Best Homeowners Insurance Companies

Using ratings from J.D. Power, A.M. Best, and the National Association of Insurance Commissioners (NAIC), we found the top 20 home insurance companies for customer service, financial strength and price.

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What are the best homeowners insurance companies in 2020?

The last thing you want to deal with after a loss to your property is your insurance company giving you a hard time when you need them most. If you expect a smooth claims process and communicative customer service from the insurer of your choice, it's imperative you do some research before binding your insurance policy.

Let's first define what "best" means in the context of insurance companies. Using some of the same metrics used for our evaluation of auto insurance companies, we gathered ratings of the top home insurance companies in the U.S. The table below distills each company's scores for customer satisfaction, financial strength and number of customer complaints. Each of these scores is gathered by reputable third-party organizations.

See more information — and average homeowners rates — by clicking on any of the insurance company names below, or see tips on how to choose the best company.

TOP 20 HOME INSURANCE COMPANIES
Insurance CompanyJ.D. Power Customer Satisfaction RatingA.M. Best Financial Strength RatingNAIC Customer Complaint Score
USAA5/5A++Very Good
Amica5/5A+Very Good
Erie Insurance5/5A+Very Good
Auto Club of Southern California4/5A+Good
State Farm4/5A++Very Good
Auto-Owners Insurance4/5A++Very Good
Allstate3/5A+Good
Country Financial3/5A+Very Good
Progressive3/5A+Below Average
American Family3/5AGood
Farmers3/5AGood
CSAA Insurance3/5AGood
Automobile Club3/5A+Good
Nationwide2/5A+Very Good
Travelers2/5A++Good
AIG2/5AVery Good
Liberty Mutual2/5ABelow Average
MetLife2/5AVery Good
Chubb2/5A++Very Good
UPC Insurance2/5A-Below Average

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USAA

USAA has the third-largest market share in homeowners insurance and is highly regarded with top marks for customer satisfaction and financial strength. The company's policies are also well-priced, costing an average of about $127 per month. However, USAA only provides coverage for military members and their families.

Average Annual PremiumCost vs. Top 20 Average
$1,526$11 more

 

Amica

Amica earns consistently positive reviews but emerged as the second priciest company out of the top 20 insurers surveyed, with a monthly rate of $165 — 31% more than the group average.

Average Annual PremiumCost vs. Top 20 Average
$1,985$470 more

 

Erie

One of the only three insurance companies awarded a full five out of five stars by J.D. Power, Erie offers coverage in just 12 states and Washington, D.C. It was also the cheapest, costing $40 less per month than the group average.

Average Annual PremiumCost vs. Top 20 Average
$1,037$477 less

 

Auto Club of Southern California

The largest regional subsidiary of AAA, the Auto Club of Southern California offers numerous lines of insurance, including homeowners insurance. You must be an AAA member to be eligible for their insurance. On average, this company's pricing is on the higher side — about $139 a month.

Average Annual PremiumCost vs. Top 20 Average
$1,670$155 higher

 

State Farm

With almost 18% market share in home insurance, State Farm is a familiar name for many as it also dominates the auto insurance space. State Farm's homeowners insurance is generally regarded positively, complete with strong financial footing for paying out claims. With an average monthly premium of $122, State Farm sits squarely middle-of-the-road in terms of insurance costs but is slightly cheaper than USAA.

Average Annual PremiumCost vs. Top 20 Average
$1,464$50 less

 

Auto-Owners

Auto-Owners' home insurance has overall favorable ratings in customer satisfaction and financial strength. It also ranked as one of the more inexpensive insurance companies, costing about $92 per month.

Average Annual PremiumCost vs. Top 20 Average
$1,114$400 less

 

Allstate

Another popular name in insurance, Allstate has the second-highest market share in home insurance — a little over 8% — and is a bit cheaper than State Farm. Its customer satisfaction and customer complaint ratings, however, are just average.

Average Annual PremiumCost vs. Top 20 Average
$1,394$120 less

 

Country Financial

Country Financial is a smaller, Illinois-based insurance company that offers insurance in 19 states. Though it costs a tad more ($135/month) than average, this insurer has a decent customer complaint ratio and a good financial outlook.

Average Annual PremiumCost vs. Top 20 Average
$1,627$112 more

 

Progressive

According to Progressive, bundling homeowners and car insurance can yield a savings of 12% — but our findings indicate that Progressive's home insurance tends to cost 15% more than the group average. Its customer complaint score is also poor compared to other companies of its size.

Average Annual PremiumCost vs. Top 20 Average
$1,737$222 more

 

American Family

American Family has a better customer complaint score than Progressive but its financial strength is not as robust. Coverage costs about $143 per month, making it comparable to Progressive's pricing, but still more expensive than other top companies.

Average Annual PremiumCost vs. Top 20 Average
$1,724$209 more

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Farmers

Farmers comes with middling scores for customer service and financial strength though it currently holds fifth-place in market share for homeowners insurance. It was also the third most expensive company, costing over $150 a month — 20% pricier than the group average.

Average Annual PremiumCost vs. Top 20 Average
$1,822$307 more

 

CSAA Insurance

CSAA is an AAA affiliate that primarily serves northern California, Nevada and Utah. This insurer ranked as the most expensive provider of home insurance — almost $500 per year in additional premium — but has just-average scores for financial stability and customer service.

Average Annual PremiumCost vs. Top 20 Average
$2,008$493 more

 

Automobile Club (AAA)

AAA is mostly known for roadside assistance programs, but it also offers a host of insurance products for its members. Homeowners insurance from AAA typically costs an average of $101 per month — 20% cheaper than other top companies.

Average Annual PremiumCost vs. Top 20 Average
$1,213$301 less

 

Nationwide

The eighth-largest provider of home insurance by market share, Nationwide has a below-average customer service rating and a passable financial strength and customer complaint ratio. In terms of cost of coverage, it sits right around the middle — $118 a month.

Average Annual PremiumCost vs. Top 20 Average
$1,427$87 less

 

Travelers

Travelers received top marks for financial strength, but its customer satisfaction rating is mediocre despite its standing as the sixth most popular company by market share. The cost of Travelers home insurance is close to the overall group average but more expensive than comparable companies like Allstate, Nationwide, and State Farm.

Average Annual PremiumCost vs. Top 20 Average
$1,497$17 less

 

AIG Insurance

American International Group (AIG) specializes in insuring high-value properties and is considered a premier insurance company. These insurance providers typically offer additional benefits, like expanded coverage options and coverage limits, add-ons, and other perks. Though it was given a good customer complaint rating by the NAIC, AIG's customer satisfaction score was subpar. 

Average Annual PremiumCost vs. Top 20 Average
$1,090$423 less

 

Liberty Mutual

Liberty Mutual is the fourth-largest provider of home insurance by market share and is generally well-priced compared to other top companies of similar size. It numbers among the cheaper insurance companies out of all surveyed — costing an average of $117 per month — but is slightly more expensive than Allstate. However, it's worth noting that Liberty Mutual received unfavorable scores for customer service and the number of complaints.

Average Annual PremiumCost vs. Top 20 Average
$1,414$100 less

 

MetLife

Home insurance policies with MetLife run about 9% more than other top companies, with a monthly premium of $138. Its customer service may not be stellar but coverage tends to be cheaper than Progressive, Farmers, and Amica.

Average Annual PremiumCost vs. Top 20 Average
$1,655$140 more

 

Chubb

Chubb is another premier insurance company that provides home insurance for high-worth properties and those with many assets. The company has a very positive financial outlook but not the best customer satisfaction rating.

Average Annual PremiumCost vs. Top 20 Average
$1,384$130 less

 

UPC Insurance

UPC's homeowners insurance is decently-priced at $125 per month but its financial status — which impacts a company's ability to pay out insurance claims — was the shakiest out of all insurers surveyed. Its customer complaint ratio was also substandard.

Average Annual PremiumCost vs. Top 20 Average
$1,502$12 less

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How to choose the best home insurance company

With all the choices out there, it can be overwhelming to find the best company to insure your home. Consider our expert tips on how to prioritize your needs and what to think about during this process.

Coverage options

All of the essential home insurance coverages should already be outlined in your home insurance policy. This comprises of protection for your dwelling and other structures (at replacement cost), personal property, liability coverage, additional living expenses and medical payments to others.

The best insurance companies will offer some additional coverages — also known as endorsements — that bolster or expand your coverage in your homeowners insurance policy. A useful one to consider is upgrading to replacement cost coverage for your personal property; with a standard policy, losses to home contents are typically based on actual cash value, which deducts depreciation. This will ensure you receive the full amount required to replace your property.

Learn more about homeowners insurance endorsements.

 

Bundling

If you already have auto insurance with Company A, it would be worth looking into bundling a new homeowners policy with the same company. Bundling discounts number as one of the most common discounts found at most insurance companies — and home and auto, in particular, is a popular bundling option.

However, keep in mind that even with a bundling discount, your rate could be better elsewhere; some insurance providers are just more expensive than others, even if your risk profile remains unchanged. Shopping and comparing quotes before the end of every policy period is one of the best ways to secure the cheapest rates. Don't be afraid to switch companies — if you receive a better quote from Company B midway through your policy with Company A, paying the initial cancellation fee could be worth the future savings.

 

Discounts

The discounts offered by most insurance companies tend to be quite small, and the range of discounts also varies widely by company. But this doesn't mean they're not worth inquiring about. Some discounts are automatically built into your insurance premium when you get a quote and can turn into sizable savings over time. Here are some popular discounts for homeowners insurance:

  • Payment methods: EFT, paperless, automatic, or pay in full
  • New home construction
  • Senior discount
  • Occupational
  • Home security systems
  • Fire prevention systems
  • Roof upgrades
  • Smoke-free

See more information on common home insurance discounts.

Kristine Lee LinkedIn

Kristine is a licensed insurance agent and one of The Zebra’s in-house content strategists. With a background in copywriting, she covers the ins and outs of the home and car insurance industries. She has contributed to numerous publications focused on the nuances of insurance, including Automoblog, USInsuranceAgents.com, and BestCompany.com.