best homeowners insurance

Best Homeowners Insurance Companies | My Top Picks for 2020

Best Homeowners insurance

Home. It is where the soul is, and perhaps where most of your wealth lies. This may be the largest asset you ever purchase, and you want to make sure that your home and its contents are protected.

This is why it is important to get the right homeowners insurance.

It will cover your home, belongings and liability in case something goes wrong.

Finding the best homeowners insurance policies can be complicated, so I’ve done a little digging on your behalf. I researched dozens of companies and narrowed it down to eight choices that are sure to spark your interest.

From here you can choose a handful to contact, and get an online quote for comparison.

The company that is best for you will depend on your unique situation, budget and list of priorities. Prices will also vary greatly based on your family, neighborhood and other personal conditions.

Given the wide variety of insurance options and rates offered by insurance companies, no single home insurance company is best for everyone.

Whether you are looking for cheap prices or excellent customer service, I’ve got some home insurance reviews below for companies that fit a variety of customer profiles.

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1. Most Affordable Rates: State Farm

best homeowners insurance state farm

For homeowners who want to reduce the cost of home insurance without sacrificing quality, State Farm is the best choice. State Farm’s low insurance rates and nationwide coverage make it affordable for homeowners across the country.

The company also provides the best homeowners insurance premiums in many states.

In addition to providing lower rates, State Farm also provides a standard set of discounts and subtle policy adjustments that can help you save on your homeowners insurance premiums.

The lower costs do not translate to poor service quality either…

State Farm is rated as one of the safest and financially sound insurance companies in the country, and it receives fewer consumer complaints than similar insurance companies of the same size.

This means that State Farm is more likely to quickly resolve housing insurance issues with the lowest cost and turn-around time.

2. Best For First-Time Homebuyers: AllState

Among the largest and best homeowners insurance companies, Allstate provides the very best educational resources for first-time home buyers.

Allstate’s common and expensive claims tool allows you to find the most common home insurance claims in your postal code.

This is to help first-time home buyers determine which coverage is most important to them.

First-Time buyers and customers of Allstate homeowners insurance, can also take advantage of multiple stacking discounts. Home-buyer discounts and new customer welcome discounts can save you up to 10% of annual premiums.

Together, they can save hundreds of dollars for new home buyers every year.

3. Best For Military Families: USAA

The United Service Automobile Association (USAA) combines outstanding features with outstanding service, making it the best homeowners insurance company for veterans and service personnel. USAA provides policyholders with some features that other insurance companies do not have.

USAA provides replacement cost insurance for damaged personal items to all policyholders.

This means that no depreciation of the property being repaired or replaced will be deducted in your claim. Other benefits of catering to service members include:

  • Property insurance extends to belongings in war zone
  • Uniforms covered by the homeowner’s personal property insurance, no deductible

USAA’s awareness of the special challenges in military life makes it an ideal insurance choice for homeowners in the armed forces.

Few other insurance companies are as focused on serving military customers as USAA, and its wide range of other financial products (such as bank accounts and loan options) make it a great long-term choice for all your currency needs.

4. Best For High Coverage Limits: Farmers Insurance

Homeowners who want to secure high-value properties should consider starting with the Farmers’ quotes. I have found that for insurance policies with a coverage of more than $200,000, Farmers usually offer the lowest rates and can also enjoy home maintenance discounts, which can help you save more.

Many of the improvements that make you eligible for “Farmer” premium discounts are also in your long-term interest as a homeowner.

These include replacing heating and sanitation equipment with more energy-efficient versions, as well as regular maintenance of wires or insulation, all of which can help you reduce your utility bills.

Another benefit of Farmers as one of the best homeowners insurance companies is its acclaimed customer service.

The company’s method of handling customer claims has allowed it to obtain an above-average J.D. Power rating, which has been for several years.

You can also rest assured that the level of financial strength of Farmers indicates that even in a major disaster, it is very unlikely that they will struggle to pay claims.

5. Best Customer Service: Amica Home Insrance

Amica best homeowners Insurance

For homeowners who prioritize quality services, Amica is your best homeowners insurance company.

Amica’s customer service has consistently received some of the highest ratings in the business.

J.D. Power has rated Amica as the home insurance company with the best overall customer satisfaction scores for 16 consecutive years.

The contractor connection plan is an example of how Amica insurance goes beyond the scope of its customers.

This free plan helps policyholders find contractors for house repairs or upgrades and provides a three-year workmanship warranty for this work.

Being a mutual insurance company, Amica is owned by policyholders who share the company’s profits through annual dividends.

Amicas dividends can be as high as 20% of the annual premium of the dividend policy.

The dividends may vary from year to year, and the cost of the dividend policy is higher-but, if you like the idea of investing in the performance of your insurance company, Amica offers a unique approach.

6. Best For Green Homes and New Homeowners: Liberty Mutual

Liberty Mutual provides good coverage at a reasonable cost.

It offers many opportunities to lower prices, including establishing connections with more than 14,000 member groups, including a long list of employers and universities.

A look at the sample quotations of $500,000 homes (between the ages of 26 and 40) in California, revealed that the annual basic premium was between $1,800 and up to more than $3,000.

We also to a look at the discount offers for a $350,000 house in California.

After rolling in all the discounts, the homeowner could qualify to get a discount of $100 per month.

Liberty Mutual provides standard homeowner insurance as a basis, but it also offers the option of adding many upgrades, including affordable blanket jewelry insurance, home computer and electronics upgrades, and identity theft.

The green renovation plan, inflation protection plan, and high discounts for new homeowners are some of the reasons I chose Liberty Mutual as the best choice for green houses and new homeowners.

7. Best For Price: Erie Insurance

Erie Best homeowners Insurance

Erie Insurance has some home insurance rate locking features, which may be ideal if you have a limited budget.

Erie Insurance offers a wide range of insurance types – family, car, apartment, rental, mobile home, motorcycle, ship and life.

Loyal customers will not only benefit from multi-strategy discounts, but can also benefit from some of Erie’s other customer-centric services. 

For example, life insurance customers can use Erie’s retirement planning financial services.

Saving opportunities are however very limited. Erie extends only three discounts on home insurance-multiple policies,

(i) advance quotations and discounts on installed fire protection,

(ii) anti-theft and

(iii) sprinkler systems.

You can lock in the homeowner’s insurance rate to avoid unexpected price increases in the future.

For those on a limited budget, knowing what to expect will give you peace of mind.

Your insurance policy also comes with some free privileges, such as animal protection and theft or loss.

8. Lowest All-around Rates: Nationwide

Nationwide doesn’t score as high on the customer service scale, but the company some of the best homeowners insurance rates.

They really are some of the lowest.

It is therefore absolutely worth getting a Nationwide quote to see what they can do for you.

Nationwide’s basic policy covers other elements that many companies don’t. Keep in mind however that these typically come at an added price.

These measures include statutes or legal insurance to help you pay to rebuild your house to current building regulations, and credit card coverage to prevent identity theft.

How To Find Affordable Home Insurance

Much like searching for the best home value estimator, one of the best ways to beat home insurance companies at their own game is to compare the online rates of multiple companies. 

Every home insurance company prices risk in its own way, so when you compare with more insurance companies, you increase the likelihood of getting the best price. 

It usually takes no more than 10 to 15 minutes to obtain a quote through their online forms.

You can also save on home owner’s insurance costs by getting deals and discounts from insurance companies. 

Most home insurance companies provide a large number of transactions to bundle multiple insurance policies and carry out house renovations to minimize your risk. 

Individual companies (especially some of the smaller insurance companies) usually also have unique discounts.

Choosing a higher deductible for your structure and property insurance coverage will also mathematically result in lower housing insurance rates.

However, raising the deductible means taking on greater risks. Make sure that your home insurance deductible never exceeds the amount you can pay out of pocket after an unforeseen event.

Finally, consider newer insurance companies that may provide insurance through different platforms.

Just as is the case in many other industries, technology-focused startups like Hippo Insurance may offer you discounted prices due to reduced management expenses or the need to fund growth.

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Do I Need Home Insurance?

Anyone who owns a home either needs home insurance or is strongly advised to purchase home insurance. 

In the event of a fire, hurricane, or other disaster that damages or destroys the house, most mortgage lenders need home insurance to protect themselves financially. 

Even if you do not have a mortgage and are able to rebuild and replace your house, homeowner’s insurance is a relatively inexpensive way to avoid these out-of-pocket expenses.

What Should Some Of The Best Homeowners Insurance Policies Cover?

Although home insurance companies can provide a variety of optional accessories, such as backup water and identity theft protection, all insurance policies are built within four core areas:

The coverage of the dwelling can compensate for damage to the home structure caused by covered hazards such as fire or a powerful storm.

The structure of your home refers to the walls, roof, siding, foundation and other fixed elements of your home’s construction.

Your dwelling coverage should be sufficient to cover the cost of rebuilding your home, in other words, the replacement cost of the home.

Make sure to use material prices of the same quality as the current structure of the home to calculate this value.

Actual cash value coverage is cheaper, but it can reduce your wear and tear claims.

Wrap-Up

Personal property insurance provides protection for most of your movable property, except for vehicles.

Personal property insurance in a home insurance policy usually includes furniture, television, clothing and electrical appliances.

High-value items such as jewelry are usually subject to lower limits of each category.

Your policy details will list specific limits for high-value categories (usually in thousands of dollars).

However, most insurance companies have to pay a certain fee to provide scheduled personal property insurance, which will increase the protection of these high-value items.

If you are responsible for harm to others or their property, the scope of responsibility clause in your policy will provide you with protection. This applies to your legal expenses and damages, and the maximum limit is the policy limit.

The typical personal liability limit in a family insurance policy ranges from $100,000 to $300,000, but you can purchase more types of insurance, but at a higher cost.

If your home is not livable due to an insured event, additional cost of living insurance or loss of use insurance will compensate you for your expenses.

Relevant circumstances include accidental causes such as fires and government evacuation orders during disasters. This coverage only applies to expenses that exceed your normal living expenses.

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