Guide to home insurance Homeowners insurance provides financial protection if a disaster damages your home. What is Your Zip Code? Please enter valid zip Are You a Homeowner? Yes No Compare Quotes When a disaster or accident damages your home, it can turn life upside-down. Homeowners insurance helps you sleep easy, knowing your biggest investment is safe. Homeowners insurance covers the house structure as well as your personal belongings. It also provides liability protection in case someone sues you, and money to cover living expenses if you have to live somewhere else while your home is being repaired. Best Homeowners Insurance Companies in 2023 Insure.com analyzed data from three major sources, J.D. Power, A.M. Best, and NAIC, to rank the best homeowners insurance companies. Our team of experts also considered each company’s average premiums, new homes discounts and bundling discounts. Show more Compare the best homeowners insurance companies State Farm Overall Rating 4.6 Average Premium 4.4 NAIC 1.07 Customer satisfaction 4.6 AM Best A++ Average Premium Customer Satisfaction NAIC AM Best Rating A++ Learn More Auto-Owners Overall Rating 4.0 Average Premium 4.7 NAIC 0.19 Customer satisfaction 4.4 AM Best A++ Average Premium Customer Satisfaction NAIC AM Best Rating A++ Learn More Travelers Overall Rating 3.6 Average Premium 2.0 NAIC 0.60 Customer satisfaction 4.4 AM Best A++ Average Premium Customer Satisfaction NAIC AM Best Rating A++ Learn More Allstate Overall Rating 3.5 Average Premium 5.0 NAIC 2.04 Customer satisfaction 4.4 AM Best A+ Average Premium Customer Satisfaction NAIC AM Best Rating A+ Learn More Erie Overall Rating 3.4 Average Premium 4.7 NAIC 0.23 Customer satisfaction 4.4 AM Best A+ Average Premium Customer Satisfaction NAIC AM Best Rating A+ Learn More Progressive Overall Rating 3.1 Average Premium 4.3 NAIC 1.38 Customer satisfaction 4.3 AM Best A+ Average Premium Customer Satisfaction NAIC AM Best Rating A+ Learn More Nationwide Overall Rating 3.0 Average Premium 3.8 NAIC 0.75 Customer satisfaction 4.1 AM Best A+ Average Premium Customer Satisfaction NAIC AM Best Rating A+ Learn More American Family Overall Rating 2.9 Average Premium 4.6 NAIC 0.60 Customer satisfaction 4.4 AM Best A Average Premium Customer Satisfaction NAIC AM Best Rating A Learn More Farmers Overall Rating 2.4 Average Premium 3.3 NAIC 0.33 Customer satisfaction 3.8 AM Best A Average Premium Customer Satisfaction NAIC AM Best Rating A Learn More Easy steps to shop homeowners insurance When shopping for homeowners insurance, you want to be sure you get the coverage you need at a reasonable price. Here’s how to buy home insurance: Learn the basics of how homeowners insurance works Make sure you have enough coverage Research homeowners insurance companies customer satisfaction ratings Check discounts Compare quotes Read more about how to buy home insurance Homeowners insurance basics Homeowners insurance protects your house, your belongings and your financial health. Read on to learn more about homeowners insurance works. What is homeowners insurance? Homeowners insurance repairs or replaces your home and belongings when damaged by covered perils. It also pays for the medical or legal bills if someone is injured in your home or you are sued. In some cases, it also covers you if you damage someone else’s property or injure someone else. What does home insurance cover? Homeowners insurance is comprised of several types of coverages that work together to protect your finances, your home and your belongings. The graph below shows how each type of coverage works. Coverage type What the coverage does Coverage example Typical amount of coverage offered by a policy Dwelling Covers damage to your home Damages caused by fire, smoke, storms, lightning, hail, vandalism Enough to pay to rebuild your home Other structures Covers stand-alone structures on your property Damage caused to the fence, detached garage, etc 10% of dwelling coverage Personal property Pays to repair or replace belongings that are stolen or damaged in a covered event Clothing, furniture, electronics and appliances 50% to 70% of dwelling coverage Additional living expenses (ALE) Help pay temporary living expenses while your home is being repaired Hotel and restaurant bills and other living expenses 20% of dwelling coverage Liability Pays out if for legal expenses if you’re sued or for injury and property damage Property damage, bodily injuries to another person and legal costs $100,000 to $500,000 Medical payments Pays for medical bills of those injured on your property, regardless of fault Reimbursement of medical bills of guests $1,000 to $5,000 Read more about what homeowners insurance covers What isn’t covered by home insurance? Floods Your homeowners insurance coverage applies to water damage that occurs from burst pipes or severe rain, but it doesn’t cover damage if your house is flooded by water that comes in from the ground. For that, you need flood insurance. The National Flood Insurance Program (NFIP) sells flood insurance under the oversight and management of the Federal Emergency Management Agency (FEMA). Though these policies are administered by the NFIP, you would still buy one from a standard home insurance company. You can use the NFIP website to get a list of providers in your area. You can also buy flood insurance from a private company. Private flood insurance policies cost more but offer more protection. Earthquakes You need a separate policy to cover your home from damage caused by earthquakes. You can buy earthquake coverage from most major carriers as either a separate policy or as an add-on to your standard home policy. In California, it is available from the California Earthquake Authority (CEA). Other things homeowners insurance does not cover There are other types of damage that aren’t covered by your homeowners insurance. These include damage from: Mold Termites Rodents Normal wear and tear or negligence Sewer backups Additionally, some insurance companies won’t pay for injuries caused by certain breeds of dogs. There is also a limit to how much a standard policy will payout for damaged or stolen belongings. That means you should get add-on coverage to boost protection if you have valuable possessions, such as jewelry or collectible art. Read more about home insurance exclusions Types of homeowners insurance There are several different types of homeowners insurance policies. Some offer more coverage than others, and some are for various types of structures, for instance, mobile homes, condos or historic houses. The type of homeowners insurance that’s best for you will depend on how much coverage you want and what type of house you own. The exact terms and cost vary from one insurance company to another, but in general, the coverage will be similar. H0-1: Bare-bones policy that is rarely offered that covers just the house and attached structures, like garages. H0-2: Sometimes called a broad form policy, this covers more instances of damage than an H0-1 and also covers personal belongings. HO-3: The most common type of policy that includes coverage for your home, your personal possessions, garages and sheds, liability insurance and additional living expenses. H0-4: Coverage for renters. H0-5: The most comprehensive home insurance policy with coverages beyond an H0-3. HO-6: Coverage for condo owners. HO-7: Coverage for mobile homes and manufactured homes. HO-8: Coverage designed for homes in which the replacement cost exceeds the actual cash value and is commonly used for historic and older houses. How much homeowners insurance costs Insure.com’s analysis of rates from top insurers for nearly every ZIP code in the country found the average cost of homeowners insurance to be $2,285 a year, or $190 per month. That’s for a home insurance policy with $300,000 in dwelling coverage and $100,000 in liability insurance. If you bump up liability to $300,000, the national average cost is $2,305. Average annual premium Dwelling/liability coverage $1,806 $200,000/ $100,000 $1,824 $200,000/ $300,000 $2,285 $300,000/ $100,000 $2,305 $300,000/ $300,000 $2,694 $400,000/ $100,000 $2,709 $400,000/ $300,000 $3,046 $500,000/ $100,000 $3,056 $500,000/ $300,000 $3,304 $600,000/ $100,000 $3,323 $600,000/ $300,000 How much homeowners insurance costs in your state Home insurance rates vary depending on where you live. Select your state from the list below to get an estimate of how much coverage will cost. Alabama $2,981/Year Alaska $1,799/Year Arizona $1,976/Year Arkansas $3,439/Year California $1,166/year Colorado $3,082/Year Connecticut $1,961/Year Delaware $1,521/Year District of Columbia $1,488/Year Florida $3,439/Year Georgia $2,555/Year Hawaii $499/Year Idaho $1,842/Year Illinois $2,201/Year Indiana $2,423/Year Iowa $2,540/Year Kansas $3,931/Year Kentucky $2,862/Year Louisiana $3,270/Year Maine $1,833/Year Maryland $1,518/Year Massachusetts $1,920/Year Michigan $2,153/Year Minnesota $3,010/Year Mississippi $3,340/Year Missouri $3,111/Year Montana $2,809/Year Nebraska $3,133/Year Nevada $1,486/Year New Hampshire $1,455/Year New Jersey $1,744/Year New Mexico $2,299/Year New York $1,840/Year North Carolina $2,009/Year North Dakota $2,601/Year Ohio $2,107/Year Oklahoma $4,445/Year Oregon $1,608/Year Pennsylvania $1,720/Year Rhode Island $2,125/Year South Carolina $2,678/Year South Dakota $3,172/Year Tennessee $2,692/Year Texas $3,429/Year Utah $1,378/Year Vermont $1,212/Year Virginia $1,956/Year Washington $1,514/Year West Virginia $2,486/Year Wisconsin $1,732/Year Wyoming $2,083/Year Show more States with the most expensive homeowners insurance rates Oklahoma, Kansas, Arkansas, Florida and Texas top the list for states where homeowners pay the most for insurance. These states are prone to severe weather, which is part of the reason why rates are higher than the rest of the country. Rank State Average Rate 1 Oklahoma $4,418 2 Kansas $3,920 3 Arkansas $3,422 4 Florida $3,418 5 Texas $3,412 6 Mississippi $3,318 7 Louisiana $3,249 8 South Dakota $3,149 9 Nebraska $3,112 10 Missouri $3,093 States with the cheapest homeowners insurance rates Hawaii, California, Vermont, Utah and New Hampshire top the list of states with the cheapest homeowners insurance rates. Rank State Average Rate 1 Hawaii $477 2 California $1,144 3 Vermont $1,194 4 Utah $1,356 5 New Hampshire $1,436 6 Nevada $1,457 7 DC $1,462 8 Washington $1,494 9 Maryland $1,503 10 Delaware $1,504 Homeowners insurance advisor By answering a few questions, the Insure.com homeowners insurance advisor will assess your needs and recommend the best policy for you. Start using Insure.com’s homeowners insurance advisor How to save money on homeowners insurance There are many types of home insurance discounts you can earn to get affordable homeowners insurance rates. Many discounts are available. For example, you can receive a discount for the age of your home. H 40% New home construction 26% Age of home (Five years or less) 18% Home and auto bundle 13% Series of upgrades (Electrical, heating, plumbing) 13% Age of home (10 years or less) 11% Construction type (Fire-resistive, superior) 11% Roof upgrade (Fire-resistive, superior) 9% Advance purchase 8% Loyalty (10 years or more) When you’re shopping for a new policy, ask your insurer discounts you might be eligible for. Frequently asked questions What is home warranty insurance? A home warranty is a service contract that you pay a monthly fee for that allows you to pay a set amount to repair major appliances and household systems. You pay a service call fee and a discounted amount for the repairs or replacement. Exactly what’s covered depends on your contract, but typically home warranties cover HVAC and electrical systems and water heaters. Some also include refrigerators, washers and dryers and you can add on coverage for septic systems, pools and hot tub and more. A home warranty is a separate service contract. It is not home insurance but rather supplements it. If your home and appliances are relatively new, it’s not worth it to pay for a home warranty. The systems and appliances are likely covered by manufacturer warranties if they do fail, which is unlikely. However, if your home and appliances are old, it may be worthwhile in some cases. While you do pay a discounted rate and don’t have to find qualified repair businesses, most contracts don’t cover repairs needed due to normal wear and tear or improper maintenance. It may be likely that your definition of proper maintenance differs from the home warranty provider’s. That means in many cases you have to prove that you’ve done proper maintenance to get the home warranty company to do the work. How much home insurance do I need? You should select a dwelling coverage amount that covers the cost to repair damage to your home or rebuild it completely at equal quality — at current prices. Does home insurance go up every year? In general, home insurance costs are trending upward, though what you pay will depend on your particular situation, your insurer, where you live and the type of home you have, among other things. Here are common reasons why home insurance rates increase: Your insurer raised rates to cover its cost of doing business You filed a claim or live an area where many others have You added a pool, trampoline, woodstove You’ve added a certain breed of dog to the family You built an addition or did a major renovation Inflation Construction costs in your area increased Your credit score changed for the worse