The best home insurance providers for 2024 include State Farm, Stillwater, American Family, Farmers, and Nationwide. These companies stand out for their combination of strong financial backing, comprehensive coverage options, and reliable customer service.
Home insurance is a significant investment for property owners, with the national average annual cost of a policy reaching $1,770 for $300,000 in dwelling coverage, according to House Nest data. While it’s tempting to focus solely on avoiding high rates, the best home insurance companies provide much more than just affordable premiums.
When choosing an insurer, it’s essential to look beyond price and consider the company’s overall reputation, the quality and scope of coverage, claims handling, and additional factors. House Nest has carefully analyzed premiums, discounts, customer service, financial strength, and market share to identify the best home insurers, helping you find the right provider to meet your specific needs.
Best Homeowners Insurance Companies
Home insurance companies vary in their policies and how they set premiums. Additionally, property owners often have different priorities when selecting coverage, which means that the best insurance company for one homeowner may not be the best for another.
The right insurer for you will depend on several factors, such as policy cost, available coverages, and services offered, like in-person support or a robust mobile app.
Below is a table showcasing some of the top home insurance companies that offer reliable protection for your most valuable asset.
Cheapest Homeowners Insurance Companies
Westfield offers the cheapest home insurance coverage for property owners purchasing at least $150,000 in dwelling coverage, according to average premiums collected by Quote Nest. For policies with $100,000 in dwelling coverage, Erie Insurance provides the lowest average premiums.
The cost of home insurance depends on a variety of factors, including location, coverage options, the age of the home, and your claims and credit history. Other elements, such as the materials used to build your home, installed safety features, and whether the property has high-risk amenities like a pool or trampoline, can also influence your insurance premiums.
The table below highlights the insurers that offer the lowest-priced policies for property owners with $300,000 in dwelling coverage.
How to Get Cheaper Home Insurance
If you want to reduce your home insurance costs, here are some effective strategies to secure a more affordable policy:
- Shop Around for Coverage
Different insurers offer varying rates, so it’s crucial to obtain quotes from several companies. Getting at least three to four quotes will give you a clearer picture of average costs and help identify the most affordable option. You can compare prices online or consult an independent or exclusive insurance agent for assistance.
- Take Advantage of Discounts
Many insurers offer discounts for installing safety features like alarm systems or smart home devices. You can also reduce your premiums by bundling policies (such as home and auto insurance) and avoiding claims to maintain a claim-free record.
- Adjust Your Deductible
Opting for a higher deductible can significantly lower your premiums. A deductible is the amount you pay out of pocket when filing a claim, so choosing a higher deductible means you’ll pay more when a covered loss occurs but benefit from reduced insurance costs overall.
How to Choose the Best Home Insurance for You
While affordability is important, price shouldn’t be the only factor when selecting the best home insurance. Consider the following elements to ensure you choose the right policy for your needs:
- Premium Cost
Compare quotes from multiple insurers to find the best balance of coverage and affordability. Don’t overpay for coverage that you can get at a lower rate elsewhere.
- Available Discounts
Look for an insurer that offers discounts based on your home’s safety features or your claims history. These discounts can significantly lower your premium.
- Financial Strength
Ensure that the insurer is financially stable and able to pay your claims. Check financial strength ratings from agencies like A.M. Best or Standard & Poor’s.
- Coverage Options
Make sure the insurer offers the specific coverages you need, such as extended replacement cost coverage, which covers additional rebuilding costs beyond your dwelling coverage.
- Insurer Reputation
Check the insurer’s track record. Use resources like the National Association of Insurance Commissioners (NAIC) database, J.D. Power ratings, and online reviews to assess customer satisfaction and claims handling.
Benefits of Bundling Home and Auto Insurance
Bundling your home and auto insurance with the same company can offer significant savings and additional benefits:
- Multi-Policy Discounts
Insurers often provide discounts of up to 25% when you bundle home and auto insurance policies.
- Convenience
Bundling allows you to manage all your insurance needs with one company, simplifying payments and customer service.
What Home Insurance Covers
A standard home insurance policy generally provides protection for your dwelling, other structures on your property, liability, and personal property. Here’s a breakdown of what’s typically covered:
- Liability Coverage
Liability insurance covers injuries sustained by others on your property. It ensures that legal bills and injury-related damages are paid if someone is hurt, such as from a fall in your home or a dog bite.
- Dwelling Coverage
This coverage pays for repairs or rebuilding of your home after a covered loss, such as damage from fire or severe weather.
- Other Structures Coverage
Covers structures on your property that are not attached to your main home, such as a detached garage, shed, or swimming pool.
- Personal Property Coverage
Pays to repair or replace personal belongings in your home, including furniture, electronics, and clothing.
Optional Home Insurance Coverages
In addition to standard protections, you can add optional coverages to your policy for more comprehensive protection:
- Endorsements
Policy add-ons provide extra coverage for high-value items like jewelry, art, or unique building materials. Other endorsements can cover things like damage to a home’s foundation, sewer backups, or extra construction costs.
- Short-Term Rental Coverage
If you rent out your home on platforms like Airbnb, you may need specific coverage to protect yourself against potential losses. In many cases, you’ll need a separate policy for this type of coverage.
What Home Insurance Doesn’t Cover
While home insurance covers many types of damage and losses, there are specific exclusions in standard policies, including:
- Earthquakes
Earthquake-related damage is typically excluded from standard policies.
- Floods
While water damage from burst pipes may be covered, floods, including storm surges from tropical cyclones, are not included.
- Landslides
Damage from land movement, such as landslides, is not covered.
- Mold
Many insurers deny coverage for mold-related damage.
- Wear and Tear
Insurance will not cover damage resulting from regular wear and tear or lack of routine home maintenance.
- Slow Water Leaks
Damage caused by prolonged or unrepaired leaks is not covered.
- Animal or Rodent Damage
Insurers generally won’t pay for damages caused by infestations of animals or rodents.
- Foundation Settling and Cracking
Issues related to a settling foundation are usually excluded from coverage.
Homeowners can sometimes buy additional coverage to protect against these risks, such as stand-alone policies for floods and earthquakes, or riders for foundation damage.
Best Home Insurance FAQs
Do you need homeowners insurance?
Most homeowners require insurance to protect their property. Lenders also mandate homeowners insurance to cover the dwelling when there’s a mortgage.
Who has the cheapest home insurance?
Westfield and Erie tend to offer affordable home insurance options. However, the cheapest insurance will depend on your specific situation. Always compare quotes from multiple insurers to find the best rate.
What is the 80% rule in homeowners insurance?
The 80% rule suggests setting policy limits at 80% or more of the home’s replacement cost. This prevents underinsurance, where claims could be partially paid if the limit falls below 80% of the home’s total value.
Which homeowners insurance company is best at paying claims?
Erie Insurance received the highest customer satisfaction ratings in a 2023 J.D. Power survey. However, many insurers are known for reliable claims processing. You can refer to the J.D. Power rankings or the National Association of Insurance Commissioners’ complaint database for more information.
How are homeowners insurance claims paid?
After filing a claim, an insurance adjuster assesses the damage. Once approved, the insurer pays the settlement minus the deductible. Payments usually go to both the homeowner and the lender if there’s a mortgage, and funds are released as repairs progress.