Best Homeowners Insurance Companies Compared How to Choose the Right Insurer in 2026
Choosing the best homeowners insurance company is about more than finding the lowest premium.
Two insurers can offer different prices for similar-looking coverage, while also differing in deductibles, exclusions, claims service, discounts and financial strength. Homeowners insurance can also vary significantly by state and by the characteristics of the property.
For that reason, there is no single homeowners insurance company that is automatically the best for every homeowner.
A better approach is to compare insurers using the factors that matter most when you actually need to file a claim.
What Makes a Homeowners Insurance Company Good?
A strong homeowners insurance company should offer appropriate coverage at a competitive price while providing reliable customer and claims service.
When comparing insurers, consider:
- Coverage options
- Premium
- Deductible
- Claims service
- Customer complaints
- Financial strength
- Discounts
- Availability in your state
- Policy exclusions
- Ability to reach the insurer when you need assistance
The National Association of Insurance Commissioners (NAIC) recommends comparing insurance companies and considering both price and coverage when shopping for homeowners insurance.
Best Homeowners Insurance Companies: What Should You Compare?
Instead of choosing a company based on its name or advertising, compare the actual policy being offered.
1. Coverage
The first question should be:
Does this policy provide the protection I actually need?
A standard homeowners policy generally provides several major types of protection, including coverage for the home’s structure, personal belongings, liability and additional living expenses when a covered loss makes the home temporarily uninhabitable.
However, coverage varies by policy.
Check the policy for:
- Dwelling coverage
- Other structures
- Personal property
- Personal liability
- Medical payments to others
- Additional living expenses
- Covered perils
- Exclusions
- Optional endorsements
A cheaper policy is not necessarily a better policy if it provides less protection.
2. Dwelling Coverage
Dwelling coverage is intended to protect the physical structure of the home against covered losses.
The amount of insurance should generally be based on the estimated cost to rebuild the home rather than simply its market value.
The Insurance Information Institute notes that the market value of a home and its rebuilding cost can be different.
When comparing insurers, ask:
How was the recommended dwelling coverage amount calculated?
Do not automatically use the home’s purchase price as the insurance amount.
3. Personal Property Coverage
Homeowners insurance can also cover personal belongings against covered losses.
This may include items such as:
- Furniture
- Clothing
- Electronics
- Appliances
- Certain valuables
- Other personal possessions
However, some categories of valuable property can have special limits.
If you own expensive jewelry, collectibles, artwork, firearms or other high-value items, ask whether additional coverage is necessary.
Creating a home inventory can make it easier to document your possessions after a covered loss. The NAIC provides consumer resources specifically designed to help homeowners create and maintain a home inventory.
4. Liability Coverage
Liability coverage can protect you financially when you are legally responsible for certain injuries or property damage involving other people.
For example, a homeowner could potentially face a liability claim if a visitor is injured on the property.
When comparing companies, check:
- Liability limit
- Medical payments coverage
- Personal liability exclusions
- Optional umbrella coverage
The cheapest policy may not provide the liability protection that fits your situation.
5. Additional Living Expenses
Some covered losses can make a home temporarily uninhabitable.
Depending on the policy, additional living expense coverage may help with certain increased living costs while covered repairs are being completed.
Ask each insurer:
What expenses are covered if I cannot live in my home after a covered loss?
The answer can differ depending on the policy.
6. Deductible
The deductible is the amount you are responsible for paying toward a covered loss before the insurer pays according to the policy.
Generally, a higher deductible can reduce the premium, but it also means you will have to pay more out of pocket after a covered loss.
For example, compare:
Policy A
- Premium: $2,000 per year
- Deductible: $1,000
Policy B
- Premium: $1,700 per year
- Deductible: $2,500
Policy B has the lower premium, but you would have a substantially larger financial responsibility if you experienced a covered loss.
Choose a deductible you could realistically afford.
7. Special Deductibles
Some homeowners policies can have separate deductibles for certain risks.
Depending on where you live, these may apply to events such as:
- Hurricanes
- Windstorms
- Hail
- Earthquakes
- Other specified risks
Do not assume that your standard deductible applies to every possible claim.
Ask the insurer whether your policy contains separate deductibles.
8. Flood Insurance
A standard homeowners policy generally does not cover flood damage.
This is an important distinction because homeowners sometimes assume that all water-related damage is covered.
If your property is exposed to flood risk, ask about separate flood insurance.
Your location and property characteristics can affect the type of coverage you may need.
9. Earthquake Coverage
Earthquake damage is also generally excluded from standard homeowners insurance policies.
If you live in an area with earthquake risk, ask whether separate earthquake coverage is available and whether it makes sense for your property.
Do not assume that a standard homeowners policy covers every natural disaster.
Comparing Homeowners Insurance Companies by Price
Price matters, but it should not be the only factor.
The NAIC and Insurance Information Institute both recommend shopping around because insurance prices can vary between companies. The NAIC’s consumer shopping guidance recommends obtaining multiple quotes when comparing homeowners insurance.
A useful comparison should look like this:
| Factor | Company A | Company B | Company C |
|---|---|---|---|
| Annual premium | $ | $ | $ |
| Deductible | $ | $ | $ |
| Dwelling coverage | $ | $ | $ |
| Personal property | $ | $ | $ |
| Liability limit | $ | $ | $ |
| Additional living expenses | $ | $ | $ |
| Flood coverage | Separate | Separate | Separate |
| Special deductibles | Check | Check | Check |
| Discounts | Check | Check | Check |
The purpose is to compare policies with similar coverage rather than simply comparing the cheapest quote.
How Many Homeowners Insurance Quotes Should You Get?
Getting several quotes can help you understand whether the price you were offered is competitive.
The NAIC’s homeowners shopping tool recommends getting at least three quotes before buying insurance.
You can request quotes through:
- Insurance companies directly
- Independent insurance agents
- Online insurance platforms
- Other licensed insurance professionals
Make sure you are comparing similar coverage limits and deductibles.
Otherwise, a cheaper quote may simply provide less coverage.
How to Check an Insurance Company’s Reputation
Price alone does not tell you how an insurer will perform after a claim.
Before choosing a company, investigate:
Customer Complaints
Your state insurance department may publish complaint information or complaint ratios for insurers.
Complaint information can provide useful context when comparing companies.
Financial Strength
Insurance companies need sufficient financial resources to pay covered claims.
Independent financial rating organizations provide information that can help consumers evaluate an insurer’s financial strength.
Claims Service
Ask how claims can be reported and what support is available after a loss.
You can also research the experiences of existing customers, while remembering that individual reviews do not necessarily represent the performance of an entire company.
The NAIC and Insurance Information Institute both recommend considering licensing, financial strength, service and complaint information when choosing an insurer.
How to Verify That an Insurance Company Is Licensed
Before purchasing homeowners insurance, verify that the insurer is authorized to sell insurance in your state.
Insurance regulations are state-specific, and an insurer may operate in some states but not others.
The NAIC Consumer Insurance Search allows consumers to look up insurance companies and encourages consumers to check with their state insurance department regarding licensing.
Never assume that an online advertisement means an insurer is authorized to sell coverage where you live.
How Homeowners Insurance Discounts Work
Insurance companies may offer discounts for certain characteristics or policies.
Potential discounts can include:
- Home security systems
- Smoke alarms
- Protective devices
- Newer roofs
- Bundling home and auto insurance
- Certain memberships
- Other qualifying property improvements
Discount availability varies by insurer and state.
The NAIC recommends asking insurers about discounts when shopping for homeowners insurance.
Is Bundling Home and Auto Insurance Worth It?
Some insurers offer discounts when customers purchase multiple policies from the same company.
For example, homeowners may be able to combine:
- Homeowners insurance
- Auto insurance
- Umbrella insurance
However, bundling is not automatically the cheapest option.
Compare the total cost of the bundled policies with the cost of purchasing comparable coverage separately.
How Your Home Can Affect Insurance Costs
Insurance companies can consider various characteristics of a property when determining premiums.
Factors can include:
- Location
- Construction type
- Age of the home
- Roof condition
- Replacement cost
- Claims history
- Security features
- Certain environmental or weather risks
The same insurance company may therefore charge different premiums for two homes with similar market values.
Should You Choose the Cheapest Homeowners Insurance Company?
Not necessarily.
The cheapest policy may have:
- A higher deductible
- Lower coverage limits
- More exclusions
- Fewer optional protections
- Different claims-service characteristics
Instead of asking:
“Who has the cheapest homeowners insurance?”
Ask:
“Which company offers the coverage I need at a competitive price?”
That is a more useful way to compare policies.
What to Ask an Insurance Agent
Before purchasing a policy, ask:
- What exactly does this policy cover?
- What is excluded?
- How much dwelling coverage do I need?
- How was the dwelling coverage amount calculated?
- What is the deductible?
- Are there separate deductibles for wind, hail or hurricanes?
- Are floods covered?
- Are earthquakes covered?
- What is the personal property limit?
- Are expensive items subject to special limits?
- What is the liability limit?
- What happens if my home becomes uninhabitable?
- What discounts do I qualify for?
- Can I reduce my premium by changing my deductible?
- How can I report a claim?
- Is the insurer licensed in my state?
- Where can I review the policy documents?
Getting these questions answered before purchasing can prevent unpleasant surprises later.
Common Homeowners Insurance Shopping Mistakes
Comparing Only the Premium
A low premium does not guarantee the best coverage.
Choosing a Deductible You Cannot Afford
A higher deductible can reduce premiums, but you need to be able to pay it after a covered loss.
Assuming Flood Damage Is Covered
Standard homeowners insurance generally does not cover flood damage.
Forgetting About Valuable Items
Expensive jewelry, collectibles and other valuables may have special coverage limits.
Using the Home’s Market Value as the Rebuilding Amount
The amount needed to rebuild a home can differ from its market value.
Automatically Renewing Every Year
Your insurance needs can change.
The Insurance Information Institute recommends reviewing homeowners insurance when the policy renews and after major changes such as renovations or significant purchases.
When Should You Review Your Homeowners Insurance?
Review your policy at least when:
- The policy renews
- You renovate the home
- You build an addition
- You purchase expensive property
- You install security equipment
- You make major lifestyle changes
- Your household changes
- Insurance prices change significantly
A policy that was appropriate several years ago may no longer provide the right amount of coverage.
Frequently Asked Questions
What is the best homeowners insurance company?
There is no single company that is best for every homeowner. The right insurer depends on your location, property, coverage needs, premium, deductible, claims service and other factors.
How many homeowners insurance quotes should I get?
The NAIC recommends getting at least three quotes so you can compare prices and coverage.
Is the cheapest homeowners insurance the best?
Not necessarily. Compare coverage limits, deductibles, exclusions, discounts and service before choosing a policy.
Does homeowners insurance cover floods?
Standard homeowners policies generally do not cover flood damage. Separate flood insurance may be necessary depending on your situation.
Does homeowners insurance cover earthquakes?
Earthquake damage is generally excluded from standard homeowners insurance. Separate coverage may be available.
What deductible should I choose?
Choose a deductible that provides a reasonable balance between your premium and the amount you could comfortably pay after a covered loss.
How can I lower my homeowners insurance premium?
You can ask about discounts, compare insurers, consider a higher deductible if you can afford it and discuss security or protective improvements with your insurer.
How do I check whether an insurer is licensed?
You can check the insurer through your state insurance department or the NAIC Consumer Insurance Search.
Should I bundle home and auto insurance?
Bundling can sometimes reduce the combined premium, but compare the total cost and coverage with other options before deciding.
Bottom Line
The best homeowners insurance company is not necessarily the company with the lowest advertised price.
A better comparison considers:
- Coverage
- Premium
- Deductible
- Exclusions
- Liability protection
- Claims service
- Customer complaints
- Financial strength
- Discounts
- State availability
The NAIC recommends comparing insurers and considering both price and coverage before purchasing homeowners insurance.
Get several quotes, make sure the coverage is comparable, verify that the insurer is licensed in your state and read the policy documents carefully.
The goal is not simply to find cheap homeowners insurance.
The goal is to find appropriate protection at a price you can afford.
Sources
- National Association of Insurance Commissioners (NAIC), Homeowners Insurance
- National Association of Insurance Commissioners (NAIC), A Consumer’s Guide to Home Insurance
- National Association of Insurance Commissioners (NAIC), A Shopping Tool for Homeowners Insurance
- National Association of Insurance Commissioners (NAIC), Consumer Insurance Search
- Insurance Information Institute (Triple-I), Choosing an Insurance Company
- Insurance Information Institute (Triple-I), What Is Covered by Standard Homeowners Insurance?
- Insurance Information Institute (Triple-I), How Much Homeowners Insurance Do I Need?
Editorial Review
Editorial Review: This article was prepared and reviewed by the Insurances Claims Editorial Team for clarity and general informational accuracy.
Last reviewed: September 2026
Important: This article provides general educational information and is not insurance, legal, financial or professional advice. Insurance coverage, premiums, deductibles, exclusions, eligibility and availability vary by insurer, state and individual circumstances.
