If you happen to be one of the unlucky six, it pays to have reliable coverage that quickly reimburses you for your loss. But how do you find the best home insurance company for your needs?
There are many factors at play, and the best company for one person won’t necessarily be the best for another.
Michael Barry, Head of Media and Public Affairs at the Insurance Information Institute, says, “Consumers should look for a homeowners insurance company which is financially strong, has a good reputation in customer satisfaction surveys, and is competitive on price when compared to other insurers.”
To help you in your search, here are some of the best home insurance companies of 2018 and advice on how you can find the right one for you.
1) Amica Mutual: The top-rated homeowners insurance for overall customer satisfaction
For the past 16 consecutive years, Amica has ranked number one in “overall customer satisfaction” amongst home insurance companies, according to the annual U.S. Home Insurance Study by J.D. Power. Why are people so happy? Here’s what you should know.
Amica’s standard policy covers the following:
- Other structures
- Personal property
- Loss of use
- Temporary repairs to prevent further damage
- Credit card loss
The company also offers a nice lineup of endorsements for those who need more protection than they get from a standard home insurance policy.
For example, coverage is available for damages from floods, earthquakes, windstorms, water back up, sump pump overflow, luxury items, extra coverage for your dwelling, and more.
Discounts are available when you:
- Have more than one policy
- Set up autopay
- Stay loyal to the company
- Have smoke detectors, a sprinkler system, or an alarm system.
Note, discounts can vary by state so customers should check with a local Amica representative (Amica is available in all 50 states).
You can also opt for a policy in which you earn dividends. It costs more upfront, but less in the long run. The dividend payments range from 5% to 20% of your annual premium. If you opt out of dividends, your monthly premium will be lower, but your policy will cost more overall.
Amica claims that they have formed long-lasting relationships with 94% of its customers. When shopping for a company, it’s worth getting a quote to see what you can get.
2) USAA: The best for military families
USAA has a great reputation for offering the best homeowners insurance rates and coverage to military servicemembers and their families.
The company ranked higher than any other home insurance provider in the 2017 U.S. Home Insurance Study performed by J.D. Power which measured overall customer satisfaction.
However, it was not listed in the ranking because it exclusively serves military personnel.
Surprisingly, it is the fifth-largest home and property insurer, despite only serving military servicemembers (5.44% market share). As for financial strength, USAA has received an A++, the highest of 16 possible ratings from the A.M. Best Company.
USAA home insurance coverage covers the following:
- Personal belongings
- Identity theft
Those who qualify can access insurance in all 50 states and Washington D.C.
You can save by having multiple insurance policies with USAA, living in a new home, living in a Firewise community, and having a monitored alarm system. While the discount offerings aren’t extensive, USAA is known for being affordable none-the-less.
What else makes USAA stand out? It offers replacement cost coverage and military uniform coverage. The replacement cost coverage insures your home and belongings get replaced at today’s value, without any depreciation.
It’s the little things, and USAA does the little things right. If you are eligible for membership, check out what the company has to offer.
3) Lemonade: The fastest and easiest claims
Lemonade is a relatively new insurance company that has taken an innovative approach to home insurance.
Where the traditional relationship between the insurer and the insured can create some tension due to the insurance company profiting when it pays out fewer claims, Lemonade removes that conflict of interest.
Instead, Lemonade earns a flat fee from each customer, and any money that is not paid out in claims is donated to a charity of the policyholder’s choice. Lemonade’s innovation doesn’t end with this new business model.
The company has also developed technology powered by behavior economics and artificial intelligence that allows you to manage your policy through its mobile app easily.
In fact, the company set a world record for speed and ease of paying claims by processing, approving, and paying a claim within three seconds. No paperwork involved!
Coverage is standard including dwelling, personal property, and liability.
There’s no doubt that Lemonade is making waves in the home insurance industry. Right now, it is only available in New Jersey, Nevada, New York, Illinois, California, Maryland, Arizona, Pennsylvania, Georgia, and the District of Columbia.
However, it plans to continue to expand to more states in the coming months.
4) State Farm: The largest home and property insurer in the U.S.
State Farm is the largest home and property insurer in the United States and is far ahead of the company in second place, according to the National Association of Insurance Commissioners (NAIC).
As of 2017, State Farm had written $64.8 billion in direct premiums. Berkshire Hathaway (owns Geico) came in second with $38.4 billion in direct premiums written. Being the largest speaks to the fact that they are doing something to gain and keep customers.
One great feature is they have widespread coverage, offering insurance in all 50 states through local agents. Customers will be able to find an agent near them in most areas.
Further, the company has earned an A++ rating for financial strength from A.M. Best Financial Strength Rating. As for customer service, State Farm earned a four out of five rating from J.D Power’s 2017 U.S. Home Insurance Study, coming in sixth place.
The company ticks all the boxes when it comes to their insurance offering. While their coverage for home replacement is not as high as some other companies, they offer great coverage for personal property, including no limit on reimbursement for lost electronics.
Their notable discounts include impact-resistant roofing, bundling, and discounts for safety features like a burglar alarm or sprinkler system.
Jodi Ortega, at State Farm, says, “We are proud that State Farm and our affiliates are the largest providers of auto and home insurance in the United States.
We have faced countless significant weather and other major disasters over our 95-year history, and we stand ready for countless more as we help people manage the risks of everyday life, recover from the unexpected, and realize their dreams.”
5) Liberty Mutual: The best home insurance policy for comprehensive coverage and discounts
Lastly, is Liberty Mutual. This insurer shines by offering features that provide homeowners the coverage they need and discounts to reduce costs.
It is the third-largest home and property insurer in the U.S. with $33.8 billion direct premiums written in 2017 and offerings in all 50 states and Washington D.C.
It earned a three out of five ranking in the J.D. Power study for overall customer satisfaction, and an A rating for financial strength from the A.M. Best rating.
A standard policy includes:
- Other structures
- Personal property
- Additional living expenses
The online quote process is quick, easy, and thorough. It shows you all of your options when it comes to coverage, endorsements, and discounts.
Along with the normal coverage, you can opt for inflation protection, expanded home coverage, and coverage for high-value items. Full replacement cost is offered on personal belongings and additional coverage for unexpected costs when rebuilding a home.
It also offers eleven discounts, which can help policyholders save. Liberty Mutual spokesperson, Glenn Greenberg, says, “There are multiple ways customers can save on their homeowners insurance that help differentiate Liberty Mutual.”
He explains that Liberty Mutual offers traditional discounts, discounts for smart home technology, discounts for new and newly renovated homes, multi-policy discounts, and a large affinity program that results in savings.
Bonus Tip: esurance
If you’re looking for a great mobile experience and generous discounts for safe drivers, consider esurance. It doesn’t have the lowest standard rates but the discounts and polished mobile experience make up for it.
How to find the best company for you
There’s no single company that is going to be the best for everyone. However, these are some of the best choices for 2018 that are worth considering.
Depending on your situation and specific needs, one company will likely offer more value than another and you won’t be able to perform a true comparison until you get a few quotes.
However, be sure to look at more than just the price when making your decision. Also compare the quality of customer service, availability, speed, financial strength, coverage, endorsements, discounts, and other features.
By weighing all of these factors, you can determine which company offers the best overall value for your situation.
Ready to shop around?