Best Homeowners Insurance Companies

Buying insurance is one of those life necessities that can seem overwhelming. It may be confusing to know if you have the right coverage with the right company.

However with a little bit of legwork you can learn what you need to know in order to select the right company to insure your home. Be sure to also use the FREE tool above to search and compare instantly!

Companies Offering Homeowners Insurance

best homeowners insurance companiesMore than 100 insurers offer homeowners insurance policy options. The vast majority of those companies are small insurers which may or may not have the financial means to pay you in the event of any claim you may need to make.

While larger, more commercial companies may cost more in premiums, you most often will be guaranteed payment.

Not unlike selecting a bank that is insured by the FDIC (Federal Deposit Insurance Corporation), selecting an insurance company with a solid history and a good industry rating will help you ensure that your premiums will pay off if you need them.

Learning More About Ratings

While the lowest cost premium may seem like the best option for your homeowners coverage, selecting homeowners insurance is not as simple as selecting the lowest cost. Cost is only factor that should be part of your decision.

The insurance industry has rating companies that do extensive information gathering about insurers.

The ratings incorporate company history, financial details and customer service feedback in order to give potential insureds, policyholders or other stakeholders a quick look at the company’s reliability.

The ratings provide a quick check on the insurance companies that you are considering to help you make an informed decision.

Companies Providing Insurance Ratings

Many companies rate insurers, however there are only a few that are regularly looked upon as industry leaders. The three most commonly relied upon insurance rating companies are The A.M. Best Company, Standard & Poor’s, and Moody’s.

The A.M. Best Company – Promoted as the global insurance industry’s leading information provider, The A.M. Best Company specializes in knowing the insurance industry inside and out. The company provides detailed reports regarding insurers along with financial strength ratings. A.M. Best ratings range from A++ (secure and superior) to S (suspended).

Standard & Poor’s – With a 150 year history, Standard & Poor’s rates insurance companies and also provides detailed analytics for the financial services industry including review of investments. S&P ratings range from AAA (the top rating) to C (the lowest rating).

Moody’s – Moody’s completes analyses of companies around the world in order to generate credit ratings, tools and analytics. The companies they review range from insurance to any publicly traded company. Ratings range from Aaa (the best) to C (the lowest).
moodys.com

Additional Research

In addition to the ratings from the industry analytics companies, you should complete some research on your own including understanding a company’s customer service reputation.

Easily found with online searches, sites like Consumer Reports or J.D. Powers can provide additional details.

Top Rated Companies

Insurance companies may be rated differently by different companies. In order to select the right insurer for your needs, you need to review the ratings and reputation in order to find the company you feel fits you.

Some of the top rated insurance providers, in alphabetical order, include:

  • best companies offering homeowners insuranceAlfa Insurance (Alabama Farmers Federation) – In business since 1921, ALFA focuses on Alabamians in rural areas.
  • Allstate – Serving their policyholders since 1931, Allstate provides property and casualty insurance as well as life policies.
  • Amica Insurance – The oldest mutual insurer of autos in the U.S., Amica was established in 1907 and also offers homeowners policies.
  • Cigna – With more than 200 years of history, Cigna offers health insurance coverage.
  • Citizens – Specializing in life insurance, Citizens, Inc., has written policies since 1969. They offer policies through several different subsidiaries: CICA Life Insurance Company of America, Citizens National Life Insurance Company, Security Plan Life Insurance Company and Security Plan Fire Insurance Company.
  • Farmers – As one of the few businesses to startup before the Great Depression and survive through it, Farmers has been insuring people since 1928.
  • Liberty Mutual – In business since 1912, Liberty Mutual is now the third largest property and casualty insurer in the U.S.
  • Nationwide – Currently one of the largest insurance and financial services companies in the world, Nationwide has been in business since 1926.
  • State Farm – Serving their customers since 1922, State Farm offers a full range of insurance coverage.
  • Travelers – Writing enough policies in several categories to rank among the top five insurers, Travelers was established in 1853.
  • USAA – Serving the military community since 1922, United States Automobile Association offers property and casualty insurance.

What you need to know about buying a policy?

Along with selecting your insurance provider, you’ll need to make sure to compare policies so that you are getting quotes based on equivalent coverage.

Not all policies are written the same and some may have exclusions that others do not. Make sure you understand the coverage being offered and compare the following:

Coverage
What is the total amount of coverage?
Does the policy cover items inside the home?
Will you be able to purchase coverage for specific high value items such as jewelry or fine art collections?
Is the entire property covered under the policy or just the dwelling?
Does the coverage include medical expenses if needed due to an accident on the property?
What natural disasters are covered?
Do you require any additional riders due to where you live (for example, coverage for floods, earthquakes, sinkholes or hurricanes)?

Claims
What are the specific exclusions that may affect you?
Can you purchase supplemental coverage (a rider) to cover what you need?
What will the policy pay (full replacement/repair or a percentage)?
Will you need to obtain quotes, then the insurance company will pay directly to the company chosen or will you have to pay upfront and be reimbursed?

companies for home insuranceCost
What is your total annual premium?
How will you be able to pay your premium (direct bill in the mail, online, through your mortgage company)?
How often will you need to pay (annually, semi-annually, quarterly or monthly)?

Questions
Is the insurer available 24/7?
How can you contact your insurer (phone or web)?

Although shopping for homeowners insurance coverage may seem overwhelming, by taking your time and doing your research, you will find the coverage that best suits your needs.

Many resources are available to you, you only have to look.

Be sure to use the FREE tool below!