replace your belongings if they are stolen, damaged, or destroyed.
Liability coverage – covers legal fees and damages if someone is injured on your property.
Additional living expenses – pays for extra costs if you can’t live in your home due to damages.
Most policies also provide additional coverage options such as flood insurance, earthquake insurance, and umbrella insurance for extra liability protection.
When shopping for home insurance, you’ll want to consider:
- The insurer’s financial strength rating – this measures their ability to pay out claims.
- The types of perils covered – make sure the policy covers your biggest risks.
- The amount of dwelling and personal property coverage – insure your home for its rebuilt cost, not market value.
- Deductibles – choosing a higher deductible lowers your premiums but increases out-of-pocket costs per claim.
- Discounts – take advantage of discounts to save money on your premiums.
How to Compare Home Insurance Quotes
To find the best rate for your home insurance policy, it’s important to compare quotes from multiple insurance providers. Here are some tips for getting accurate home insurance quotes:
- Determine your home’s rebuilt cost – Get a professional appraisal of your home’s replacement value, don’t rely on Z estimates or tax assessments. This ensures you purchase enough dwelling coverage.
- Inventory your possessions – Catalog all your personal belongings and their worth. This prevents underinsuring your personal property.
- Consider higher deductibles – Opting for a $1,000 or $2,500 deductible can reduce your premiums significantly. Make sure you have savings to cover the larger out-of-pocket costs.
- Ask about discounts – Mention any security features like alarm systems and fire-suppression systems, along with discounts for bundling auto and home insurance.
- Compare quotes for equivalent coverage – To accurately compare rates, the policies should have the same dwelling limits, personal property limits, deductibles and coverage options.
- Get quotes from direct insurers – Going directly to insurance companies, instead of agents and brokers, can sometimes get you better pricing.
- Research financial strength – Only consider insurers with an “A” rating or higher for financial stability from A.M. Best or “A-” and up from Standard and Poor’s.
10 Tips for Saving Money on Home Insurance
The most effective ways to lower your home insurance premiums include:
- Raise your deductible – Increasing your deductible from $500 to $1,000 could reduce premiums by 10% to 20%.
- Bundle with auto insurance – Bundling home and auto policies with the same insurer often earns a multi-policy discount of 5% to 15%.
- Maintain good credit – Having a solid credit score makes you less risky to insure, resulting in lower rates.
- Install security devices – Adding deadbolts, a security system, smoke detectors and other protective devices can earn discounts.
- Seek group discounts – Being a member of certain employers, associations or alumni organizations may qualify you for a lower group rate.
- Compare rates regularly – Shop around for lower rates at least once a year, as insurers frequently change pricing models.
- Seek age-related discounts – Some companies offer retiree or mature homeowner discounts for those 50 or 55 and over.
- Upgrade risk factors – Fix roof leaks, install impact-resistant roofing and take other steps to make your home safer to insurers.
- Research renovations – Improvements like adding a fireplace or renovating your kitchen can affect your coverage needs and rates.
- Review policy annually – Check that your dwelling and personal property limits keep pace with the increased reconstruction costs of your home.
Top 10 Home Insurance Companies
Choosing among the many home insurance providers in the U.S. can seem daunting. Based on criteria like customer satisfaction, pricing, coverage options, and financial strength, here are 10 of the best home insurance companies to consider:
- Amica – Top Rated for Customer Satisfaction
- Sample Annual Rate: $1,250
- Financial Strength Rating: A+ from A.M. Best
- Discounts: Multi-policy, protective devices
- Notable Perks: Flexible payment plans, great customer service
Amica earns exceptional ratings for customer satisfaction from J.D. Power and Consumer Reports. Policyholders praise their helpful claims representatives and efficient service. Their rates are competitive, although not the cheapest.
- Erie – Affordable Rates and Strong Customer Service
- Sample Annual Rate: $1,120
- Financial Strength Rating: A+ from A.M. Best
- Discounts: Multi-policy, smart home tech, claims-free
- Notable Perks: Rate locks, diminishing deductible
Erie Insurance offers some of the lowest rates in the industry and quality customer service. They offer flexible policies and innovative options like rate locks and a diminishing deductible that reduces by $100 each year you don’t file a claim.
- USAA – Best for Military and Families
- Sample Annual Rate: $1,180
- Financial Strength Rating: A++ from A.M. Best
- Discounts: Multi-policy, security system, new home
- Notable Perks: Bundled insurance policies, excellent member perks
USAA provides top-rated service and affordable rates, but only for military members, veterans, and their families. Customers benefit from discounts for bundling, along with helpful resources like free credit monitoring and financial planning.
- State Farm – Largest Home Insurer in the U.S.
- Sample Annual Rate: $1,443
- Financial Strength Rating: A++ from A.M. Best
- Discounts: New home, multi-policy, protective devices
- Notable Perks: New roof replacement coverage, STEAM education discounts
As the largest home insurer, State Farm has a reputation for quality customer service and innovative tools like the Pocket Agent app. Rates can be higher than competitors, but the brand name provides peace of mind.
- Allstate – Extensive Discount Options
- Sample Annual Rate: $1,625
- Financial Strength Rating: A+ from A.M. Best
- Discounts: Bundling, new home, smart home tech
- Notable Perks: Enhanced replacement cost for personal property, identity protection
Allstate features an extensive range of discounts to help reduce your premiums. Their rates tend to be higher than some competitors, but Allstate offers robust mobile apps and smart home tech integration.
- Liberty Mutualย
- Sample Annual Rate: $1,780
- Financial Strength Rating: A from A.M. Best
- Discounts: Bundling, smart home tech, new home
- Notable Perks: Lifetime guarantee on covered repairs, solar panel damage coverage
Liberty Mutual offers broad coverage options but rates on the higher side. Still, they have discounts for new homes, smart home devices and solar panels. Free 24/7 support and liability coverage for injuries on adjacent properties are added perks.
- Nationwide
- Sample Annual Rate: $1,650
- Financial Strength Rating: A+ from A.M. Best
- Discounts: Bundling, multi-policy, smart home tech
- Notable Perks: Identity theft monitoring and restoration, replacement cost coverage for most claims
Nationwide has a strong financial rating and provides online shopping and quoting. Their rates are competitive, especially with bundling discounts. Enhanced coverages include identity theft protection and full replacement cost coverage.
- Travelers
- Sample Annual Rate: $1,540
- Financial Strength Rating: A++ from A.M. Best
- Discounts: Multi-policy, new home, smart home tech, security devices
- Notable Perks: Deductible waivers, guaranteed home rebuilding, identity fraud coverage
Travelers Insurance is recognized for outstanding claims service and innovative coverage options like smart home tech discounts. Customers can also qualify for deductible waivers and guaranteed costs to rebuild after a total loss.
- Progressiveย
- Sample Annual Rate: $1,625
- Financial Strength Rating: A+ from A.M. Best
- Discounts: Bundling, multi-policy, smart home tech, security system
- Notable Perks: Name Your Price tool, concierge claims service
Progressive stands out with helpful online tools that simplify the quoting and claims processes. The Name Your Price tool lets you pick a premium and see coverage options. Progressive also offers concierge claims service and settlement flexibility.
- Safeco
- Sample Annual Rate: $1,200
- Financial Strength Rating: A from A.M. Best
- Discounts: Bundling, multi-policy, security system
- Notable Perks: Replacement cost coverage, diminishing deductible
Safeco delivers affordable rates and outstanding claims service. Their vanishing deductible decreases by $100 per year and they include replacement cost coverage for personal belongings. Bundling home and auto earns a generous multi-policy discount.
Conclusion
Finding the best home insurance companies doesn’t have to be stressful. By comparing rates, weighing discounts, and understanding key policy features, you can select exceptional coverage.
Consider using this list of top-rated insurers to compare quotes and find the lowest rates where you live. With the right policy in place, you’ll have peace of mind knowing your most important asset is covered.
