The best homeowners insurance companies of 2021

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A home is the biggest asset most Americans have and homeowners insurance varies depending on your dwelling type: home, condo, mobile home, or new construction. When considering homeowners insurance, it is important to make sure that you have proper coverage for your dwelling and structures, personal belongings, and personal liability coverage.

Although homeowners insurance is not required by law, if you have a mortgage your lender will require homeowners insurance to protect the home. If you live in disaster-prone areas, you may need additional coverage.

The 5 best homeowners insurance companies

USAA*Amica MutualAuto-Owners State FarmErie Insurance

*USAA is only for active military, veterans, and their families.

Insider looked at the top companies in size according to S&P Global data, and customer satisfaction from JD Power and Associates. Also considered were nationwide availability and the most recent credit rating from A.M. Best or Fitch Ratings.

The best homeowners insurance companies

USAA

USAA is only available to active military, veterans, and their families. It is available in all states and consistently ranks at the top of claims and customer satisfaction surveys.

Visit USAA’s website to learn more.

Amica Mutual Insurance

Amica homeowners insurance is a strong competitor in customer satisfaction, earning the top spot in JD Power’s study of all widely available insurers. It’s available in 48 states.

Unlike other insurers on this list, Amica’s insurance policies offer a dividend, where money is returned to you. On average, Amica’s dividend policies return between 5% and 20% of annual premiums. Quotes are available online without an agent, making it easy to compare to other insurers.

Visit Amica’s website to learn more.

Auto-Owners Insurance

While this company is named for its auto insurance coverage, Auto-Owners offers home insurance and insures about 1.5% of America’s homes. A high credit rating, along with high marks for claims and customer service, helps this insurance company stand out.

Visit Auto-Owners’ website to learn more.

State Farm

State Farm is an established insurance industry and ranks in the top ten in claims and customer satisfaction. Home insurance policies are available in all 50 states. They’re also available to purchase on your own online without an agent.

Since State Farm provides auto, disability, and life insurance, it could be beneficial to bundle all your insurance together for a discount.

Visit State Farm’s website to learn more.

Erie Insurance

Although only available in 13 states, Erie earned top marks for credit ratings, customer satisfaction, and claims.

Visit Erie’s website to learn more.

Best homeowners insurance based on claims satisfaction

A cheap homeowners insurance policy does little if the company is bad at claims satisfaction – especially if you live in disaster prone areas. According to J.D. Power, a consumer research company that surveys customers, this is how homeowners insurance companies ranked in claims satisfaction:

Homeowners insuranceClaims ranking out of 1000 pointsUSAA*904Amica902The Hartford896Farmers893Auto-owners889Nationwide886Erie Insurance885Allstate882American Family881Industry Average881State Farm878Liberty Mutual877MetLife877AIG876Safeco875Travelers872Chubb871Progressive867Auto Club Southern California855

*USAA is only for active military, veterans, and their families.

Best homeowners insurance based on customer satisfaction

The latest study from J.D. Power, a consumer research company that conducts consumer surveys, shows that a homeowners insurance company’s customer service and reputation are more important than price for homeowners. Here’s how homeowners insurance companies ranked when consumers were asked about satisfaction overall:

Homeowners insurance companyCustomer satisfaction ranking out of 1000 pointsUSAA*889COUNTRY Financial855Amica853Auto-owners843Erie839The Hartford832Allstate829State Farm829CSAA825MetLife824Segment Average823American Family821Auto Club of Southern CA820Farmers814AIG809Nationwide808Liberty Mutual805Travelers803Safeco802Progressive797Chubb778

*USAA is only for active military, veterans, and their families.

Frequently asked questions (FAQs)

The average cost of homeowners insurance

The average annual premium in the United States in 2019 was $1,215, according to the most recent data from S&P Global.

The age of your home, age of your roof, the appraised value, your home’s size (square footage), your location, and whether you own pets are some of the determining factors in calculating homeowners premiums.

If you live in weather-zones or disaster prone areasflood zones, hurricanes, tornadoes, wildfires, mudslides, hail, and earthquakes – that will increase your premium because that is not included in basic coverage and will need to be add-ons riders.

Here’s how much homeowners insurance costs on average by home value in the United States, according to the most recent release of the Homeowners Insurance Report by the National Association of Insurance Commissioners (NAIC):

Estimated home valueAverage annual homeowners insurance premium$49,999 and under$645$50,000 to $74,999$748$75,000 to $99,999$826$100,000 to $124,999$888$125,000 to $149,999$937$150,000 to $174,999$981$175,000 to $199,999$1,018$200,000 to $299,999$1,114$300,000 to $399,999$1,272$400,000 to $499,999$1,482$500,000 and above$2,148

What does homeowners insurance cover?

Homeowners insurance protects the dwelling, your personal belongings, and offers personal liability coverage for injuries that events that happen on your property. Those events are known as „insurance perils.” Perils are specific events that cause damage to your home, like fire, theft, or a storm.

Earthquakes, floods, government seizures, mudslides, ordinance updates, sewer backups and sinkholes typically aren’t covered under standard homeowners insurance policy and will require add-on coverage using a rider policy.

CoverageIncluded with homeowners insurance?Dwelling/StructureYesPersonal liabilityYesPersonal belongingsYesLoss of Use (additional living expenses)YesHigh-end electronics/special jewelryLimited, requires add-on*Equipment breakdownYesElectrical outageYes*Service linesYes*Cyber liabilityYes*Water damageYesFloodNo**Wind or hailYes, but not high winds***EarthquakeNo*

*Available as add-on coverage if not part of policy

**Flood insurance is available through the NFIP and approved insurers

***If you live in hurricane or tornado areas, additional windstorm rider may be required

Types of homeowners insurance

The type of homeowners insurance necessary depends on the type of home you purchased: condo, townhome, single family, rental, or mobile home. Your coverage will vary based on the type of policy you have.

PolicyDwellingLiabilityBelongingsPeril TypeHO-1: Basic*YesNoNoNamedHO-2: Broad*YesNoYesNamedHO-3: SpecialYesYesYesOpen/NamedHO-4: RentersNoYesYesNamedHO-5: Comprehensive**YesYesYesOpenHO-6:Condo/Co-opYes***YesYesNamedHO-7: Mobile HomesYesYesYesOpen/NamedHO-8: Older homesYesYesYesNamed

Townhomes can be HO-3 or HO-6

*Most lenders don’t consider this sufficient coverage

**Typically for brand-new homes only

***Covered under condo association’s master policy

How to find homeowners insurance

If you currently have homeowners insurance, review your policy coverage yearly. If your homeowners insurance company hasn’t provided the level of service you expected, maybe it is time for you to select a new provider.

Remember that a cheap price doesn’t mean good customer service. Focus on claims and customer satisfaction rankings, like those from J.D. Power, and comparison shop. This is especially important for those living in disaster-prone areas, when good service can make all the difference.

How were the winners determined?

Insider looked at five factors to determine the best homeowners insurance: customer satisfaction ranking, claims satisfaction ranking, credit financial rating, market share, and nationwide availability.

Customer satisfaction and claims satisfaction rankings were determined using J.D. Power’s 2020 surveys. Market share data was gathering from S&P Global Market Intelligence. Credit ratings are from A.M. Best and Fitch.

Related Content Module: More on Homeowners Insurance

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