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Best Homeowners Insurance Companies 2021

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Regardless of whether you are new to homeownership or not, makes researching the best homeowners insurance companies easy, so you can buy home insurance coverage with confidence. Our team of experts conducted an annual survey to get authentic feedback and reviews from current policyholders  to help you find the best homeowners insurance company for your needs.

Best homeowners insurance companies

You’ll see in the chart below how the nation’s largest home insurance companies compare overall on the following metrics, based on a survey of 2,766 policyholders:

  • Value for price
  • Customer service
  • Claims satisfaction
  • Usefulness and ease-of-use of its website and mobile apps
  • If plan to renew
  • If would recommend
RankCompanyStars (out of five)
2State Farm****
3American Family****
4Liberty Mutual****
6AIG (American International Group)****

Best companies for customer service

Top five companies on the basis of customer service are: USAA, State Farm, American Family, Erie and Liberty Mutual.

For customer satisfaction, USAA was the best homeowners insurance company among our survey respondents. It’s only available to active and retired military personnel and their immediate families, so if you don’t qualify, State Farm, American Family, Erie, Liberty Mutual and Allstate all ranked as top choices.

Customer service


CompanyStars (out of five)
2State Farm****
3American Family****
5Liberty Mutual****

Best companies for price

Top five companies on the basis of price are: USAA, Erie, Allstate, American Family and State Farm.

You should never choose a company based solely on price, yet the value you get for what you pay is important. USAA ranked as the best homeowners insurance company in our overall ranking, and also won for the best company for price and for customer service. Here is how carriers ranked on pricing.

Price rankingCompanyStars (out of five)
4American Family****
5State Farm****
6Liberty Mutual****

Best companies for claims service

Top five companies on the basis of claims service are: USAA, AIG, American Family, Allstate and Travelers.

You don’t want to be stuck with a home insurance company that isn’t responsive when you need to file a claim. USAA took the top spot for handling claims well, and also earned the top ranking for price and customer satisfaction. Based on our analysis, here is how companies ranked on claims handling.

Claim rankingCompanyStars (out of five)
3American Family****
7State Farm****
8Liberty Mutual****

Protecting your home is critical to your financial planning, as your house is likely your biggest investment, which is why homeowners insurance is so important.  If you are buying your first home and looking for coverage, you’ll want to be sure you find the right balance of protection and price. If you’re already a homeowner, you should review your policy at least once a year to be sure you’re current on the amount of coverage you need, and compare home insurance companies to that get the best value.

Your homeowners insurance policy will help pay the cost of repairing or replacing your house, and your personal possessions if damaged by fire, severe weather and other scenarios spelled out in your policy. If the items in your home are stolen or damaged, homeowners insurance pays to replace it. It also helps cover legal and medical expenses if someone is injured on your property. If you have to live elsewhere temporarily because your house is damaged, home insurance will also pay for your living expenses.

You probably bought insurance when you closed on your house, and may have not reviewed your policy since then. But your home insurance shouldn’t run on auto pilot.  Rebuilding costs change over time, and you may have done renovations or added rooms. These changes affect how much home insurance you should carry. And comparison shopping is always smart, because the price of a policy will vary significantly among insurance companies.

How to choose the best homeowners insurance company

1. Decide how much coverage you need

The first step toward choosing the best home insurance company for you is to know how much coverage you need. Being underinsured on your home is a common issue, so first make sure you have sufficient coverage amounts.

Start by deciding the coverage amount for the following:

Dwelling -- When buying homeowners insurance, you should get enough dwelling coverage to match the full replacement cost of your home. The cost to repair damage to your home or rebuild it completely at equal quality — at current prices – is the replacement cost. Figuring out how to calculate home replacement cost can be a challenging task, but can be done by making a thorough inventory of building materials used for your home, using online calculators, or, you can hire an appraiser to do it for you

Deductible -- Your home insurance rate will be lower if you choose a high deductible. If you have a $500 deductible, you're going to pay more on your premiums than if you have a $2,000 deductible.

Going with a higher deductible will save you money. It will also reduce your home insurance claims. That’s why it’s important to know the trade-off you’re making – and be comfortable with it -- when choosing a home insurance deductible.

Liability limits -- Liability insurance pays out when you and your family members are legally responsible for others’ injuries or property damage. That’s to say, it covers the medical expenses of people who are hurt while in your home or on your property, as well as damage caused to neighbors’ property. Personal liability also covers legal fees if you are sued, as well as any resulting judgments from a lawsuit, up to your policy limits. Most home insurance policies come with $100,000 in personal liability insurance but this is rarely enough coverage. The cost to defend a lawsuit or to pay for medical expenses for a serious injury can easily exceed that amount. Most experts recommend upping your limits to at least $300,000.

Medical payments -- Medical payments coverage pays for injuries to guests in your home, regardless of who is at fault. Medical payments differs from liability insurance in significant ways, primarily in that it is for minor incidents and comes in very low limits of $1,000 or $5,000. The latter amount of $5,000 is recommended.

The limits of your coverage for the following are typically a set percentage of your dwelling coverage limit as shown below:

  • other structures – 10%
  • personal property – 50% (you choose between replacement value or actual cash value; you need an extra endorsement to cover expensive collectibles and valuables such as jewelry, artwork)
  • loss of use – 20%

2. Don’t forget endorsements

You may want to buy extra coverage, called endorsements, for various risks and items not covered in a standard policy. Typically these include:

  • Valuable possessions such as fine art, jewelry
  • Inflation protection that increases your coverage yearly to keep pace with inflation
  • Sewer back up damage coverage
  • Earthquake, wildfire and flood insurance are sold either as endorsements or through separate carriers or through federal or state programs

3. Assess added coverage perks

You should always consider what is included in a company’s policy as standard coverage features. Some companies may be more expensive, but may include extra protection at no cost, which means you are getting more for your money. Here are a few key examples from some major carriers:


  • Chubb’s “Masterpiece” policy will pay to have your home repaired or rebuilt to its original standards, even if the cost is more than your policy limit. It will also pay for necessary upgrades due to modern building codes. If you don't want to rebuild, Chubb will offer a cash settlement up to your policy limit.


  • Declining deductible: Earn $50 toward your deductible each year your policy is in place.
  • cosmetic damage: When you file a claim for functional damage, Farmers will also cover related cosmetic damage.
  • Claim forgiveness: If you’ve not filed a claim for the previous five years, your claim won’t trigger a rate hike.


  • Offers the option for coverage that will pay you the full cost to rebuild your home if necessary, even if it’s more than the amount for which your home was insured.


  • Single deductible if bundle home and auto: If your car and home are damaged by the same incident, you pay just one deductible. If you had insurance from two different companies, you would have to pay a deductible on your home claim as well as on your car claim.


  • Replacement cost coverage is standard and guaranteed by the company. Replacement cost is superior to cash value policies because actual cash value policies subtract for wear and tear and depreciation. Many homeowners don’t realize that actual cash value policies subtract for wear and tear and depreciation.
  • Animals, birds and fish covered up to $500.


  • Esurance will also pay you $50 for using its DIY home inspection app when you sign up for a new policy.
  • You can also earn price reductions for going claims-free for a year or more.

4. Check homeowners discount

You should always check the discount offerings of all the home insurance companies you’re considering. Some offer more home insurance discounts than others, some may have just a few but offer a higher amount of savings and some company’s discounts may just not match up well with your particular homeowner profile.

Typical discounts include those for going claim free, paying in full, insuring a new home, having safety features installed, using certain building materials, being retired and loyalty discounts for continuous years of coverage with the same company.

One of the biggest and most widely available discounts offered by carriers is for bundling, or buying auto insurance from the same insurer. Some companies, such as Allstate, say you can save up to 25%, while others, for instance Erie, say up to 10%.’s rate analysis found the average bundle discount saving to be 19%.

Home insurance discounts vary by company and also depend on state regulations, so it’s always wise to confirm which discounts are available to you.

Compare home insurance quotes

Now that you’ve read customer reviews, decided how much coverage you need, researched added value features and checked discounts, you’ll want to compare rates for at least three home insurance companies that are on your list. Make sure to compare policies with the same coverage limits and deductibles.

The average homeowner insurance rate is $2,305, or $190 a month in 2020, for a policy with $300,000 dwelling coverage, with a $1,000 deductible and $300,000 in liability, based on’s rate analysis. But rates can differ by hundreds, sometimes thousands of dollars, because each insurer uses its own formula to determine the risk you pose, and therefore what you pay.

One final consideration is the financial strength of your company. You want to be sure they have the financial resources to pay your claim. You can check financial strength through a rating firm such as A.M. Best. Insurers with a rating of A- or higher are recommended, though A.M. Best says any company with a B+ or higher has the ability to meet its obligations.