Best homeowners insurance companies 2020

Purchasing a home is a big investment, so having home insurance is essential. But before you purchase a policy, there are a few things to consider. First, you need to find a provider with excellent financial strength, great customer service and good policy options. Then, you’ll have to decide what type of coverage you need – and how much.

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To help you find the right insurance for you and your home, we created a list of the best home insurance companies of 2020. To rank these companies, we searched ratings and reviews from third-party research firms, including Consumer Affairs, J.D. Power and AM Best.

Whether you’re looking for a simple shopping experience, the top-rated coverage or the cheapest bundles, there’s a company out there for you. With the COVID-19 pandemic still affecting how much time we’re all spending at home, protecting your sanctuary is more important than ever. Let’s take a look at the best home insurance companies of 2020.

Best homeowners insurance companies

Some of the best available homeowners insurance companies include:

• Amica Mutual
• Allstate
• Geico
• MetLife
• USAA
• Chubb

Everyone has unique needs, so the best company for one person probably won’t be the right option for their neighbor. To help you decide which of the best insurance companies will provide the services you want, we’ve compiled a list of companies and what they have to offer.

New to the industry but advanced in technology, Lemonade provides a unique approach to insurance by leveraging algorithms and artificial intelligence. While not yet rated by the companies above, Lemonade Insurance is a fully-digital alternative worth noting.

Best overall home insurance company: Amica Mutual

Amica Mutual earned the top spot on our list. In business for over a century, the company is one of the best home insurance companies across the board-and for good reason. Amica consistently performs above average, and it gets top marks from industry researchers on price and policy offerings.

Unlike many other insurance companies, Amica is almost always rated highly for its customer service, which can be hard to find in the insurance industry. Amica has held the highest rankings for home insurance from J.D. Power for 18 years in a row. Amica’s winning streak continues into 2020 as the highest-rated home insurer in J.D. Power’s 2020 U.S. Property Claims Satisfaction Study.

Pros

• Easy and fast claims handling process
• Affordable policy rates
• Industry-leading customer service and customer satisfaction

Cons

• Fewer discounts than other providers
• Some additional coverage unavailable in some states

Discounts

• Multi-line discount: Customers who already have an insurance policy with Amica can save up to 30 percent on their premiums.
• New/remodeled home credit: Amica offers savings for customers who have recently remodeled their home.
• Claim-free: Customers who haven’t had to file a claim in the past three years are eligible for a discount.
• Automatic detection devices discount: Customers with water or gas leak sensors qualify for a discount.
• Loyalty: Customers who stay with Amica for at least two years qualify for a discount.
• Autopay: Customers who sign up for autopay qualify for a lower premium.
• E-discount: When customers sign up for paperless billing, they’ll save money on their premium.

Coverage

Amica consistently earns industry-leading scores for customer satisfaction by providing comprehensive coverage options. Some of the unique coverage options that Amica offers include:

• Catastrophic coverages for protection (minus a deductible) that will cover flood or earthquake damage.
• Identity fraud expense coverage for protection against unauthorized use of your credit cards up to your coverage limit.
• Loss assessment plan for Condo owners who are responsible for shared sections of a property.
• Valuable items coverage (also called scheduled personal property coverage) for high-value items like jewelry, fine art or furs.
• Home business coverage for people who operate a business out of their home or remote workers.

Best for first-time home buyers: Allstate

Aside from offering some of the lowest home insurance rates around, Allstate caters its services to first-time home buyers by making its products simple and straightforward. The company website even offers comprehensive resources for first-timers to learn the ropes.

Allstate also helps ease the burden for first-time homebuyers by providing helpful online tools. With Allstate’s Common and Costly Claims tool, new homeowners can figure out what coverage they may need by breaking down common insurance claims by state and zip code. Between the tools, educational information and seamless website navigation, Allstate is a great option for a first-time home buyer.

Pros

• Easy-to-understand products and services
• Customizable coverage options
• Online educational tools
• Caters to first-time buyers

Cons

• Average customer satisfaction ratings
• Default property coverage limits are typically lower than other insurance companies.

Discounts

• The home buyer discount reduces the cost of coverage for recent homebuyers or those who purchase a newly constructed home.
• Welcome and loyalty discounts give customers 10% off their premiums for switching their coverage to Allstate. New customers can also save another 10 percent off for signing up at least seven days before their old policy ends.
• The claim-free discount saves users up to $205 when they switch to Allstate without a recent claim.
• Customers can bundle their insurance policies and receive up to 25% off their premium.
• Homeowners who are over 55 and retired qualify for a discount on their home insurance.
• If your home has certain safety features, like theft and fire protective devices, you qualify for a discount.

Coverage

Allstate offers basic dwelling coverage, liability protection, personal property coverage and guest medical coverage in all of its homeowners insurance policies. In addition, the company provides many unique optional coverage options:

• Personal umbrella policies for protection against large liability claims when you reach the liability limit on your policy.
• Manufactured mobile home coverage for coverage on mobile homes and manufactured dwellings.
• Host advantage coverage to protect your belongings when you’re home sharing.
• Electronic data recovery pays for costs when recovering lost personal computer data
• An Allstate agent can help you purchase flood insurance through the National Flood Insurance Program.

Best for cheap coverage: Geico

The price of home coverage changes by state, but Geico offers some of the cheapest homeowners insurance policies throughout the nation. That’s a major draw for many homeowners on a budget. However, Geico loses points for poor customer service and a lack of coverage options – it doesn’t make the J.D. Power U.S. Property Claims Satisfaction Study of top 20 insurance companies.

Geico’s wide availability, low prices and valuable multi-policy discounts make them a great choice for cheap home coverage. Although Geico isn’t rated on J.D. Power’s homeowner insurance study, this company is a great option for homeowners looking for bare bones coverage at the best price possible.

Pros

• Very affordable rates
• Flexible policy options
• Wide availability
• Mobile app lets you manage your policy and make payments

Cons

• Poor customer service reviews
• Limited discounts available
• Geico doesn’t underwrite its own home insurance policies. Users insured by Geico should look into who is insuring them and make sure that they are financially strong enough to pay out on their claims before signing up.

Discounts

• Bundling discounts are available for people who bundle their home and auto insurance policies with Geico.
• Home security systems discount for users who have burglar alarms, fire alarms, fire extinguishers or other in-home safety mechanisms in place.

Coverage

Geico’s homeowners insurance policies are pretty standard. The company does offer some additional coverages, which include:

• Jewelry provides limited coverage ($500-$2,000) for stolen jewelry, though this amount can be increased or customized based on the value of your in-home collection.
• Medical bills covers minor injuries to others who are hurt on the property
• Additional expenses covers extra costs associated with a covered loss

Best replacement coverage: MetLife

Known for its robust insurance app and 24/7 customer support, MetLife gets decent scores across the board for price and discounts. However, the company stands out for offering guaranteed replacement cost coverage.

With guaranteed replacement cost coverage, you’ll receive the actual dollar amount it costs to replace your home, even if it exceeds the home’s market value. For example, if your home initially cost $100,000 but has taken on $300,000 in damages, customers with MetLife’s replacement coverage can receive up to $300,000 in support.

Pros

• Guaranteed replacement coverage
• 24/7 customer service
• A variety of insurance and financial services can be bundled
• Plenty of online learning resources about insurance and financial planning, including video tutorials

Cons

• Coverages unavailable in all states
• Middle-of-the-road customer service ratings
• No quoting tool on provider website
• Claims must be filed by mail or phone

Discounts

• Policy bundling: People who have more than one policy with MetLife can save money.
• Safety discounts: Users who install anti-theft devices, fire alarm systems or locks in their homes are eligible for a discount.
• Employer group discounts: People who work for certain companies or have a membership with partner groups or associations can get discounts.

Coverage

MetLife offers fairly standard homeowners insurance coverage. However, some of the unique coverage offerings include:

• Home replacement cost: This gives you the replacement cost instead of current value that would include depreciation.
• Personal property replacement costs: This gives the same kind of coverage found in home replacement coverage but for damaged or stolen personal property, such as furniture or electronics.

Best for military members: USAA

USAA is consistently rated as one of the best insurance companies. Across the board, the company is ranked highly for policy offerings, price, customer service and claims handling. J.D. Power consistently gives USAA top marks, and they scored the highest of any provider in J.D. Power’s 2020 Property Claims Satisfaction Study.

Essentially, USAA offers some of the best homeowners insurance coverage on the market. However, it’s important to note that USAA only serves current and former military members and their families. If you’re in the military and looking for great homeowners insurance rates, USAA is affordable and the coverage is impeccable.

Pros

• Outstanding customer service
• High-quality coverage
• Affordable prices

Cons

• Only available to current and former military personnel and their families
• No physical offices

Discounts

• Bundling discounts provide up to 10% savings on your homeowner’s insurance premium if you already have a USAA auto insurance policy.
• Protective device credit provides premium discounts if your home is equipped with security cameras, alarms or other devices.
• Claims-free discount gives customers that go five years without filing a claim 10% off their premiums.

Coverage

Aside from standard coverages, like dwelling, personal property and liability coverage, USAA offers coverage for:

• Loss of use
• Home sharing
• Other structures
• Earthquake coverage
• Replacement cost coverage
• Military uniforms are covered in the event of a loss

Best for large policies: Chubb

Chubb specializes in high-limit policies. This industry mainstay has been selling insurance for nearly 150 years. All Chubb policies are backed by Chubb Limited, the world’s largest publicly traded property and casualty insurance company.

Due to their high-priced coverage, Chubb is only recommended for homeowners who need to insure luxury properties with large policies. This provider does not offer a quick quoting process through their website and they have mixed customer satisfaction. The J.D. 2020 Property Claims Satisfaction Study ranked Chubb just below average.

Pros

• Specializes in large policies
• Waives deductible when loss is more than $50,000
• Option for cash settlement after a loss

Cons

• Very expensive coverage
• Only insures high-value homes
• Not available in all states

Discounts

• Bundling home and auto insurance with Chubb will lower your premium.
• Chubb offers a discount to homeowners who purchase jewelry and valuables coverages.
• Superior protection discounts are offered to homeowners who have one or more security measures, including security systems, security guards, perimeter gates or a backup generator.

Coverage

Aside from all the protections typical in the home insurance industry, Chubb also offers a few valuable coverages, including:

• Replacement cost
• Extended replacement cost
• Risk consulting
• Cash settlement
• Additional living expenses
• Wildfire coverage
• Earthquake coverage

Choosing the best homeowners insurance company

Before choosing a homeowners insurance company, it’s important to understand the different components of a homeowners insurance policy. For instance, you should know how your deductible will affect your premium, and how you can take advantage of bundling options. Here are some other things to consider before you choose an insurance company.

Deductibles

Your home insurance deductible is the cost you pay out-of-pocket before the insurance company will contribute. Generally, the higher your deductible, the lower your monthly premium will be.

Not all coverage types have a deductible. As you’re researching insurance companies, look into the coverage limits that the provider stipulates. These will influence the monthly premium you pay, and in turn, your potential deductible amount.

Supplemental coverage options

Insurance providers offer different amounts of coverage. As a result, you might want to consider adding supplemental coverage options to make sure you have enough protection for your home and personal items. To get the best value, get a quote and understand what’s included in your package so you can determine where you may need to add more coverage on your own.

Discounts

Most insurance providers offer discounts to help customers save money on their insurance premium. Before settling on a policy, research what discounts you qualify for. Some companies offer more discounts than others, so shop around.

Bundling

If you already have a life insurance or auto policy with a provider, you can probably get a discount by bundling with a homeowners policy.

Customer service and claims

Customer service is often overlooked when people are shopping for homeowners insurance. However, if you do have to file a claim, you don’t want to get bogged down by a slow claims process or unhelpful representatives. Before choosing an insurance company, read customer reviews to see what other people think about their customer service.

Frequently asked questions

What do homeowners insurance policies cover?

Standard home insurance policies include dwelling coverage, personal property coverage, liability coverage and additional living expenses coverage. However, there are plenty of other coverage options that can be added to any policy for additional protection, depending on your needs. Shop around to compare what the best home insurance companies have to offer.

What is the typical cost of home insurance coverage?

In the U.S., the average cost of home insurance is $2,305 per year, according to the Insurance Information Institute. However, the amount you’ll pay depends on what you need covered in your policy. Still, there are a few regular factors to help determine the cost of your insurance premiums.

Keep your coverage options and these factors in mind as you search for the best homeowners insurance rates:

• The age and value of your home
• The materials your home is made of
• The type of policy limit you choose
• The policy deductibles you choose
• What, if any, security features you have at home

What is the cheapest home insurance coverage?

There isn’t one insurance company that will provide the best rates for every homeowner. Your premium is highly individualized, and it depends on factors like your age, state and credit score. However, you can use this guide to see which companies tend to offer the most affordable home insurance rates.

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