Home Insurance Coverage: An Expert Guide (2024)

Your home is a significant investment in your life, and it’s important to find a homeowners insurance policy that protects your home and its valuables. In addition, buying home insurance helps ensure you are protected if your home is damaged and in need of repair.

When you shop for the best home insurance companies in your area, it’s important to consider the cost of a policy. Of course you don’t want to pay too much in monthly or annual rates for your homeowners insurance. Still, you must also consider the coverage you’ll receive, each company’s financial strength, the customer service associated with each insurance company, and more.

In most cases, you can assess a company’s customer complaint index, financial strength, and coverage costs to determine your state’s top home insurance companies. Once you decide which companies might work best for you, you can find and compare home insurance quotes to learn more about how much you will pay for your home insurance policy.

What are the best home insurance companies?

Finding the best homeowners insurance companies in your area will take some work. First, you must determine which companies offer coverage for your home at an affordable price. Because everyone’s situation is unique, it’s difficult to know which company will work best until you assess any home insurance policy based on your needs and budget.

Some home insurance companies rank higher than others based on cost, discount options, customer service, customer complaint index, and financial strength. The top insurance companies for home insurance in the U.S. include:

• Chubb
• Erie
• Farmers
• NJM
• State Farm 
• American Family
• Amica
• Nationwide 

Each of these companies has its unique method of handling a home insurance claim, and rates for coverage vary with each company based on various factors.

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• Heritage Insurance Review & Complaints: Home, Condo, Dwelling Fire & Commercial Insurance
• Prepared Insurance Company Review & Complaints: Home, Condo, Dwelling Fire & Renter’s Insurance
• State Farm Insurance Review & Complaints: Mobile Home

Chubb Home Insurance

A Chubb insurance policy may be a great investment if you have an expensive home. With Chubb, you have a vast array of coverage options built to meet your individual needs. You can customize your homeowners insurance policy to ensure all valuables are covered.

Chubb has fewer customer complaints than expected for a company of its size and offers several discount options for policyholders. Unfortunately, Chubb is more expensive than most home insurance companies, and customers may not be able to get a quote for coverage online.

Erie Home Insurance

Erie offers home insurance coverage to help customers feel safe and protected. With Erie insurance, policyholders can often purchase policies with guaranteed replacement cost coverage, so their valuables will be replaced without out-of-pocket costs. Erie also offers add-on coverages, like identity recovery and water backup coverage, so policyholders can customize their home insurance plans.

While Erie has fewer customer complaints than expected based on the company’s size, Erie has a limited coverage range, so you may not be able to purchase Erie coverage in your state. Additionally, the company does not allow customers to file claims online.

Farmers Home Insurance

If you purchase a home insurance policy with Farmers, you have many different coverage options and add-on opportunities to choose from. With Farmers insurance, you can find coverage that works best for you, and the company offers extended replacement cost coverage for the structure of your home.

Farmers offers claim forgiveness and allows customers to lower their deductible by $50 each year they are accident-free. Unfortunately, policies with Farmers tend to cost more than the national average for coverage, so you may find that rates with the company are more expensive than rates with other house insurance companies in your area.

NJM Home Insurance

With New Jersey Manufacturers insurance, you’ll be protected with a homeowners insurance policy no matter what. In addition, NJM offers guaranteed replacement cost coverage, so customers can trust their homes will be repaired or rebuilt, even if the cost exceeds the limits of their policy.

Additionally, NJM offers exceptional online services that allow customers to file claims and review the status of claims online. The company also offers automatic discounts for nonsmokers and policyholders over 65. While NJM has fewer customer complaints than expected based on its size, the company only offers coverage in Connecticut, Maryland, New Jersey, Ohio, and Pennsylvania.

State Farm Home Insurance

State Farm is a well-known name in the insurance business, and for a good reason. The company offers several perks to its customers, and coverage options allow individuals to customize their policies to ensure they work best for their unique situations. For example, with State Farm insurance, you can get extended replacement coverage for the structure of your home at no additional cost.

The company also offers add-ons like identity theft protection and water backup coverage. In addition, State Farm allows customers to manage their home insurance policies online, but the company does not offer as many discount options as other major insurance companies.

American Family Home Insurance

American Family offers quotes and helpful information online for anyone considering purchasing a home insurance policy with the company. American Family insurance provides homeowners insurance in 19 states in the U.S., and the company receives fewer customer complaints than you might expect based on its size.

American Family offers discount options to policyholders, including smart-home devices, bundling policies, and automatic payments. Unfortunately, the company does not offer much coverage to homeowners outside the West and Midwest U.S.

Amica Home Insurance

If you purchase home insurance with Amica, you can get what’s known as the Platinum Choice package, which offers perks like coverage for extended dwellings, higher liability coverage limits, and water damage from backed-up drains and sump pumps that overflow.

Additionally, Amica offers discounts on coverage for maintaining your insurance policy for two years or longer, insuring a new or remodeled home, and setting up an automatic payment plan. The company receives fewer customer complaints than expected based on its size, but information for home insurance is sparse on the Amica website.

Nationwide Home Insurance

With Nationwide home insurance, you can get ordinance or law insurance included in your policy, so if you need to remodel your home based on current building codes, Nationwide will cover the cost.

Nationwide has high ratings for customer service and customer satisfaction, and the company has a intuitive, user-friendly website policyholders can utilize for many different things related to their policies. Unfortunately, Nationwide does not offer home insurance coverage for mobile homes or manufactured homes.

 Read more:

• Best Home Insurance for Manufactured Homes
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Which home insurance companies are the cheapest?

The cost of home insurance depends on many factors. Finding the best homeowners insurance means comparing quotes from several companies to determine which offers the coverage you want at a price that works with your budget.

On average, some of the cheapest home insurance companies often include the following companies. Remember that the rates below are based on a $250K dwelling.

Cheapest Average Monthly Home Insurance Rates for a $250K Dwelling

Read more: Westfield Insurance Review & Complaints: Auto, Home & Business Insurance

Your home insurance rates may differ from those listed above based on where you live, the size and cost of your home, the type of add-on coverage you want, and more. Remember to compare quotes from several companies to determine which offers the most affordable coverage. 

Which companies are best for bundling home and auto insurance?

Bundling home and auto insurance may save hundreds or even thousands of dollars on your insurance premiums. Some of the best auto and home insurance companies that have bundling options include:

• Progressive
• Liberty Mutual
• Hippo
• State Farm 
• Nationwide
• Farmers
• Allstate
• American Family
• Travelers
• Amica
• Country Financial
• The Hanover

Some companies offer a specific percentage of savings, while others offer a lump sum taken off the premium for either your home or auto insurance policy. Either way, it’s a good idea to compare rates to see how much you can save when you bundle insurance policies. 

Read more: Country Financial Insurance Review & Complaints: Auto, Home, Life & Farm Insurance

What does homeowners insurance cover? 

A typical home insurance policy covers your home and its contents if anything is damaged and in need of repair or replacement. Coverage often breaks down into four categories:

• Coverage for your home/dwelling
• Coverage for personal belongings inside your home/dwelling
• Liability insurance for your property
• Living expense coverage if you must temporarily live elsewhere

In most cases, homeowners insurance covers your dwelling and its contents in case of:

• Fire
• Theft
• Vandalism
• Hurricane
• Hail
• Lightning
• Other natural disasters listed under the policy

While this is not an exhaustive list, it includes most items in a home insurance policy.

What does homeowners insurance not cover?

Unfortunately, home insurance policies do not cover everything. Some of the typical events not covered under a standard home insurance policy include: 

• Earthquakes
• Sinkholes
• Floods
• Sump pump overflow
• Termites
• Insect damage
• Bird or rodent damage
• Rust, rot, or mold
• Wear and tear
• Smog or smoke damage
• Damage from war or nuclear hazards
• Identity theft

Some companies offer add-on protection for these occurrences, but you’ll have to pay extra for coverage. It’s important to know exactly what your home insurance policy covers so you’re not caught off guard if something happens to damage your home. 

Read more: Does home insurance cover mold?

How can I choose the best home insurance policy?

You can find the best homeowners insurance policy by assessing your needs and comparing coverage options and prices for different companies in your area. Once you’ve determined what you need, it will be easy to know which companies will and won’t work for you in terms of coverage and cost. 

Don’t forget to find and compare quotes from several home insurance companies to find the best price. You shouldn’t have to overpay for coverage just to ensure your home is taken care of. Take your time and research companies you’re interested in to learn more about their customer service, customer complaints, and financial strength. 

Case Studies: Real-World Scenarios on Home Insurance Coverage

Case Study 1: Comprehensive Protection with Chubb

Emily, a homeowner with valuable possessions, wanted comprehensive coverage for her high-value home. After extensive research, she found that Chubb offered the best options for customization and coverage tailored to her individual needs.

Despite being more expensive than other home insurance companies, Chubb provided the peace of mind she sought, ensuring her valuables were fully protected.

Case Study 2: Guaranteed Replacement with NJM

Michael, a homeowner in New Jersey, prioritized guaranteed replacement cost coverage for his house. He chose NJM as his insurance provider, appreciating their commitment to repairing or rebuilding his home even if the cost exceeded the policy limits.

NJM’s exceptional online services and discounts for nonsmokers and older policyholders further solidified his decision to choose them for his home insurance needs.

Case Study 3: Personalized Coverage with Amica

Laura, a homeowner looking for tailored coverage, turned to Amica for their Platinum Choice package. This package offered extended dwelling coverage, higher liability limits, and protection against water damage from backed-up drains and sump pumps.

Amica’s discounts for maintaining insurance, insuring a new or remodeled home, and setting up automatic payments made it an affordable choice for Laura, providing the personalized coverage she desired.

Case Study 4: Budget-Friendly Option with Nationwide

David, a homeowner on a tight budget, sought an affordable home insurance option without compromising on essential coverage. After comparing quotes from multiple companies, he found that Nationwide offered competitive rates without sacrificing quality.

The inclusion of ordinance or law insurance in the policy gave him additional protection and coverage for potential remodeling costs based on building codes.