Best Home Insurance Companies: Owning a home is an adventure. There are many positive aspects to it, but there are also some that are unpleasant to deal with. One of them is locating homeowners insurance.
But, because I know how difficult it is to shop around, I’ve found the best home insurance companies to help you make the decision.
Best Home Insurance Companies
Hopefully, you can find a company that you like from this list and move one step closer to becoming a homeowner. Alternatively, if you are already paying rates that are too high, don’t be afraid to explore other options.
1. Lemonade
Lemonade is a one-of-a-kind type of homeowners insurance. It is a B-corporation, a type of for-profit corporation with legally defined goals that include having a positive impact on society, workers, the community, and the environment.
Lemonade deducts a flat fee from your premium payments and uses the remaining 20% to fund business operations such as paying salaries and updating technology. The remaining 80% is used to cover customer claims.
If there is any money left over, it is donated to charities chosen by the customers.
Pros
- Low cost — as low as $25 per month
- Claims paid quickly
- Giveback policy
Cons
- Not available in every state
- Coverage for some significant others costs extra
2. Amica
Amica is a policyholder-owned insurance company rather than an investor or stockholder-owned insurance company. If you choose this option, you may receive a dividend at the end of your term.
This could be worth 5% to 20% of your annual insurance premium.
Of course, it all depends on Amica’s financial success during that time period, as well as the company’s earnings after claims and expenses. Nonetheless, it’s a fantastic benefit that very few insurance companies provide.
Pros
- Excellent customer service
- Great discounts
Cons
- Hard to get details
3. Liberty Mutual Insurance Company
For over a century, Liberty Mutual has assisted clients in insuring their homes, automobiles, and lives. It’s reassuring to have that kind of experience on your side.
They have a simple website that can quickly provide you with premium quotes for all of your insurance needs.
Pros
- Bundle options
- Certified a “Great Place to Work” in 2019
Cons
- Higher prices
4. Progressive
Full disclosure: I use Progressive for everything and have never had a problem with them for my car or home insurance needs. Progressive provides excellent customer service, attractive discounts, and an easy-to-use website.
Their home insurance is not provided by Progressive, but rather by companies affiliated with Progressive.
Pros
- Offerings for water crafts
- Offers an inflation guard endorsement
- Coverage for pools, sheds, and fences
Cons
- Rates vary
5. Nationwide
Nationwide has the highest number of endorsements of any home insurance company. Endorsements are documents that are attached to a policy that alter it in some way.
Umbrella liability, earthquake, and flood coverage are among the endorsements available from Nationwide.
Pros
- Well known
- Brand New Belongings Coverage
Cons
- Higher prices
6. Home Insurance from Allstate
Allstate is a great home insurance company for a variety of reasons, one of which is the wealth of resources available on the Allstate website.
These include an interactive library, videos, guides, and infographics to help you with your homeowners insurance questions.
Pros
- Great online information
- Great discounts
- Coverage of other items including musical instruments, landscaping, and sports equipment
Cons
- Average customer service.
- Doesn’t include coverage options for earthquakes, or theft of property like boats, trailers and vehicles
7. Travelers
Travelers is a well-known brand that has been around for over 160 years. Its headquarters are in New York, but it provides nationwide coverage for your home insurance needs.
Because it is such a large corporation, it also has quick response times when disaster strikes.
Pros
- They pay to replace your items with new ones
- Identity fraud coverage that pays up to $25,000
- Green home coverage
Cons
- Average customer satisfaction ratings
8. MetLife Property Insurance
If you live in an area prone to natural disasters, MetLife home insurance may be your best option. Its standard coverage provides guaranteed replacement cost coverage for the structure and contents of your home.
Essentially, if your home and all of your belongings were destroyed, your policy would cover the cost of replacing your belongings and rebuilding your home.
Pros
- Outstanding customer service
- Replacement coverage
Cons
- Website not intuitive to navigate
9. Insurance for Farmers
Farmers Insurance is yet another well-known and reputable home insurance provider. They have a wide range of products to offer as one of the largest insurance companies in the country.
Customers prefer Farmers because they can bundle. To obtain a quote, simply visit their website, answer a few questions, and a quote may be provided.
Most people look for a local licensed Famers broker for bundling discounts.
Famers provides three home insurance packages. The basic, the enhanced, and the premium. These packages are known as the Smart Plan Home.
Pros
- Outstanding customer service
- Discounts for bundling
- Discounts for bundling products
- Claim-free discounts
Cons
- Expensive premiums
10. Home Insurance from Hippo
Hippo claims to make the process of purchasing homeowner insurance simple by providing a quote in 60 seconds. When you inquire, you will be asked three questions.
They already have information on appliances and electronics that you may own and require coverage for.
Pros
- Quick online quotes
- Backed by Swiss Re
Cons
- Limited states
- Newer company
Other Factors to Consider When Purchasing Home Insurance
Make sure you weigh these options as well, regardless of which home insurance company you choose.
Policy with a High Deductible
You don’t want to use your home insurance unless it’s a major expense or a natural disaster. Because, like auto insurance, they can raise your rates over time.
A high deductible on your home insurance policy will not only keep your premium low, but it will also keep you from filing minor claims that could raise your rates.
Instead, try to save enough money in a house emergency fund to cover minor home-related expenses. Don’t go with a deductible of $500 or $1,000. To keep your premiums low, choose a higher deductible.
Policy Umbrella
Umbrella insurance is additional liability coverage that pays your debts if you are sued for damages that exceed the liability limits of your homeowners insurance. It is frequently purchased by people who own potentially dangerous items such as pools, trampolines, and certain dogs.
Flood Protection Insurance
Most homeowner’s insurance policies do not cover flood insurance. Don’t put off checking to see if your policy covers flood damage until it’s too late. Some mortgage lenders will not finalize the loan unless a flood insurance policy is also activated.
FAQ
It is critical to have adequate insurance. Here are some frequently asked questions and answers about home insurance.
Do I really need home insurance?
Yes, insurance is necessary to protect you against property loss and liability. Furthermore, it is a requirement of home ownership.
Are my tenants covered by my insurance if I rent out a room in my house?
No. The insurance covers both your property and the structure, as well as your personal liability. Your tenant’s belongings are not covered, and they must obtain renters insurance.
How do I account for my house in the event of a fire or other major disaster?
One suggestion in the event of a major disaster to your home is to inventory all of your possessions. Make a point of saving the inventory list or images to the cloud. They are thus accessible from any location.
Summary
When it comes to protecting your most valuable asset, don’t settle for the cheapest premium. Make sure you spend enough time researching the best policy for your budget and household needs.
Once you’ve found some of the best home insurance companies on this list, shop around to see what kind of rate you can get.
Check to see if they offer any package bundles or other discounts that can help you save money. Also, don’t forget to double-check your flood insurance. Many homeowners make this critical error.
