Best Homeowners Insurance Companies of 2021

Best Homeowners Insurance Companies of 2021

Fact-checked with HomeInsurance.com

By Virlanda Miller

• Dec. 2, 2020 /7 min read

Whether you just purchased a new home or have been a homeowner for many years, having the right home insurance policy is essential. However, before purchasing a policy, it’s important to find a provider with excellent financial strength, great customer service, and good policy options. Then, you’ll have to decide what type of coverage you need — and how much.

To help you find the right insurance for you and your home, we created a list of the best home insurance companies of 2021. To rank these companies, we searched ratings and reviews from third-party research firms, including J.D. Power, AM Best and Standard & Poor’s (S&P).

Whether you’re looking for a simple shopping experience, the top-rated coverage or the cheapest bundles, there’s a company out there for you.

The best homeowners insurance companies

The best available homeowners insurance companies include:

• Amica Mutual
• Allstate
• Travelers
• MetLife
• USAA
• Chubb
• Lemonade

Everyone has unique needs, so the best company for one person might not be the right option for another. To help you decide which of the best insurance companies will provide the services you want, we’ve compiled a list of companies and what they have to offer.

Top-rated home insurance companies

Best overall home insurance company: Amica Mutual

Amica Mutual earned the top spot on our list. In business for over a century, the company is one of the most highly-ranked home insurance companies across the board — with good reason.

Unlike many other insurance companies, Amica is almost always rated highly for its customer service. It has held the highest rankings for property claims from J.D. Power for 18 years in a row, and the winning streak continues into 2020.

Pros

• Fast and easy claims handling process
• Affordable policy rates
• Industry-leading customer service and customer satisfaction

Cons

• Fewer discounts than other providers
• Some additional coverage unavailable in some states

Discounts

• New/remodeled home credit: Amica offers savings for customers who have recently remodeled their home.
• Automatic detection devices: Customers with water or gas leak sensors qualify for a discount.
• Loyalty: Customers who stay with Amica for at least two years qualify for a discount.

Coverage

Amica consistently earns industry-leading scores for customer satisfaction by providing comprehensive coverage options. Some of the unique coverage options that Amica offers include:

• Catastrophic coverage (minus a deductible) that covers flood or earthquake damage.
• Identity fraud expense coverage for protection against unauthorized use of your credit cards up to your coverage limit.
• Loss assessment plan for condo owners who are responsible for shared sections of a property.
• Home business coverage for remote workers and people who operate a business out of their homes.

Best for first-time homebuyers: Allstate

Allstate caters to first-time homebuyers by offering simple and straightforward products. The company’s website offers comprehensive resources to help first-time buyers navigate the homeowners insurance process.

Allstate’s Common and Costly Claims tool provides information about the most common and expensive insurance claims by ZIP code, allowing new homeowners to determine what coverage they need for their new home. Between the tools, educational information and seamless website navigation, Allstate is a great option for a first-time homebuyer.

Pros

• Easy-to-understand products and services
• Customizable coverage options
• Online educational tools
• Caters to first-time buyers

Cons

• Average customer satisfaction ratings
• Somewhat more costly than competitors

Discounts

• Homebuyer: Allstate reduces the cost of coverage for recent homebuyers or those who purchase a newly constructed home.
• Welcome and loyalty: Customers get 10 percent off their premiums for switching to Allstate. New customers can also save another 10 percent by signing up at least seven days before their old policy ends.
• Senior: Retired homeowners over 55 qualify for up to a 10 percent discount on home insurance.

Coverage

Allstate offers basic dwelling coverage, liability protection, personal property coverage and guest medical coverage in all of its homeowners insurance policies. In addition, the company provides many unique optional coverage options:

• Personal umbrella policies for protection against large liability claims when the liability limit has been reached.
• Manufactured mobile home coverage for coverage on mobile homes and manufactured dwellings.
• Host advantage coverage to protect your belongings when you’re home-sharing.
• Electronic data recovery pays for costs when recovering lost personal computer data.

Best for cheap coverage: Travelers

For over 165 years, Travelers has had a reputation as a reliable company that provides affordable insurance for policyholders. Travelers offers a variety of options to suit many budgets and home types.

Pros

• Affordable
• Widely available
• User-friendly website
• Compatible with Amazon Alexa

Cons

• Below average customer satisfaction
• Fewer policy discounts as competitors

Discounts

• Green home: Policyholders whose home is certified by the Leadership Energy and Environmental Design organization for being environmentally friendly get up to 5 percent off.
• Protective device: Homeowners with smart or connected home technology that alerts to potential home invasion, fire or other unwanted activity get a discount off their policy.

Coverage

• Expense reimbursement coverage covers up to $25,000 in expenses in the event of identity theft.
• Green home coverage allows for eco-friendly materials to be used for repairs or replacements after a covered loss.

Best replacement coverage: MetLife

Known for its robust insurance app and 24/7 customer support, MetLife gets decent scores across the board for pricing and discounts. However, the company stands out for offering guaranteed replacement cost coverage.

With guaranteed replacement cost coverage, you’ll receive the actual dollar amount it costs to replace your home, even if it exceeds the home’s market value. For example, if your home initially cost $100,000 but has taken on $300,000 in damages, customers with MetLife’s replacement coverage can receive up to $300,000 in support.

Pros

• Guaranteed replacement coverage
• 24/7 customer service

Cons

• Coverage not available in all states
• Middle-of-the-road customer service ratings

Discounts

• Policy bundling: People who have more than one policy with MetLife can save money.
• Safety: Users who install anti-theft devices, fire alarm systems or locks in their homes are eligible for a discount.
• Employer group: People who work for certain companies or have a membership with partner groups or associations can get discounts.

Coverage

MetLife offers fairly standard homeowners insurance coverage. However, some of the unique coverage offerings include:

• Home replacement cost coverage pays the full cost to rebuild your home even when it’s more than the policy’s stated value.
• Personal property replacement cost coverage is similar to home replacement coverage, but for damaged or stolen personal property, such as furniture or electronics.

Best for military members: USAA

USAA is consistently rated as one of the best insurance companies. Across the board, the company is ranked highly for policy offerings, price, customer service and claims handling. J.D. Power consistently gives USAA top marks, and the company scored the highest of any provider in its 2020 Property Claims Satisfaction Study.

Essentially, USAA offers some of the best homeowners insurance coverage on the market. However, it’s important to note that USAA only serves current and former military members and their families. If you’re in the military and looking for great homeowners insurance rates, USAA is affordable, and the coverage is impeccable.

Pros

• Outstanding customer service
• High-quality coverage
• Affordable prices

Cons

• Only available to current and former military personnel and their families
• Relatively few discounts available compared to competitors

Discounts

• Bundling: Homeowners who already have a USAA auto insurance policy can save up to 10 percent on their homeowner’s insurance premium.
• Protective device credit: Policyholders whose home is equipped with security cameras, alarms or other devices are eligible for premium discounts.
• Claims-free: After five years with no claims, homeowners can get up to 10 percent off their premiums.

Coverage

Aside from standard coverages, like dwelling, personal property and liability coverage, USAA offers coverage for:

• Home-sharing
• Other structures
• Earthquakes
• Military uniforms are covered in the event of a loss

Best for luxury properties: Chubb

Chubb specializes in high-limit policies. This industry mainstay has been selling insurance for nearly 150 years. All Chubb policies are backed by Chubb Limited, the world’s largest publicly traded property and casualty insurance company.

Due to their high-priced coverage, Chubb is only recommended for homeowners who need to insure luxury properties with large policies. This provider does not offer a quick quoting process through their website, and they have mixed customer satisfaction. The J.D. Power 2020 Property Claims Satisfaction Study ranked Chubb just below average.

Pros

• Specializes in large policies
• Waives deductible when the loss is more than $50,000
• Option for cash settlement after a loss

Cons

• Very expensive coverage
• Only insures high-value homes
• Not available in all states

Extras

Instead of offering special discounts, Chubb prides itself on offering complimentary features to its customers for paying top-dollar premiums. If a tree falls on an insured property due to a storm, tree removal is covered. If a computer virus ravages your system, electronic data can be restored. They even offer their HomeScan system to find hidden problems before damages occur, such as faulty electrical connections and leaks.

Coverage

Aside from all the typical home insurance protections, Chubb also includes additional coverage with standard policies, including:

• Extended replacement cost
• Risk consulting
• Cash settlement
• Wildfire and earthquake coverage are also available for an additional fee.

Best new digital insurance company: Lemonade

Lemonade is a relatively new carrier, but its innovative style makes it worth mentioning. This company offers insurance for homeowners on an all-digital platform with low-cost monthly plans.

Lemonade leverages technology to offer favorable home insurance premiums starting as low as $25 a month. There is no brick-and-mortar insurance agency; instead, business is conducted using a mobile app and artificial intelligence, and claims can be paid in a matter of minutes.

This company offers a no-hassle experience for policyholders, with homeowners insurance available in half of the states in the U.S. This provider is a good option for tech-savvy consumers who want to save money and prefer to conduct business with their smartphones.

Demotech has given the company a financial stability rating of A (Exceptional), and customer ratings on the website are very favorable (overall rating of 4.9 out of 5). Because it is a newer company, Lemonade is not yet rated by J.D. Power, AM Best or Standard and Poor’s.

Frequently asked questions

What do homeowners insurance policies cover?

Homeowners insurance varies from provider to provider, but typical home insurance policies include coverage for the dwelling, personal property (usually excluding high-value items), liability and additional living expenses. Many people might not be aware of some additional surprising things home insurance covers. It’s a good idea to research home insurance companies in your area, compare rates and speak with a licensed insurance professional before selecting a policy.

What is the typical cost of home insurance coverage?

In the U.S., the average cost of home insurance is $2,305 per year, but keep in mind that rates vary widely and are based on several factors, including the age, location, value and condition of the home. There isn’t one insurance company that will provide the best rates for every homeowner. It’s a good idea to shop around to compare rates or speak with a licensed insurance professional.

Is flood insurance included with my homeowners policy?

Flood insurance is rarely included in a standard homeowners policy. Most major carriers offer private flood insurance for an additional premium, or you can purchase a policy through the National Flood Insurance Program (NFIP). Homeowners that live in high-risk areas should consider purchasing flood insurance as soon as they move into their home to avoid coverage lapses.