Homeowners insurance provides aarp home and auto insurance plans protection for what is the biggest investment many of us will make in our lives, and can help pay the costs of damage from fire, theft, a severe storm, or a lawsuit if someone is injured on your property. That makes choosing the right insurance company and homeowners policy critically important. With our Best Homeowners Insurance Companies of 2023 ratings, we’ve compared premiums, coverage plans, policies, and available options from major insurance companies, to help you identify the best company and policy for your needs.
Lemonade: A relative newcomer among insurance companies, Lemonade is also somewhat different in the way it does business. Founded in 2015, Lemonade operates entirely online, and is incorporated as a public benefit corporation. Lemonade takes a fixed percentage of premiums after claims are paid, and lets customers choose a charity that receives up to 40% of whatever is left. Another benefit is that Lemonade includes replacement coverage with a standard homeowners policy, unlike some companies in our rating that make it an extra-cost option. On the downside, Lemonade is more expensive on average than other companies in our rating.
Lemonade offers a variety of policy types, including home, renters, life, pet, and auto insurance. Founded in 2015, Lemonade is unique among the companies in our rating for being entirely online from checking quotes to filing claims. Lemonade is incorporated as a public benefit corporation, and its Giveback program lets customers designate a charity where their excess premiums will go after the company takes a fixed percentage of premiums and uses the rest to pay claims.
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USAA: Founded in 1922, USAA provides an array of financial and insurance products to members of the U.S. military, veterans, and their families. The San Antonio-based provider offers homeowners, renters, and small business insurance, along with policies for autos, life, health, pets, and personal property. Standard homeowners policies with USAA include some coverage options that other insurers typically charge extra for, including dwelling replacement and identity theft coverage. USAA also writes policies for policyholders who list their homes for short-term rentals for extra income, and policies include coverage for military uniforms.
USAA was founded in 1922 by a group of 25 Army officers who wanted to self-insure their cars. Today, USAA offers an array of insurance and financial products for members of the U.S. armed forces and Reserve, along with veterans and their families. Based in San Antonio, USAA operates a handful of satellite offices around the United States, as well as in London, Frankfurt, and Luxembourg.
In addition to homeowners insurance, USAA's insurance products include renters, life, health, auto, small business, pet, and personal property. USAA has about 37,000 employees worldwide and 13 million members.
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USAA’s standard homeowners insurance policy includes the following:
Dwelling coverage pays to repair or rebuild the home’s structure after a covered loss. This extends to attached structures as well, such as a garage, porch, or deck.
Other structures coverage applies to the repair or replacement of structures not directly attached to the dwelling, like a pool, fence, or detached garage. Coverage for other structures is typically based on a percentage of the dwelling coverage amount.
Personal property covers your belongings if they need to be repaired or replaced due to a covered claim.
Personal liability provides lawsuit protection if you are sued or held legally responsible for injuries or damage you cause to others or to their property.
Loss of use pays for expenses such as staying in a hotel or eating at restaurants while your home is uninhabitable after a covered loss. This is also called additional living expense (ALE).
Identity theft covers up to $5,000 in identity restoration expenses if you are a victim of identity theft. This coverage is not available in North Carolina.
Replacement cost is included in USAA’s standard homeowners policy and does not factor in depreciation when you file a claim for your personal belongings.
Erie Insurance: Headquartered in Erie, Pennsylvania, Erie Insurance got its start in 1925 as a regional provider of auto insurance. Its portfolio has grown to include policies for homeowners, motorcycles, boats, and recreational vehicles, along with insurance for renters, condo owners, and mobile homes. Erie also offers life insurance, retirement planning, and financial services. While Erie has expanded beyond the borders of Pennsylvania, availability of homeowners policies is limited to 12 states and Washington, D.C. Erie includes dwelling replacement coverage with a standard homeowners policy, something other companies in our ratings charge extra for. One potential drawback: You must work with a local agent in order to buy a policy.
Based in Erie, Pennsylvania, Erie Insurance was founded by two partners as Erie Insurance Exchange. At first, the company sold only auto insurance, but it later expanded to other types of insurance and added offices in other states. In addition to homeowners policies, Erie now sells insurance for autos, motorcycles, boats, and recreational vehicles, as well as life insurance, retirement planning, and an array of business products. It also sells specialized insurance for condo owners, mobile homeowners, and renters.
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Erie offers an expansive homeowners insurance policy, with coverage options available that most competitors charge extra for. Erie’s base policy includes:
Dwelling coverage pays to repair or rebuild the structure of your home. With Erie, you get 100% guaranteed replacement cost, which means you’re covered no matter how much it costs to rebuild or repair your home.
Personal property pays to repair or replace the contents of your home after a covered loss.
Other structures coverage pays to repair or replace structures on your property not attached to your home, such as a deck, pool, fence or detached building.
Loss of use pays for increased expenses incurred when your home is uninhabitable after a covered loss and you have to stay elsewhere.
Valuables coverage offers increased limits on valuables, like fine arts, jewelry, and firearms, plus hard-to-replace items like your passport, deeds, and other documents.
Gift card reimbursement offers up to $250 per gift card as reimbursement if the business closes permanently.
Animals, birds, and fish are covered up to $500 when included in a covered loss. Pets are typically not covered by other insurers.
State Farm: State Farm, which operates in all 50 states and the District of Columbia, is based in Bloomington, Illinois, and has expanded since its founding in 1922. In addition to policies for autos, homeowners, renters, and condo owners, State Farm writes policies for income property, farms, ranches, and manufactured homes. State Farm also offers life, health, disability, and liability policies. The company earns the highest possible financial strength rating of A++ from AM Best. State Farm is No. 1 in our Cheapest Homeowners Insurance Companies of 2023 rating and No. 2 in our Best Home and Auto Insurance Bundles of 2023 ratings.
Since 1922, when founder George Jacob Mecherle sold his first auto insurance policy, State Farm has grown to offer about 100 insurance, banking, and investment products and services spread among five businesses. Altogether, these businesses have about 58,000 employees and 19,000 independent agents servicing about 85 million policies and accounts throughout the U.S.
State Farm offers several property insurance products, including home, renters, condo, rental property, manufactured home, farm, ranch, and personal articles. Additionally, it also has life, health, disability, and liability insurance products available with customizable options for each category. In 2020, State Farm partnered with Trupanion to offer pet insurance policies.
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Amica: The Automobile Mutual Insurance Company of America got its start in 1907, later expanding into other insurance and financial products and shortening its name to Amica Life. Based in Lincoln, Rhode Island, Amica now sells its products in every state but Hawaii and Alaska. Amica sells insurance for homeowners, renters, and condo owners, along with policies for autos, boats, motorcycles, along with business and personal liability insurance. Amica offers a fairly standard assortment of standard homeowners coverages and discounts, and offers extras including home business and office equipment coverage.
Amica is No. 5 in our Best Homeowners Insurance Companies of 2023 ratings, tied with American Family Insurance. It is also No. 5 in our Cheapest Homeowners Insurance Companies of 2023 ratings.
Based in Rhode Island, Amica started in 1907 as the Automobile Mutual Insurance Company of America. It later added other types of insurance and financial products and changed its name to Amica Mutual Insurance Company. Today, Amica is comprised of three subsidiaries with offices that sell insurance for autos, homes, life, renters, condos, boats, motorcycles, personal liability, and businesses.
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American Family: A privately held insurance company based in Madison, Wisconsin, American Family began as Farmers Mutual Automobile Insurance Company in 1927. Several name changes later, American Family now offers a full portfolio of insurance products in 19 states, primarily in the Midwest and West. In addition to auto, motorcycle, boat, RV and homeowners insurance, American Family writes policies for renters, condo owners, manufactured homes, farms, rental property, businesses, pets, and life insurance. American Family offers the typical homeowners coverages and discounts, while also offering other options such as nursing and assisted living coverage.
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Long before it was Nationwide by name or in the geographic sense, the Ohio-based Farm Bureau Mutual Automobile Insurance Co. wrote its first policy in 1926. By 1955, a name change was in order, reflecting the company’s growth across the country, and Nationwide Insurance was born.
Based in Columbus, Nationwide offers a full range of insurance and financial services across the U.S., including car, motorcycle, boat, homeowners, pet, farm, commercial, and life insurance, along with annuities, mortgages, mutual funds, pensions, long-term savings plans, and specialty health services. With more than $295 billion in assets, Nationwide is one of the largest insurance companies in the U.S.
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Farmers Insurance: California-based Farmers Insurance began selling vehicle insurance to farmers in 1928. Located in Los Angeles, Farmers offers a broad variety of insurance products, including policies for cars, campers, boats, motorcycles, and collector vehicles, along with insurance for homeowners, renters, condos, manufactured and vacation homes, rental property, pets, and businesses. The company also offers life insurance, and both earthquake and flood insurance. Farmers is not available in Alaska, Delaware, Hawaii, Maine, New Hampshire, Vermont, and West Virginia, or Washington.
Founded in 1928, Farmers is based in Los Angeles. Today, the Farmers Insurance Group of Companies offers a range of coverage options, including home, renters, and condo insurance, as well as car insurance, life insurance, and pet insurance. It serves some 10 million households and holds more than 19 million policies. However, Farmers homeowners insurance is not available in all states.
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Allstate: With almost $45 billion in revenue and 87,000 employees, agents, and staff selling policies in all 50 states and the District of Columbia, Allstate has grown to become an insurance giant since its founding in 1931. Based in Illinois, Allstate has an A+ financial strength rating from AM Best, and owns other insurance companies including Esurance, Encompass, and SquareTrade. Available policies from Allstate include homeowners, renters, rental property, and condo insurance, along with policies for businesses, automobiles, motorcycles, boats, RVs, and life insurance. A wide variety of standard and optional coverages and discounts are available. Allstate also offers coverage for smartphones and short-term home share.
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The Chubb Corporation was founded in 1882 and today is a global insurance company operating in 54 countries and territories. It is the top commercial insurer in the U.S. and has more than $200 billion in assets. In 2021, Chubb reported $46.8 billion in gross premiums written. Chubb also offers auto, accident, life, and renters insurance. It sells policies through a network of independent agents and has corporate offices in cities including Tokyo, New York, London, and Paris.
Chubb is a global insurance company that is No. 10 in our Best Homeowners Insurance Companies of 2023 ratings with a score of 3.6 out of 5.
Its standard homeowners policy, Chubb Masterpiece Homeowners, includes coverage that many of the other home insurance companies in our rating offer only as add-ons, such as replacement cost coverage, water backup coverage, and identity theft coverage. Chubb will even restore your data if your computer is targeted by a virus and fit new locks if you lose your keys.
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