The best homeowners insurance companies are State Farm, Erie, and Allstate. Both State Farm and Erie include replacement coverage in their standard policies.

Allstate charges extra for replacement coverage but offers huge discounts for insurance bundles and home security systems to help lower rates. Erie and State Farm also offer sizeable discounts.

Our Top 9 Picks: Best Homeowners Insurance Companies

You’ve found the best homeowners insurance guide. Keep reading to compare the best and worst homeowners insurance companies. We provide a full company review and a list of insurance endorsements. Enter your ZIP code to compare quotes by state so you can find the most affordable home coverage.

#1 – State Farm: Top Pick Overall

Pros:

• ADT Discount: Free ADT installation and equipment plus a 6% home insurance discount.
• Big Multi-Policy Discount: Save 17% when you bundle your auto and homeowners insurance.
• Replacement Cost Included: Standard home insurance policies automatically come with replacement cost instead of actual cash value.
• Affordable Rates: State Farm is one of the cheapest national home insurance companies at $133/month. Compare quotes in our State Farm review.

Cons:

• Financial Rating Downgrade: A.M. Best downgraded State Farm financial rating from “A” to “B” due to increased claims.
• Regional Discounts: Home insurance dscounts vary by state. For instance, the ADT discount is only available in 14 states.

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#2 – Erie: Best Comprehensive Insurance Coverage

Pros:

• Replacement Coverage Included: Base policies cover hard-to-replace items like passports and deeds with fewer restrictions than other companies.
• Pet Coverage Included: Standard home insurance includes up to $500 for pet injuries (including birds and fish).
• Big Savings for New Homeowners: First-time buyers get 12% off the first few years of their policy.
• Cheap Rates: Erie home insurance is cheaper than most companies at $129/month. Read our Erie vs. MetLife insurance review to learn more.

Cons:

• Regional Coverage: Erie Insurance is only available in 12 states and Washington, D.C.
• No Online Quotes: Speak with an agent to get homeowners insurance quotes.

#3 – Allstate: Best For Home Insurance Discounts

Pros:

• Home Security Discount: Home safety items like fire extinguishers, deadbolts, and alarm systems can save you up to 20%.
• Biggest Bundle Discount: Homeowners save 25$ when bundling home and auto policies.
• Online Tools: Research home insurance claims in your neighborhood and assess risks in and around your home that impact rates before you buy.
• National Availability: Allstate home insurance is available in all 50 states. Compare coverage near you in our Allstate review.

Cons:

• Expensive Premiums: Allstate is the most expensive homeowners insurance company on this list at $142/month.
• Replacement Coverage Costs Extra: Base home insurance policies cover ACV only.

#4 – USAA: Best for Homeowners in the Military

Pros:

• National Availability: USAA home insurance is available in all 50 states. Read our USAA review to find coverage near you.
• Identify Theft Coverage: Up to $5000 in Identity theft is included in all standard policies.
• Military Gear Coverage: No home insurance deductibles for damaged military gear or clothing inside the home.
• Wildfire Response System: Homeowners in high-risk states like California are automatically enrolled in this system that monitors and alerts policyholders of wildfires in their area. 

Cons:

• Exclusive Availability: Only military members and their immediate families can buy USAA home insurance.
• Small Discounts: Competitors provide bigger homeowners insurance discounts for common things like bundling policies and being claim-free.

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#5 – Amica: Exceptional Customer Service

Pros:

• Smart House Discounts: Amica partners with different home security and sensor companies to offer free equipment, installs, and home insurance discounts.
• Dividend Plans: Amica returns a portion of any unused premiums to its policyholders every year.
• Excellent Customer Service: Top two for customer satisfaction in annual J.D. Power surveys. Get full rankings in our Amica home insurance review.

Cons:

• Fewer Policy Options: Amica doesn’t offer as many homeowners insurance endorsements as its competitors.
• Rate Increases: Reddit users report rate increases in high-risk states like Texas, California, and Florida.

#6 – The Hartford: Best for Senior Homeowners

Pros:

• AARP Discounts: AARP members can save up to 20% on homeowners insurance.
• Eco-Friendly Benefits: Green homes get a 10% increase on policy limits
• Stable Financial Strength: Rated “A+” by A.M. Best. Compare Hartford vs. Auto Club Enterprises for a full review.

Cons:

• Regional Availability: The Hartford home insurance is only available in 37 states.
• Low Customer Satisfaction: Ranks below average for home insurance customer service and claims according to J.D. Power.

#7 – Lemonade: Best Online Service

Pros:

• Cheapest Rates: Cheapest homeowners insurance company on our list at $121/month
• Excellent Financial Strength: Rated “A-” by A.M. Best. Get full ratings in our Lemonade insurance review.
• Online Service Suite: Lemonade exclusively operates through its website and mobile app. Homeowners who prefer buying from agents should shop with other companies.

Cons:

• Regional Availability: Home insurance is only in 23 states and Washington, D.C.
• Smaller Discounts: Homeowners insurance discounts with other companies are two or three times bigger than Lemonade discounts.

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#8 – American Family: Best Endorsements for Flexible Coverage

Pros:

• Unique Family Coverage: Standard home insurance policies protect against damages caused by kids or pets.
• No Banned Dog List: AmFam homeowners insurance doesn’t restrict dog breeds.
• Long List of Endorsements: Homeowners can add affordable riders to cover home-based businesses and short-term rentals, renovations, and more. 

Cons:

• Regional Availability: Homeowners insurance is only in 19 states.
• Poor Customer Service: American Family receives more customer complaints than other regional providers. Read American Family Insurance vs. Travelers for our full review.

#9 – Country Financial: Best for a Personalized Experience

Pros:

• Great Customer Service: Top five homeowners insurance company for customer satisfaction. 
• Premier Plans: Premier homeowners insurance extends covered perils to ones not explicitly listed in the policy.
• Claim Forgiveness: Country Financial won’t raise home insurance rates if you haven’t filed a claim in five years.

Cons:

• Regional Availability: Coverage is only available in 19 states.
• No Online Quotes: Excellent personalized service comes at the cost of online convenience. Contact an agent to compare home insurance quotes.

How to Buy Homeowners Insurance

Buying cheap home coverage is easy — enter your ZIP code to find the best companies near you or visit the website of any of the top providers on our list.

Still, it helps to know how much homeowners insurance you need. Keep reading tips on finding affordable home insurance.

Choosing Coverage Limits

Home insurance policies come with multiple layers of coverage to protect the home, your personal belongings, and provide liability protection. 

Homeowners Insurance Coverage Explained

Decide on the limits you want for each type of coverage as you shop around.

A rule of thumb for home insurance is to buy enough to cover at least 80% of your home’s value. Most mortgage lenders and homeowners associations require it.

The average home in the U.S. costs $450,000, so you’ll need a $320,000 policy to avoid an underinsured homeowners penalty. However, this is only the bare minimum. 

You also need to decide if you want replacement coverage or actual cash value. Choosing replacement cost will increase your rates at most companies, but State Farm and Erie offer it standard.

Erie home insurance goes above and beyond most companies by providing replacement cost for hard-to-replace items like passports and marriage certificates.

Picking a Policy

Once you know how much coverage you need, check out the eight types of homeowners insurance and pick the one that best fits your home.

Types of Homeowners Insurance Policies and What They Cover

 

HO-3 broad policies are the most popular since they cover every peril unless it’s explicitly excluded from the policy. Exclusions are clearly listed on your policy. 

The most common home insurance exclusions are earthquakes and floods. You can buy separate riders or endorsements to cover those specific damages. 

Adding Endorsements

A home insurance endorsement is an add-on to your regular policy for extra protection. They help cover special situations, like earthquakes, floods, or power surges. 

Here is a common list of homeowners insurance endorsements. Depending on state laws or your mortgage lender, some of these endorsements might be required:

• Extended Replacement Cost: Increases policy limits by 20% or more if repair costs rise after a disaster.
• Hail/Windstorm Protection: Additional protection for hail and wind damages not typically covered in standard policies.
• Inflation Protection: Automatically raises policy limits to reflect home and building cost increases over time. 
• Sewer/Water Backup: Covers damage to your home or other structures but doesn’t always pay to repair or replace septic tanks, water heaters, etc.

These endorsements can enhance your homeowners insurance policy, ensuring you are better protected against various risks and potential damages.

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Compare Homeowners Insurance Rates

Where you live has the biggest impact on home insurance. Only a handful of providers operate in all 50 states, so use the map below to estimate homeowners insurance costs where you live.

Smaller, regional providers unique to where you live often have better customer service and cheaper rates despite fewer policy options. See how regional providers on our list of the top homeowners insurance companies compare to national insurers when it comes to rates:

Homeowners Insurance Monthly Rates by Provider and Coverage

Inflation, weather, crime rates, and the number of claims all impact home insurance prices in your area. Always compare quotes from at least three different companies to get an accurate idea of what your neighbors are paying for coverage. 

How to Save Money on Homeowners Insurance

Discounts are the easiest way to save money on homeowners insurance. Most providers reduce rates for homeowners who pay online or renew their policy every year, but the biggest savings happen when you qualify for home security and bundling discounts. 

Best Homeowners Insurance Providers and Discounts

Allstate offers the biggest discounts — up to 25% for bundling home and auto. It also stacks different home security discounts that add up to 20% in annual savings. 

But even if you don’t qualify for half the home insurance discounts you see, you can still lower your premiums. Follow these tips to get cheaper rates on your policy:

• Upgrading Home Security: Enhance your home security with alarm systems and smoke detectors to reduce insurance costs.
• Higher Deductibles: Choosing to pay more out-of-pocket when you file a claim will lower your monthly costs, just be sure to pick a deductible you can afford.
• Good Credit History: Insurance companies consider credit history as an indicator of risk. A good credit score demonstrates financial responsibility and better rates.
• Remain Claims-Free: Insurers reward homeowners who don’t file claims with cheaper rates and claims-free discounts.

Maintaining a good credit and insurance history will do wonders for your premiums. Insurance companies will consider you low-risk, and you’ll see fewer increases at your next policy renewal.

Best Homeowners Insurance Companies

State Farm and Erie are the best homeowners insurance companies for automatically providing replacement cost at a competitive price. Allstate may cost more, but it offers the biggest discounts for home security, multi-policy, and getting early quotes. 

Enter your ZIP code below to compare our top companies with free quotes from the best homeowners insurance companies in your neighborhood.