6 Best Homeowners Insurance Companies of July 2021

·14 min read

Homeowners insurance pays to repair or replace your home and its contents if they are damaged by specific perils like fire, theft, or by a weather event such as wind or lightning. If you’re not familiar with home insurance coverage and its policies, you might end up paying more for inadequate coverage. To help you find a homeowners insurance policy that works for you, here are the six best home insurance companies of 2021.

Our Top Picks for Best Homeowners Insurance

  • Lemonade – Best Online Insurance Company

  • Erie Insurance Company – Best Range of Coverage Options

  • Allstate – Best for Claim-Free Homeowners

  • Amica Mutual – Best Customer Service

  • USAA – Best for Military Members

  • Hippo – Best for Fast Quotes

  • Other Home Insurance Companies We Considered

Best Home Insurance Reviews

Lemonade Insurance – Best Online Insurance Company

Pros

  • Fast quotes in minutes

  • AI claims processing system

  • Flat fee on low monthly premiums

  • Demotech Financial Stability Rating: A

Cons

  • Not available in all 50 states


Lemonade Insurance is an online-only insurance company that uses artificial intelligence to provide seamless and fast home insurance quotes and home insurance services. Getting a quote takes only a few minutes and is as simple as filling out a form and choosing the coverage amount. A team of insurance professionals is available to guide you through the process if needed.

Standard coverage options for Lemonade’s home insurance plans include:

  • dwelling coverage

  • other structures coverage

  • personal property coverage

  • personal liability

  • medical payments

  • and loss of use

What makes Lemonade stand out is its approach to policy premiums and claim payments. The company will take a flat fee out of your monthly insurance premium, leaving the remaining money available to pay out any covered loss you may have during the year. In many claim situations, you’ll get paid in a matter of minutes.

With the Lemonade Giveback program, the company will pay up to 40% of the premium that hasn’t been paid out in claims to a non-profit organization you choose when you initially signed up for the policy.

Erie Insurance – Best Range of Coverage Options

Pros

  • Customizable coverage deductibles

  • Discounts available when bundling with auto insurance

  • Add-ons include liability coverage, identity recovery, and service line protection

  • J.D. Power Ranking: 6th (out of 20)

  • A.M. Best Rating: A+

Cons

  • Only available in 12 states


Erie Insurance homeowners insurance coverage includes the Guaranteed Replacement Cost coverage, which allows homeowners to rebuild their home the way it was before the incident, without a policy limit. They also have a Full Roof Replacement coverage that pays for the total replacement cost of a roof destroyed by a peril such as hail or a windstorm.

Erie’s base policy includes:

  • 100% guaranteed replacement cost

  • personal property coverage

  • theft coverage

  • coverage for valuables

  • gift card and gift certificate reimbursement coverage

  • animals, birds, and fish coverage

  • coverage for cash and precious metals

  • coverage for hard-to-replace items

You can also add the following coverage to any Erie policy:

  • water backup and sump overflow

  • personal liability coverage

  • identity recovery services

  • service line protection

Erie offers insurance customers an 16% to 25% reduction for bundling insurance. You can also save money with this insurer if you install automatic sprinklers, smoke detectors, and burglar alarms.

Allstate – Best for Claim-Free Homeowners

Pros

  • Additional rebate when renewing your standard policy

  • Rateguard option locks in your premium

  • HostAdvantage for home-sharing or renting

  • J.D. Power Ranking: 7th out of 20

  • A.M. Best Rating: A+

Cons

  • HostAdvantage feature is not available in all of 50 states


Allstate rewards homeowners who take good care of their property and are claim-free. If you switched to Allstate and didn’t file a claim with your previous insurer, you can get up to a 20% discount. Allstate will also lower your deductible amount for every additional year with zero insurance claims with the company.

Allstate standard coverage options include dwelling coverage, liability protection, personal property coverage, and guest medical protection. The company also offers optional coverage for:

  • identity theft restoration

  • green improvement reimbursement

  • water backup

  • yard and garden

  • scheduled personal property

  • and electronic data recovery

  • business property

  • musical instruments

  • and sports equipment

As part of its wide array of insurance products, Allstate offers HostAdvantage, a program for homeowners who sometimes share their home or lease it out for the short term. This personal property coverage protects you against theft and damage to personal property by your guests.

Amica Mutual – Best for Customer Service

Pros

  • Contractor Connection database connects you with contractors

  • Discounts for claim-free customers

  • J.D. Power Ranking: 1st out of 20

  • A.M. Best Rating: A+

Cons

  • Discounts are not available in all states

  • Contractor Connection is not available in HI and AK


Amica Mutual has topped the J.D. Power Property Claims Satisfaction Study for nine consecutive years, which points to an extraordinary commitment to helping customers deal with the claim process during the aftermath of a potentially catastrophic loss.

Amica’s standard home insurance coverage includes:

  • dwelling coverage

  • other structures coverage

  • personal property coverage

  • loss of use coverage

  • personal liability coverage

For customers who require additional coverage, Amica offers:

  • dwelling replacement coverage

  • personal property replacement coverage

  • valuable items coverage

  • catastrophic coverages

  • identity fraud expense coverage

  • home business coverage

This insurer also stands out for its Contractor Connection, a database that lists thousands of vetted, licensed, and insured contractors and guarantees their work with a five-year warranty.

Amica offers discounts to customers who have been with the company for at least two years and are claim-free for at least three years.

USAA – Best for Military Personnel and their Families

Pros

Cons

  • Only available for military personnel and their families

  • Home Sharing is not available in all of 50 states


USAA is a highly rated insurance provider with many insurance options and additional coverage for military members and their families. This insurer covers personal belongings at today’s replacement cost, with no depreciation.

USAA’s policies can cover loss due to fire, vandalism, theft, and most weather-related events. Its types of home insurance coverage include:

  • dwelling coverage

  • loss of use

  • personal belongings

  • personal liability

  • home sharing coverage

  • other structures

  • earthquake coverage

  • identity theft

If you qualify for membership in USAA, it would be hard to find better home insurance rates and coverage for property damage.

Hippo – Best for Fast Quotes

Pros

Cons

  • No option for filing claims fully online

  • Coverage is not available nationwide


As an “insurtech” insurance company, Hippo uses technology to make the industry more efficient. To that end, customers can get a quote in as quickly as one minute, and Hippo offers a smart home monitoring system.

Hippo provides extra coverage for home electronics such as water heaters and air conditioners. Some policy discounts are subject to the use of a smart home kit, while others are more standard, such as those for bundling or theft protection devices.

In addition to standard home insurance coverage, Hippo offers to cover:

  • computers and home office equipment

  • appliances and electronics

  • smart home upgrades

  • house cleaners and sitters

  • water backup

  • service line protection

  • enhanced rebuilding

  • full replacement costs

  • and costs for local ordinance changes

Their HomeCare Expert program also stands out. This program provides remote assistance to policyholders who need repairs or maintenance at home and offers professional service recommendations that can be accessed via phone.

Other Home Insurance Companies We Considered

As we analyzed home insurance companies, we emphasized financial stability and strong customer satisfaction ratings, plus the variety of coverage options each company offered.

The insurance providers we selected excelled in all of these categories, but that doesn’t mean there aren’t other home insurance providers that can offer the right coverage, price, and customer service for you. The companies below can offer the right coverage, price, and customer service for you.

StateFarm

  • Partnership with Ting to prevent electrical fires

  • Multi-policy covers personal liability, business liability, and pet insurance

  • Discounts for bundling policies and for the first time

  • Insurance agents available in most states

  • Customizable policies

Farmers Insurance

  • Farmers Smart Plan Home Policy offers three different types of coverage

  • Claims free discounts

  • Eco-rebuild coverage offers up to $25,000 to replace electronics and appliances with environmentally friendly products

Liberty Mutual

  • Offers an array of discounts for online purchases, auto policies, new homes, claim-free customers, automatic payments, and paperless options

  • Customizable policies and add-on options

Travelers Group

  • Coverage add-ons include identity fraud, green home coverage, water backup, and special personal property protection

  • Discounts for homeowners with protective devices such as home security systems, interior sprinklers, and fire alarms

Home Insurance Guide

Homeowners insurance coverage is a type of property insurance that provides financial protection to a private residence against loss due to natural disasters, theft, and accidents. A home insurance policy is required if you are financing a new home, and cannot travel from one dwelling or owner to another — something to keep in mind before selling your house.

Types of Home Insurance

There are several types of homeowners insurance policies. Which one is right for you will depend on the level of coverage you want.

H01

The most basic policy. It covers 10 basic perils, like fire, lightning, and theft.

H02

A step up in coverage from H01. It covers 16 named perils, including falling objects.

H03

The most common coverage. It covers all perils for the structure except those excluded (floods and earthquakes.) If you are unsure about needing flood coverage in your homeowners policy, take a look at our flood insurance guide.

H05

The highest level of coverage. It excludes some perils but covers the structure and your belongings on an all-peril basis.

H08

It covers older homes. This coverage is specifically designed for high-value houses that cost more to rebuild.

Many insurance companies offer customizable coverage as part of their homeowners insurance policy. Identity theft protection, work-related damages, and damages caused by rodents and domestic animals are part of the extra coverage options that can be added to a homeowners insurance policy.

What is Excluded from Homeowners Insurance

infographic on the perils excluded from homeowners insurance
infographic on the perils excluded from homeowners insurance
  • High-risk flood areas: If your area is deemed high-risk by FEMA, you will be required to purchase flood insurance for your property as an add-on to your policy. The National Flood Insurance Program (NFIP) provides flood insurance to property owners, renters, and businesses and is available for anyone living in one of the 23,000 participating NFIP communities. For more information about what’s covered, visit FloodSmart.gov.

  • Hail and wind: Depending on where you live, there may be additional weather-related exclusions. For example, homeowners insurance policies issued for coastal homes in Texas don’t cover wind or hail damage.

  • Power outages: Depending on your home insurance policy, some items, such as spoiled food or frozen pipes, may not be covered in the event of a short or prolonged power outage.

How to Choose the Right Homeowners Insurance Policy

You don’t want to set your coverage limits too low because then you won’t be covered when it’s time to file a claim. But you also don’t want to overpay for coverage you don’t need.

Coverage limits usually boil down to a decision between “actual cash value” or “replacement cost” coverages.

  • Actual cash value: calculates the value of your home minus depreciation, taking into account any existing damage or wear. With this option, you’ll only receive a settlement for your home’s value at the time it was lost.

  • The home replacement cost: reflects the amount needed to rebuild your home to be as similar as possible to before. Home replacement costs are almost always higher than the actual cash value, which is why it’s the most expensive coverage option.

There isn’t a one-size-fits-all coverage choice. It all depends on the homeowner, the dwelling, and the location, among other factors.

Home insurance discounts

When shopping for the best homeowners insurance, you should make it a point to ask about discounts.

infographic on the most common homeowners insurance discounts
infographic on the most common homeowners insurance discounts

Each company has options for helping you lower your insurance costs, but the following are the most common:

  • Bundling your home and life insurance policies with the same company

  • Living close to a fire station

  • Having a house newer than 10-50 years old

  • Signing up within a year of purchasing your home

  • Renewing your policy before it expires

  • Having a good credit score

Read our picks for the best life insurance and best renters insurance to find more information on policies you can bundle together.

Best Homeowners Insurance FAQ

Who has the cheapest home insurance?

We found that some of the cheapest home insurance rates are offered by Lemonade and Erie, both included in our list of best home insurance companies. These companies have some of the most affordable home insurance policies in the market for what they include, with lower average annual premiums than the competition.

How much is a typical homeowners insurance policy?

The average cost for a single homeowners policy in the US is $1,200 per year or $100 per month. However, homeowners’ insurance rates may vary substantially depending on your home’s specifics, how much coverage you want, and where you live.

What is the best home insurance?

The best home insurance will vary widely based on individual coverage needs and budget. A good rule of thumb is to look for a standard home insurance policy that is affordable, covers most perils, and is offered by a financially sound company with a good track record of customer satisfaction.

How much is homeowners insurance a month?

The average cost for a single homeowners policy in the US is $1,200 per year or $100 per month. However, homeowners’ insurance rates may vary substantially depending on your home’s specifics, how much coverage you want, and where you live.

What does homeowners insurance cover?

Most standard policies include four types of coverage: 1) coverage for the structure of your home, also known as dwelling coverage; 2) coverage for your personal property; 3) liability protection; and 4) coverage for additional living expenses. A few providers offer identity theft coverage in their basic policies, but you will have to purchase an endorsement (also known as a rider) for an additional cost.

How are homeowners insurance claims paid?

In most cases, an adjuster will inspect the damage to your home and offer you a certain sum of money for repairs, based on the terms of your homeowners policy. After the claims process, the first check you get from your insurance company is often an advance against the total settlement amount, not the final payment. You may get multiple checks from your insurer as you make temporary payments, permanent repairs, and replace damaged belongings. Bear in mind that your lender or management company might have control over your payment, and some insurance companies may pay your contractor directly.

What is the 80% rule in homeowners insurance?

Though it is an “unwritten rule” in the homeowners insurance industry, in practice, this rule means that companies will only offer complete coverage after a disaster if — and only if — the policy is for at least 80% of the property’s total replacement value.

Do homeowners insurance policies cover loss of use or additional living expenses?

Loss of use — also known as additional living expenses — is included in most standard home insurance policies. This coverage will help policyholders pay for everything from groceries to hotel rooms while the damaged property is repaired.

How We Chose the Best Homeowners Insurance Companies

Our list of best homeowners’ insurers streamlines the shopping experience. To devise a methodology, we:

  • We looked through dozens of insurers and coverage options and narrowed our choices to the best ones based on a series of attributes

  • Used JD Power’s 2020 U.S. Property Claims Satisfaction Study to measure customer satisfaction ratings with claim settlement, claim process, First Notice of Loss (FNOL), estimation, and repair

  • We considered each underwriter’s complaint ratio for homeowners insurance based on data from the National Association of Insurance Commissioners (NAIC)

  • We eliminated companies with A.M. Best financial strength ratings below A+.

Best Homeowners Insurance Companies of July 2021

  • Lemonade – Best Online Insurance Company

  • Erie Insurance Company – Best Range of Coverage Options

  • Allstate – Best for Claim-Free Homeowners

  • Amica Mutual – Best for Customer Service

  • USAA – Best for Military Members

  • Hippo – Best for Fast Quotes

  • Other Home Insurance Companies We Considered

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