In this article, we will examine to aid in simplifying the process, as the abundance of options can be overwhelming when trying to determine which companies provide the most optimal coverage for you. There is certainly no scarcity of companies that offer insurance for homeowners.
Latest Article Updates
Notable changes to the details can be found here. I review this article once per month, and it was updated and reviewed in August 2023.
USAA and Amica are notable to Clark for their reliability: two companies that will be available when you require assistance. According to money expert Clark Howard, the top-rated companies are those that offer dependable support, rather than solely focusing on offering the lowest premiums. Prior to designating any insurance company as the “best,” numerous factors must be taken into account.
“Amica and USAA may not have the best premiums,” Clark says. “But remember my rule: Homeowners insurance is only for use in a catastrophic situation, so it’s crucial to have the best coverage in case something does happen to your home.”
USAA, founded in 1922, consistently ranks at the top for customer satisfaction. However, not all people who don’t meet the company’s criteria are always ranked by comparing homeowners insurance options from other companies. USAA provides homeowners insurance for military members, veterans, and their family members.
USAA holds the top position in the 2023 homeowners insurance ratings by Consumer Reports (subscription necessary). However, USAA has slipped from its previous number one spot in the J.D. Power rankings last year. With a score of 906 out of 1,000, it secures the second-highest position on Consumer Reports’ list. Nevertheless, USAA did not receive an official ranking in J.D. Power’s 2023 U.S. Home Insurance Study.
Amica Mutual Insurance, established in 1907, is a mutual insurance company that is owned by its policyholders. When comparing insurance companies, it consistently emerges as one of the best on various lists. This year, J.D. Power ranks it in the second position with a score of 903 out of 1,000, while Consumer Reports places it in the third position.
There are many reasons why you might want to consider looking into our list of all homeowners insurance companies here, but Clark really likes these two companies.
Top 10 Finest Homeowners Insurance Providers.
The satisfaction and grievances of customers, following the submission of a claim, are crucial aspects to take into account in order to gauge how you may be treated as a customer. We strongly emphasize the significance of not solely seeking out the least expensive or most heavily discounted insurance companies when determining the best options. At Team Clark, consumer experience holds utmost importance.
J.D. Power evaluates insurance firms by assessing customer contentment with billing procedures, policy details and options, claims, interactions, and cost.
Consumer Reports ratings are based on the company’s attentiveness and promptness in investigating claims, timely payment, estimated dollar amounts of damages, professionalism, and courtesy.
And those standards are also what is significant to Clark.
“The way insurers end up being the best on these ratings is how they treat you with claims.”
Underneath our roster, we have produced a Team Clark rating for the top insurance firms by computing the average of the 2023 rankings from Consumer Reports and J.D. Power. Notably lower is the level of customer contentment with home insurance, as indicated by data from Consumer Reports. As per the discoveries of J.D. Power, fifty percent of the companies are experiencing a decline in customer satisfaction, while the other fifty percent are witnessing an increase, stated as “The outcomes of insurance companies are varied.”
This year, here’s how we’re evaluating our top ten companies: The varied outcomes have resulted in decreases evident in numerous ratings on our list.
RankingCompanyTeam Clark Grade (out of 100) *USAA91.3 1Amica87.6 2Erie85.1 3Auto-Owners77.1 4Chubb76.0 5State Farm73.0 6American Family72.2 7Automobile Club Group (AAA)70.6 8Travelers69.3 9Farmers69.1 10Nationwide68.2.
* Because USAA coverage isn’t available to everyone, we’ve included it as an honorable mention but haven’t included it in the rankings.
The rating, FSR, or claims payment ability and financial security of a company reflects the financial strength of each company listed below. Keep reading for more information on the companies on our list. It is important to note that the superior financial strength rating of FSR++ A++ or A+ represents excellence for all ten of our top companies, but this is not factored into the Grade Clark Team for each individual company.
United Services Automobile Association
USAA, which is based in San Antonio, Texas, states that it is open to former and current military members, as well as their spouses and children, to access its services and products.
USAA offers insurance policies for pet and life, as well as long-term care protection. They also provide other lines of insurance for business auto. In addition to standard home insurance, USAA offers insurance for flood and cell phones, as well as protection for collectibles and other types of property.
USAA also collaborates with businesses to provide member benefits such as reduced rates on accommodations, car rentals, entertainment, and additional offerings.
Home insurance is available for residents in all 50 states, and you can save money by bundling policies and having security and safety features on your claims-free home for five years or more in Washington, D.C. And elsewhere.
Amica, based in Lincoln, Rhode Island, offers insurance policies for a variety of events, including special occasions and weddings, as well as for small businesses, motorcycles, yachts, and boats. They also provide coverage for life and auto insurance, and their home insurance policies come with discounts for bundling, being claims-free, and using autopay.
After a span of two years, Amica presents a loyalty concession and the organization discloses that 94% of patrons remain loyal to them. Shareholders obtain yearly earnings or reductions in premiums as corporate earnings are reimbursed. Your coverage may be pricier during the initial year if you acquire a dividend policy, as you are “investing in” the organization. Nevertheless, you will economize money in the future. Subscribers have the option to select between dividend policies and conventional (non-dividend) policies.
Home insurance is accessible in all states except for Hawaii and Alaska.
Erie Insurance, founded in 1925, offers life, business, auto, and home insurance policies. If you have security and safety features in your home, Erie’s standard policy includes a guaranteed 100% replacement cost coverage for applicable states. Additionally, the company offers early renewal discounts on home insurance policies if you bundle them with other Erie policies.
Erie currently provides insurance in 12 states and the District of Columbia.
3. Vehicle Owners
Auto-Owners Insurance, established in 1916, is a mutual insurance firm headquartered in Lansing, Michigan. It is possessed by its policyholders and provides a range of insurance plans, such as homeowners, automobile, life, and business policies.
The company offers discounts for bundling generators that automatically back up and shut off water systems, as well as for loyalty members and those who have claims-free records. As part of its home insurance coverage, the company also provides specialized protection for high-value homes and equipment breakdown coverage for appliances and air conditioning. Additionally, members can select specialty coverages such as cyber protection as part of their home insurance.
However, Auto-Owners home insurance is limited to residents of just 26 states.
Today, the company offers several types of insurance, including life and health supplemental, auto, and home insurance. The Chubb Corporation, founded in 1967, has a history spanning back to 1882 with the opening of Chubb Thomas, a marine underwriting business.
Chubb provides homeowners insurance coverage in all states. In terms of insurance for your home, policyholders have the opportunity to receive various discounts, such as those for combining policies, having safety and security measures in place, and maintaining a claims-free record.
5. State Farm Insurance
State Farm, the largest insurer of homeowners in the United States, was established in 1922 and has its headquarters in Bloomington, Illinois.
In addition to homeowners coverage, the cost of replacing the roofing includes the standard insurance policy. There are discounts available for bundling policies and for having security and safety features in your home. State Farm offers short-term and long-term disability options. You can also get insurance for pets, health, life, small businesses, and auto.
State Farm provides insurance in all 50 states and the District of Columbia.
6. Family in the United States
American Family Insurance, established in 1927, is headquartered in Madison, Wisconsin. The company provides a wide range of insurance options, including home, automobile, commercial, personal, and farm and ranch insurance.
There are many options available to add coverage to policies such as homeowners for protection for relatives in assisted living or nursing homes, such as hidden water damage or credit monitoring services, as well as features for security and safety at home. Additionally, there are loyalty member discounts and bundling discounts for home renovations.
Insurance for your home is accessible in 19 states.
7. AAA (Automobile Club Group)
Established in 1902, the American Automobile Association (AAA) is a branch of the Automobile Club Group. To acquire insurance through Automobile Club Group, an AAA membership is necessary.
Depending on where you live, your insurance provider may have slightly different names, such as South Insurance Club Auto or any other coverage company in the region. This is because there are several companies under the AAA umbrella that underwrite insurance.
The coverage and discounts available to you may vary depending on your location. AAA offers auto insurance options in all 50 states, but not all states offer homeowners insurance policies.
Travelers Insurance was established in 1852 in Saint Paul, Minnesota, and is currently based in New York, New York.
Various categories of insurance policies are accessible, including house, vehicle, pets, and ceremonies and unique occasions.
If you purchased a home within the previous year, you may also qualify for coverage discounts on a policy’s effective date. The company also offers discounts for having home security and safety devices, as well as bundling policies. Additionally, if you have not experienced any losses within a certain timeframe, you may also qualify for coverage discounts on a home purchased within the prior year.
Travelers’ home insurance is accessible in 45 states.
Founded in 1928, Farmers Insurance offers a variety of policies including business, pet, life, home, and auto insurance in addition to standard home insurance coverage. They also provide optional add-ons for vacation or seasonal properties, as well as coverage for vacant properties. The company is based in Los Angeles, California.
Members with home insurance policies can qualify for discounts for bundling, home safety and security features and even for being a nonsmoker.
Farmers offers home insurance in 41 states.
Nationwide Insurance, established in 1926 and headquartered in Columbus, Ohio, provides insurance for various needs such as long-term care, pets, and weddings. They offer coverage for home, auto, life, health, and special events.
Discounts for roof classifications, which are determined by the age and roofing material of a roof, as well as for insurance policies on recently purchased homes, are also accessible. Home insurance policyholders can receive discounts for combining policies, installing security devices on their property, maintaining a claims-free record, and residing in a gated community.
Homeowners insurance coverage is not accessible across Alaska, Florida, Hawaii, Louisiana, Massachusetts, New Jersey, or New Mexico on a nationwide scale.
Home Insurance Providers to Steer Clear Of.
The National Association of Insurance Commissioners (NAIC) has stated that numerous homeowners insurance policies, including those issued by a prominent insurance company, are included in our top ten list.
There are more than 2,000 companies in the United States that write homeowners insurance, which can meet the different needs and impact factors of each individual homeowner.
When searching for the optimal homeowners insurance provider for yourself, how can you determine which companies to steer clear of?
Clark recommends paying attention to how a company is rated, particularly by Consumer Reports and J.D. Power. You will find some companies on our list that have scores that are just a fraction apart. Just because a company isn’t listed on the top ten doesn’t mean it doesn’t provide the support you need.
On the other hand, Clark does not recommend selecting a company solely based on its inexpensive quotes for insurance coverage.
“Just know there’s a risk-reward quotient. You might get a cheaper quote from somewhere else and you might think, ‘Yeah, I’m never going to have a homeowners claim; they just make me have this stuff.’“If you’re willing to roll the dice for a lower price, go for it. On the other hand, if you have experience in this area — you know how important it is that an insurer be there when you have a problem — then go by the ratings.”
Once you pinpoint the companies that provide coverage at rates that align with your requirements, you have the freedom to establish your own hierarchy. If the price of the premium holds utmost significance for you, exploring various options is a recommended approach to secure the most advantageous bargain.
When it comes to evaluating insurance companies, Clark relies on two reputable organizations: J.D. Power and Consumer Reports. He emphasizes the importance of placing significant emphasis on customer service.
He inquires, “Are they engaging in conflict with you as if you were the adversary, or are they collaborating with you as your ally to assist you in rebuilding your life?” The criteria these individuals employ to determine whether an insurance company is commendable or unsatisfactory is: When you face difficulties and encounter a predicament, are they providing you with appropriate treatment?
Clark’s Recommendations for Obtaining the Optimal Homeowners Insurance Policy.
Ensure you obtain the most suitable insurance for your requirements by seeking advice from Clark. It is important to consider a company’s reputation for excellent customer service and compare different options.
1. Exercise Caution with Policy Exclusions
I have written further regarding the usual inclusions and exclusions in policies, however, as a general rule, standard homeowners policies typically do not provide coverage for:
Your insurance policy will help ensure the protection of your property, but adding endorsements may increase your premium. Endorsements, also known as add-ons, are optional coverages that most insurance companies offer to cover a wide range of events.
2. Ensure Your Residence Is Accurately Assessed for Reconstruction
If you want to make sure that your home is rebuilt, you need to have enough coverage. The biggest mistake is not purchasing a policy that provides enough coverage to financially protect you if you face a total loss.
Check out this article to learn more about how much homeowners insurance you need. If your home isn’t properly valued, there may be a difference between what it costs to rebuild and what your insurer is willing to cover, which could end up coming out of your pocket.
3. Take into account a Policy with a Large Deductible
As stated by Clark, the final portion holds significant importance. By doing so, you can reduce your premium and deter yourself from making unnecessary minor claims. Opt for the maximum deductible that fits within your budget and is permitted by your mortgage provider.
According to him, in the event that you have to explore different options and change insurance providers later on, other insurance providers might be reluctant to engage in business with you if you utilize your policy carelessly. “It is only meant to be used in the event of a disaster,” he explains. “You should consider homeowners insurance as a proposition where once you use it, you forfeit it.”
4. Take into Account an Umbrella Policy if You’re a High-Value Individual
In order to safeguard yourself from a disastrous claim, this implies that you may require an umbrella policy. It is essential to possess adequate liability coverage to shield your assets in the event that you possess a substantial amount of them.
Umbrella coverage plans are typically marketed in increments of $1 million.
The reputation of a company is crucial, however, the homeowners insurance company that fulfills your most crucial requirements is considered the top-notch company. These aspects ascertain the ranking of companies as the best, which includes the quality of customer service, customer contentment, and the capability to settle claims.