No two homeowners are alike. Everyone has different priorities for what they're looking for in a home insurance policy. Given the highly competitive nature of the home insurance industry, as well as the large number of available insurers, this can make choosing between providers challenging.
That's where we come in. We looked at average premiums, customer satisfaction trends, financial strength and specific offerings of the top home insurance providers in the country. The following report analyzes the best homeowners insurance companies in 2021.
We'll cover:
Overview of the best homeowners insurance companies
We studied average premiums, policy perks and reviews of six home insurance providers in the U.S. Here's what we found:
| Company | Average monthly rate | Market share | J.D. Power 2020 customer satisfaction ranking | NAIC Complaint Index |
|---|---|---|---|---|
| Allstate | $143 | 8.9% | 829 | 3.4% |
| USAA | $144 | 6.7% | 889 | 0.9% |
| State Farm | $154 | 18% | 829 | 0.6% |
| AmFam | $155 | 4% | 821 | 0.7% |
| Chubb | $159 | 2.8% | 778 | 0.1% |
| Travelers | $211 | 4.4% | 803 | 0.03% |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||||
See rates from the best home insurance companies
Best overall value: Allstate
Allstate comes out on top for its combination of cheapest rates and best customer satisfaction. The company has the cheapest average annual home insurance rate of the insurers we studied, $1,714, or $143 a month. That's less than the national average home insurance rate of $1,735 a year.
In terms of customer satisfaction, J.D. Power gave Allstate 829 out of 1,000 in its 2020 customer satisfaction study. That's higher than the national average of 823. If you're looking for a mix of low rates and excellent customer service, we highly recommend Allstate.
Summary: Allstate has the lowest rates among the top companies we studied. Allstate's main downside is its high NAIC Complaint Index, which is well above the national average of 1.0.
Most popular home insurance provider: State Farm
State Farm holds 18% of the insurance industry market share nationwide. Allstate has the second-highest market share, 8.9%. According to the Insurance Information Institute, in 2020 State Farm had $19,717,032 in homeowners premiums written, the highest amount in the country. This is almost 102% greater compared to Allstate, which had $9,773,497 in written home insurance premiums.
While State Farm's average annual premium of $1,854 is higher than the national average of $1,735, it has a consistent reputation among policyholders. The company's J.D. Power customer satisfaction rating of 829 is above the national average of 823. Furthermore, its NAIC Complaint Index of 0.6 falls well below the national average of 1.0. State Farm's home insurance policyholders don't mind spending a little more to get quality service.
State Farm has roughly 19,200 agents across the country, making it easy for you to find one near you, but its online quote calculator may not necessarily hook you up with a local agent. However, the company's website and smartphone app make it easy to look up information regarding your policy and file claims.
Summary: State Farm's quality service is reflected in its high number of policyholders. The only real negative is difficulty getting an agent local to you through its quoting system.
Best for bundling home and auto insurance: American Family
When you bundle your home and auto insurance policies with American Family, you can save an average 29% on your auto insurance premium and 20% on your homeowners premium. Most insurance providers offer a bundling discount of around 5%, so the potential for savings with American Family is significant. The company's average annual rate is $1,866, which comes in above the national average. But with its bundling discount, your rate could drop well below that.
Bundling home and auto insurance doesn't just save you money. It also simplifies your bills and filing claims. Bundling your homeowners and car insurance policies means only one company to deal with and one bill to pay.
Summary: At 29%, American Family's bundling discount is above and beyond that of any other insurance provider. However, the company only operates in 19 states.
Best for quick claim processing: Travelers
With the coronavirus pandemic, Travelers took broad steps to make filing claims remotely quick and simple. In May 2020, Travelers created a system that policyholders could opt into that allows them to directly text their adjuster. Your adjuster's name and your home insurance policy number will be sent to your phone. If you lose your number, you can easily retrieve it by sending a text to CLAIMS, and you'll be instantly reconnected to your adjuster.
Despite Travelers having the highest average annual home insurance rate among the insurers we surveyed — $2,532 — simplifying the claims process worked in the company's favor. According to J.D. Power, the speedier claims process resulted in many policyholders saying they would renew their home insurance with Travelers as opposed to before the pandemic. This attention to policyholders' needs makes Travelers a definite consideration in your search for a homeowners insurance provider.
Summary: Travelers has an excellent claim system, but its high average monthly premium of $211 may be prohibitive.
Best for current and veteran military members: USAA
USAA is considered the best of the best among insurance companies. It has the highest customer service ranking of 889 out of 1,000 in J.D. Power's 2020 customer satisfaction rating; an average annual premium of $1,728, which is almost in line with the national average; and a below-average 0.9 NAIC Complaint Index.
The downside to USAA home insurance coverage is that it is only available to current and retired military members and their families. USAA focuses on the unique home insurance needs of military members, such as:
- Covering military uniforms for active and deployed customers.
- Providing home insurance coverage if you're stationed in a war zone. This is unique in the insurance industry, as claims in war zones may be excluded in other homeowners insurance policies.
Summary: USAA is an excellent go-to for military affiliates. If you qualify for USAA coverage, it's a great choice. The only real downside of USAA is that coverage is restricted to active and retired military and their families.
Best for high-value homes: Chubb
If you have a luxury home, Chubb may be a good choice. Its Masterpiece homeowners insurance aims to provide affordable home insurance for homes that would otherwise be financially difficult to insure. Chubb's Masterpiece home insurance program includes:
- Extended replacement cost coverage: a Masterpiece home insurance policy covers the full rebuild cost of your home, even if the cost surpasses your dwelling coverage limit. This is especially important if you have a home built with materials whose cost increases over time.
- Cash settlement: you have the option of getting a cash payout up to your policy limits, rather than rebuilding or replacing your damaged or destroyed house.
- Control over the contractor used: if you have a contractor you trust and prefer, the Masterpiece policy allows you to choose them instead of selecting from a company's preferred list.
- Worldwide loss coverage: With the Masterpiece home insurance policy, your belongings are covered for accidental loss or damage anywhere in the world. This is great if you're traveling or your belongings are being moved.
Chubb also employs expert risk consultants who can assess your home and determine your home's replacement cost with precision. This can help you avoid under- or over-insuring. The company offers policyholders access to its HomeScan program. This helps you find potential trouble spots in your home, such as faulty wiring, damp spots and other issues that could result in filing a claim in the future.
Summary: While Chubb provides specialized insurance coverage for luxury homes, it has the lowest customer satisfaction scores of the home insurance providers we studied.
How to find the best homeowners insurance company
Comparing home insurance companies to get the best coverage for you requires some research. But if you know the key points to look for, it can be relatively easy. Here are some steps to take to streamline your decision-making process:
- Compare costs and coverage: determine what you can realistically afford for the home insurance coverage you need. This can help narrow down your options.
- Look at customer satisfaction rankings: J.D. Power releases an annual customer satisfaction report that is a good source for finding out how well insurers retain and renew customers. Searching online for company reviews and talking to neighbors, friends and family about who they use for home insurance are excellent resources as well.
- Consider an insurer's financial strength: a home insurance provider's ability to cover claims is a crucial part of making your decision. If your claim is weather-related, odds are your provider could be dealing with your neighbors' claims as well. You want to make sure the company has the financial backing to cover you. Credit reporting agencies such as A.M. Best provide excellent overviews of home insurance providers. This can give you an idea of how well an insurer is able to pay out on claims.
- Talk to an agent: when you get down to two or three home insurance quotes, start talking to those companies' agents. Have all of your quote options on hand and make sure to let the agents know you're shopping around. The homeowners insurance industry is highly competitive, and being shrewd can help get you the best premium.
QuoteWizard can help you with the first part of the process. Start checking multiple home insurance quotes and get the best coverage for your money today.
Methodology
We used Quadrant Information Services to collect quotes from every ZIP code in all 50 states using the following coverage limits for a 20-year-old home:
- $275,000 dwelling coverage
- $27,500 other structures
- $137,500 personal property
- $55,000 loss of use coverage
- $100,000 liability coverage
- $5,000 medical payments
- $1,000 deductible
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