The Best Homeowners Insurance Companies of 2021

Simon Zhen - Apr 01, 2021

Your home is likely to be your most valuable asset. So, it’s a wise move to have the proper homeowners insurance to ensure that damage, theft, and lawsuits don’t lead to a major financial setback.

While it’s smart to research and compare your options, start here with the best home insurance companies that offer a range of homeowners insurance policies and additional coverages with great rates and excellent customer service.

Best Homeowners Insurance Companies

  • Chubb
  • USAA
  • Allstate
  • Erie
  • Nationwide

Rankings for the best homeowners insurance companies were identified in partnership with Insure.com, which analyzed the 15 leading issuers of home insurance and surveyed more than 2,800 home, condo, and renters insurance customers. Each company was rated based on price, customer service, website and mobile app, and customer recommendation while also considering the ratings of A.M. Best. (A.M. Best financial ratings are assessed based on the insurer’s ability to fulfill their financial obligations to policyholders.)

Chubb

Chubb provides a wide selection coverage options and benefits that cater to homeowners with expensive properties. Notable features include reimbursements for repairs or rebuilding that would exceed policy limits, direct cash settlement, and security and safety advice.

An extensive list of discounts are offered as incentives for added security features, such as perimeter alarms, security guards, closed-circuit video surveillance, property location in a gated community, and more.

Chubb Home Insurance Pros & Cons

Pros Cons
  • Comprehensive coverage and perks for high net worth clients
  • Low customer complaints
  • Multiple types of discounts revolved around security
  • Primarily covers only expensive homes
  • Not accessible to homeowners seeking affordable policies

Read our Chubb Insurance review.

USAA

USAA is one of the biggest U.S. financial institutions offering a variety of products and services that are available only to members of the U.S. military, veterans, and their families.

Known for excellent customer service, USAA also provides replacement cost coverage for your property and personal belongings as part of the standard policy. There’s also a coverage option for those who rent out their homes through platforms such as AirBnB.

USAA Homeowners Insurance Pros & Cons

Pros Cons
  • Highly acclaimed customer service and claims process
  • Strong industry ratings, including financial health and low customer complaints
  • Homesharing coverage available in some states
  • Must have military affiliation to be eligible

Read our review USAA insurance products and coverages.

Allstate

Allstate provides a wide range of optional homeowners insurance coverages such as identity theft, water backup, home-sharing, business-related items, lost electronic-data recovery and more.

Discounts are available for first-time home buyers, new customers without recent claims, automatic payments, and more.

Allstate Homeowners Insurance Pros & Cons

Pros Cons
  • Wide range of discounts and optional coverages
  • Low customer complaints and strong financial health
  • Simple claims process and excellent customer experience
  • Slightly more costly than the industry averages

Erie Insurance

Erie Insurance offers homeowners insurance with a feature highlight known as “Guaranteed Replacement Cost,” which allows you to rebuild your home to its exact previous specifications without a cost limit. Additionally, you can customize the coverage deductible for certain hazards, such as storm damage.

Erie only services 12 states and Washington, D.C. and products are offered through licensed independent agents.

Eries Homeowners Insurance Pros & Cons

Pros Cons
  • Comprehensive coverage that includes animals and theft
  • Guaranteed replacement cost
  • Great industry ratings on claims and customer complaints
  • Only available in 12 states
  • Online experience is lacking

Read our Erie Insurance editor's review.

Nationwide

Nationwide offers a comprehensive range of home insurance policies and additional coverages such as damaged or stolen items bought brand-new, roof replacement upgrades, water backup coverage, and more.

Discounts are available when you bundle with other insurance products, install protective devices, gated community locations, newly-purchased homes (within last 12 months), and more.

Nationwide Homeowners Insurance Pros & Cons

Pros Cons
  • Wide range of coverage with perks such as rebuild and water backup coverages
  • Multiple discounts available, if eligible
  • Easy application and claims
  • Average claims satisfaction ratings

Read out Nationwide Insurance editor's review.


Homeowners Insurance Company Industry Rankings

Insurer J.D. Power Rating AM Best Rating
USAA 5/5 A++
Amica 5/5 A+
Erie 5/5 A+
State Farm 4/5 A
Farmers 3/5 A
Allstate 3/5 A+
Progressive 3/5 A+
The Hartford 3/5 A+
Chubb 2/5 A++
Nationwide 2/5 A+
Travelers 2/5 A++
Safeco 2/5 A
AIG 2/5 A
Metlife 2/5 A
Liberty Mutual 2/5 A

The Most Expensive Homeowners Insurance Rates by State

State Average rate ($300,000 dwelling/$1,000 ded./$300,000 liability)
Oklahoma $4,445
Kansas $3,931
Florida $3,643
Arkansas $3,439
Texas $3,429
Mississippi $3,340
Louisiana $3,270
South Dakota $3,172
Nebraska $3,133
Missouri $3,111

Standard Home Insurance Coverage

Homeowners insurance is necessary protection against major damages and loss from disasters, accidents, and theft. 

Most policies include the basic coverages for your dwelling, personal property, liability, and additional living expenses.

Dwelling

Your policy will pay to fix or rebuild your home due to damage from fire, storms, falling trees and other types of hazards. This also covers external structures such as sheds, garages, and outdoor fireplaces.

Importantly, this does not cover flood damage or earthquake damage.

Personal property

Personal property is covered if stolen or destroyed by covered reasons. This includes furniture, clothing, electronics, appliances, trees, plants, and more.

It’s important to keep an inventory of these personal items in the event that you ever need to file a claim.

Liability protection

Liability is meant to protect you against lawsuits for bodily injury or property caused by you or your family members (including your pets) to other people and their property.

Additional living expenses

Coverage for additional living expenses will pay for the costs of housing outside of your home when your home becomes uninhabitable and under repair (for instance, after damage from a fire).

Average Homeowners Insurance Rates by Coverage Level

Dwelling coverage Deductible Liability Average rate
$200,000 $1,000 $100,000 $1,806
$200,000 $1,000 $300,000 $1,824
$300,000 $1,000 $100,000 $2,285
$300,000 $1,000 $300,000 $2,305
$400,000 $1,000 $100,000 $2,694
$400,000 $1,000 $300,000 $2,709
$500,000 $1,000 $100,000 $3,046
$500,000 $1,000 $300,000 $3,056
$600,000 $1,000 $100,000 $3,304
$600,000 $1,000 $300,000 $3,323

Additional Riders to Consider

Depending on the location of your home and additional coverages that you desire, riders can be added to your homeowners insurance policy.

Common types of homeowners insurance riders include:

Jewelry

High-value jewelry and priceless heirlooms may justify the jewelry rider to make your whole in the case of theft.

Specialty items

Specialty items include artwork, antiques, collectible, instruments, and other such items that may be worth a lot of money.

Water back up

Water damage from a backed up water drain or sump pump is not typically covered by standard homeowners insurance policies (or not up to the amount needed to pay for all the damage and repairs).

Building code coverage

Bringing a property up to code can be extremely expensive and you may have not expected this type of cost when you bought the home.

Business property

Business owners who run at least part of their operations at home will want additional coverage for business equipment and supplies.

Identity theft

If you become a victim of identity theft, this rider could cover the costs involved with recovering your identity and repairing damage from unauthorized use of your personal information.

Landlord rider

Usually, a separate landlord’s insurance policy can protect your home from damage. But, you could also consider adding a rider to your current policy.

Accidental loss

Accident loss helps to cover expensive items that are lost outside of the home. 

Lawn and garden

With a nice lawn or garden, you may worry about damages after a storm or another event that would result in costly repairs and/or landscaping.

Homeowners Insurance Inspection

As part of the underwriting process, the insurance company may send someone to perform a home inspection.

The inspector will look for risks and even identify savings for your policy. Most importantly, the inspector will point out what is and isn’t covered under a standard policy -- and what additional riders and coverages you might consider.

Typically, the inspector will examine:

  • The plumbing system
  • The HVAC system
  • The electrical system
  • The roof

If everything is in order, the inspection can help lock in a lower homeowners insurance rate.