Most “best homeowners insurance” lists rank companies by who offers the cheapest quote for a hypothetical 35-year-old in Ohio. That tells you almost nothing about whether a carrier will actually rebuild your kitchen after a fire or fight you on a roof claim for six months.
We took a different approach. We reviewed 15 of the largest homeowners insurance companies in the United States and scored each one across six weighted categories: coverage options (25%), pricing and value (20%), claims experience (20%), customer service (15%), discounts and savings (10%), and digital experience (10%). The data comes from J.D. Power satisfaction studies, NAIC complaint records, AM Best financial strength ratings, state insurance filings, and thousands of consumer reviews across platforms like ConsumerAffairs, Trustpilot, and the BBB.
The result is a ranking based on what your insurer actually does when it matters, not what it promises on a landing page. Every company below was fact-checked, scored, and reviewed independently.
Best Homeowners Insurance
Amica Homeowners Insurance
Amica is the rare insurer that leads in nearly every category we measure. The company has ranked #1 in J.D. Power's Home Insurance Study for 17 consecutive years, with a 2025 score of 705 out of 1,000. Its NAIC complaint index of 0.37 is the lowest among all major carriers, meaning it generates a fraction of the complaints you would expect for its size. And unlike many top-rated insurers that charge a premium for quality, Amica's average annual premiums of $1,428 to $1,510 come in well below the national average of $2,110 to $2,543. That combination of satisfaction, claims handling, and pricing is unmatched.
As a mutual company, Amica is owned by its policyholders rather than shareholders, and the difference shows up in the dividend policy. Depending on your state, you can choose a dividend-eligible plan that returns 5% to 20% of your premium annually, effectively lowering your already-competitive rate even further. The Platinum Choice tier upgrades your coverage to an HO-5 open-peril policy with 130% dwelling replacement cost, water backup, and enhanced electronics coverage all built in.
The tradeoff is scale. Amica holds just 0.71% of the homeowners market and operates without local agents, so everything runs through phone and web. AM Best also revised Amica's outlook to negative in February 2024, though the A+ (Superior) rating itself remains intact. For homeowners who want the strongest track record of customer satisfaction paired with below-average pricing, Amica is our pick for the best overall homeowners insurance.
- 17-Year #1 Streak: Ranked first in J.D. Power's Home Insurance Study every year since 2008, with a 2025 score of 705/1,000.
- Below-Average Pricing: Average premiums of $1,428 to $1,510 per year, well under the national average of $2,110 to $2,543.
- Dividend Policies: Choose a dividend-eligible plan and receive 5% to 20% of your premium back annually in most states.
- Platinum Choice HO-5: Open-peril personal property coverage with 130% dwelling replacement cost and built-in water backup.
- Lowest Complaint Rate: NAIC complaint index of 0.37, the lowest of any major carrier we reviewed.
Lemonade Homeowners Insurance
Lemonade has built the fastest and most intuitive homeowners insurance experience in the market. You can get a quote in 90 seconds, purchase a policy in under five minutes, and file a claim that gets paid in as little as three seconds. About a third of all claims are handled entirely by AI with no human intervention, and the app is genuinely well-designed. If you have ever dreaded calling an insurance company, Lemonade is the antidote. The Giveback program adds a unique twist: unclaimed premiums get donated to a nonprofit you choose when you sign up, which has distributed millions to 45 organizations as of 2025.
The catch is that Lemonade's speed and simplicity come with real gaps in reliability. The NAIC complaint index of 3.85 is nearly four times the industry baseline, which means policyholders file complaints at a rate far higher than expected. The AM Best rating of B+ (Good) sits well below the A+ and A++ grades carried by established carriers. And the company operates in just 29 states plus D.C., with limited discount options and no local agents for complex claims situations.
For tech-savvy first-time homeowners with lower-value properties who want affordable coverage they can manage entirely from their phone, Lemonade delivers an experience no traditional carrier can match. But if claims reliability and financial strength are your top priorities, a more established insurer is the safer bet.
- 90-Second Quotes: Get a quote in 90 seconds, buy a policy in minutes, and file claims that can be paid in as little as 3 seconds.
- AI-Powered Claims: About one-third of all claims are handled instantly by AI with no human involvement required.
- Affordable Starting Rates: Policies start at roughly $25 per month, making Lemonade one of the most budget-friendly options available.
- Giveback Program: Unclaimed premiums are donated to a nonprofit of your choice, with millions distributed to 45 organizations to date.
- Available in CA and TX: Lemonade continues writing new policies in states where several major carriers have pulled back.
State Farm Homeowners Insurance
State Farm is our pick for bundling because no other carrier matches the combination of a 25% multi-policy discount, below-average base pricing, and the largest agent network in the country. The average homeowners premium of roughly $2,133 per year already sits 17% below the national average of $2,584, and stacking the bundling discount on top can push total savings past $1,000 annually when you combine home and auto. With 19,200 agent offices across 48 states and D.C., switching your policies over is as simple as walking into the nearest office.
The standard policy comes with built-in extras that competitors typically charge for. Inflation guard adjusts your dwelling coverage automatically as construction costs rise, extended replacement cost adds 20% above your policy limit if rebuilding runs over budget, and personal property replacement cost is included at no additional charge. A 93.4% renewal rate and 89.4% trust score (the highest among ranked companies excluding USAA) reflect long-term customer loyalty that backs up the numbers.
The weak spot is claims. State Farm's J.D. Power claims score of 661 out of 1,000 falls below the industry average of 682, and only 30% of claimants reported being completely satisfied. The company is also not writing new policies in California, Massachusetts, or Rhode Island. But for homeowners looking to consolidate their insurance under one roof and maximize multi-policy savings with a trusted national brand, State Farm is the most cost-effective bundling option available.
- Up to 25% Bundling Discount: One of the highest multi-policy discounts in the industry, potentially saving $1,000+ per year on home and auto.
- Below-Average Base Pricing: Average annual premium of $2,133 for a $300K dwelling, 17% below the national average of $2,584.
- Valuable Built-In Coverage: Inflation guard, extended replacement cost (20% above limit), and personal property replacement cost included standard.
- 19,200+ Agent Offices: The largest agent network in the country for face-to-face service in 48 states plus D.C.
- AM Best A+ (Superior): Exceptional financial strength backed by a $145.2 billion net worth and 96+ million policies in force.
USAA Homeowners Insurance
USAA delivers the strongest combination of claims handling, pricing, and customer satisfaction of any homeowners insurer we reviewed. The J.D. Power claims score of 746 out of 1,000 is the highest of any company in the 2025 study, and 87% of members rate their claims handling favorably. Pricing is equally impressive: annual premiums of $1,243 to $1,954 for a $300,000 dwelling come in 24% to 49% below the national average, depending on the source. The company returned $3.7 billion to members in 2025 through dividends, discounts, and rewards. As a mutual association, every dollar goes back to members rather than shareholders.
The military-specific benefits set USAA apart from every other carrier. Coverage includes deductible-free protection for military gear and uniforms, up to $10,000 for belongings destroyed in a war zone, and a wildfire response program that deploys certified firefighters to protect eligible homes. The AM Best A++ rating (the highest possible) is backed by $32.1 billion in net worth and $221 billion in total assets, making USAA one of the most financially secure insurers in the country.
The limitation is eligibility. USAA is available only to active-duty military, veterans with honorable discharge, and qualifying family members. There are no local agents, and the bundling discount caps at around 10%, which is modest compared to State Farm's 25%. But for anyone who qualifies, USAA is the best homeowners insurance available. If you are eligible and insured elsewhere, it is worth getting a quote.
- Best Claims in the Industry: J.D. Power claims score of 746/1,000, the highest of any company, with 87% of members rating claims handling favorably.
- Well Below Average Pricing: Annual premiums of $1,243 to $1,954, coming in 24% to 49% below the national average of $2,584.
- $3.7 Billion Returned in 2025: Member dividends, discounts, and rewards distributed to policyholders throughout the year.
- Military-Specific Coverage: Deductible-free gear protection, war zone belongings coverage up to $10,000, and a wildfire response program.
- AM Best A++ (Superior): The highest possible financial strength rating, supported by $32.1 billion in net worth.
Travelers Homeowners Insurance
Travelers earns our pick for California homeowners because it combines the highest possible financial strength with competitive pricing in a state where options are shrinking fast. While State Farm has stopped writing new policies in California and several other carriers have scaled back, Travelers continues to offer coverage through its network of independent agents. The AM Best A++ (Superior) rating, shared by only a handful of carriers, signals the financial muscle to absorb catastrophic losses. That matters in a state where wildfire risk has driven billions in insured losses in recent years.
The three-tier policy structure gives California homeowners real flexibility. The base Protect tier covers standard HO-3 needs, Protect Plus adds water backup, equipment breakdown, and identity fraud protection up to $25,000, and the top-tier Protect Premier includes extended replacement cost and higher sub-limits. The green home discount of up to 5% for LEED-certified properties and eco-friendly rebuilding endorsement are a nice fit for the California market. Annual premiums of $2,055 to $2,330 for a $300,000 dwelling sit at or below the national average.
The downsides are worth noting. Travelers' J.D. Power claims score of 678 out of 1,000 falls slightly below the industry average of 682, and NAIC complaints have trended upward over the past three years. California policies are sold exclusively through independent agents, with no direct option. But for homeowners in a state where finding reliable coverage is becoming harder by the year, Travelers' financial strength, availability, and competitive pricing make it a strong choice.
- AM Best A++ (Superior): The highest possible financial strength rating, critical for California's wildfire-prone market.
- Three Policy Tiers: Protect, Protect Plus, and Protect Premier offer increasing levels of coverage to match your needs.
- Competitive Pricing: Average annual premiums of $2,055 to $2,330, at or below the national average for a $300K dwelling.
- Green Home Benefits: Up to 5% discount for LEED-certified homes plus an eco-friendly rebuilding endorsement.
- Identity Fraud Protection: Up to $25,000 in identity fraud coverage included with Plus and Premier tiers.
Chubb Homeowners Insurance
Chubb is the gold standard for homeowners insurance if you own a high-value property and want the most comprehensive coverage available. The Masterpiece homeowners policy includes guaranteed replacement cost with no cap on rebuilding expenses, cash settlement options, and built-in protections that most carriers sell as expensive add-ons. Where a typical HO-3 policy leaves gaps for water backup, equipment breakdown, and identity theft, Chubb covers all of these as standard. The company also offers up to $100 million in personal liability coverage, which is unmatched in the industry, and private flood insurance up to $15 million for properties where NFIP limits fall short.
The claims data backs up the premium positioning. Chubb earned the #1 spot in J.D. Power's 2025 Property Claims Satisfaction Study with a score of 773 out of 1,000, and its NAIC complaint index of 0.12 is the lowest of any carrier we reviewed. That means Chubb receives roughly one-eighth the complaints you would expect for a company its size. Its AM Best A++ (Superior) rating, the highest possible, confirms the financial strength to pay large and complex claims without hesitation.
The tradeoff is cost. Chubb premiums run 2x to 3x higher than standard carriers, and the Masterpiece policy targets homes valued at $1 million and above. The digital experience also lags behind competitors, with no online quoting and limited self-service tools. But for homeowners who want the broadest coverage, the strongest claims track record, and an insurer that will write a check instead of fighting over depreciation schedules, Chubb is the clear top choice.
- Guaranteed Replacement Cost: Full rebuild coverage with no cap on expenses, including extended replacement for cost overruns due to code upgrades or material shortages.
- Best Claims Record: #1 in J.D. Power Property Claims (2025) with an NAIC complaint index of 0.12, the lowest of any carrier we reviewed.
- Unmatched Liability Limits: Personal liability coverage available up to $100 million, plus private flood insurance up to $15 million.
- AM Best A++ (Superior): The highest possible financial strength rating, held by fewer than 4% of rated carriers nationwide.
- HomeScan Loss Prevention: Free risk assessment service that identifies vulnerabilities in your home before they become claims.
How to Choose Homeowners Insurance
Picking the right homeowners policy comes down to five decisions. Getting them right saves you money and prevents gaps in coverage that only surface after something goes wrong.
Understand What You Actually Need to Insure
Your dwelling coverage should reflect what it would cost to rebuild your home from the ground up at current construction costs, not what you paid for the house or what it would sell for today. These are different numbers. A home you bought for $350,000 might cost $425,000 to rebuild due to rising labor and materials costs. Some carriers (Erie, Chubb) offer guaranteed or extended replacement cost that covers the full rebuild regardless of your coverage limit. Others cap it at 120% to 125%. Know which type you have.
Personal property coverage should account for everything inside your home. Most people underestimate this. Walk through your house and mentally add up what it would cost to replace your furniture, electronics, clothing, kitchen equipment, and other belongings. If the total exceeds your default personal property limit (usually 50% to 70% of dwelling coverage), you need to increase it or schedule high-value items separately.
Compare Equivalent Coverage, Not Just Premiums
The most common mistake homeowners make is comparing quotes at face value. A $1,600 policy and a $2,200 policy look $600 apart until you realize the cheaper one excludes water backup, uses actual cash value for contents (meaning depreciated payouts), and caps replacement cost at 80% of your dwelling limit. When you add the endorsements needed to match the more expensive policy, the gap shrinks or disappears entirely.
When collecting quotes, make sure every carrier is quoting the same dwelling amount, deductible, liability limit, and coverage features. Ask specifically about replacement cost methodology, water backup, and any coverage exclusions.
Check the Claims Data, Not Just the Marketing
A carrier’s claims reputation is the single most important factor that does not show up on a quote comparison. J.D. Power’s annual property claims study and NAIC complaint data are the two best public sources. J.D. Power surveys thousands of policyholders who recently filed claims. The NAIC complaint index tells you how many complaints a carrier receives relative to its market size (1.0 is average; below is better).
In our review set, NAIC complaint indices ranged from 0.12 (Chubb) to 4.45 (Hippo’s underwriter Spinnaker). That spread represents a massive difference in how these companies treat policyholders after a loss. The quote is a promise. The claims data tells you whether the company keeps it.
Bundle Strategically
Bundling home and auto insurance is the single largest discount available from most carriers. In our reviews, bundling discounts ranged from 20% (The Hartford) to 40% (American Family). That translates to hundreds of dollars per year in savings.
But bundling is only worth it if both policies are competitive on their own. Saving 25% on a homeowners policy that was overpriced to begin with is not a deal. Get standalone quotes for both home and auto from multiple carriers, then compare the bundled total against the best individual quotes.
Reassess Every Two to Three Years
Homeowners insurance is not a set-it-and-forget-it purchase. Carriers change their pricing, coverage terms, and claims practices over time. Your home’s replacement cost changes as construction costs fluctuate. And your personal situation (renovations, new belongings, life changes) may require coverage adjustments.
Pull fresh quotes every two to three years, even if you are happy with your current carrier. You may find that a competitor offers better coverage at a lower price, or that your current carrier’s rates have crept up without a corresponding improvement in service.
Types of Homeowners Insurance Policies
Not every home is covered the same way. The policy form you need depends on your property type and how much protection you want.
HO-3 (Special Form): The most common homeowners policy. Covers your dwelling against all perils except those specifically excluded (like flood and earthquake). Personal property is covered on a named-peril basis, meaning only the risks listed in the policy are covered. This is the standard product from every carrier in our review set.
HO-5 (Comprehensive Form): An upgraded version of HO-3 that extends open-peril coverage to personal property as well as the dwelling. Fewer exclusions, broader protection. Amica’s Platinum Choice policy is an example. Typically costs 5% to 10% more than HO-3.
HO-1 (Basic Form): A bare-bones policy that covers only 10 named perils. Rarely sold today and not recommended. Most carriers in our review set do not offer it.
HO-2 (Broad Form): Covers 16 named perils for both dwelling and personal property. More protection than HO-1 but less than HO-3. Available from some carriers for budget-conscious homeowners.
HO-4 (Renters Insurance): For tenants. Covers personal property and liability, but not the building structure.
HO-6 (Condo Insurance): For condo owners. Covers the interior of your unit, personal property, and liability. The condo association’s master policy typically covers the building exterior and common areas.
HO-7 (Mobile Home): For manufactured or mobile homes. Similar structure to HO-3 but adapted for mobile and modular construction.
HO-8 (Older Home): For homes where replacement cost significantly exceeds market value, often historic properties. Pays on an actual cash value or functional replacement cost basis rather than full replacement cost.
What Does Homeowners Insurance Cover?
A standard HO-3 homeowners policy includes six core coverages. Understanding what each one does (and does not do) helps you avoid gaps.
Dwelling coverage (Coverage A) pays to repair or rebuild your home’s structure after a covered loss. This includes the roof, walls, floors, built-in appliances, and attached structures like a garage. It does not cover the land your home sits on. Your dwelling limit should reflect the full cost to rebuild at current construction prices.
Other structures coverage (Coverage B) covers detached structures on your property: fences, sheds, detached garages, pools, and guest houses. Typically set at 10% of your dwelling coverage amount. If you have significant detached structures, you may need to increase this.
Personal property coverage (Coverage C) pays to repair or replace your belongings if they are damaged or destroyed by a covered peril. Furniture, electronics, clothing, appliances, and other personal items are included. Standard limits are usually 50% to 70% of dwelling coverage. High-value items like jewelry, art, and collectibles often have sub-limits ($1,500 to $3,000) and may need scheduled coverage for full protection.
Loss of use coverage (Coverage D) pays for additional living expenses if your home is uninhabitable after a covered loss. This includes hotel costs, restaurant meals, and other expenses above your normal cost of living while your home is being repaired.
Personal liability coverage (Coverage E) protects you if someone is injured on your property or you accidentally damage someone else’s property. Standard limits start at $100,000, but most experts recommend at least $300,000 to $500,000. An umbrella policy can extend this further.
Medical payments coverage (Coverage F) pays medical bills for guests who are injured on your property, regardless of fault. Limits are typically $1,000 to $5,000. This is designed to cover minor injuries without requiring a lawsuit.
Common Exclusions
Standard homeowners policies do not cover flood damage (requires a separate policy through the NFIP or a private insurer), earthquake damage (available as an add-on from some carriers), normal wear and tear, pest or rodent damage, mold (unless caused by a covered peril), or intentional damage. Sewer backup and water damage from gradual leaks are also commonly excluded, but can often be added as endorsements.
How Much Does Homeowners Insurance Cost?
The national average homeowners insurance premium is approximately $2,300 to $2,600 per year for $300,000 in dwelling coverage, depending on the source and methodology. But averages are misleading because premiums vary dramatically based on where you live, what your home looks like, and which carrier you choose.
What Affects Your Rate
Location is the biggest factor. States with high catastrophe risk (Florida, Louisiana, Texas, Oklahoma) have significantly higher premiums than low-risk states (Vermont, Maine, New Hampshire). Within a state, your proximity to the coast, fire zones, and flood plains all matter.
Home characteristics include age, construction type, roof material and condition, square footage, and the presence of safety features like smoke detectors, sprinkler systems, and security alarms. Newer homes with impact-resistant roofs and modern electrical systems generally cost less to insure.
Coverage level directly affects premium. Higher dwelling limits, lower deductibles, and additional endorsements (water backup, scheduled jewelry, identity theft) all increase cost. Choosing a higher deductible ($2,500 vs. $1,000) is one of the most effective ways to lower your premium.
Claims history matters at both the individual and property level. If you have filed claims in the past three to five years, expect higher rates. Some carriers also check the claims history of the property itself through the CLUE (Comprehensive Loss Underwriting Exchange) database.
A credit-based insurance score is used by most carriers in most states to help set rates. A higher score generally means a lower premium. California, Maryland, Massachusetts, Hawaii, Michigan, and Oregon restrict or prohibit the use of credit scores in insurance pricing.
How to Save
The most effective ways to reduce your homeowners insurance premium are bundling home and auto (saves 20% to 40%), raising your deductible (from $1,000 to $2,500 can save 10% to 25%), installing safety and security devices (saves 2% to 15%), maintaining a claims-free record, and shopping around every two to three years to ensure your rate is competitive.
How We Chose the Best Homeowners Insurance Companies
We evaluated 15 carriers using a weighted scoring system built around the six factors that matter most to homeowners. Each company received a score out of 5.0 in every category, and we calculated a weighted average to produce a final rating.
Coverage options carry the most weight (25%) because the depth of your policy determines whether you are actually protected or just paying premiums for a false sense of security. We looked at what each carrier includes as standard in its base HO-3 policy, what requires an add-on, and how the optional endorsements compare across carriers. Guaranteed replacement cost, water backup, service line coverage, and identity theft protection are all differentiators here.
Pricing and value (20%) and claims experience (20%) share the next tier. For pricing, we compared premiums across standardized $300,000 dwelling amounts and adjusted for what that price actually buys. For claims, we used J.D. Power’s property claims satisfaction scores, NAIC complaint indices, and consumer reviews to assess how carriers perform when policyholders file claims.
Customer service (15%) reflects how easy it is to interact with your insurer day to day. Discounts and savings (10%) measure the variety and depth of available discounts. Digital experience (10%) evaluates app quality, online quoting, and self-service tools.
For a full breakdown of our methodology, data sources, and scoring approach, read our homeowners insurance review methodology.
Frequently asked questions
Answers to your questions about finding the best homeowners insurance.
Based on our review of 15 carriers, Chubb, Amica, and USAA earned the highest overall ratings (4.5/5). Chubb offers the most comprehensive coverage and best claims data. Amica is the strongest all-around carrier with 17 years of #1 J.D. Power rankings and dividend policies. USAA is the best option for military families. The best carrier for you depends on your state, home value, coverage needs, and whether you qualify for carriers with restricted eligibility (USAA requires military affiliation; The Hartford requires AARP membership).
Your dwelling coverage should equal the estimated cost to fully rebuild your home at current construction prices. This is not the same as your home’s purchase price or market value. Your insurance agent or carrier can help estimate replacement cost based on your home’s square footage, construction type, and local labor and materials costs. Most experts also recommend at least $300,000 in personal liability coverage and enough personal property coverage to replace all of your belongings.
Not usually. The cheapest policy often comes with lower coverage limits, actual cash value (depreciated) payouts for personal property, higher exclusions, and less favorable claims handling. A slightly more expensive policy with guaranteed replacement cost, water backup coverage, and a carrier with strong claims data (low NAIC complaints, high J.D. Power scores) is almost always a better value than saving $200 per year on a policy that underpays your claim by $20,000.
Standard policies exclude flood damage, earthquake damage, normal wear and tear, pest damage, mold (unless from a covered peril), and intentional damage. Sewer backup and gradual water damage are also commonly excluded, but can often be added as endorsements. If you live in a flood zone, you need a separate flood policy. If you live in an earthquake-prone area, ask your carrier about earthquake endorsements.
Every two to three years, or whenever you experience a major life change (renovation, new belongings, change in household members). Insurance pricing is dynamic, and carriers adjust their rates regularly based on claims experience, reinsurance costs, and competitive positioning. A carrier that was the best deal three years ago may no longer be competitive today.
Yes. You can switch carriers at any time, though the most common time is at policy renewal. If you switch mid-term, your current carrier will refund the unused portion of your premium on a pro-rata basis. Make sure your new policy is active before canceling the old one to avoid a coverage gap, and notify your mortgage lender of the change.
The NAIC (National Association of Insurance Commissioners) complaint index measures how many complaints a carrier receives relative to its market share. A score of 1.0 means the carrier received exactly the expected number of complaints for its size. Below 1.0 is better than average. Above 1.0 is worse. In our review set, scores ranged from 0.12 (Chubb, best) to 4.45 (Hippo’s underwriter Spinnaker, worst). This is one of the most reliable public indicators of how a carrier treats its policyholders.
Replacement cost coverage pays what it costs to replace or repair damaged property with new materials of similar quality. Actual cash value (ACV) pays the replacement cost minus depreciation. For example, if your 10-year-old roof is destroyed, the replacement cost pays for a new roof. ACV pays for a new roof minus 10 years of depreciation, which could be 30% to 50% less. Replacement cost is almost always worth the slightly higher premium.
