Top 8 Homeowners Insurance Companies — August 2023

Top 8 Homeowners Insurance Companies — August 2023

Discover peace of mind with the reliable coverage offered by top-rated Homeowners Insurance Companies.The right homeowner’s insurance protects your home, possessions and you financially. Home insurance costs are expected to rise this year. You’ll need to choose the right policy to get the most value for money.

The best insurance for your home is based on a comparison of average premiums, complaints and the coverage offered by large companies across the country.

What is the best home insurance policy?

You can reduce your insurance costs by finding the right homeowners policy. It will also give you the financial security you require if and when you ever need to make a claim.

Find the right home insurance by following these tips.

Calculate the amount of coverage you need

You can adjust each coverage to suit your needs. Then, you can add extra coverage to that foundation if necessary. This is what it might look like.

Coverage for dwellings

How much coverage is needed for your dwelling depends on how expensive it will be to rebuild. The amount of coverage you need should be determined by the local costs for construction and materials. You can get an estimate from your home insurance provider for how much coverage you require. It’s difficult to calculate the amount yourself.

If available, you may want to purchase additional coverage such as guaranteed or extended replacement cost coverage.

• Extended Replacement Cost Coverage adds a financial cushion if your home needs to be rebuilt, for example after a house fire. Your insurer might offer you an additional 20% in dwelling coverage, for example, if the base amount of your policy isn’t enough to rebuild.
• Coverage for guaranteed replacement costs ensures that your insurance policy provides enough coverage to replace your house, no matter the price.

Coverage of the contents

The contents coverage pays for personal belongings that are stolen or damaged and covered under your homeowners insurance policy. Calculating how much insurance you require is easy if you create a inventory of your home. It’s possible that you would also like to include “replacement costs” in your coverage. The replacement cost coverage reimburses the costs of brand new goods, unlike the actual cash value, which only pays the depreciated values of damaged items.

Liability insurance

If you are sued for someone else’s injury or damage to property that falls under your homeowners insurance, liability insurance will pay out. It is important to purchase enough liability insurance to protect from what could be taken away in a suit.

Coverage for Additional Living Expenses (ALE)

ALE will reimburse you for any extra expenses incurred if your insurance company has covered a home-related problem that prevents you from living at home.

The policy also covers extra expenses for living if you have to evacuate due to a fire, even if the home itself isn’t damaged.

The insurance companies set ALE at a certain percentage, like 20% of the dwelling coverage. However, you can purchase more coverage if needed.

Coverage types

The home insurance policy does not cover every problem you might encounter. Fill in the gaps with coverage such as flood, earthquake, sump and water overflow, or breakdown of home systems.

Compare Home Insurance Quotes

Comparing quotes for homeowners’ insurance from different insurance providers is the next step. You can find the best homeowners’ insurance by comparing quotes. Comparing quotes is a good way to find the best deal on homeowners insurance.

Online or via an agent, you can obtain free quotes for home insurance. You can get a free online home insurance quote by visiting the website of an insurance provider or a site that provides multiple quotes.

Another option is to use an insurance agent. Independent insurance agents can provide you with quotes from several companies. An “exclusive” agent is only affiliated with one company.

Home Insurance Discounts

Many homeowners insurance companies provide discounts to reduce the cost of your policy. Discounts on home insurance include:

• Discount for not having filed a claim on your home insurance within the past few years.
• Discount for disaster preparedness: When you take steps to safeguard your home from natural disasters. If you are in an area that is prone to hurricanes, this may mean installing shatterproof windows and storm shutters.
• Discounts for employment, associations and organizations: Depending on the insurer, your profession, affiliations or interests could result in savings on insurance.
• Discounts for full payment of insurance policies or switching to paperless.
• Discount for multiple-homes: When you bundle policies from the same provider, you will save money if you own more than one home.
• Discount for multiple insurance policies Also known as bundling discounts: When purchasing several policies with the same insurer, including home, auto and renters’ insurance, or even life in certain cases.
• Discount for a newly renovated or new home: Insurance companies offer discounts in such cases because they view the home as less risky. To qualify for the price reduction, you must usually upgrade your wiring and plumbing.
• Age of roof discount: An older roof is less likely to cause a claim.
• Security and safety discounts: Home security and fire protection devices such as burglar alarms, smoke alarms and sprinklers are not just for protecting your house. These devices can also lead to discounts on home insurance. You can get the most out of your discount by letting insurers know what you have done.

Home Insurance: Other Choices

Standard home insurance policies are a good foundation for many common issues. Consider the following options to build a comprehensive policy.

Schedule high-value products

Insurance companies will pay up to certain amounts for specific items such as jewelry. A standard policy for home insurance usually includes a sub-limit of $1,500 to cover jewelry theft. Consider “scheduling”, to properly insure your valuable items. When you Schedule Personal Property, you can insure each item separately at their full value. The coverage of your home insurance will then cover all other items, like clothes, kitchenware, rugs, etc.

Purchase replacement value instead of cash value insurance

ACV is a reimbursement for the depreciation of an item. Replacement costs pay to replace an old item with a new one. A 10-year-old television that has been destroyed by fire is eligible for coverage. You would then be reimbursed for the 10-year-old television under ACV. If you want the best homeowner’s insurance, choose Replacement Cost Coverage instead of Actual Cash Value Coverage.

Purchase endorsements to fill in specific gaps

Add-ons allow you to customize your policy, and they can fill any gaps in coverage. Some insurance companies offer increased coverage, for example, in the event of a tree or shrub, if your home system fails, or if you have flooded water.

Purchase insurance against specific natural catastrophes

The best insurance policies can be ruined by natural disasters such as earthquakes, floods or landslides. Standard home insurance doesn’t cover these problems. You should consider where you live when deciding whether to buy seismic insurance or flooding insurance.Secure your home with the trusted protection of leading Homeowners Insurance Companies.

Best Homeowners Insurance Companies

Here are the best homeowners insurance companies:

• American Family — Great for Extended Coverage for Dwellings
• Nationwide — Great for High-Value Homes
• USAA — Best for Military and Veterans
• Westfield — Best for Price
• Chubb — Best for High Liability Limits
• Erie — Great for Coverage Perks
• State Farm — Great for Bundling Auto and Home Insurance
• Farmers — Good for Extended Coverage for Dwellings

What does home insurance cover?

Your home, as well as other structures like fences or barns on your property, are covered by your insurance. The insurance also covers liability and additional living costs if your house is damaged.Secure your home with the trusted protection of leading Homeowners Insurance Companies.

You should review the coverage of home insurance to ensure you fully understand your policy and how it protects you, your house and your possessions.

These valuable types of coverage are included in a standard policy for home insurance.

Home Coverage

A home insurance policy’s dwelling coverage covers the structure of your house. This amount is based on local construction and labor prices. The dwelling coverage amount is not determined by the market value of your house.

Other structures, such as fences or detached garages are covered.

Insurance for Personal Property

If your belongings are destroyed or damaged, the personal property insurance will pay to replace or repair them. Furniture, clothing, kitchenware and house décor such as curtains are all covered.Secure your home with the trusted protection of leading Homeowners Insurance Companies.

Personal property coverage is typically set at 50%-70 % of dwelling coverage. If your home is insured at $250,000, and you have 50% coverage for your contents, then your coverage will be $125,000. If you want to, you can purchase more coverage for your personal belongings.

Liability insurance

Homeowners insurance is not just about your home and possessions. It also covers liability.

Liability insurance covers injuries or property damage that you accidentally cause to someone else. Liability insurance, for example, can cover medical expenses if your guest is injured after tripping on the sidewalk. The liability insurance will also cover your legal costs and any judgment you receive if sued.

You could end up paying for anything over your policy limit if you don’t have enough liability insurance. A good rule to follow when looking for the best homeowners’ insurance is to purchase enough liability coverage to cover what you can lose in a lawsuit.

An umbrella policy can be a cost-effective way to increase your liability coverage.

Add-on Coverage for Living Expenses

Additional living expenses, also known as “loss of usage,” can cover extra costs like pet boarding and hotel meals if your home is being repaired.Secure your home with the trusted protection of leading Homeowners Insurance Companies.

The amount of Additional Living Expenses is usually based on a percentage. However, you can purchase more coverage if it doesn’t seem enough.

What Does Home Insurance Not Cover?

Standard home insurance policies exclude certain types of issues, including:

• Ordinances of law such as government requirements to repair, demolish or rebuild a home in order to comply with local ordinances
• Earth movements, such as earthquakes, sinkholes and landslides
• Floods, sewage backups and other water damage are all possible.
• Failure of the power supply
• Neglect such as failure to maintain the heat
• War
• Nuclear hazard
• Intentional loss
• A government action such as the seizure or confiscation of property
• Wear and tear
• Dry rot or corrosion, such as smog
• Release, discharge, migration, seepage or escape of pollutants
• Smoke generated by agricultural and industrial activities
• A latent fault or mechanical breakdown that damages property
• Shrinkage, settlement, expansion, or bulging in bulkheads (paving, footings), foundations (foundations), patios walls, ceilings, floors and roofs
• Vermin such as rodents or birds, insects, or vermin
• Animals that you own can cause damage to your home

Types of Homeowners Insurance Policies

Eight types of home insurance are available, each tailored to your specific needs. Take a look below at different home insurance.

HO-1

A HO-1 is the most basic and cheapest home insurance policy. This policy only covers 10 problems. These include fire, lightning, hail and windstorm, theft and explosion. Many states do not sell HO-1 insurance policies. You’re required to carry a higher level of home insurance if you hold a mortgage.Secure your home with the trusted protection of leading Homeowners Insurance Companies.

HO-2

The HO-2 includes insurance for your home and any other structures you own, as well as your possessions. It also covers liability, extra living expenses, and payments made to third parties in the event of illness or injury. The coverage for your home and possessions only covers specific perils. The HO-2 covers the same problems as an HO-1 plus a few others, like falling objects, snow, ice, and the accidental discharge or overflow of water and steam.

HO-3

The most popular type of policy for home insurance is HO-3. The policy will cover your home, other structures and possessions. A HO-3 policy also includes liability coverage, medical payment coverage and additional living costs. The policy covers all damage caused to your home, unless it is specifically excluded. For example, floods are not covered. This makes the policy different than HO-1 or HO-2. You are also insured for theft, fire and 16 other types of damage to your personal property.

HO-4

A HO-4 policy is also known as renters’ insurance. The policy will cover your possessions, liability coverage and living costs. The physical structure is not covered by an HO-4. This responsibility falls to the landlord.

HO-5

A HO-5 insurance policy provides the best protection possible for your house and possessions. The policy is not available from all insurance providers. It covers the house and your belongings in all situations, except those that are specifically excluded. Home insurance policies HO-5 pay replacement costs for your possessions, not the actual cash value. They are generally suitable for new construction.

HO-6

A condominium is covered by an HO-6. The walls, ceilings and floors of the unit are covered by this condo policy. The HO-6 policy also covers your possessions, liabilities, extra living expenses, and medical payments. Before purchasing an HO-6 insurance policy, check your condo association’s policy for coverage gaps and duplicate coverage.

HO-7

A HO-7 is similar to an HO-3, but it is designed for mobile homes. This includes single and double wide manufactured homes, as well as trailers, sectionsal homes and modules. The mobile insurance includes damage, unless it is excluded by the policy. The policy limits the coverage of personal belongings to certain perils. A HO-7 insurance policy will only cover a mobile house when it is stationary.Secure your home with the trusted protection of leading Homeowners Insurance Companies.

HO-8

HO-8 policies are for historic and older homes. The rebuilding costs of these homes are usually higher than their market value. A HO-8 insurance policy will cover the home and its contents against 10 different problems such as theft, vandalism, fire, hail and windstorm. The HO-8 policy also covers liability, additional living costs and medical payments for others.

How Much Is Homeowners Insurance?

Based on Forbes Advisor’s analysis of the average cost of home insurance, a policy that covers $350,000 of dwelling costs $1,582 per year. Take a look below at the average cost of home insurance.

AMOUNT OF COVERAGE FOR A DWELLINGCOST PER CAPITA IN THE UNITED STATES$200,000$1,117$350,000$1,582$500,000$2,090$750,000$2,950Source: Quadrant Information Services. Based on averages from 14 major home insurance companies.

How do home insurance rates vary?

The cost of home insurance will depend on several different factors.

• What you do
• Cost of rebuilding a house
• Your house is made up of materials like brick, wood, stone and stucco.
• What is your proximity to the nearest fire station and water source?
• You can also check the claims history of your region, including wildfires or crime rates.
• Personal claims history
• What is the coverage amount you select?
• Credit (if permitted in your state) as a factor for pricing

How to Save on Homeowners Insurance

Do not pay for more home insurance than necessary. Find affordable home insurance while still getting the protection you need.Secure your home with the trusted protection of leading Homeowners Insurance Companies.

Shopping Around

Get quotes for homeowners’ insurance from several companies. Compare quotes that cover the same amount of coverage.Secure your home with the trusted protection of leading Homeowners Insurance Companies.

Maximum Discounts

Many home insurance companies provide discounts. Home Insurance Discounts includes having a new home or a renovated house, having a security system and paying your policy annually.

Increase Your Deductible to Save Money

The amount of your homeowners insurance deductible will be deducted from the insurance check if there is a claim for damage or theft. A $1,000 deductible, for example, would result in the insurer cutting you a $9,000 check if you filed a claim of $10,000.

You’ll pay less for insurance coverage if you increase your insurance deductible. You can ask your homeowners’ insurance provider how much money you could save by raising your deductible.

There are deductibles on some homeowners policies that apply to specific damages, like special wind deductibles. The deductibles can be either a fixed amount or a percent of the insured value of your house.

Forbes Advisor found in its research that increasing a homeowner’s insurance deductible to $500 can save you an average of $59 per year. The average annual savings is $174 when you raise the deductible to $1,000. By increasing the $250 deductible up to $2,000, you can averagely save $300 per year.

The Average Cost of Home Insurance by Deductible

DEDUCTIBLE LEVELTHE AVERAGE ANNUAL COST OF HOME INSURANCE$250$1,769$500$1,710$1,000$1,595$1,500$1,522$2,000$1,441Source: Quadrant Information Services. The costs are for a $350,000 dwelling policy.

You Can Improve Your Credit Score

In almost all states, insurers can use your credit score to set rates. California, Maryland, and Massachusetts are the only states that don’t allow insurers to use credit.Secure your home with the trusted protection of leading Homeowners Insurance Companies.

Insurers use a credit score to determine rates. They believe that this helps them assess risk, and the likelihood of you filing an insurance claim. Credit score can be increased by improving your credit. This will lower the cost of your homeowner’s insurance.

What can you do to improve your credit score? Pay your loans and credit cards on time. Avoid building up large balances which will reduce your available credit.

Bundle Auto and Home Insurance to Get a Discount

Combining home and auto insurance can be a great idea due to the discounts. When you bundle your policies, both home and auto insurance are purchased through one company. Bundling can result in discounts ranging from 5% to 25%.

Bundling your auto and home insurance can save you money and allow you to deal with just one company. It can be easier to keep track of your policies.

Bundling auto and home insurance is not always the right choice. Bundling home and auto insurance may be the most cost-effective option, but it could also result in higher coverage costs if an insurer charges the highest rate.

When you shop for homeowner’s insurance, it is important to get quotes that include all discounts and the same level of coverage.

According to a Forbes Advisor study, bundling auto and home policies can save policyholders on average 14%. State Farm offers the largest average discount (23%). The following are the top insurance companies for average savings on bundling.

Get the best discounts on home and auto insurance when you bundle them together

COMPANIESDISCOUNT FOR BUNDLING AUTO AND HOME INSURANCEState Farm23%Auto Club of California20%American Family18%The Farmers18%Allstate15%Erie15%National15%Source: Quadrant Information Services

Limit Potential Risk

Swimming pools, trampolines and treehouses are considered “attractive nuisances” by home insurance companies. This can increase your rates. You can lower your home insurance costs by limiting those “attractive nuisances”.

How to File a Homeowners Insurance Claim

You can get your claim paid quickly by following the steps for filing an insurance claim.

TAKE THE FOLLOWING STEPS TO GET STARTEDWHAT TO DOContact police, if necessaryYou’ll be required to file a police claim if you have a report of a burglary, theft or vandalism.Do not forget to document the lossDocument the loss with photos. List any damaged or missing items. Insurance companies will ask for specifics.No further DamageYou can prevent further damage to your house and possessions by boarding up broken windows or holes in the roof. Do not fix the issue before you contact your insurer. The insurance company may send out an adjuster to inspect the damage.Recycle damaged goodsDo not throw out damaged items like a chair that has been soaked in rain until the adjuster documents it.Please notify your agent or insurance companyReport the damage as quickly as possible to your insurance agent or company. Complete all claim forms.If the insurer requests that you meet with a claims adjuster, then it is important to do so.You may be asked questions by the adjuster, who will also examine your damage to determine how much money you are owed.Public adjusters are a good option for large claims on home insuranceYou may need a Public Adjuster if you’ve suffered significant damages. An adjuster will work on your behalf in order to get the claim submitted and documented. They can also help you negotiate with your insurance provider. Public adjusters can speed up the claims process and maximize the claim.

Cheapest Homeowners Insurance

Find the lowest home insurance company to save thousands, if not hundreds of dollars. It only takes a little time and effort to compare quotes with several insurance companies.

The difference in rates between the cheapest and most expensive companies was over $2000 per year.

Homeowners insurance companies that offer the lowest rates

INSURANCE COMPANY FOR HOMECOST PER YEARProgressive$901Westfield$1,244USAA*$1,478Allstate$1,526American Family$1,590Source: Quadrant information services, on the basis of averages for policies covering $200,000, $300,000, $500,000 and $750,000 in dwelling insurance.

Only military personnel, veterans and families of those individuals are eligible for USAA Home Insurance.

Overview of Natural Disasters in the U.S.

Natural disasters are occurring more frequently and with more intensity. Over the past five years, the U.S. has experienced an average of 17.8 natural disasters each year. That included 18 climate disaster events in 2022, which caused a total of $169.8 billion in damage, according to the National Centers for Environmental Information.Secure your home with the trusted protection of leading Homeowners Insurance Companies.

Some areas are more vulnerable to these disasters than other areas. For example, states with natural disasters tend to be coastal states.To determine which counties are most at risk for natural disasters, Forbes Advisor uncovered the number of Federal Emergency Management Agency (FEMA) disaster declarations over the past decade for the 200 most populated counties.

Key Takeaways

• Los Angeles County, California, tops the list of counties most at risk for natural disasters, followed by East Baton Rouge Parish, Louisiana; Orleans Parish, Louisiana; Riverside County, California; and Jefferson Parish, Louisiana.
• Coastal states are the most heavily impacted by natural disasters. Four California counties rank among the top 10 counties most at risk for natural disasters, along with three Louisiana parishes, two South Carolina counties and two counties in Florida.
• Fires and hurricanes were the most common disaster types for the top 10 counties most impacted by disasters.
• Between January 2013 and January 2023, 88.5% of all U.S. counties declared a natural disaster, including 95% of the 200 most populated counties.
• Only 10 of the 200 most populated counties didn’t declare a disaster over the past decade, five of which are located in Ohio.

Methodology

To find the best home insurance we scored companies based on these factors:

• Home insurance rates (50% of score): Based on average rates for each insurance company for homes with dwelling coverage of $200,000, $350,000, $500,000 and $750,000.Secure your home with the trusted protection of leading Homeowners Insurance Companies.
• Complaints (20% of score): Based on complaints about home insurance that were upheld by state insurance departments. Source: National Association of Insurance Commissioners.
• Availability of extended and/or guaranteed replacement cost coverage (20% of score): Extra dwelling coverage is valuable in the event of large disasters, when construction materials and labor costs tend to spike. We gave points to companies that offer either extended or guaranteed replacement cost coverage. Source: Forbes Advisor research.
• Banned dog lists (10% of score): Banned dog breed lists can make homeowners ineligible for coverage. (A company’s banned dog list might not be applicable in all states.) While any homeowners insurance company could potentially ban any dog with a biting history, not all put a ban on specific breeds. Source: Forbes Advisor research.

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