Easy Guide to Home Insurance Companies

top5 Home Insurance Companies

UPDATED: April 1, 2018 – You’ve worked hard to create the American dream for yourself. Often times this includes purchasing a home for you and your family. Buying a home often times is the largest investment and financial commitment that Americans make.

To protect such a large financial investment, purchasing homeowners insurance becomes a necessity if not a requirement as most home purchases are made with home mortgages from banks that require it.

It may seem obvious that home insurance is purchased in case of major damage, whether from a natural disaster, fire, theft, vandalism or any other situation that causes damage to your home but often people don’t realize that it also covers damages if someone gets’s injured on your property.

How Much Does Homeowners Insurance Cost?

There is no simple answer as it depends on what state you live in, how much your property is worth, and which addon endorsements you’ve elected. Getting the best value is very important but price alone should not be the only factor you consider when purchasing an insurance policy for your house.

Perhaps you are wondering if you are overpaying on your current plan. There are homeowners insurance calculators but most are inaccurate and are used as a ploy to get you to enter your personal information. Check out this chart to safely get an idea of how much average home owners insurance should cost.

At the time this article was written the average cost of home insurance premium averaged out over all states is $1083 per year. If you live in Florida, Colorado, Alabama, or Connecticut you can expect to pay higher than average rates.

Although rates are extremely affordable, they are on climbing steadily. On average the cost has risen 50 percent in the past decade.

What are the Best Homeowner Insurance Companies?

#1 – State Farm Insurance

State Farm dominates the market and is the largest provider of homeowner policies with a staggering 20.32 percent of the market share. They provide coverage in all 50 states including some of the most populated, including California and Illinois.

State Farm has built a massive network of over 18,000 agents to help you manage your policies. This can be very comforting knowing you have an actual a person to work with you instead of managing everything yourself through an online portal.

If you are interested in seeing what a policy might cost through State Farm then you can use their online quote calculator found here. State Farm is known for having fairly accurate quotes, but you must work through all the details with an agent to secure the final price.

  • A++ (Superior) A.M. Best Financial Strength Rating
  • State Farm mobile: State Farm offers a free mobile app that allows you to submit claims and access your account information on the go
  • Ranked number six out of twenty-nine by J.D. Power for overall satisfaction
  • Hidden bonus – Customers get an extra discount if your homes roof was made with materials that are rated “high impact.”
#2 – Amica Insurance

Those looking for an Insurance provider that has stellar customer reviews and consistently solid ratings might want to take a look at Amica. The company has also been recognized as the best home insurance company by J.D. Power for overall satisfaction for an incredible sixteen years in a row.

Amica sets it’s self apart by offering services that go above and beyond what other competitors offer. For example, Amica is proud to offer the Contractor Connection program, which aids policy-holders in hiring contractors for repairs to their damaged homes or to build upgrades. Amica includes this service at no charge and they include a warranty for the work provided for up to three years.

Amica also sets it’s self apart as the company is owned by its policy members. Since Amica is a mutual insurance company, it provides profits to its policyholders instead stockholders. Amica has a great track record of paying dividends but members should not count on them.

  • A+ (Superior) A.M. Best Financial Strength Rating
  • bonus discount: The longer you keep your policy, the more savings you are eligible for
  • Top ranking of all twenty-nine companies for overall satisfaction by J.D. Power
#3 – Allstate Insurance

If you are a first time home buyer or if you have lots of questions about how to best configure your plan then Allstate can be a great pick since it offers an incredible amount of educational information for first-timers.

For those who are purchasing homes in a city or state that they are new to, Allstate offers a proprietary tool to which helps home buyers understand what type of home insurance claims are most common per zipcode.

Allstate gives extra deep discounts to newbie homeowners by including up to a 10 percent savings on costs of home insurance policies. This alone can be a good enough reason for first timers to choose Allstate.

  • A+ [Superior] AM Best Financial Overall Strength Rating
  • Bonus discount: When replacing damaged items with more energy efficient ones, Allstate will pay to cover the extra cost.
  • Top ten of 29 insurance companies for overall total satisfaction by J.D. Power
  • Extra Features: RateGuard can be purchased to lock in insurance rates, even if a claim is filed.
#4 – Farmers Insurance

Farmers Insurance is known for having the best rates for those who own more expensive homes or those who own homes that are having extensive remodeling done and will be dramatically increasing in value in a short period of time.

If you are in need of high policy limits then Farmers is one of the best options. Another reason people choose Farmers over the competitors listed in here is their generous discounts for doing upgrades and general upkeep and maintenance of your home. If getting a discount for upgrading your homes electric systems, plumbing or even roof replacement sounds good to you then look no farther then Farmers.

Farmers is known for top-tier customer service and well revied by policy holders if and when they have to file a claim. Farmer’s prides its self on its professional agents to figure out your claim in a super efficient manner.

  • A [Excellent] Financial Strength Rating – AM Best
  • Bonus discount: Those with Energy Star, LEED-certified or EPA can qualify for extra discount
#5 – USAA Insurance

– Coming soon – 

Leave a Reply