Best Homeowners Insurance Companies

Protect your home and belongings with the right home insurance coverage

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Anyone who owns a house should carry homeowners insurance to safeguard their assets in the event of damage from accidents, fire, storms, vandalism, or theft. If you have a mortgage, your lender probably requires you to have homeowners insurance. But, even if you paid cash for your home or your house is now paid off, you’ll still want to maintain coverage. That’s because homeowners insurance covers a lot more than just your house.

Your home insurance covers your home and other structures (such as sheds and garages) against damage from many perils. If your home is destroyed in a fire, for instance, your policy should pay to replace your home and provide you with temporary living quarters.

In addition to protecting your property, homeowners insurance also covers your liability, so that if someone is injured on your property, you don’t have to pay out of pocket for their medical care or other costs. Another part of your policy protects you against liability if you should injure someone else, whether on your property or not, or if you damage someone else’s property.

Homeowners insurance prices vary depending on where you live, the size of your home, the amount and types of personal property covered, and your deductible. We evaluated the best home insurance companies based on their financial ratings, customer service based on consumer reviews, and their coverage options.

Best Homeowners Insurance Companies of 2021

Best Overall: Amica Mutual

Amica Mutual

Amica Mutual

For 18 years running, Amica Mutual has been ranked as the best provider of homeowners insurance by J.D. Power, the widely recognized customer experience benchmarking authority. Amica also has an A+ (Superior) rating from AM Best.

In business since 1907, Amica has been accredited by the Better Business Bureau (BBB) since 1957 and currently holds an A+ rating. The company’s long history, variety of coverage options, and glowing customer reviews are why we ranked it best overall.

Amica offers multiple different homeowner insurance policies including a standard policy, extended coverage, and Platinum Choice® Home insurance coverage. Amica’s Platinum coverage includes additional protection for businesses and second homes or vacation properties, as well as items like computers and electronics. In addition, the Platinum Choice policy provides up to $500,000 in personal liability coverage.

Beyond the core coverage included in each policy, Amica provides a variety of endorsement options, making it easy to customize a policy to your needs while keeping premiums as low as possible.

If you are looking to save money by bundling multiple insurance policies, Amica offers life insurance, auto insurance, umbrella policies, and more. It helps to have all your insurance under one roof, so you have one point of contact, especially when that company is well-regarded in consumer reviews for its fast claims service and superior customer care.

Consumer review websites give Amica high marks across the board and frequently note how fast the company responds to most claims. Amica makes it easy to file claims 24/7 by phone, online, or through their mobile app.

Runner-Up, Best Overall: Erie Insurance



Erie Insurance is the nation’s ninth-largest home insurer and has an AM Best rating of A+ (Superior). J.D. Power has ranked Erie as the second-best home insurance carrier, just behind Amica. We chose Erie as our runner-up behind Amica because the company offers similarly strong customer service and coverage options, but offers coverage in only about 12 states—mostly in the Midwest and Southeast.

Erie provides Guaranteed Replacement Cost insurance for most homes. That means you won’t be left short or forced to pay out of pocket if your home repair or rebuild costs exceed the actual cash value of your house.

The company offers a few additional features that you may not automatically consider when selecting home insurance, including personal liability benefits in case you hurt someone or damage their property, water backup and sump overflow coverage, and service line protection for utilities running underground to your home. You can also get identity theft coverage, which can help you clear your name and protect your credit rating if you are the victim of identity theft or credit card fraud.

In addition to commonplace protections, Erie’s home insurance policies cover several contingencies not covered by some competitors. For instance, Erie’s base policy covers animals, birds, and fish up to $500, as well as giving you generous coverage for valuables, cash, precious metals, and “hard-to-replace” items. Customers may also qualify for discounts of up to 25% by bundling auto and home insurance with Erie.

Best for Discounts: Allstate



Founded in 1931, Allstate is the largest publicly held insurer for personal lines, including home and car insurance. Allstate received good ratings in all categories in the J.D. Power 2020 U.S. Home Insurance Study and has an A+ (Superior) rating for financial stability from AM Best. Allstate is a solid choice for homeowners looking for multi-line discounts, personalized service through Allstate’s network of local agents, and a robust digital experience that makes it easy to file and track claims, pay bills, and even choose the coverage levels that are best for you.

We feel Allstate is the best for discounts because they offer savings in many categories, including for loyal customers, homeowners who are claim-free for a period of time, and people with certain safety features in their homes. For instance, in some states you can earn discounts if you have fire or theft protection devices in your home, if you say you don’t permit cigarette smoking in the house, and if you have certain storm safety features, such as a hail-resistant roof or storm shutters.

Allstate customers may qualify for additional discounts if they’ve just purchased their home or moved into a newly constructed house. Retired seniors ages 55 and older may also qualify for discounts, as will loyal Allstate customers. Finally, you can save up to 25% if you bundle home and auto insurance with Allstate.

Best for High-Value Homes: Chubb Insurance

Chubb Insurance

Chubb Insurance

Chubb Insurance is known for its life, home, and auto insurance for high-net-worth individuals. As such, it provides a number of perks and higher coverage limits than you may not find with other home insurance companies. It features a highly customizable package of endorsements, from insuring a wine cellar to collectibles, fine art, and antiques.

Certain coverage and benefits that are standard from Chubb are not always available from other companies without paying more than you would for a regular policy. For instance, your Chubb home insurance will cover extended replacement cost, so even if the cost to repair or rebuild your home exceeds your policy limit, you’re still covered. Alternately, you can opt to take a cash settlement instead of having your home rebuilt. Chubb will also pay for living arrangements that meet your daily living standards while your home is being repaired or rebuilt.

Chubb Insurance boasts relatively few customer complaints for a company of its size. Chubb also has an AM Best rating of A++ (Superior), putting it ahead of competitors on our list for financial stability. It ranked in the top five for claims service based on the J.D. Power 2020 U.S. Home Insurance Study. If you’re insuring high-value properties and vehicles, Chubb may be your best choice for coverage.

Best for Financial Stability: State Farm

State Farm

State Farm

State Farm is a financially strong institution with longevity on its side. A Fortune 500 company that's been in business since 1922, State Farm has been the largest home insurer in the U.S. since 1964, paying out nearly 36,000 claims daily. The company has an A++ (Superior) rating from AM Best. Their history of performance and recognition puts State Farm ahead of the pack as our clear choice for best for financial stability.

State Farm serves its customers through a network of local agents, but customers also have the option of purchasing coverage or filing claims online. State Farm is one of the best for generous discounts, offering price breaks for things like home security devices and fire protection. You can save up to 17% or more by bundling your home and auto insurance policies with this insurer.

In addition to its core homeowner coverages, State Farm offers a wide range of endorsements to extend coverage limits on household items, collections, watercraft, and other assets you may want to protect from theft or damage. State Farm offers life insurance, mutual funds, retirement accounts, and banking services, so you can easily manage all your financial accounts through one company and know that history and reliability are on your side.

Best Value: Farmers Insurance

Farmers Insurance

Farmers Insurance

If you want to customize your policy to get the greatest value from your homeowners insurance, then Farmers Insurance could be the best choice for you. We picked Farmers above all contenders for best value in home insurance, as they offer great pricing and surprising discounts to help you maximize your home protection dollar.

The Farmers Smart Plan Home policy begins with three tiers of coverage to fit your needs and budget. The Standard tier provides affordable home insurance with the option to add higher coverage limits for certain items. An Enhanced policy includes benefits like roof replacement and some of your home’s contents without depreciation.

The highest tier, Premier, provides Guaranteed Replacement Cost coverage, regardless of policy limits, as long as you repair or rebuild the home on the same property. You can also raise or lower coverage limits on specific items within each of these packages.

Farmers Insurance offers generous discounts to customers who qualify. With Declining Deductibles, for example, customers’ deductibles decline by $50 for each year that they don’t make a claim. Discounts are also available for being claim-free for three years in a row, and there’s claim forgiveness if you’ve been claim-free with Farmers for five years or more.

Farmers is less financially strong than some other providers on our list but still financially stable, with an A rating from AM Best.

Best for Military Servicemembers and Veterans: USAA



USAA provides insurance for military members, veterans of the U.S. Armed Forces, and their families, and is one of the best home insurers around. USAA would rank much higher on our list if it were available to all consumers in addition to veterans and active military.

USAA achieved top ratings in all categories in the J.D. Power 2020 U.S. Home Insurance Study, including overall customer satisfaction, and has an AM Best rating of A++, highlighting its financial stability.

USAA offers full replacement value policies, with no depreciation, so you’ll have the peace of mind that your home will be repaired or rebuilt with little-to-no out-of-pocket costs from you apart from your deductible. Policies also automatically come with $5,000 of identity theft coverage.

You can customize coverage levels and deductibles to create a policy that fits your budget. You’ll also enjoy generous savings opportunities, including 10% off premiums if you go five years or more without a claim, discounts for fire and theft protection devices, and special rates for bundling home and auto insurance with USAA.

What Is Homeowners Insurance?

Homeowners insurance protects your home and its contents, as well as other dwellings or structures on your property, from damage or loss caused by theft, vandalism, fires, or other natural acts. Home insurance can also prevent you from being sued if a visitor is accidentally hurt on your property.

It’s important to understand what you’re buying when you choose your home insurance. Some policies offer full replacement value, which means the insurance company will pay to fully repair or rebuild your home according to its current worth. Other policies only pay for the actual value of your home; if your home is older and has depreciated in value, you could have to pay out of pocket if your policy doesn’t cover replacement costs.

Most home insurance policies also don’t protect against flood damage, so you will want to purchase a separate flood insurance policy to cover your home against flooding. Earthquake protection also typically requires a separate policy.

How We Chose the Best Homeowners Insurance Companies

Many homeowners insurance policies include similar coverages, and customer service is what sets many companies apart. So, to build our list of the best homeowners insurance companies, we reviewed J.D. Power reports, financial ratings, and consumer reviews to determine the best home insurance policies for a variety of customers.

We also reviewed individual company offerings and endorsement options to identify some, like Chubb, that are best designed for certain customers while others, like Allstate, are best for first-time homebuyers because of the multiple discounts available.

So, in building our list, we've tried to identify a range of providers that offer the right combinations of coverage, options, service, and specialties so you can find the right coverage for your circumstances. While prices and coverage levels from all of these carriers vary by individual policy, this list will help you find the coverage you need, the service you expect, and a price you can afford.

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Article Sources
The Spruce uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy.
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  2. AM Best. "Amica Mutual Insurance Company." Accessed December 12, 2020.

  3. AM Best. "Erie Insurance Group." Accessed December 12, 2020.

  4. Allstate. "The Strength of the Allstate Family." Accessed December 12, 2020.

  5. AM Best. "A.M. Best Affirms Financial Strength and Debt Ratings of Chubb." Accessed December 12, 2020. 

  6. AM Best. "AM Best Affirms Credit Ratings of State Farm Mutual Automobile Insurance Company and Most of Its Subsidiaries." Accessed December 12, 2020.

  7. Business Wire. "AM Best Affirms Credit Ratings of Members of Farmers Insurance Group." Accessed December 12, 2020.

  8. AM Best. "AM Best Affirms Credit Ratings of United Services Automobile Association, Its Subsidiaries and USAA Capital Corporation." Accessed December 12, 2020.

  9. J.D. Power. "J.D. Power 2020 U.S. Home Insurance Study." Accessed December 12, 2020.

  10. Insurance Information Institute. "Do I need flood insurance for my home?" Accessed December 12, 2020.