America's Best Home Insurance

Home insurance in the US is an important part of the insurance landscape. Every year 1 in 20 insured homes has a claim, and the top 10 (by volume) home insurance companies accounted for over $63 billion in premiums in 2019.

 

Premiums vary, inclusions (and exclusions) vary, and the home insurance landscape can be confusing, which is why Insurance Business America magazine has undertaken this important research – to discover exactly which insurers brokers say are best for their clients.

 

In assembling this report, we turned to our broker readership to discover both what it is they value in a carrier and which carriers satisfy these wants, which carriers were their go-to choices, and the reasoning behind their preferences.

 

To drill down to this final list, we reached out to thousands of brokers, conducted one-on-one interviews, and worked with industry bodies before assembling the results broken down via both categories of coverage and the attributes that matter the most.

 

5-Star Excellence Awards

  • Chubb
  • Travelers
  • Pure
  • Safe Co
  • AIG
  • The Cincinnati Insurance Company
  • Auto-owner
  • USAA

What is the average monthly cost for homeowner’s insurance?

The average homeowners insurance premium in the U.S. costs $1,015 annually or roughly $85 per month, according to the latest data from S&P Global. The amount you pay can be higher or lower depending on a range of factors, including your home’s value and location, and the coverage amount.

 

What is the average insurance cost by home value?

Your home’s value is one of the main factors that will dictate the cost of your homeowners insurance premiums. The table below shows the average annual premium prices for an HO-3 policy based on the National Association of Insurance Commissioners (NAIC) latest Homeowners Insurance Report. An HO-3 policy typically covers damage to your home’s structure and personal belongings, and liability in the event of injury.

 

Estimated home value

Average annual premiums for an HO-3 policy

$49,999 and under

$645

$50,000 to $74,999

$748

$75,000 to $99,999

$826

$100,000 to $124,999

$888

$125,000 to $149,999

$937

$150,000 to $174,999

$981

$175,000 to $199,999

$1,018

$200,000 to $299,999

$1,114

$300,000 to $399,999

$1,272

$400,000 to $499,999

$1,428

$500,000 and above

$2,148

Source: NAIC Homeowners Insurance Report 2018 

 

Which states have the highest homeowners insurance premiums?
The location of your home also impacts the price of your insurance premiums. If your house is in an area that is prone to natural calamities like flooding, earthquakes, or hurricanes, this will push up premium prices. Similarly, homeowners living in high real estate value areas will likely pay higher insurance fees because repairing or replacing their homes will cost more. 

 

Here are the 20 states with the highest home insurance premiums based on 2019 data from S&P Global.

 

State 

Average annual premium

Maryland 

$1,212

Virginia 

$1,181

Delaware

$1,172

Texas

$1,140

Georgia

$1,137

South Carolina 

$1,126

North Carolina

$1,118

Tennessee

$1,118

Florida 

$1,117

Alabama

$1,116

Oklahoma

$1,114

Louisiana

$1,108

Kentucky

$1,106

West Virginia

$1,101

Mississippi 

$1,099

Arkansas

$1,091

Connecticut

$1,058

New Jersey

$1,052

New Hampshire

$1,049

District of Columbia

$1,047

 Source: S&P Global Market Intelligence 2019 data

 

What are the most common types of homeowners insurance claims?
Data from the Insurance Information Institute (III) revealed that 5.6% of insured homes in the U.S. had a claim in the five-year period ending in 2018. Property damage related to wind and hail accounted for the largest share of claims at 2.3% or about one in 40 per year. This is followed by claims related to water damage and freezing at 2.1% (one in 50 per year), fire and lightning at 0.28% (one in 350 per year), and theft at 0.26% (one in 400 per year).

 

In terms of liability, claims related to lawsuits resulting from bodily injury or property damage topped the list at 0.08% (one in 900 per year), followed by claims for medical bills payment at 0.03%.  

 

How is homeowners insurance calculated?
Insurance companies weigh several variables to calculate the price of premiums. These variables vary from insurer to insurer but typically include:

  • Replacement costs
  • Age of the home
  • Size of the home 
  • Number of residents
  • Construction type
  • Condition of the roof
  • Owner’s credit history
  • Past claims
  • Pets
  • Safety features, including security and alarm systems
  • Crime rate in the area
  • Attractive nuisances such as swimming pools, playground equipment, and trampolines
     

5 ways to lower your homeowners insurance costs
If you are looking to ways to decrease your insurance premiums, there are several measures you can take. These include:

 

Making your home more resistant to natural calamities
You can do this by reinforcing the structure of your home to help it withstand natural disasters such as earthquakes, hurricanes, and tornadoes. You can also replace your roof with stronger materials. Checking your electrical, heating, and plumbing system regularly can also lessen the risk of fire and water damage.

 

Installing security features
Fire and burglar alarms, smoke detectors, sprinkler systems, and deadbolt locks can improve your home security and reduce your premium costs.

 

Keeping a good credit history
Many insurance providers are now using policyholders’ credit information to calculate insurance premiums. Maintain a good credit standing by paying bills on time, limiting the number of credit cards you have, and keeping your credit balance as low as possible.

 

Bundling your home and car insurance policies
Combining two or more policies into one can considerably reduce the amount you pay for your premiums. 

 

Raising your deductible
Deductibles are the amount you need to pay for a loss before your insurance provider starts to pay a claim. The higher you raise your deductible, the lower the amount you need to pay on your premiums.