Kevin Mercadante is a professional personal finance blogger and owner of his own personal finance blog OutOfYourRut.com. He has experience in the accounting and mortgage industry. He and his wife are "hollow friends" living in New Hampshire.
Kevin Mercandato
Protecting your home and family is one of the most important things every homeowner must remember. Make sure all your valuables and sentimental items are secured.
In this article, we'll go over the best insurance companies for homeowners, as well as the types of insurance you should consider.
Overall better
Editor's review5/5
Lemonade provides America's most popular homeowners insurance. 100% digital. No paperwork, no hassle. This is my number 1 recommended home insurance company.
Visit the website
The best market
Editor's review4,5/5
Policygenius is an insurance marketplace, which means we'll help you compare free quotes from top insurers. It is one of the leading platforms offering the best home insurance rates.
Visit the website
Some of the links in this post are from our sponsors. We provide you with accurate and reliable information. Read ourPost an ad.
If you've been a homeowner in the past, you've probably noticed that home insurance premiums are rising.
And if you're a new homeowner, you might get a serious sticker shock when you see your first home insurance premium.
There are several reasons for the increase in premium rates, including the increasing frequency of natural disasters such as hurricanes, floods, tornadoes, landslides, sinkholes and wildfires.
That's why it's more important than ever to identify the best insurance companies for homeowners and comparison websites.
They will help you make the best choice to get a policy that will provide the most comprehensive coverage at the lowest possible premium.
We have compiled a list of the best insurance companies and comparison websites to help you with your search.
Our picks for the best home insurance
- Lemonade- Overall the best
- Political genius- The best market
- Insurance of relatives- Best for catastrophic events
- Mutual Freedom- The best discounts
- Allstate- The best political options
- Horse- Best for full coverage
Compare home insurance companies
#1
our partner
Lemonade review
Lemonade offers tenants and home insurance based on technology and social good.
Visit the website
#2
our partner
Policygenius captured
Policygenius is an insurance marketplace, which means we'll help you compare free quotes from top insurers.
Visit the website
#3
our partner
Kin Insurance offers simple and affordable home insurance designed with your needs in mind.
Visit the website
#4
our partner
With Liberty Mutual, you can customize your coverage to provide the best coverage for your home and needs at an affordable price.
Visit the website
#5
our partner
With Liberty Mutual, you can customize your coverage to provide the best coverage for your home and needs at an affordable price.
#6
our partner
Simple, smarter home and apartment insurance up to 25% cheaper. Hippo upgraded home insurance.
Visit the website
If you take a look at our list of companies and locations, you'll see that our list is overflowing with "fintech" companies.
These are companies that rely heavily on information databases to determine their risk estimates and premium levels, rather than the traditional means of research used by most insurance companies.
However, the insurance industry is undergoing a rapid transformation, moving away from traditional customer and asset valuation methods to an increasing reliance on available databases.
Thanks to this, insurance policies are purchased faster and often have a lower premium.
While the core of traditional insurance providers remains strong, the shift to online fintech-based insurers and comparison websites is clearly the wave of the future.
Our list reflects this change.
Top 6 home insurance companies
The six companies and comparison websites below are not listed in numerical order, and that's not a coincidence.
We recognize that there is no one best insurance company for homeowners or a comparison site for all consumers.
Instead, we've included the companies we believe are best for specific niches that we believe are important to the largest number of consumers.
The details of each company's offer or comparison site are also listed below each.
How we chose the best insurance companies and comparison websites
Our process of selecting the best insurance companies for homeowners and comparison websites is by no means accidental.
We selected companies and websites based on the following criteria:
BEST IN CLASS
Most insurance companies have one or two areas where they are particularly strong. This was the main factor in deciding which companies should be on our list. In other words, there is no one best insurance company for all homeowners! It's more important to find what works best for you.
CALVEF FIGHT
Possibly the largest single discount offer includes a home insurance package with a car insurance policy.
MAJOR POLICY CHANGES
This is a list of the standard terms listed in the standard policy offered by the company.
CONTROL OF ELECTION POLICY
These are a number of optional provisions that will allow you to tailor the policy to your specific needs and circumstances.
DISCOUNTS AVAILABLE
The more discounts the company offers, the lower the premium can be. You may even find that a single discount or a combination of discounts will result in a lower premium with one company than with another, more known for its low rates.
1. Lemonade - generally the best
Lemonadeis a peer-to-peer (P2P) insurance platform fully specialized in homeowner and tenant insurance.
They advertise their home insurance for $25 a month, which isn't the cheapest coverage available, but they make up for it in other areas.
Using a P2P business model, Lemonade operates as a fully web-based and real-time platform. Claims can be paid off quickly, often within seconds.
In the application, you will fill in the damage report and provide the data for the transfer.
The company's goal is to pay off claims almost immediately. They even advertise claims paid out in three minutes.
Lemonade is only available in 26 states, but they plan to expand to 22 more in the near future.
Another potential problem is that the company does not state that it offers discounts.
Is car insurance offered (included)?No car insurance quote.
Basic provisions of the policy:Personal liability, housing, personal property in your home and "anywhere in the world", theft, cost of living, household water damage
Provisions of the Optional Regulations: good art, jewellery, watches and other personal items of great value. very limited coverage for properties held in stock, no discount.
Discounts available:It is not specified.
Get an instant quote
2. Policygenius - The best market
Political geniusis an insurance comparison website, also known as an online insurance market.
They offer the ability to get policy quotes from multiple insurance companies with one online application.
In addition to home insurance, you can get tenant insurance, life insurance, auto insurance, disability insurance, pet insurance, health insurance, and other types of life insurance. Policygenius is your virtual one-stop shop for all your insurance needs.
And because you'll get multiple offers on the same policy, you'll have an excellent chance of getting the best policy with the lowest premium.
It is possible that some of the other companies on this list also participate in Policygenius.
Since many different companies offer home insurance through the platform, the specific terms and conditions of each policy will vary.
These include core policy terms, optional terms, available discounts and the ability to get a big discount when combining home and car policies.
Is car insurance offered (included)?It varies depending on the insurance company you choose.
Basic provisions of the policy:It varies depending on the insurance company you choose.
Provisions of the Optional Regulations:It varies depending on the insurance company you choose.
Discounts available:It varies depending on the insurance company you choose.
Get an instant quote
3. Insurance of relatives - the best in case of random events
Krewniis another insurer from the fintech industry, operating on the example of Lemonade and Hippo.
You can apply online and get home insurance in less than 15 minutes.
It also offers homeowners-only insurance but extends affordable coverage to homeowners in disaster-prone states like Florida and California. Kin does not offer other types of insurance, especially car insurance.
Coverage is currently only available in a limited number of states. The company also does not disclose the availability of any discounts.
Is car insurance offered (included)?No car insurance quote.
Basic provisions of the policy:Personal liability, property structures including outbuildings, personal property, loss of use and guest treatment costs.
Provisions of the Optional Regulations:Built houses, flood, hurricane, owner, umbrella and cottage.
Discounts available:It is not specified.
Get an instant quote
4. Liberty Mutual - best discounts
Mutual Freedomis one of the leading home and car insurers in the country. In fact, they advertise that combining the two policies can save you up to $842 a year.
Liberty Mutual is a full-service insurance company with a long list of discounts to lower the cost of your home insurance policy.
Is car insurance offered (included)?I
Basic provisions of the policy:Housing, personal liability, personal assets and additional living expenses.
Provisions of the Optional Regulations:Extra protection for valuables, overflow protection for pump and auxiliary water, and inflation protection.
Discounts available:Security Devices, Newly Purchased Home, Home/Car Combination (up to $842), 5 or More Years Claim Free, Early Purchase, Recently Renovated Home, New Roof, Down Payment Preferred, E-Document Waiver Policy.
Get an instant quote
5. Allstate - Best Political Options
Allstate is one of the best-known insurance companies in the country, offering almost every type of insurance.
They are particularly strong in the area of motor insurance, which opens up the possibility of obtaining a group discount for home insurance.
And of course, they offer the ability to manage almost all insurance policies through the same company.
As you might expect, a company the size of Allstate offers one of the widest ranges of optional insurance.
You can cover a caravan, a shared apartment, a business, electronic data recovery and, perhaps most interestingly, an environmental improvement fee.
This will cover the additional costs of replacing damaged components with more energy-efficient ones. They are also incredibly strong in the area of discounts, going far beyond mere car-tying policies.
They offer special discounts on home security devices, switching to Allstate, recent homebuyers, retirees, and more.
Is car insurance offered (included)?I
Basic provisions of the policy:Apartment, personal liability, personal property and medical assistance for guests.
Provisions of the Optional Regulations:Flooding, industrial and mobile homes, personal umbrellas, home sharing, identity theft recovery, water supply protection, company property, electronic data recovery, musical instruments, sports equipment and environmental improvement fee as described above.
Discounts available:A package that includes car insurance, safety devices, early signing (up to 10%), welcome and loyalty (10% if you move to Allstate and 10% every year thereafter), new or recent homebuyer, age 55 and retired, equipment for home security.
6. Hippo insurance - the best in terms of comprehensive protection
Hippo works more or less the same asLemonadebecause it is a completely web-based platform. The application process is fast and the premiums are among the lowest in the industry in all markets where Hippo is available.
The big advantage of Hippa is comprehensive coverage. Their standard policies contain provisions that are usually considered additional insurance with other companies.
This includes higher coverage for home office and computer equipment, better coverage in the event of equipment failure, and liability coverage for cleaners and domestic helpers.
However, you should know that Hippo only offers home insurance and only operates in 22 states. In addition, the Company does not offer all terms and options in all states.
Is car insurance offered (included)?No car insurance quote.
Basic provisions of the policy:Personal liability, home, personal property, home office and computer insurance (up to $10,000), equipment failure (up to $100,000), utility line coverage, water supply.
Personal liability applies to cleaners and housekeepers.
Provisions of the Optional Regulations:Flood, wind and earthquake
Discounts available:Rain blinds, smart home, fire extinguishers, early check in, HOA membership and no mortgage home.
Next steps...
We hope that by sharing this guide, in addition to finding the best homeowners insurance sites and comparisons, you will also become more aware of the various terms and discounts available under this type of insurance.
Unfortunately, insurance of any kind has always been more complicated than the average consumer realizes.
While there is always a temptation to shop primarily for price, it is equally important to consider the quality and coverage of insurance.
This is all the more important given the increase in the number of natural disasters that have occurred in recent years.
Hurricanes, earthquakes, tornadoes, fires, sinkholes, and other hazards are occurring more frequently in areas where they have not occurred in the past.
This may be due to general population growth or even concentration of inhabitants living in highly desirable but ecologically unstable areas, especially along the coasts.
In this situation, it is more important than ever to have home insurance that will cover the predictable risks that may arise where you live.
It may be better to pay a little more for extra protection than to buy a free policy - with a very low premium - that will leave you underprotected in the event of a disaster.
Matching coverage to price has always been the name of the insurance game.
This also applies to home insurance and we hope this guide will help you with the process.
Political genius
Policygenius is the #1 independent online insurance marketplace in America. Save money on life insuranceDisability insurance, health insurance, pet insurance and others.
Get an instant quote
Homeowners Insurance FAQ
How much does home insurance cost and how are premiums determined?
Theaverage national home insurance premiumis $2,305 per year based on a $300,000 home with a $1,000 deductible and $300,000 liability insurance.
But that percentage is meaningless because home insurance premiums vary greatly from state to state. They range from a low of $499 a year in Hawaii to a high of $4,445 in Oklahoma for the same insurance amount.
Factors that affect home insurance premiums include:
- Your geographic location. As noted above, there are large differences in premium rates between states. This is because some states are more prone to natural disasters such as tornadoes, hurricanes, floods, earthquakes, and sinkholes.
- The value of your home.
- The amount of unstructured insurance, such as personal property and personal liability.
- Your personal request history.
- your credit history.
- Building a house. These include age, construction materials, protective equipment and other factors.
- Pets you own. Certain dog breeds are considered dangerous and result in higher premiums.
- Any discounts that may apply to your policy.
- Specialist insurance, such as home use or home-based childcare.
Considering all the above factors, average premium levels are not very useful.
You won't know exactly what your premium price will be until you receive a quote after providing all the necessary information.
What does a homeowner's insurance policy usually cover?
Exactly what your homeowner's insurance policy will cover will depend on what it says.
Key elements of a typical policy include:
- Apartment– this is the cost of replacement in the event of partial or complete damage.
- Other facilities in the facility– including a detached garage, a shed, a fence, and sometimes even small architecture.
- Private property– it is basically every resource in your home.
- Loss of usability– most homeowners' policies provide compensation for an alternative lifestyle in the event of loss of use of the home.
- Personal responsibility– this is part of your policy that will cover you if someone is injured on your property or by your pet. It will cover the incurred medical costs and the compensation claimed in the lawsuit up to the limit of the policy.
Under these provisions, you will be protected against fire, theft, vandalism, storms, hail, lightning, blizzards and ice, explosions, falling objects, damage caused by water from internal sources (such as burst water pipes or a damaged hot water heater), electrical failure, lightning and in some cases structural damage caused by ground movement.
These are the basics of a typical home insurance policy.
However, you can add options for other emergency events, such asIdentity theft, high-dollar items (artwork, jewelry, antiques, etc.), home businesses, home sharing agreements, and umbrella insurance for higher personal liability amounts.
Of course, adding any of these provisions will increase your premium.
What home insurance should I have?
Since homeowners insurance policies are made up of many important components, this is a multi-part question.
Let's look at each one individually:
Apartment
You should have enough coverage to rebuild your home. If your home is worth $400,000, of which $300,000 is the building and $100,000 is the value of the land, your policy should cover a condo for at least $300,000.
In addition, a provision for inflation should be included in the policy to cover rising construction costs.
Private property
Most policies will have a standard personal property rate based on your home coverage. For example, if your home is insured for $300,000, a 50% personal property policy will cover you up to $150,000.
You should at least make an overall assessment of the value of your personal assets to ensure that the amount of protection offered will be sufficient to cover your personal assets.
However, there is usually a limit to the amount of insurance you will pay for any item and you will need itadditional insurance for this property.
This is often called a "scheduled property", which means it is listed as a separate item.
Replacement Cost Value (RCV) vs. True Monetary Value (ACV)
Most insurance companies offer any option for your personal property. The RCV will cover the retail cost of the replacement. For this reason, such an arrangement will be more expensive.
ACV includes amortized value. If a new dining set costs $10,000 but is already five years old, the insurance company may credit it for $2,000.
This is the highest compensation you will receive. As you might expect, an ACV will save you money on premiums, but leave you destitute after a disaster. RCV is by far the best solution.
Loss of usability
It is difficult to estimate the potential cost as there are many variables. This will depend on how long your home may be unavailable. This can take from a few weeks to a year or more.
Most companies solve this problem by imposing a percentage housing policy, e.g. 20%. If your home insurance is $300,000, the 20% Possession Loss Reserve will cover up to $60,000.
Personal responsibility
Most companies offer this in installments that can be multiples of $100,000. But the amount of insurance you need has no correlation with the value of your home.
Instead, it should be more closely tied to your net worth. If you have significant financial assets, you should have liability insurance for an amount corresponding to any amount.
For example, if your net worth is $500,000, this should be your personal liability insurance amount.
If you are someone with a very high net worth, especially if your net worth is in the millions, we strongly recommend adding an umbrella policy to your home insurance.
This will give you a higher level of personal liability protection than a standard homeowner's policy would normally provide.
Can I do something to lower the premium?
Fortunately, there are several ways to lower your premium:
- Combine your homeowner's policy with another insurance policy, usually auto insurance.This often saves hundreds of dollars between both policies.
- Make sure you are not insured.There is no need for $100,000 personal property insurance if the contents of your home are only worth $50,000.
- Take advantage of every discount offered.Discounts are available on safety equipment such as fire extinguishers and smoke detectors, no claims, new roof installation, staying with the same company for several years and more. Ask your insurance company for a full list of discounts and get what you can.
- Get the highest discount you can afford.
- Do not make claims for small amounts.
- Maintain a good credit score.Insurance companies equate a low credit score with an increased likelihood of making a claim.
- Be careful with the breed of dog you own.Some breeds considered to be more dangerous may increase the cost of your premium significantly, while others may even reject your application
- If you are buying a house, choose it carefully.A brick house or a house located near a hydrant will require a lower premium. A single-family house or a house located on a busy road will require a higher premium.
What are the exclusions from common homeowners insurance policies?
A common misconception about homeowners' policies is that almost every possible danger is covered once it occurs.
Unfortunately, that's not even close to the truth. Like any insurance policy, a homeowner's policy only covers the risks specifically listed in the policy.
Common exclusions from a homeowner's insurance policy include:
- Damage caused by earthquakes and floods. They may be covered by insurance but will require separate policies.
- Terrorist acts or wars.
- Pest infestations, probably because they are considered a maintenance problem and therefore you are responsible for them.
- Any damage to your property caused by you, your family members or pets.
- Damage resulting from illegal activity or criminal conduct.
- Damage resulting from gross negligence. This can include anything from improper home maintenance to lighting an outdoor grill in the living room.
- Home business risks not covered by the policy.
- The dangers of keeping toxic materials on your property.
- This is only a partial list of common exceptions. Ask your insurance company for a complete list.
If there are any risks that you think are likely in your future, you can insure yourself against them as long as you take action before the fact.
Do I need home insurance if I don't have a mortgage?
There is no legal obligation to maintain title insurance on your property. However, if you have a home equity loan, whether it is a home equity loan or a home equity line of credit, the lender will require you to have a policy.
This will require the policy to be detailed and meet certain minimum coverage limits. But even if you don't have a mortgage, you should have home insurance.
If you don't and your home is damaged or destroyed, you will have to repair or replace it at your own expense. And if you can't, you may have to literally "sell" it - or what's left of it.
However, the biggest problem lies with personal responsibility. If someone is injured in your home, you will be personally responsible for paying for medical and other damages.
The personal liability section of your policy covers you if this happens. But without home insurance, you'll still have to cover these costs out of your own pocket.
And if the liability is high enough and you do not have the funds to pay it, bankruptcy may be the only option. And only if your state's laws allow for personal injury relief.
They usually don't!