Shopping for homeowner’s insurance can be intimidating. There are a lot of options to sort through and you want to do your best to protect what is likely your largest asset while also trying to find the best rates. That’s why it’s important to compare insurers online to make sure you’re getting the best deal. Not sure how to decide between the top home insurance companies?
Here’s what you should know about how the best home insurance companies of 2021 stack up against each other.
What makes a home insurance company great? Here’s why the best home insurers of 2020 stand out amongst the competition.
Nationwide has made a name for themselves in car insurance, but it's also leaders in the home insurance space — making them ideal for customers who are looking to bundle their insurance to get a discount as the insurance provider offers multi-policy discounts, such as combining homeowners with auto policies.
Unique features: Nationwide offers typical home insurance policies, but also have many special features that help them stand out. Chief among these is their ordinance insurance, which will help you make changes to bring your home up to current codes during an insurance claim. Not only that, but Nationwide’s policy covers the cost of new personal belongings if yours are damaged or stolen — whereas many other insurers offer only to pay you the current, depreciated cost of your belongings
Customer service: Nationwide ranks below average for customer service, but still in the top 20 insurers around the country. According to the J.D. Power 2020 rankings Nationwide carries 808 out of 1000 when it comes to customer satisfaction.
Discounts: You can get an online quote for Nationwide insurance or find a local agent to work with. Be sure to ask about possible discounts — if you purchased your home within the last 12 months, live in a gated community, and have smoke alarms you might qualify for a discount. Nationwide also offers multi-policy discounts and a discount for remaining claim-free.
Hippo is relatively new to the home insurance scene. It's known for having considerably low rates without sacrificing coverage — for example, all of their policies cover the breakdown of appliances as a standard feature. Hippo’s focus on technology means it's committed to a quick insurance quotes process, you can receive a quote online in 60 seconds. Your insurance policy also comes with a free smart home monitoring system. However, it’s important to keep in mind that Hippo isn’t available in every state.
Here are the states where Hippo currently offers home insurance policies:
Unique features: Hippo’s focus on technology certainly sets them apart. It offers smart home upgrades plus complimentary virtual home maintenance services. You can book a time with a “Hippo Home Care Pro” who can walk you through many common maintenance issues to help you find a do-it-yourself fix. It also offers the full replacement cost for your belongings and higher coverage for computers and home office equipment than many other insurers.
Customer service: Hippo doesn’t offer in-person customer support, but it has phone lines that are open 24/7. One disadvantage is that you can’t file a Hippo claim online, you have to call their hotline. As a new insurance carrier it isn't ranked on the J.D. Power 2020 study.
Discounts: Hippo offers discounts for having fire extinguishers in your home, a smart home that monitors for fire and burglars plus water leaks, storm shutters on your windows, plus if you belong to a homeowners association. Also, it’ll reduce your home insurance rate if you don’t have a mortgage (which, if that’s the case, good for you— that’s amazing).
Founded in 1922, State Farm is one of the nation’s largest insurers, with a network of 19,000 local agents across the country. When it comes to State Farm, their agents are their advantage. If you want to develop a relationship with your insurance agent, instead of calling a hotline or interacting online, State Farm is probably a good option for you.
Unique features: State Farm has all the basic home insurance coverage amounts that other national insurers have, but it also has options for several add-ons to your policy. You can add extra coverage for earthquakes, identity theft and business coverage for home businesses. It also has add-ons that cover people working in your home, like a babysitter, or if your furnace or air conditioning breaks down.
Customer service: State Farm ranks seventh in the J.D. Power 2020 customer satisfaction study, with a score of 829 out of 1000. State Farm’s website is relatively easy to navigate and you can file claims online, follow the status of your claim, and review your policy.
Discounts: State Farm doesn’t have as many discounts as some other insurers, but you can get a discount for multiple policies and for having a smoke alarm or a burglar alarm. It also offers discounts if your roof is made of impact-resistant materials.
If you’re looking for a large, nationwide insurer that puts an emphasis on green homes, Travelers might be a good fit. Travelers has a lot of name-brand recognition in the United States when it comes to insurance. It offers multiple policies so you can get other areas of your life insured, such as your auto. Plus, it will help you go the extra mile to make your home greener if you’re rebuilding during a claim.
Unique features: Travelers offers the standard coverage that most other nationwide insurers do, plus it has a few features that are unique to them. One of those is the green home feature that helps you make your home more green after a claim. It also offers a discount for homes that are certified as green by a third party, such as LEED.
Customer service: Travelers is ranked below average on the J.D. Power 2020 study, with 803 out of 1000 points. However, it's still in the top 20 for home insurers. You can access your policy from their website and log in to pay your monthly premium or file a claim. It also has a mobile app with the same functionality available on iOS and Android.
Discounts: Not only can you get a discount for purchasing multiple policies through Travelers, but it also offers claims-free discounts, discounts for new homeowners, the green discount mentioned above, and a discount for anti-theft alarms or smoke alarms.
You might think with a name like Auto-Owners you’d only be able to get auto insurance through this company, but it also offers home insurance. It uses independent agents to sell their insurance and are active in 26 states.
Unique features: What makes Auto-Owners special are the features available in their standard package. It goes above and beyond most insurers, covering food spoilage and damage to your home due to an appliance leak. It also offers add-ons such as ordinance or law coverage, identity theft coverage, and coverage for equipment breakdowns, such as fridges, washing machines, or air conditioning malfunction.
Customer service: Auto-Owners is highly ranked on the J.D. Power 2020 study, coming in third with a score of 843. Customers can use their website to view information about their policies and access account statements. Their mobile app allows you to follow your claims and pay bills.
Discounts: Auto-Owners offers discounts for bundling policies, making 36 on-time payments, making online payments, discounts for deadbolts, fire alarms, and burglary alarms, and a discount for a backup generator.
Lemonade is an innovative home insurance company that emphasizes technology and charity. Lemonade pools your premiums with those of other policyholders who care about similar issues, after claims and company expenses are paid out each year it donates the leftover funds to a charity of your choice.
Unique features: Lemonade’s insurance policies are consistent with typical coverage from leading, nationwide insurers. It also offers add-ons such as water coverage and the option to purchase replacement coverage which will cover the cost of completely replacing belongings that are damaged or stolen, instead of reimbursing you for their current value
Customer service: Lemonade isn’t rated on J.D. Power’s 2020 homeowner’s study (although it is rated No. 1 for customer satisfaction by J.D. Power when it comes to renter’s insurance). Keep in mind that Lemonade doesn’t use insurance agents. You buy your insurance through their website, which is where you can also make any claims. You can also make a claim through their app, where you can also review your policy and make payments. If you need help with the claims process, it has customer support available by phone.
Discounts: Compared to other insurers, Lemonade doesn’t have a huge selection of discounts. In fact, it only has one discount: a multi-policy discount. Lemonade doesn’t offer auto or life insurance, so you’d have to bundle pet insurance (or renter’s insurance, if you are also a renter).
Amica stands out for its exceptional customer service — it earned the coveted top spot in the J.D. Power study. It’s not as large as some of its competitors but packs a strong punch when it comes to making its customers happy.
Unique features: Amica has three upgrades to their standard policy: home business-coverage, catastrophic coverage (for damage from events like earthquakes), and dwelling replacement coverage, which will pay for repairs to your home up to 30% beyond the policy limit. In addition to this, Amica offers what it calls a “Platinum Choice” policy that includes even more extras like credit card fraud coverage, coverage of electronics, and replacement cost reimbursement for other belongings.
Customer service: Amica took the top spot in customer service ratings in 2020. Customers like the clarity of the Amica website, with all your options described in simple terms. Plus, you can use their mobile app to make claims, pay bills, and track your claim status.
Discounts: Amica offers discounts such as a multi-policy discount, a loyalty discount, discounts for signing up for auto-pay and electronic communications, and a discount for a home monitoring system that can alert you to gas or water leaks. It also offers a new home discount.
USAA is only available to active members of the military members or veterans, and their families. It has been in operation since 1922 and handle banking and investing in addition to insurance. Plus, it offers advice on joining the military, deployment and planning for life stages, such as getting ready for retirement.
Unique features: USAA includes in their standard plans identity theft coverage, military uniform coverage, and replacement cost coverage, which will cover the cost to replace your belongings instead of paying you for their current-day value. The standard identifies theft coverage it offers is good up to $5,000 while their military uniform coverage reimburses the cost of your uniform if it is damaged during an event covered in your policy.
Customer service: USAA isn’t ranked in the top 20 for the 2020 J.D Power study because it was deemed ineligible for not meeting awards criteria. However, despite not officially ranking it earned a score of 889 out of 1000, which would be a higher score than other insurers if it qualified for the rankings. It has a website full of resources, plus you can file a claim and pay bill via their mobile app.
Discounts: USAA only offers two discounts for home insurance. You can receive a discount if you bundle policies, such as if you get auto insurance or life insurance through them. It also offers a claims-free discount. You’ll receive 10% off your policy if you’ve filed no claims for five years.
Liberty Mutual is a large insurer with a global reach that offers many types of insurance including auto insurance and personal property insurance. It is the sixth-largest insurer globally, with over 45,000 employees. It operates in 29 countries around the world, ranking at number 77 on the Fortune 500 list.
Unique features: Liberty Mutual offers mainly standard home insurance coverage, but it does have one element that sets them apart — inflation protection. This is included in their standard coverage and means that, come time to renew, it’ll automatically adjust your coverage limits to account for inflation, at which point it’ll also discount your premium.
Customer service: Liberty Mutual has below-average customer service ratings. On the J.D. Power ranking, it earned 805 out of 1000 points. One standout feature is that it integrates with Alexa, so you can not only get a quote through Alexa but use the virtual assistant to give you advice on any issues you are having with your home.
Discounts: Liberty Mutual offers many discounts, here are some examples: bundling policies, three years claim-free, new home, new roof, smoke alarms, deadbolts, anti-burglary alarm, discounts for veterans or active military, and discounts for paperless billing or online payments.
Not only does Erie offer standard homeowners insurance, but it also offers auto, life, and business insurance. It has been in business since 1925 and has over 5,000 employees and 13,000 agents. It serves the following 12 states: Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, Wisconsin, and the District of Columbia.
Unique features: In most states, Erie offers guaranteed replacement of your home, which means if it’s destroyed or damaged it’ll pay for the full cost of rebuilding you a new home without taking into account how any pre-existing damage might have decreased its value. Also, it offers animal insurance up to $500.
Customer service: Erie has excellent customer service rankings, it's fourth in the 2020 J.D. Power study, with a score of 839 out of 1000. You can receive quotes and pay bills online. However, unlike many of its competitors, Erie doesn’t have a smartphone app.
Discounts: Erie only offers three insurance discounts. It’ll offer you a discount for having smoke alarms, bundling your policy, or getting a quote with them at least a week before your policy with another insurer is set to renew.
The Hartford insurance products are targeted toward those who are ages 50 or older. It offers not just home insurance but many products such as auto insurance and that helps making investments. While people of all ages can purchase policies through The Hartford, their partnership with AARP typically makes them more attractive to an older demographic. Keep in mind that The Hartford does not offer home insurance in all states, Florida and Washington are notably not on their list.
Unique features: The Hartford offers two tiers of home insurance — their Home Advantage Package and their Home Advantage Plus package. Plus, it has an array of add ons on top of these packages that you can opt for. The Hartford likely has more customization opportunities than any insurers on this list. Some of their more unique offerings are reimbursement for replacing locks, the option to purchase an add-on that will waive your deductible up to $5,000 if you make a claim over a certain amount, and assisted living care coverage.
Customer service: The Hartford ranks above average in customer service. In the 2020 J.D. Power study, it earned 832 out of 1000 points, putting them in the fifth spot. It has a mobile app through which customers can view their policy, track claims, and pay bills.
Discounts: The Hartford offers several typical discounts such as a discount for bundled policies, home security, fire prevention, new homes and being claim-free.
MetLife is a large, global insurer that offers not only home policies but auto, medical, dental, and life insurance as well as financial planning services. It's headquartered in New York City with operations in more than 40 countries around the world.
Unique features: MetLife doesn’t have too many unique extras that set them apart from their competition. In addition to their standard coverage, you can also opt for contents replacement coverage, to cover the cost of purchasing new belongings. You can also get replacement coverage for your home which will cover completely rebuilding it if it’s damaged extensively, even if this cost extends beyond your policy limit.
Customer service: MetLife doesn’t rank on the 2020 J.D. Power study top 20, which means its customer service rating is well below average. It does have an app through which you can submit claims and pay bills.
Discounts: Sometimes MetLife offers discounts through your employer or union, before getting a MetLife policy you should inquire about your eligibility for these discounts. It also offers multi-policy discounts and then the somewhat standard discounts for home safety features such as anti-theft alarms and smoke detectors.
Chubb is an insurance company that targets high-value homes and clients with a high net worth. In addition to home insurance, it also offer auto insurance. It's a global company, operating in 54 countries around the world.
Unique features: Chubb has many perks that appeal to owners of custom homes, including their HomeScan technology which identifies potential problems in a home before it causes damage. It also has unique features such as cash settlement, extended replacement cost, and even wildfire defense services to help you protect your home during a wildfire.
Customer service: On the J.D. Power study, Chubb just barely makes it into the top 20, ranking in the 17th spot. It garnered 778 out of 1000 points. It does have a mobile app that allows customers to file and track claims and pay bills, which you can also do on their website.
Discounts: Chubb offers many discounts to customers such as discounts for living in a gated community, having a security guard or caretaker monitoring the house full-time, having home safety devices such as alarms and video monitoring, and remaining claims-free.
Still have questions about finding the best homeowners insurance? Here are answers to many of the questions people commonly ask.
What is the best deductible for home insurance?
You’ll want to set a deductible that you can comfortably pay if damage should occur. Financial experts recommend about $1,000. You should stick to something in this range even if it’s tempting to increase your deductible to decrease your monthly premiums.
How much should homeowner’s insurance cost a month?
Your homeowner’s insurance is going to depend on a lot of factors such as where you live, how much your home is worth, and even your profession or education. A rule of thumb is that homeowners insurance should cost about $35 a month for every $100,000 in home value. So, if your home is worth $400,000 your insurance premium would be about $140 a month. This is, of course, a very general estimate.
Is home insurance mandatory in the United States?
Your mortgage lender is likely to require home insurance as a condition of your mortgage. Homeowners insurance isn’t required by law, so if you don’t have a mortgage you could technically get away without it.
Why should you have homeowners insurance?
Still not convinced you need homeowners insurance? Here’s what to consider when deciding if you need to be insured (and how much insurance to get).
Your mortgage lender probably requires it: It’s unlikely your lender will extend the funds to buy your house without seeing proof of your homeowners' insurance — it’s their protection. If you cancel or change your policy at any time, your insurer will likely immediately notified your mortgage lender.
Extended coverage can keep you out of financial trouble: It could be tempting to go with the minimum amount of insurance needed to reduce your monthly premiums, but you should always be thinking about how you would pay for repairs or replacements in an emergency. If you have a large emergency fund, this might be less of a concern. But if the cost of repairing your roof, buying a new washing machine, or fixing flood damage could be challenging for you to pay for without debt, it’s wise to find an insurance policy that covers these possible occurrences.
Coverage for your liability: Many homeowners' policies also cover your personal liability if someone is at your house and gets injured. This could cover scenarios like dog bites or injuries like someone falling down the stairs in your home. If you are sued for medical bills, having this liability coverage could be a major lifesaver for your finances.
Comparing homeowners insurance policies could seem overwhelming at first, but it’s important to weigh the pros and cons of each policy carefully to make sure you’re getting homeowner’s insurance that is the best fit for your scenario. After deciding on a few of your personal top companies, receive and compare quotes. Be sure to see how the quoted premiums will fit into your overall budget before moving forward with any insurer and don’t forget to inquire about potential discounts.
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