A home is one of the biggest purchases you’ll ever make. It’s hard not to worry about worst-case scenarios that could put your largest asset in jeopardy.
Homeowners insurance or home insurance can’t prevent disasters from happening, but it can protect your money when disaster strikes and offer peace of mind. With a homeowners insurance policy, you won’t have to pay to repair or rebuild your house yourself when things happen out of your control.
Here’s everything you need to know about homeowners insurance and the best home insurance companies of 2022.
What’s Ahead:
Best Homeowners Insurance Companies
- Best Overall: Lemonade
- Best for Customizable Coverage: Allstate
- Best for New Homeowners: Hippo
- Best for In-Person Support: State Farm
- Best for Discounts: Progressive
- Best for Replacement-Cost Coverage: ERIE Insurance
- Best for Customer Satisfaction: Amica
- Best for Military Families: USAA
Best Overall: Lemonade
Pros 
- Affordable policies
- Simple claims process
- Can update policy or cancel at any time
Cons
- Not offered in all 50 states
- Few extended coverage options
Lemonade isn’t your typical homeowners insurance company. As a certified Public Benefit Corporation and B-Corp, Lemonade prioritizes social impact and donates to nonprofits like the ACLU, American Red Cross, and The Trevor Project with the help of its policyholders.
To do this, Lemonade takes a flat fee from your insurance premiums to pay your claims. Then, they donate unclaimed money once a year to a non-profit you choose yourself when signing up for a policy. This program is called Giveback and it allows Lemonade to lower the odds of fraud and donate up to 40% of unclaimed premiums to charitable causes.
Lemonade is also one of the most affordable homeowners insurance companies out there. Homeowners insurance policies start at just $25 a month or $300 a year for basic coverage. You can update your policy to edit or add coverage at any time and easily file claims from the mobile app.
Lemonade offers standard personal property coverage for weather events and theft, liability coverage if you’re ever sued, and accidental injury coverage if someone gets hurt on your property. You can sign up for a policy in less than 90 seconds and the process is 100% online. You don’t need to speak with an insurance agent unless you want to.
Most mortgage lenders accept Lemonade, so you can pay for your insurance out of escrow or with a credit card. And if you already have insurance with a different company, Lemonade will help you get out of your old insurance and make the switch.
Lemonade also offers renters, auto, pet, and term life insurance. You can get a multi-policy discount if you take out more than one type of insurance with this provider.
Get a homeowners policy with Lemonade or read our Lemonade Insurance review.
Best for Customizable Coverage: Allstate
Pros
- Many extended coverage options
- Variety of discounts available
- Offered in all 50 states
Cons
- Higher base prices than other companies
- More complicated signup
Allstate is the second-largest homeowners insurance provider by market share and premiums with more than 10.5 million active customers, according to the Insurance Information Institute. It’s also our pick for the best homeowners insurance company if you want to build the perfect policy for yourself.
In addition to basic property coverage for your home and personal belongings and limited liability coverage, Allstate gives you more options than most for extra coverage. Add-ons include:
- Water backup – for water damage caused by your drain or pump systems
- Identity theft restoration – for fees related to stolen identity
- Yard and garden – for landscaping items and structures
- Green improvement reimbursement – for energy-efficient replacements of lost/stolen/damaged items
- Scheduled personal property – for high-value items not otherwise covered
If you choose Allstate, you’ll work closely with an insurance agent to customize your policy. You can speak with them over the phone or in person at a local office.
Allstate’s website includes tons of resources explaining how homeowners insurance works, along with detailed information on some of the more complicated aspects of choosing insurance.
Allstate’s prices start at about $82 a month or $980 a year and there are many discounts you may qualify for. For example, you can save on your premiums by enrolling in autopay, bundling home and auto, or being a new homeowner.
Allstate also offers renters, condo, life, motorcycle, auto insurance, and more.
Get a homeowners policy with Allstate.
Best for New Homeowners: Hippo
Pros
- Simple claims process
- Preventative support
Cons
- Not offered in all 50 states
Taking out a homeowners insurance policy for the first time ever is a lot different from taking out your second or third policy. We recommend Hippo to the first-timers out there.
Hippo is a relatively new home insurance company. Founded in 2015, this company currently provides insurance to over 200,000 U.S. homes. Policies offer high coverage limits at reasonable rates, and everything from signing up to filing claims is done completely online.
Hippo Home Care and Smart Home Tech are just a couple of ways Hippo helps homeowners prevent accidents. Hippo Home Care is an app that gives you a personalized home health profile to tell you where maintenance and updates could make your home safer. This service is included free with every policy.
Smart Home Tech offers leak sensors, motion detectors and cameras, and smart smoke alarms through Ring, SimpliSafe, and Notion. If you decide to opt into a smart home kit, you’ll receive a discount on both your home insurance policy and your new systems.
We chose Hippo as the best homeowners insurance for new homeowners because it includes preventative support and educational materials.
Hippo puts a lot of emphasis on technology in their homeowners insurance policies, offering more coverage than the average insurance company for tech and digital equipment in your home like computers and appliances.
Plus, this company has a quick and easy signup process and you can get a quote in a minute or less. Hippo homeowners insurance policies start at around $900 per year or $75 a month. Unfortunately, you can’t get Hippo in every state.
Get a homeowners policy with Hippo.
Best for In-Person Support: State Farm
Pros
- Offered in all 50 states
- Access to local agents
- Many extended coverage options
Cons
- Complicated or slow claims processing
State Farm is one of the top home insurance companies and the largest insurance provider in the United States. With a JD Power rating of 834, State Farm ranks number three in customer satisfaction for homeowners insurance.
If you like the idea of managing your insurance in person, State Farm could be the best company for you. There are more than 19,000 dedicated State Farm agents across the U.S., and that probably includes at least one in your community. If you ever want to talk about your policy and insurance needs live, you can visit these offices.
This is one of the best homeowners insurance companies for anyone who values personal, one-on-one support.
State Farm provides replacement cost coverage for your dwelling and property as well as living expense, liability, and medical expense coverage options. You can extend your replacement dwelling limit to cover up to 20% over your estimated replacement cost for a higher premium.
You can also add on extra coverage for perils like earthquakes and cyberattacks and expenses for energy-efficient replacements. And unlike other providers, State Farm does not have dog breed restrictions for liability coverage eligibility.
An insurance policy will start at around $83 a month or $1,000 per year with State Farm. State Farm doesn’t offer as many rate discounts as some other providers, but you can still save through bundling, going claim-free, and taking security and preventative measures like roof repairs. State Farm home insurance is available in all 50 states.
Get a homeowners policy with State Farm.
Best for Discounts: Progressive
Pros
- Offered in all 50 states
- Variety of discounts available
Cons
- Average customer service
- Extended coverage options are limited
Progressive is a popular insurance provider known for offering a variety of discounts.
This company might make sense for you if you’re already a Progressive auto customer. By getting your home and auto insurance from the same company, you can qualify for a multi-policy discount. According to Progressive, customers save an average of 5% when they bundle their home and auto insurance.
You can also get discounts for:
- Installing safety systems
- Paying your annual premium in full
- Receiving email communication
- Having a new-build home
- Getting an insurance quote at least ten days before starting your policy
- Purchasing a new home or switching from renters insurance
Like State Farm, Progressive also has local agents scattered around the country. In fact, there are over 38,000 independent Progressive insurance agents who can help you understand and update your home insurance policy. If you prefer getting help online, you can also call, chat with, email, or direct message a customer support representative.
Progressive offers a limited number of coverage add-ons. These include coverage for water back-ups if your sump pumps or sewer systems cause damage to your home and/or property and personal injury coverage for lawsuits against you that don’t fall into the category of physical damage or bodily injury. For example, false arrest, wrongful eviction, and slander.
Without discounts, policies start at right around $70 a month or $815 a year. This puts Progressive on the low end by price. And if you qualify for rate reductions, this could just be one of your cheapest options.
You can get Progressive homeowners insurance in any U.S. state and Canada.
Get a homeowners policy with Progressive.
Best for Guaranteed Replacement Cost Coverage: ERIE Insurance
Pros
- Affordable policies
- Variety of discounts available
Cons
- Not available in all 50 states
ERIE Insurance is definitely one of the best homeowners insurance companies offering guaranteed replacement cost coverage. With this provider, the full cost of your repairs or replacements will be covered, no matter what. Guaranteed replacement cost coverage is included with the base ErieSecure Home homeowners policy.
ERIE Insurance also offers excellent extended replacement cost coverage. While many insurance providers offer extended replacement cost coverage up to 20% over your dwelling coverage, ERIE covers all the way up to 25% over. Especially in times of inflation, this level of coverage can make you feel safer when repairs cost more than you expect.
To be eligible for guaranteed replacement cost coverage, just make sure you submit claims for home improvements that cost more than $5,000 to ERIE within 90 days of paying for them.
We chose ERIE as our favorite company for guaranteed replacement because of the generous limits and value.
Policies start at about $58 a month or $700 a year with this insurance provider, but that premium could be even lower. For example, you can save between 16% and 25% off the total cost of your insurance with multi-policy discounts.
We should mention that ERIE Insurance is only available in 12 states. These are:
- Illinois
- Indiana
- Kentucky
- Maryland
- New York
- North Carolina
- Ohio
- Pennsylvania
- Tennessee
- Virginia
- West Virginia
- Wisconsin
Across these states, there are over 13,000 ERIE Insurance agents ready to help. Guaranteed replacement cost coverage is not available in all states.
Get a homeowners policy with ERIE Insurance.
Best for Customer Satisfaction: Amica
Pros
- High customer satisfaction
- Variety of discounts available
Cons
- Not available in all 50 states
- Higher base prices than other companies
If customer service is important to you, you should check out Amica Mutual.
Amica Mutual or Amica is one of the best homeowners insurance companies overall with an impressive JD Power rating of 854 out of 1,000. This is the highest customer satisfaction rating for a home insurance provider by a wide margin (with the runner-up at 840). Amica was also awarded an A+ rating from AM Best Company in 2022.
Like other home insurance companies, Amica recommends keeping up with home repairs to prevent issues. You can use their home repair assistance program through Contractor Connection to find qualified contractors. This database includes over 2,000 vetted professionals who can help with everything from general maintenance to emergency repairs.
Using one of these preselected contractors can make your life easier. Amica’s agents will agree on prices with the contractor and help to resolve any issues that may arise.
This company’s policies are pretty standard, but Amica is unique for providing flood insurance support. Amica agents can help you determine your flood insurance needs and find the right plan for you.
Although flood insurance is not included in their home insurance policies, this provider will work with you to sign up for a flood insurance policy from another company.
Homeowners insurance policies with Amica Mutual start at around $85 per month or $1,020 per year. These prices are on the high end of average for similar policies, but you may qualify for discounts.
You can save up to 20% by bundling your home and auto insurance (depending on where you live) and 30% by bundling other insurance policies. Other discounts are available for loyalty, staying claim-free, enrolling in AutoPay, and upping your security.
Amica Mutual also offers life insurance, retirement insurance, marine insurance, umbrella insurance, and more.
Get a homeowners policy with Amica.
Best for Military Families: USAA
Pros
- Affordable policies
- Many extended coverage options
- Available in all 50 states
Cons
- Membership restrictions
If you’re a member of the military, USAA could be the home insurance provider you’ve been looking for.
In addition to basic replacement cost coverage for your home and property, USAA offers Home Sharing Coverage and Earthquake Coverage as add-ons to eligible policyholders. Home Sharing Coverage can be used to protect short-term rental properties and Earthquake Coverage can help cover damages directly caused by earthquakes. USAA only provides earthquake insurance to residents of Oregon and Washington at this time.
Another benefit of choosing this home insurance provider is that you can save when you shop. The USAA Perks program includes a variety of member-exclusive deals and discounts on everything from home security to car rentals to cruises.
A home insurance policy with USAA will start at around $61 a month or $730 a year, so this provider is cheaper than most others on this list. Plus, you can bundle your home and auto to save up to 10% and take advantage of a protective device credit and claims-free discount.
Unfortunately, USAA home insurance isn’t available to just anyone. To purchase a policy through USAA, you must be an active, retired, or honorably discharged military member. You might also be able to join through a family member.
USAA also offers many different types of vehicle insurance, umbrella insurance, pet insurance, landlord insurance, mobile home insurance, and more. You can find pretty much any kind of insurance you need with this company.
Get a homeowners policy with USAA.
What Does Homeowners Insurance Cover?
Home insurance protects you against accidents out of your control, whether caused by mother nature or other people.
Most homeowners insurance policies protect your home against common weather events and “perils” like fire and smoke, snow and freezing, lightning strikes and windstorms, tornadoes and hurricanes, and falling objects like trees or power lines. The average policy also provides coverage for theft and vandalism and damage to your home by other vehicles.
The most popular type of policy is an HO-3 policy. This protects the following:
- Your home and structures on your property
- Your personal property
- Your living expenses and medical fees
- Your liability expenses if you’re sued
If your home itself is damaged by a covered peril, your home insurance will reimburse you for some or all of the expenses you incur making repairs or replacements.
Your personal belongings may be protected, but it depends on what they are and how they’re damaged. If, for example, you have a house fire and your clothes are burned, this would generally be covered. However, more expensive personal items might not be included.
Scheduled personal property coverage is a type of extended coverage that protects valuable possessions like jewelry, arts, antiques, and collectibles. In order to file a scheduled personal property claim, you need to know the value of the items that are damaged or stolen, which often requires an appraisal.
Your living expenses and medical fees could be reimbursed by your home insurance provider if you were to be displaced or injured by a covered disaster. Liability coverage can help you pay for legal expenses from events that take place on your property.
Related: What Does Homeowners Insurance Actually Cover? (And What Doesn’t It?)
What Does Homeowners Insurance Not Cover?
Home insurance doesn’t cover natural wear and tear or issues caused by neglect.
Things like mold, rot, and insect damage would fall into this category. For example, termite damage can be prevented by properly maintaining your home’s foundation and replacing rotting wood. For this reason, damage from termites would not usually be covered by home insurance.
Flood insurance and earthquake insurance are commonly excluded from homeowners policies as well.
Flood Insurance
Home insurance doesn’t usually include flood coverage because floods and other types of water damage are expensive for insurance companies and considered to be more preventable than other accidents.
But that doesn’t mean you don’t need protection from floods. Especially if you live in an area that’s prone to flooding, such as low-lying or coastal cities, it’s a good idea to take out an extra policy. Your mortgage may even require you to have flood insurance if your home is in a high-risk area.
Some homeowners insurance companies offer flood insurance as an optional add-on, but the majority do not offer it at all. Usually, you need a separate policy.
You can purchase a policy from The National Flood Insurance Program managed by the Federal Emergency Management Agency.
Do You Really Need Homeowners Insurance?
Yes, you really need homeowners insurance.
Certain types of insurance are optional. For example, auto insurance isn’t required in every state, and identity theft coverage is nice to have but not mandatory.
Home insurance is not optional. While not required by law, almost every mortgage lender requires you to take out a homeowners insurance policy when purchasing your house. You’ll need to keep this insurance until you finish paying off your mortgage, though you can choose the insurance company and policy yourself.
The mortgage company or bank you borrow through will let you know if you need any additional coverage too such as flood damage protection.
Renters Insurance vs. Home Insurance
You probably have a renters insurance policy if you live in an apartment. If you’re switching from renters insurance to home insurance, you might be wondering what changes to expect.
Renters insurance and home insurance cover a lot of the same things, such as natural disasters and theft, but there are a few important differences.
For example, renters usually provides little to no liability coverage. Both offer coverage against accidental damage to your personal belongings, but only homeowners insurance covers damage to the building itself.
Related: Homeowners Insurance vs. Renters Insurance – Which One Is Right for You?
How To Pick the Best Homeowners Insurance Company
The first step in choosing the right insurance policy is to shop around to find a home insurance provider you like. This means thinking about your bottom line.
Think About Your Bottom Line
What do you want most in an insurance company?
Customizability, reputation, and value are just a few priorities you might focus on. Or maybe you really want to bundle your home insurance with other types of insurance to make your life easier. Or, your property is unique and you want as many coverage options as possible.
There’s no wrong answer.
Once you’ve used your bottom line to weed out insurance providers that don’t check your boxes, you can start browsing offers. You’ll want to understand what you need from your insurance policy before you do this.
To make sure a company can meet your insurance needs, consider:
- The value of your home
- The amount of coverage you need
- The deductibles you’re willing to pay
Research Customer Satisfaction
Next, look into customer service. Do the following to get a feel for what kind of service you can expect:
- Make phone calls to support before signing up
- Read online reviews and forums
- Talk to anyone you know who’s already a member
Filing a home insurance claim is no fun, but good customer service can make a huge difference.
Compare Offers
Finally, do some cost comparisons. Compare rate quotes from different insurers and look into discounts you may be eligible for. You don’t want to just choose the cheapest home insurance you can find and call it a day, but you do want to make sure you’re not overpaying.
Once you’ve decided which company you’re going to go with, you can choose your coverage and policy.
What Kind of Coverage Do You Need?
There are two main types of home insurance coverage: actual cash value coverage and guaranteed replacement cost coverage.
Actual Cash Value Coverage
Actual cash value coverage pays to repair or replace your belongings in case of a covered loss based on how much they’re worth. The amount of coverage you have for each item will be based on its depreciated value, which means that the older an item is, the less it will be covered for.
To determine the actual cash value of an item, an insurer will subtract depreciation from the replacement cost.
Replacement Cost Coverage
Replacement cost coverage pays to repair or replace your belongings in case of a covered loss based on how much it would cost now to replace them. The amount of coverage you have for each item is based on its replacement value, which is the cost to buy a new item of the same make and model.
Replacement cost coverage provides much more protection than actual cash value coverage. If you want your home insurance to help you repair your home and replace your belongings with equivalent substitutes, you’ll want to choose replacement cost.
To determine replacement cost, you need to estimate the cost to replace your items. These estimates are used to determine your overall coverage.
Guaranteed Replacement Cost Coverage
Guaranteed replacement cost coverage pays to repair or replace your belongings no matter the cost.
If the cost of replacing your belongings ends up being more than estimated with replacement cost coverage, you’re responsible for paying the difference. But with guaranteed replacement cost coverage, your home insurance will pay for any replacements in full.
Guaranteed replacement is typically more expensive than replacement cost because it offers more protection.
How Coverage Limits Work
Home insurance coverage limits are the maximum amount of money your insurer will pay out in the event of a covered claim. Your policy will list specific limits for different types of damage, such as natural disaster damage or theft. It’s important to understand these maximums so you know what to expect when filing a claim.
Most home insurance policies have separate limits for different forms of coverage. For example, you may have a policy with a $200,000 dwelling coverage limit and a $100,000 personal belongings limit. That means your insurer would reimburse up to $200,000 to repair or replace your home in the event of a covered claim and up to $100,000 to replace your personal belongings.
Unless you have guaranteed replacement cost coverage, you would be responsible for paying the difference for any excess costs.
Remember that home insurance coverage limits are per policy, not per incident. So, if you have a $250,000 policy and you make two separate claims for $200,000 each, your insurer will only pay out a total of $250,000. You would pay the remaining $150,000 yourself.
How Much Coverage Do You Need?
You should have enough homeowners insurance to completely cover the costs of rebuilding or repairing your home after a covered accident and replacing your damaged items.
Homeowners insurance policies commonly provide dwelling coverage, other structures coverage, personal property coverage, living expense coverage, and liability coverage. Here’s how to determine your coverage limits for each.
Dwelling Coverage
Dwelling coverage protects your home itself. This extends to the structures of your house including the frame and foundation, roof, deck, heating and cooling systems, and fixtures.
In general, you want enough dwelling coverage in your home insurance policy to cover 100% of your home’s replacement costs.
Dwelling coverage is based on the costs to repair your home, not the value of your home. So instead of looking at home sale prices in your area to determine how much coverage you need, look at building and reconstruction costs. This will give you a more accurate representation of how much you can expect to spend and what coverage limit to choose.
Some home insurance policies have dwelling coverage limits that are guaranteed replacement cost. As mentioned, that means your insurer will pay whatever it costs to repair or replace your home even if the expenses exceed your policy limit.
For example, if you have a guaranteed replacement cost policy with a limit of $300,000 and your home is damaged by a fallen tree, your insurer will pay to rebuild your home even if the cost of repairs exceeds $300,000.
Not all home insurance policies offer guaranteed replacement cost dwelling coverage.
Other Structures Coverage
Other structures coverage provides separate coverage for structures other than your home that are on your property, such as fences, sheds, and detached garages. Your other structures coverage limit should be equal to between 10% and 20% of your dwelling coverage.
Personal Property Coverage
For most people, 50% to 70% of total dwelling coverage is enough to cover personal belongings.
When purchasing a home insurance policy, you should take inventory of your personal property so you have a good idea of how much your belongings are worth. And if you think you need more coverage for your belongings, consider an extended policy or add-on.
Living Expense Coverage
Finally, you need coverage for living expenses. Living expense coverage, also called loss of use coverage, would kick in if your house were to become temporarily unlivable. This ensures you’re not paying out of your own pocket for accommodations when you can’t live in your home.
For example, if a storm displaced your family and you had to stay in a hotel until roof repairs were finished, living expense coverage would help cover the hotel bill and any other expenses you have while you’re gone.
Standard living expense coverage is equal to between 20% and 30% of dwelling coverage.
Liability Coverage
Liability coverage helps out with expenses related to being sued and damage or harm to others that takes place on your property.
For example, if a person visiting your home were to injure themselves in your home and you were legally responsible for their medical bills, your liability coverage would help pay. This coverage also extends to property damage or injuries you yourself (or a pet or family member) may cause.
Liability coverage minimums usually start at $100,000. For a lot of people, this is more than enough.
How Deductibles Work
Home insurance deductibles are the amount of money you have to pay out of pocket before your insurance policy kicks in.
For example, if you have a $500 deductible and you experience a covered loss that costs $1,000, you will have to pay the first $500 and your insurer will pay the remaining $500. After you’ve reached your deductible for the year, your insurer will pay for any covered losses up to your policy limit.
When you take out any insurance policy, you’re hoping you never need to use it. But if you do, you want to make sure you can come up with the money you’re responsible for paying when you’re responsible for paying it. This is why choosing your deductible carefully is so important.
The right deductible for you depends on a few factors:
- How much you can afford to pay out of pocket
- The types of coverage you have
- Your claims history
If you have a history of making small claims, you may want to choose a higher deductible to keep your premiums low as high deductible policies can be much cheaper. But if you live in a high-risk area or know your home is older, you may save more over time by paying a higher premium for a lower deductible.
What Does Homeowners Insurance Usually Cost?
The average price of homeowners insurance depends a lot on where you are and how houses are valued in your area.
The national average rate for home insurance in 2022 is $158 per month, according to Policygenius. This comes out to just shy of $1,900 per year. With that said, home insurance premiums vary greatly from state to state. Take a look at the examples below.
The top three most expensive states for home insurance are:
- Nebraska: $4,567 annually
- Oklahoma: $4,331 annually
- Arkansas: $3,391 annually
The top three cheapest states for home insurance are:
- Hawaii: $486 annually
- New Jersey: $926 annually
- Oregon: $943 annually
But insurance premiums vary a lot by home too.
Insurance rates are determined by a variety of factors that can affect how much it would cost to cover damage to your home. This means everything from when your house was built and how large it is, where it’s located in relation to hazards and first responders, and local crime rates can influence the price of your policy.
Almost every home insurance company will give you a free quote if you answer a few questions about your insurance needs. This doesn’t cost you anything and has no impact on your credit score. You can also talk with an insurance agent if you have questions about what kind of policy is right for you.
Related: How Much Does Homeowners Insurance Cost? (And Is It Worth It?)
How To Get Cheaper Homeowners Insurance
There are so many different ways to save on homeowners insurance. These include comparison shopping, bundling, updating your security, choosing a higher deductible, improving your credit score, and taking advantage of other discounts.
Comparison Shopping
One of the best ways to cut your home insurance premium is to compare prices from different providers. You can shop around by getting quotes from multiple insurers or using a home insurance comparison tool. When comparing rates, be sure to try out a few coverage limits and deductibles.
Policygenius is a platform that lets you easily compare rates and quotes from different homeowners insurance companies. After filling out one application with some personal information and details about your home — which takes less than three minutes to complete — Policygenius compiles a list of policies from top providers.
Next, Policygenius sends you an email from a licensed expert within 24 hours to talk next steps and personalized quotes within 48 hours. When you’re ready, you can fill out an application through the Policygenius site.
Policygenius even gives you the option to search automatically for home and auto bundles.
Compare home insurance rates with Policygenius.
Bundling
Another way to save on all your insurance, not just your home insurance, is to bundle. Many insurance companies offer multi-policy or bundling discounts. This can be a great way to save money since you’re paying for different types of insurance anyway. Home insurance companies may knock up to 35% off your premium when you bundle.
Home and auto bundles are really common, but you can also bundle your home insurance with your motorcycle insurance, boat insurance, life insurance, and more.
Just make sure to compare bundling rates between companies too. Bundle prices are always lower from the same company, but they might not be cheaper than what another insurance provider can offer.
Related: The Best Home and Auto Insurance Bundles of 2022
Updating Your Security
Keeping your home updated and safe can also bring your insurance rates down. Insurance companies want to see that you’re doing as much as you can to prevent disasters since this makes you a lot less likely to file expensive claims.
Making your home more disaster-resistant can help to lower your premium. This can include things like installing:
- Storm shutters
- Smoke detectors
- Fire sprinklers
- Reinforced roofing
Home security systems that can help prevent break-ins and theft, such as alarms and cameras, may also reduce your rates, but this depends on the company.
If you’re unsure of what security updates to make, you can talk with your insurer. They may suggest steps you can take to make your home safer and more resistant to disasters and tell you how much you can save by doing so.
Choosing a Higher Deductible
You can also save by increasing your deductible, which is the amount you would pay out of pocket before your insurance kicks in. You’ll pay more of your own money for a high deductible plan when you do file a claim, but you’ll save a lot when you don’t.
You can also choose higher deductibles just for specific types of damage. For example, if you live in an area that doesn’t get intense storms, you might be able to choose a higher deductible for this type of coverage. By doing this, you can save on your premium while still being protected in the event of other types of damage you are at a greater risk of experiencing.
Just don’t take on a higher deductible than you can afford.
Improving Your Credit
Finally, you can save on homeowners insurance by working on your credit.
Applying for homeowners insurance is kind of like applying for a credit card or loan. Lenders look at your credit to decide what interest rate to give you and homeowners insurance companies look at your credit to decide what premiums to give you.
Having a good credit score can help you save money on home insurance. This is because insurers often use credit scores as a way to assess risk. Customers with higher credit scores are usually seen as being less of a risk, which can lead to lower premiums. Basically, someone with great credit won’t likely be as expensive to insure as someone with poor credit.
Other Discounts
You might be surprised by just how many discounts homeowners insurance companies are willing to offer.
Three common types are:
- Loyalty discount – extra savings for each year you renew your policy and stay a member
- Claim free discount – the more years you go claims-free or without filing a claim, the lower your premium will be
- Switch discount – many companies will reduce your price just for switching to them from another insurance company
In general, it’s pretty easy to find out what kind of discounts you can get through any given company, and definitely worth a couple of minutes of your time.
Which Home Insurance Company Has the Best Reviews?
Insurance can be confusing, and the importance of a good customer experience really can’t be overstated. You want to know you’re in good hands with the home insurance company you choose.
You can check out consumer reviews, independent studies, and complaints to see how well a company might take care of you. That’s what we did.
When it comes to overall customer satisfaction, these home insurance providers come out on top:
- Lemonade
- Hippo
- Amica
How We Picked the Best Companies
To find the top homeowners insurance companies, we compared everything from policies to user experiences.
More specifically, we looked at the following factors from each company:
- Value and cost
- Customizability
- Policy options
- Claims process
- Coverage limits
- Customer service
- Sign-up process
- Regional availability
- Home insurance discounts
Of course, no company can offer everything you’re looking for, but our top home insurance companies come close.
It goes without saying that all of the homeowners insurance providers on this list are trustworthy and reputable. We’re recommending them to you because they offer all-around good policies, coverage, and support.
Summary
Homeowners insurance can help you save money and protect your home and property against unpreventable disasters, but not all policies are created equal. Choosing the right company and policy is a big, personal decision. The right home insurance depends not just on your home but on you.
If you’re looking to buy homeowners insurance for the first time or change your current policy, choose one of these 8 best home insurance companies of 2022.
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