Best And Worst Homeowners Insurance Companies

Homeowners insurance is a great way of protecting your house against burglary and damages.

Homeowner’s insurance generally covers the interior and exterior of a house. In the case of destruction or theft, the insurance policy covers the cost of possessions lost or damaged, personal liability, and the repair cost of the house’s exterior like roof or drainage.

Different coverage options determine the policy’s overall cost and the monthly premiums that are to be paid. Of course, regular payment of premiums is essential to keep the policy in force and to ensure coverage of the house.

Introduction

It gets so much easier when people know the best and worst homeowners insurance companies- because people can know what to expect from their homeowners coverages and they can steer clear of fake companies and insurance frauds.

With so much competition arising in America every day, we see so many insurance companies at our disposal with the most attractive insurance policies at competitive rates.

Best Home Insurance Policy

There are different coverage options that policyholders can choose from, depending on their requirements and the ability to afford premiums.

Generally, the best homeowner’s insurance policy covers:

Loss of personal belongings: Whatever is damaged in the house or lost due to incidents beyond control, will be covered by the policy. Make sure to keep a list of all items and cash receipts, so it is easier for you to claim.

For instance, you’re out on vacation, and you come home to see that your house was broken into. Several of your possessions were stolen like TV, laptops, cameras, jewelry, etc. The cost of reviving all those items will be covered in the policy.

Liability to other people: If someone is injured because of your negligence or on your property, you will have to pay for their medical expenses. The insurance company will pay any unintentional damage that you cause to other people or their property.

For instance, your dog gets loose and runs around the neighborhood biting a child. The parents will make you pay for the medical treatments of the child.

There are a couple of other coverage options such as:

Coverage Type What it does Typical Amount
Dwelling Covers damage to the home and attached structures, such as a porch. Enough to rebuild your home.
Other structures Covers stand-alone structures on your property, such as a fence or shed. 10% of dwelling coverage.
Personal property Pays to repair or replace belongings that are stolen or damaged in a covered event. 50% to 70% of dwelling coverage.
Additional living expenses Helps pay temporary living expenses while your home is being repaired. 20% of dwelling coverage.
Medical payments Pays to treat someone injured on your property, regardless of who’s at fault. Also pays if you, a family member or a pet injures someone elsewhere. $1,000 to $5,000.

Best Homeowners Insurance Rates

Geography plays an essential role while deciding the best rates of homeowner’s insurance. The rates vary from every State in the country; find out what rate of insurance you will have to pay based on your location.

State Average Annual Premium
Alabama $1,116
Alaska $1,002
Arizona $966
Arkansas $1,091
California $966
Colorado $994
Connecticut $1,058
Delaware $1,172
District of Columbia $1,047
Florida $1,117
Georgia $1,137
Hawaii $977
Idaho $966
Illinois $924
Indiana $906
Iowa $918
Kansas $908
Kentucky $1,106
Louisiana $1,108
Maine $989
Maryland $1,212
Massachusetts $1,031
Michigan $919
Minnesota $951
Mississippi $1,099
Missouri $897
Montana $948
Nebraska $907
Nevada $933
New Hampshire $1,049
New Jersey $1,052
New Mexico $949
New York $952
North Carolina $1,118
North Dakota $906
Ohio $895
Oklahoma $1,114
Oregon $950
Pennsylvania $1,003
Rhode Island $982
South Carolina $1,126
South Dakota $898
Tennessee $1,118
Texas $1,140
Utah $1,025
Vermont $1,004
Virginia $1,181
Washington $986
West Virginia $1,101
Wisconsin $903
Wyoming $966

Most Expensive States for Homeowners Insurance

According to the data, these are the home insurance rates with the most expensive States.

State Average Annual Premium
Maryland $1,212
Virginia $1,181
Delaware $1,172
Texas $1,140
Georgia $1,137

Cheapest States for Homeowners Insurance

Advertisement

These are the cheapest States for homeowners insurance.

State Average Annual Premium
Ohio $895
Missouri $897
South Dakota $898
Wisconsin $903
Indiana $906

Best Homeowners Insurance Companies

The best homeowners insurance companies of 2020 are:

  • Amica Mutual
  • Allstate
  • Geico
  • Metlife
  • USAA
  • Chubb

Who is the Best Insurance Company for Home And Auto?

  • Amica
  • Auto-Owners
  • Chubb
  • Hippo
  • Nationwide
  • State Farm
  • Travelers
Advertisement
Insurance Company Pros Coverage Discounts Best for
Amica Mutual -Easy and fast claims handling process

-Affordable policy rates

-Industry-leading customer service and customer satisfaction

 

-Catastrophic coverage for protection (minus a deductible) that will cover flood or earthquake damage.

-Identity fraud expense coverage for protection against unauthorized use of your credit cards up to your coverage limit.

-Loss assessment plan for Condo owners who are responsible for shared sections of a property.

-Valuable items coverage (also called scheduled personal property coverage) for high-value items like jewelry, fine art or furs.

-Home business coverage for people who operate a business out of their home or remote workers.

 

-Multi-line discount

-Loyalty

-Autopay

Overall
Allstate -Easy-to-understand products and services

-Customizable coverage options

-Online educational tools

-Caters to first-time buyers

 

-Personal umbrella policies for protection against large liability claims when you reach the liability limit on your policy.

-Manufactured mobile home coverage for coverage on mobile homes and manufactured dwellings.

-Host advantage coverage to protect your belongings when you’re home sharing.

-Electronic data recovery pays for costs when recovering lost personal computer data

-An Allstate agent can help you purchase flood insurance through the National Flood Insurance Program.

 

-Welcome and loyalty discounts give customers 10% off their premiums for switching their coverage to Allstate.

-Customers can bundle their insurance policies and receive up to 25% off their premium.

-Homeowners who are over 55 and retired qualify for a discount on their home insurance.

-If your home has certain safety features, like theft and fire protective devices, you qualify for a discount.

 

Best for first-time home buyers

 

Geico -Very affordable rates

-Flexible policy options

-Wide availability

 

-Jewelry provides limited coverage ($500-$2,000) for stolen jewelry, though this amount can be increased or customized based on the value of your in-home collection.

-Medical bills covers minor injuries to others who are hurt on the property

-Additional expenses covers extra costs associated with a covered loss

 

-Bundling discounts are available for people who bundle their home and auto insurance policies with Geico.

-Home security systems discount for users who have burglar alarms, fire alarms, fire extinguishers or other in-home safety mechanisms in place.

Advertisement

 

Best for cheap coverage

 

Metlife -Guaranteed replacement coverage

-24/7 customer service

 

-Home replacement cost: This gives you the replacement cost instead of current value that would include depreciation.

-Personal property replacement costs: This gives the same kind of coverage found in home replacement coverage but for damaged or stolen personal property, such as furniture or electronics.

 

Policy bundling: People who have more than one policy with MetLife can save money.

-Safety discounts: Users who install anti-theft devices, fire alarm systems or locks in their homes are eligible for a discount.

-Employer group discounts: People who work for certain companies or have a membership with partner groups or associations can get discounts.

 

Best replacement coverage

 

USAA -Outstanding customer service

-High-quality coverage

-Affordable prices

 

-Loss of use

-Home sharing

-Other structures

-Earthquake coverage

-Replacement cost coverage

-Military uniforms are covered in the event of a loss

 

-Bundling discounts provide up to 10% savings on your homeowner’s insurance premium if you already have a USAA auto insurance policy.
-Protective device credit provides premium discounts if your home is equipped with security cameras, alarms or other devices.
-Claims-free discount gives customers that go five years without filing a claim 10% off their premiums. 
Best for military members

 

Chubb -Specializes in large policies

-Waives deductible when loss is more than $50,000

-Option for cash settlement after a loss

 

-Replacement cost
-Extended replacement cost
-Risk consulting
-Cash settlement
Additional living expenses
-Wildfire coverage
-Earthquake coverage 
-Bundling home and auto insurance with Chubb will lower your premium.

-Chubb offers a discount to homeowners who purchase jewelry and valuables coverages.

-Superior protection discounts are offered to homeowners who have one or more security measures, including security systems, security guards, perimeter gates or a backup generator.

 

Best for large policies

 

Note: Sample data has been extracted online, courtesy of BankRate.

What are the Worst Insurance Companies?

The worst homeowners insurance companies of 2020 are:

  • Conseco
  • WellPoint
  • Farmers
  • UnitedHealth
  • Torchmark
  • Liberty Mutual

Homeowners insurance companies are ranked worst on the basis of poor customer service, expensive policies for low coverage packages, inadequate coverage and unsatisfactory services.

Should you buy Homeowners Insurance?

Homeowners insurance is often a necessity asked to you by mortgage lenders. If they’re giving out a loan to you, they want to know what they’re investing in is protected. So one reason you need to buy insurance is that it is a requirement from your mortgage lender.

If you have a big expensive house that you have invested in, you probably want it to be in its excellent condition for many years. Expensive houses have expensive wear and tear! If you believe in this concept, then you need insurance because you probably won’t be able to afford to pay for theft or liability.

Homeowners insurance is often considered a necessity for most people because an insurance company is paying for emergencies! Just keep paying premiums on time to enjoy the benefits of the policy.

Conclusion

Buying homeowner’s insurance has become a necessity for most homeowners; they either want protection or it is a requirement from their mortgage lender. What if that house you love so much was caught up in a fire, and all your valuables and memories went up in flames? Or in case of a burglary, everything you’ve collected from your savings was gone in the blink of an eye?

It would take years and years of savings to revive all those things again and those too at the expense of earning day and night. What if the house had some protection and were free of the financial burden of a mishap or an emergency?

Insurance companies give such financial protection under the homeowner’s insurance policy. But in any case, you need to shop for the best homeowners insurance companies and steer clear of the worst insurance companies ranked by many credible publications.

John Otero

John Otero

John Otero is an industry practitioner with more than 15 years of experience in the insurance industry. He has held various senior management roles both in the insurance companies and insurance brokers during this span of time. He began his insurance career in 2004 as an office assistant at an agency in her hometown of Duluth, MN. He got licensed as a producer while working at that agency and progressed to serve as an office manager. Working in the agency is how he fell in love with the industry. He saw firsthand the good that insurance consumers experienced by having the proper protection. John has diverse experience in corporate & consumer insurance services, across a range of vocations. His specialties include Major Corporate risk management and insurance programs, and Financial Lines He has been instrumental in making his firm as one of the leading organizations in the country in generating sustainable rapid growth of the company while maintaining service excellence to clients.

Leave a Reply

Insurance Noon is the world's leading source of insurance related content on the web, focusing on industry news, buying guides, reviews, and much more.