6 Best Homeowners Insurance Companies

6 Best Homeowners Insurance Companies

What Is Homeowners Insurance?

Securing your home as an asset is one of the most important life decisions you will make.

Home insurance can protect you from financial ruin. The items in your home are always at risk of being either damaged or stolen.

The policy you sign up for determines if you are covered for theft, accidental damage, and flood and fire damage.

There are many different types of homeowners insurance, and which one is best for you depends on what you want from your policy.

Unlike motor vehicle insurance, homeowner insurance is a personal choice. You are not required by law to have it.

Despite this, it is a very popular investment, especially if your property is of high value.

If you do not have home insurance and you are a victim of a natural disaster or burglary, then you would have to recover the losses yourself.

This article gives you an overview of six of the best home insurance companies available. It will also outline what their policies offer so you can choose which one best suits your situation.

We will also discuss the differences in homeowner insurance. On the surface they all look very similar, but there are some key areas to examine before you choose a policy.

What Makes a Difference in Homeowners Insurance?

When you look for home insurance, you must consider various factors.

The cost, the suitability of the policy to your property, the level of cover and the company’s reputation are just some of the things that you need to look at.

Here are the major factors that make a difference in how you choose your homeowners insurance.

Level of Coverage

The level of coverage you want for your property will determine the price of the premium you pay.

If you want a comprehensive policy that covers the goods in the property and the property itself, it is likely you will have to pay more.

The area where you live also determines the level of coverage you can choose from.

For example, if you live in an area that is prone to flooding or forest fires, these will be factored into the level of coverage you can choose from.

These unique features are not common and inclusion of them in a policy will result in a higher premium cost.

According to a report run by the Insurance Information Institute in 2020, most insurance companies cover around 50% to 70% of the total infrastructure cost of your home.

Cost and Length of Subscription

Most insurance companies run on a year-by-year basis. Every 12 months customers have to renew their policy and make any appropriate changes.

These changes are dependent upon you and the property market. For instance, you may have new goods you want covered or you may want to expand the insurance to cover 100% of the infrastructure cost.

If an area has been subject to various natural disasters, it is also likely that premium costs will increase.

Inflation and the price of mortgages can also impact the cost of your policy.

If you are renting and do not have a clear idea on how long you will be staying in a property, you can opt for insurance on a month-by-month basis.

Bear in mind that this is more costly. Premiums generally reduce in price when you choose longer contracts.

You may also have the option of choosing a home insurance subscription package on a longer-term basis.

Choosing this option is often dependent on how far you are into your mortgage payments and the options offered by the insurance company.

These are not common, but they could save you a significant amount of money on your policy.

Add-on Policies

Your insurance company may offer other types of insurance policies. The additional services may also be offered at a discount price depending on the policy you have on your home.

It is likely you will be offered a discount on the extra services if you have been a loyal customer to a certain insurance broker.

If you have been taking out policies from one insurance company for a number of years, you are in a better position to discuss discounts.

Some of the other add-on policies include:

  • Motor vehicle insurance
  • Mobile phone insurance
  • Life insurance
  • Pet insurance
  • Holiday insurance

Ask your insurance broker about what services they offer and if you are entitled to any discounts. These may save you a lot of money in the long term.

Payment Methods

Depending on your living situation and how far you are into your mortgage payments, you may be able to pay off your policy in a way that suits your budget.

A company may offer you the opportunity to pay off your home insurance in one go. On the other hand, you may want to stick to monthly instalments.

It is worth checking if a company takes automatic payments. If you want a hassle-free experience, look out for this feature.

Discuss how you want to pay off your policy with your insurance company. In most circumstances you get a better deal if you pay off annual policies in one go, but this is a big financial commitment.

Choose a policy that fits with your monthly income and how you manage your finances.

Company Reputation

The reputation of an insurance company is critical for them maintaining business. If they have even just a small number of negative reviews, it is unlikely that they will attract many new clients and may even lose existing ones.

Check how an insurance company deals with their claims and the results of these claims.

It is also good to take note of how easy it is to take out a policy. If they have a good customer service network and are responsive, it is more likely that they will be able to handle any problems in the long term.

In contrast, if their customer service is poor, it is best to look elsewhere.

Sometimes you may have to pay more for a policy with a company who has a good reputation. However, this may protect you from any concerns you have in dealing with possible claims in the future.

Best Homeowners Insurance Companies
Best Homeowners Insurance Companies

Top 6 Home Insurance Companies

Now that we have broken down the factors that determine your choice in policy, let's look at the top six home insurance companies.

1. Liberty Mutual

Liberty Mutual offers insurance policies on your motor vehicle and your property.

The types of property insurance it offers is split into three categories:

  • Homeowners
  • Renters
  • Condo

You can also access a bundle policy where you get an insurance quote for both your vehicle and your property.

Liberty Mutual has an excellent reputation. It is ranked 71st in the Fortune 500 ranking of 2021 and is the sixth largest property and casualty insurer globally.

You can also access business insurance through Liberty Mutual. This is a great option for business owners who want to insure their office or warehouse space.

It offers an online calculator for your auto and home insurance so you can get access to a quote in just minutes.

On top of this, the bundle policy and online quotes through its website gets you access to a discount.

Liberty Mutual is a renowned company, and you can get quick access to trusted insurance services.

Visit Liberty Mutual

2. Insurify

Through Insurify you can quickly compare multiple insurance policies from different providers in one place.

The insurance policies are not just limited to homeowner policies. If you want to check the policies offered on your car and on life insurance, you can do this in one place.

Insurify has over 2,000 five-star reviews and has proven to be one of the best price comparison networks.

You are also entitled to all the bundles and discounts from using this one platform. Insurify makes taking out a policy easy.

On top of its insurance comparison tools, it offers numerous useful articles on insurance and credit, helping you increase your insurance knowledge and expertise.

Visit Insurify

3. USAA

USAA specialize in auto and home insurance. It also offers policies for renters, small business owners and valuable personal property.

If you want to take out a number of policies, you can opt in for a multiple-policy discount to get all these insurance quotes from the same company. This option means a streamlined service and makes your life much easier.

The home insurance options are incredibly detailed, and you can cover yourself and your home in various ways.

If you have a farm or a ranch, any valuable collectibles or even want to insure yourself against any lawsuits (umbrella policy), this can all be done via USAA.

It has been active as an insurance broker since 1922 and has strong links to corporate insurance as well.

USAA also offers comprehensive advice on all your insurance inquiries and tax policies. Its resource library is one of the best ways to learn about what insurance options suit you.

Visit USAA

4. Erie

Erie is a company that offers three areas of insurance:

  • Home
  • Auto
  • Small business

It also relies on repeat business and has a strong customer service network. Over 90% of customers who take out a policy stay on for more than a year.

Its insurance network expands to over 13,000 staff members and offers confidence that there will always be someone to help with your inquiries.

24/7 support is one of Erie’s staple offerings to assure return customers.

The company also offers add-ons such as flood insurance and personal valuable insurance.

If someone gets injured on your property from an accident or if there is any damage to the utility lines that provide electrical services to your house, Erie has these covered.

This insurance company thinks carefully about its clients and most of its options prioritize making your life as easy as possible.

Visit Erie

5. Lemonade

Lemonade Insurance touts itself as the best way of taking out insurance policies for the 21st century.

The insurance company has a 4.9-star review rating and happily displays what its clients think about the services it offers.

Through Lemonade you can get monthly subscriptions to home insurance from as little as $25 a month.

The company also offers pet insurance, rental insurance and goods insurance. If you need to take out an insurance policy for loved ones, Lemonade has an option for this too.

The average insurance quote takes just 90 seconds through Lemonade and just minutes to pay any claims up front.

For the speed of getting a policy, Lemonade cannot be beaten.

Visit Lemonade

6. State Farm

State Farm offers great services in insurance, banking and finance investment.

Although the company prioritizes car insurance, its bundle deals save customers a lot of money on their insurance policies.

Combining home insurance with its renowned auto insurance services usually results a saving of up to 17%.

It also offers insurance bundles with pets, Medicare supplement and even hospital income.

State Farm has over 19,000 agents across the US and the customer care is outstanding. It is ranked number one in customer satisfaction in auto insurance.

The services it offers are all accessible via its mobile app, which is available for iOS and Android.

Visit State Farm

Final Thoughts

Although homeowner insurance is not a legal requirement, it is one of the most important insurance packages you can get.

When you go on holiday or are away on business, you cannot do much to protect your property from accidental damage or burglary.

Home insurance is essential for anyone who has valuables or has a property they want to safeguard against unforeseen circumstances.

The six companies listed above offer some of the best home insurance packages and can save you that little bit extra on any other insurance policies you may have.


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