Home Insurance: A Complete Guide (2023)
The best home insurance company for you depends on several factors, but the average American pays about $149 a month. However, rates vary significantly due to several factors, including where you live and the age of your home.
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Written by
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UPDATED: Mar 13, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.
UPDATED: Mar 13, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Home insurance covers the physical structure of your home, your personal belongings, and legal fees or medical expenses if a guest injures themselves on your property
- Some of the best home insurance companies include Lemonade, State Farm, and American Family
- While the average homeowner pays about $149 a month for insurance, you might see much different rates based on your unique circumstances
A good homeowners insurance policy is one of the most important ways to protect your home. Although it’s never required by state law, home insurance is usually a good idea for most homeowners.
Home insurance typically covers the physical structure of your home and your personal belongings. It also protects against lawsuits if a guest is injured on your property. While it covers a lot, homeowners insurance usually doesn’t cover earthquake or flood damage.
From filing a home insurance claim to excellent customer service ratings, researching your options is crucial to protecting your home. Read on to learn more about home insurance, then compare rates with as many companies as possible to find the best home insurance policy.
What are the best home insurance companies?
The best homeowners insurance companies for you depend on a variety of factors, including where you live and how old your house is. However, some companies generally have better reviews than others.
Listed below are some of the top home insurance companies on the market. Although there are several things to consider before choosing a policy, the following home insurance companies are an excellent place to start looking for coverage.
Lemonade Home Insurance
Lemonade is a little different than many of its competitors. Rather than offering physical offices customers can visit, Lemonade offers a completely virtual insurance experience.
Although Lemonade is only available in 37 states and the District of Columbia, it still receives top marks for home insurance. It’s also one of the most expensive homeowners insurance companies, with only Allstate beating it for the highest rates.
Lemonade offers one of the longest lists of home insurance add-on lists, including equipment breakdown, water backup, and swimming pool coverage.
Despite having higher rates, most customers love Lemonade home insurance. One of the most popular reasons why people love Lemonade home insurance is that filing claims, managing policies, and getting help are incredibly easy with its online tools.
State Farm Home Insurance
While State Farm car insurance is probably better known, State Farm also has excellent home insurance. When you buy a homeowners insurance policy from State Farm, you’ll have the option for a bundling discount if you also purchase coverage for your vehicle.
State Farm home insurance is available in all 50 states. It also receives better reviews for its home insurance than car insurance. Although State Farm has quality policies, it’s one of the cheapest house insurance companies on the market.
State Farm doesn’t have as many add-ons as Lemonade, but it does offer some valuable protection. It provides protection from identity theft and inflation, as well as extra coverage for your most valuable possessions.
American Family Home Insurance
Another company better known for its car insurance, American Family sells home insurance in only 23 states. American Family runs CONNECT, which sells and manages home insurance policies for Costco customers. If you buy homeowners insurance through Costco, CONNECT operates in 44 states.
American Family has the benefit of being one of the cheapest companies for home insurance. It doesn’t have the most add-ons, but there are a few good ones to choose from. One that stands out is its matching siding add-on. It will replace all the sidings on your house if one gets damaged so that everything matches.
Like State Farm, you’ll likely get a discount if you bundle multiple insurance policies. You’ll have multiple ways to manage your policy as well — American Family customers can use the website or mobile app, speak with a representative on the phone, or visit a local office.
Check out our American Family insurance review to learn more.
Nationwide Home Insurance
Despite what its name suggests, Nationwide home insurance is not available in every state. Residents of Alaska, Hawaii, Louisiana, New Mexico, Florida, Massachusetts, and New Jersey will need to look elsewhere for homeowners insurance.
If you live in a state Nationwide operates in, it will probably be one of your cheapest options. As a bonus, Nationwide includes identity theft protection in every standard homeowners insurance policy it sells.
Nationwide offers several add-ons for your home insurance, including earthquake and flood coverage, upgraded roof replacement, and extra coverage for valuable possessions like antiques and art. Along with a solid list of add-ons, Nationwide also offers several discounts.
Visit our Nationwide home insurance review to learn more.
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What are the cheapest home insurance companies?
While the companies listed above offer some of the best home insurance on the market, they’re not always the cheapest. If sticking to a budget is important to you, the following companies usually offer cheap home insurance rates:
- Erie Insurance
- Auto-Owners Insurance
- State Farm
- Nationwide
- Travelers
While these are some of the cheapest companies for home insurance, you might find lower rates elsewhere. Companies look at a variety of factors when determining your rates, so it’s important to compare multiple quotes when determining how much home insurance costs. You should also understand what factors companies use to craft those quotes, which include the following:
- Location: Like most other types of insurance, where you live plays a big role in your home insurance rates. If you live in an area with higher crime rates or extreme weather, you’ll probably pay more for insurance.
- Price of your home: The more it costs to build your home, the more you’ll pay for insurance. Expensive houses cost more to repair or replace, which leads to larger insurance bills.
- Your home’s age: There are two main reasons older houses tend to cost more to insure. First, they tend to be made with more expensive materials, which your company will have to pay for. They also tend to need more repairs, which increases your chances of making a claim.
- Amount of coverage: Simply put, the more insurance you buy, the more you’ll have to pay.
- Home features: Most insurance companies offer discounts or lower rates to homeowners who have installed safety features like smoke alarms, deadbolts on their doors, or security systems.
- Credit history: Most states allow insurance companies to look at your credit score to determine how much you’ll pay for coverage. Homeowners with lower insurance scores will pay more for their insurance.
As you can see, there are a lot of factors that affect your insurance. This is why comparing quotes is so important — some companies are more forgiving of certain factors than others. For example, Kemper Insurance might be your most affordable option if you have a low credit score.
The state you live in will also help determine which company is the cheapest for you. For example, Allstate is often one of the most expensive options for home insurance. In Oklahoma, however, it’s one of the cheapest options.
Which companies offer the best home and car insurance bundles?
Bundling different types of insurance policies from the same company is a great way to earn a discount on your coverage. Home and car insurance are some of the most commonly purchased policies, so most major companies sell both.
If you’re looking to bundle your insurance, here are the best car and home insurance companies:
- State Farm: According to State Farm, customers can save up to 20% on their policies for bundling home and car insurance. You can also earn this discount if you have a condo or renters insurance policy.
- Allstate: It might not be the cheapest company, but bundling home and car insurance can save you up to 25% on your Allstate policy.
- Farmers: Farmers offers up to 20% off your insurance if you buy a new car and homeowners policy at the same time. You’ll still get a discount if you add them separately, but it will be a little less.
- Nationwide: Nationwide is one of the few companies that offers a bundling discount for more than just car and home insurance combinations. If you buy home, car, and life insurance, you’ll see even bigger savings.
- American Family: You can save up to 23% on your home and car insurance if you bundle both from American Family.
Beyond saving you money, another great reason to bundle your insurance is that it makes it easier to manage multiple policies. Having everything in the same account makes handling payments and starting claims much simpler.
What does home insurance cover?
While every plan is different, most homeowners insurance policies have the same basic features. Here’s what a typical homeowners insurance policy covers:
- Dwelling protection: This portion of your home insurance covers the physical structure of your house and detached structures like fences or garages. Most plans cover damage from fire and smoke, theft, vandalism, and most types of weather.
- Personal liability: Liability covers you if someone is injured on your property. It covers legal fees if you’re sued and the injured guest’s medical bills.
- Personal property: Your home is made up of a lot more than the walls and roof. Your insurance covers your personal belongings, including furniture, appliances, and clothing.
- Additional living expenses: If your home becomes unliveable, your insurance will cover your living expenses while your house is repaired or replaced. Every plan is different, but most policies cover hotel or other lodgings, restaurant meals, and pet boarding.
A standard home insurance policy covers a lot, but it doesn’t cover everything. If you live in an area at a higher risk of earthquakes or floods, you should consider buying earthquake or flood insurance. A standard policy won’t cover damage from these natural disasters, leaving you without coverage if something happens to your home.
You should also consider alternative insurance if you have a mobile or manufactured home. Manufactured and mobile home insurance works similarly to a standard home policy but is specially crafted for prefab homes.
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How do you choose the best home insurance policy?
Choosing the right home insurance policy might sound confusing, but it doesn’t have to be a challenge. When you’re looking for home insurance, consider the following tips:
- Decide how much coverage you need. To determine how much coverage you need, consider how much it will cost to rebuild your home, the value of your possessions, and the risks of the area you live in.
- Pick a company. You saw above that prices are significantly different between companies. You’ll also have access to different coverage options and discounts, depending on the company you shop with.
- Choose your policy. Once you know how much coverage you need, the final step is to pick a plan. Make sure to compare multiple quotes to find the best price possible.
When you’re looking for the best homeowners insurance policy, you must compare rates with multiple companies. Home insurance can be expensive, and you’ll likely overpay if you don’t compare rates.
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Whether you live in a mansion or a tiny house, homeowners insurance is a crucial aspect of protecting your home. Comparing your options is an essential step in protecting everything that makes your house a home.
When you’re ready to buy a homeowners insurance policy, looking at multiple quotes is the best way to find affordable coverage. While you saw that some companies have the lowest average rates, the company best for you might be different.
Frequently Asked Questions
Which homeowners insurance company has the highest customer satisfaction?
Geico tends to have the best customer satisfaction ratings for home insurance. In general, Geico is considered an excellent option for any of the types of insurance it sells, including home, car, and life coverage.
Who are the top five insurance companies?
While there are many factors to consider when shopping for home insurance, the top five companies include Lemonade, State Farm, American Family, Nationwide, and Allstate.
What is the 80% rule in homeowners insurance?
The 80% rule refers to how much coverage you must purchase before your policy pays for repairs to your home. Your coverage limits must be at least 80% of your home’s total replacement value.
What are the six types of homeowners insurance?
While there are several types of home insurance, the types included in most standard policies include dwelling, detached structures, personal property, personal liability, medical payments, and additional living expenses.
Compare The Best Insurance Quotes In The Country
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.
|
Written by
Kristen Gryglik |
|
Reviewed by
Justin Wright
|