A home is the biggest asset most Americans have, so you'll want to protect your dwelling by purchasing homeowners insurance.
Although homeowners insurance is not required by law, if you have a mortgage your lender will require homeowners insurance to protect the home. And if you live in disaster-prone areas, you may need additional coverage.
*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 J.D. 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
Visit USAA's homeowners insurance website to learn more.
Visit Amica's website to learn more.
Visit State Farm's homeowners website to learn more.
Visit Auto-Owners' website to learn more.
Visit Allstate'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:
| 904 |
| 902 |
| 896 |
| 893 |
| 889 |
| 886 |
| 885 |
| 882 |
| 881 |
| 881 |
| 878 |
| 877 |
| 877 |
| 876 |
| 875 |
| 872 |
| 871 |
| 867 |
| 855 |
*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:
| 882 |
| 854 |
| 840 |
| 835 |
| 835 |
| 834 |
| 831 |
| 831 |
| 830 |
| 830 |
| 829 |
| 828 |
| 821 |
| 813 |
| 812 |
| 810 |
| 810 |
| 806 |
| 801 |
| 800 |
| 798 |
| 779 |
*USAA is only for active military, veterans, and their families.
Frequently asked questions (FAQs)
What is 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.
One way to reduce your premium is to increase your deductible amount. Having a deductible higher than $1,000 reduces your annual premium. However, if you have a loss and make a claim, you will have a larger portion deducted from your payout. This can be significant if you have multiple claims in one year.
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 areas — flood 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 and endorsements.
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):
| $645 |
| $748 |
| $826 |
| $888 |
| $937 |
| $981 |
| $1,018 |
| $1,114 |
| $1,272 |
| $1,482 |
| $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.
| Yes |
| Yes |
| Yes |
| Yes |
| Limited, requires add-on* |
| Yes |
| Yes* |
| Yes* |
| Yes* |
| Yes |
| No** |
| Yes, but not high winds*** |
| No* |
*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
What are the different 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.
| Yes | No | No | Named |
| Yes | No | Yes | Named |
| Yes | Yes | Yes | Open/Named |
| No | Yes | Yes | Named |
| Yes | Yes | Yes | Open |
| Yes*** | Yes | Yes | Named |
| Yes | Yes | Yes | Open/Named |
| Yes | Yes | Yes | Named |
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 do I 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.
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