The 5 Best Home Insurance Companies

1. State Farm

4.9

Editor's Rating

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State Farm, founded in 1922 by retired farmer George J. Mecherle in Bloomington, Illinois, is the largest homeowners insurance provider in the United States, insuring approximately 1 in 5 American homes. With an A.M. Best financial strength rating of A++ (Superior) and over $130 billion in total assets, State Farm offers unmatched financial stability and claims-paying ability. Its standard HO-3 policy includes dwelling coverage, personal property protection (including off-premises coverage), liability up to $500,000, medical payments to others, and additional living expenses if your home becomes uninhabitable. State Farm's network of 18,000+ exclusive agents provides personalized, local service for policy management and claims assistance. Discounts are available for bundling home and auto (up to 20%), new homes under 10 years old, protective devices (smoke alarms, security systems), and claims-free history. State Farm also offers identity restoration coverage and equipment breakdown protection at no additional cost on most policies.

2. Lemonade

4.8

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Lemonade, founded in 2015 by Daniel Schreiber and Shai Wininger and headquartered in New York City, has revolutionized homeowners insurance with its AI-powered platform. The company went public in July 2020 (NYSE: LMND) and has grown to serve over 2 million customers across 30+ states. Lemonade's standout feature is its claims process: the AI chatbot, Maya, can approve and pay claims in as little as 2-3 minutes, with the company's record being a claim approved in just 2 seconds. Policies start at just $25/month and are fully customizable through the mobile app. Lemonade operates on a unique Giveback model, donating up to 40% of unclaimed premiums to charities chosen by policyholders. Standard homeowners coverage includes dwelling, personal property, liability, and additional living expenses. Optional add-ons include scheduled personal property coverage for jewelry and electronics, water backup coverage, and equipment breakdown protection. The entire experience, from getting a quote to filing a claim, is handled through the Lemonade app.

3. Allstate

4.7

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Allstate, founded in 1931 by Sears, Roebuck and Co. and headquartered in Northbrook, Illinois, is the fourth-largest homeowners insurance provider in the U.S. with an A.M. Best financial strength rating of A+ (Superior). Allstate insures approximately 6.5 million homes and offers extensive customization options beyond standard HO-3 coverage. Its proprietary Your Choice Auto & Home program includes features like Claim RateGuard (your rates do not increase after your first claim), Claim-Free Bonus (annual reward for not filing claims), and a Deductible Rewards program that reduces your deductible by $100 per year you go claim-free, up to $500. Allstate also offers green improvement coverage (rebuild with environmentally friendly materials after a covered loss), yard and garden coverage, and electronic data recovery. The Allstate Digital Locker app lets you create a home inventory by photographing your belongings. With 10,000+ agents nationwide plus full digital self-service capabilities, Allstate provides a true hybrid experience.

4. Progressive Home (ASI)

4.6

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Progressive's homeowners insurance, underwritten by its subsidiary ASI (American Strategic Insurance), offers some of the most competitive rates in the market, particularly for homeowners who bundle with Progressive auto insurance. Founded in 1937 and headquartered in Mayfield Village, Ohio, Progressive is the third-largest auto insurer in the U.S. and has rapidly expanded its property insurance portfolio through ASI. The HomeQuote Explorer tool lets you compare quotes from Progressive and multiple other carriers side by side, ensuring you find the best rate. Standard coverage includes dwelling, personal property, liability, and additional living expenses. Progressive offers a wide array of discounts: multi-policy (up to 20%), new purchase (buying a home within the last 12 months), protective devices, prior insurance, paperless billing, and paying in full. The company also offers equipment breakdown coverage and service line coverage (protecting underground pipes and wiring) as popular add-ons. Claims can be filed online, through the app, or by phone 24/7.

5. USAA

4.8

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USAA (United Services Automobile Association), founded in 1922 by 25 Army officers in San Antonio, Texas, consistently ranks #1 in customer satisfaction for homeowners insurance in J.D. Power surveys. USAA membership is limited to active-duty military, veterans, and their families, but eligible members benefit from some of the lowest premiums and highest customer satisfaction scores in the industry. With an A.M. Best rating of A++ (Superior) and over $37 billion in net worth, USAA's financial stability is exceptional. Its homeowners policy includes guaranteed replacement cost coverage (rebuilding your home to its original state regardless of policy limits), personal property replacement cost coverage, and $300,000 in liability protection standard. USAA offers unique military-relevant features like deployment discounts, storage coverage for military moves, and worldwide personal property coverage. Members also receive competitive bundling discounts, claims-free discounts, and loyalty discounts that increase over time.