No two homeowners are alike. Everyone has different priorities for what they're looking for in a home insurance policy. Given the highly competitive nature of the home insurance industry, as well as the large number of available insurers, this can make choosing between providers challenging.
That's where we come in. We looked at average premiums, customer satisfaction trends, financial strength and specific offerings of the top home insurance providers in the country.
In this article
Overview of the best homeowners insurance companies
We studied average premiums and reviews of home insurance providers in the U.S. The table below can help you compare some high-level differences.
| Company | Average annual rate | 2022 J.D. Power overall satisfaction (out of 1,000) | 2022 NAIC Complaint Index (lower is better) | AM Best financial strength rating |
|---|---|---|---|---|
| USAA | $1,776 | 884 | 0.36 | A++ |
| American Family | $2,466 | 842 | 0.13 | A |
| Country Financial | $1,876 | 830 | 0.06 | A+ |
| State Farm | $1,888 | 829 | 0.35 | A++ |
| Erie | $1,471 | 827 | 0.14 | A+ |
| Nationwide | $2,164 | 816 | 0.75 | A+ |
| Allstate | $1,734 | 815 | 0.33 | A+ |
| Chubb | $1,615 | 809 | 0.13 | A++ |
| Travelers | $2,273 | 794 | 0.17 | A++ |
| Farmers | $2,168 | 792 | 0.38 | A |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. J.D. Power ratings from 2022 U.S. Home Insurance Study. Complaint Index from NAIC. Financial strength rating from AM Best. | ||||
Best homeowners insurance companies
Erie
QuoteWizard rating: 4.0 out of 5 stars
$1,471 a year
26% lower than national average
- Erie has the cheapest average annual home insurance rate in our study.
- It has an above-average score on J.D. Power's 2022 customer satisfaction study.
- Erie doesn't offer online quotes.
- It also doesn't offer as many discounts as its competitors.
- Not available nationwide.
Company overview:
Erie company has the cheapest average home insurance rate of the insurers we reviewed, at $1,471 a year or $123 a month. That's over $400 cheaper than the national average home insurance rate of $1,903 a year. Erie also has a great customer satisfaction score. J.D. Power gave Erie 827 out of 1,000 in its 2022 customer satisfaction study. That's higher than the national average of 819.
On the flip side, if you want to get a home insurance quote from Erie, you need to contact an agent by email or phone. The company doesn't offer online quotes, unlike many of its competitors. Erie also doesn't offer many discounts. If you install certain security or automatic systems in your home, you may earn a discount. Erie offers a multi-policy discount, too, as well as a discount if you get a quote one week to two months before your policy renews.
Chubb
QuoteWizard rating: 4.3 out of 5 stars
0.13
The NAIC complaint index measures the complaints policyholders file against an insurer with the average complaint index being 1.0.
- Chubb offers affordable rates.
- It offers unique coverages if you upgrade to Chubb's Masterpiece policy.
- Available nationwide.
- Chubb has a below-average customer satisfaction score on J.D. Power's 2022 U.S. Home Insurance Study.
Company overview:
Chubb offers affordable rates at an average annual rate of $1,615. If you upgrade to Chubb's Masterpiece policy, you can get added protection if your home repairs exceed your policy's limit. You can also get a cash settlement if your home is a total loss and you decide not to rebuild your home. On the opposing side, Chubb earned a below-average customer satisfaction score of 809 out of 1,000 from J.D. Power's 2022 U.S. Home Insurance Study. However, it receives few customer complaints, according to the National Association of Insurance Commissioners (NAIC).
Best customer service ratings: USAA
QuoteWizard rating: 4.0 out of 5 stars
884 out of 1,000
- USAA focuses on the unique home insurance needs of military members.
- It offers replacement cost coverage for personal property.
- Available nationwide.
- USAA is limited to current and retired military members and their families.
Company overview:
USAA has several benefits if you're in the military. It covers military uniforms for active and deployed customers and provides coverage for military equipment. USAA also offers replacement cost coverage, which pays out for claims on your personal property at the current price of the covered item.
On the flip side, USAA's home insurance policies are only offered to current and retired military members and their families.
Allstate
QuoteWizard rating: 3.9 out of 5 stars
- Allstate is one of the biggest insurance companies in the U.S., with thousands of agents across the country.
- It offers affordable rates compared to its competitors.
- Allstate offers a variety of great discounts.
- Allstate received a below-average customer satisfaction score from J.D. Power's 2022 U.S. Home Insurance Study.
Company overview:
Allstate is available nationally except for in California, as of June 2023. Allstate offers low-cost policies at an average annual rate of $1,734. Along with cheap rates, you can save up to 25% if you bundle your auto and home insurance policies. You can also save up to 20% if you switch to Allstate and don't have a recent home insurance claim.
On the flip side, Allstate earned a below-average customer satisfaction score of 815 out of 1,000 from J.D. Power's 2022 U.S. Home Insurance Study. Customer satisfaction is important when filing a claim.
Nationwide
QuoteWizard rating: 3.5 out of 5 stars
- Nationwide offers unique discounts.
- It also offers unique coverages as part of its standard coverages.
- Nationwide has an average annual premium that is higher than the national average.
- It received a below-average score on J.D. Power's 2022 U.S. Home Insurance Study.
Company overview:
After a covered loss, Nationwide may help cover costs of rebuilding your home to current building codes, which isn't typically offered as a standard coverage among competitors.
Nationwide offers a variety of discounts, too, including a multi-policy discount, claims-free discount and a protective device discount. Nationwide offers another discount if your community has certain security measures at all vehicle entrances. You also may be eligible for a discount if you renovate your home's plumbing, heating, cooling or electrical systems.
On the opposing side, Nationwide has an average annual rate of $2,164, which is slightly higher than the national average. Nationwide also earned a customer service score of 816 from J.D. Power's 2022 U.S. Home Insurance Study, which is below the segment average score of 819.
How to find the best home insurance company for you
Comparing home insurance companies to get the best coverage for you requires some research. But if you know the key points to look for, it can be relatively easy.
- Determine what you can realistically afford for the home insurance coverage you need. This can help narrow down your options. If you need extra coverage, many insurance companies offer optional coverages. They can increase your coverage limits. Many companies also offer sump pump and water backup coverage.
- If you have an older home, there may be insurance companies that can meet your special needs. If you have an old home, it may be beneficial to have a policy that pays out claims at replacement cost. These policies pay out claims based on the cost of replacing the damaged item, which can be beneficial if you have older systems in your home.
- If you're a senior citizen, we recommend looking at companies that provide relevant discounts. For example, AARP through The Hartford offers a discount on your home insurance premium if you work fewer than 24 hours a week.
- If you have a high-end or luxury home, certain home insurance companies will offer better benefits. For example, Nationwide offers a gated community discount and offers a discount for certain renovations to your home. Chubb's Masterpiece coverage offers extended replacement cost coverage, which covers the full rebuild cost of your home, even if the cost surpasses your dwelling coverage limit.
When you get down to two or three home insurance quotes, start talking to those companies' agents. Have all of your quote options on hand and make sure to let the agents know you're shopping around. The homeowners insurance industry is highly competitive, and being shrewd can help get you the best premium.
Methodology
Average rates were compiled from rates in all 50 states. The following coverages were used:
- $275,000 dwelling
- $27,500 other structures
- $137,500 personal property
- $55,000 loss of use
- $100,000 liability
- $5,000 medical payments
- $1,000 deductible
QuoteWizard rated insurance companies based on their cost, discounts, coverages, financial strength, J.D. Power score, NAIC Complaint Index and website experience. We used a weighted rating for each of these categories and scored them out of five.
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