The Best Homeowners Insurance of 2018

How We Chose the Best Homeowners Insurance Companies

Financial strength ratings

The best way to compare financial solvency among insurance companies is to use financial strength ratings (FSR) from independent agencies. With a higher financial rating, the company is more likely to satisfy large claims (like if your house burns down). Since the whole point of insurance is to protect you financially, it’s vital that your carrier has enough money to pay out its claims — which, in the event of a natural disaster, can be sudden and massive. We set the bar high — our picks needed to have at least an A rating from A.M. Best, the only agency that focuses solely on insurance. Then, because the Insurance Information Institute recommends getting ratings from two or more agencies, we also required a high FSR from at least one of the two largest agencies: at minimum, a “strong” (A) rating from Standard & Poor’s or “high quality” (Aa) from Moody’s.

Endorsements

Endorsements are optional provisions that can be added to a policy at the owner’s discretion. The more endorsements offered, the more you can fill in any gaps your policy specifically does not cover — the endorsement for earthquake coverage is a common addition in Los Angeles, for example.

Customer service

A good customer service rating for a homeowners insurance company (80+ from Consumer Reports or 3+ from J.D. Power) will mean painless communication in every phase. You’re more likely to receive accurate quotes and sufficient coverage and be properly compensated for claims. We looked to J.D. Power’s annual U.S. Household Insurance Study, which includes scores based on how well “customers rate the claims experience with their current homeowners insurance provider.” Consumer Reports also published data from nearly 10,000 survey respondents who filed claims from January 2010 to June of 2016, in which they rated carriers on criteria including agent courtesy and prompt problem-free claims experiences.

Discounts

To find the best price possible, your homeowners insurance company should offer plenty of chances to save. Often, the most significant discounts, like those for owning a fire extinguisher or being claim-free, are offered by every provider. However, there are a few exclusives worth noting: Allstate’s “new purchase” discount gives a small break to owners who are moving into their home for the first time (regardless of whether the home itself is new), and Travelers’ Green Home Discount knocks five percent off the premium price for homes certified “green” by the Leadership Energy and Environmental Design (LEED) organization. We tallied and compared the discounts offered by each provider, to help you find your best.

The Best Homeowners Insurance Companies

Allstate — Best for New Homebuyers

Amica — Best Customer Service

State Farm — Most Personalized Online Quote

Nationwide Insurance — Most Endorsements

MetLife — Best Replacement Coverage

Travelers — Best for Green Homes

Safeco — Unique Bundled Deductible

Progressive — Best for Boat Owners

GEICO — Strongest Financial Outlook

Why we chose it

Abundant online tools

To help you better understand the industry, Allstate’s website contains a library of best-in-class resources — everything from articles and videos to quizzes and infographics. Particularly impressive is the Common and Costly Claims tool that lets shoppers type in their ZIP code to see the most common claims in their region, complete with average dollar amounts for those claims. There’s also a startlingly realistic GoodHome home report that plays a Google Street View video of your home (or potential home) as it enumerates potential risks and gives local hazard data, plus prevention tips. Tools like this make it simple to understand areas of your coverage for which you’ll want to increase your existing limits, or that you might need to supplement because the risk is higher in your particular neighborhood.

Extensive endorsements

Allstate has the second largest number of additional endorsement options. Those additional endorsements are fairly low-risk: insurance for expensive sports equipment, musical instruments, or your landscaping. Notably absent is additional coverage options for earthquakes and theft of other property (vehicles, trailer, watercraft). If either of those are personal concerns, check to see if they’re already included in your quoted policy or look for a provider that offers endorsements for them (like Nationwide or State Farm).

The most discounts

Allstate also offers the largest volume of discounts (11 total) of the companies on our list, including standard discounts like hosting smoke alarms, fire extinguishers, or deadbolt locks. It’s also the only company that offers discounts for signing up before your current policy expires and a discount for new customers during the first two years they’re insured.

Points to consider

Average customer service

Of our favorite insurers, Allstate earned the lowest customer service scores. From J.D. Power, it earned 3/5 and from Consumer Reports 80/100. These scores pale in comparison to providers like USAA and Amica, but are still miles ahead of other service industries like internet service providers. When we tested its customer service ourselves, Allstate answered all of our questions politely and allowed us to end the call without signing over our social security number. If stellar customer service is your first priority, you might want to choose Amica instead, but we think most people will still be satisfied with Allstate.

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