Just as with providers of other types of insurance, size does matter it comes to choosing the one that can offer the best protection for your home. The largest home insurers typically have a broader range of products, more competitive pricing, and more resources devoted to customer services and claims compared to their smaller counterparts. They also boast high financial strength ratings, indicating their capability to protect homeowners from a wider range of risks.
But bigger does not always mean better. Some smaller insurance companies may have the edge when it comes to providing a personalized service. They may also be able to offer cheaper local rates and more specialized coverage for homeowners. The bottom line is that the choice of home insurance provider often depends on the needs and circumstances of the homeowner. Both options – whether a large insurer or smaller carrier – have their share of benefits and drawbacks.
The National Association of Insurance Commissioners (NAIC) has recently released its market share data for all lines of property and casualty (P&C) coverage, including home insurance, unveiling the largest providers in the US. These are the 10 biggest home insurance providers based on the association’s latest data.
1. State Farm
Market share: 24.26%
Direct premiums written: $22 billion
Direct premiums earned: $20.7 billion
State Farm is not just the largest home insurer in the US – the Illinois-headquartered insurance giant is also the nation’s biggest auto and P&C insurance provider. State Farm has more than 58,000 employees and 19,000 agents that service 83 million policies and accounts across the country.
It offers standard coverage for most homeowners’ policies, but clients can opt for several add-ons. These include the increased dwelling limit, which automatically extends replacement cost coverage to 20% if a home is insured at least up to the estimated replacement cost.
Policies can also be upgraded to include coverage for earthquake damage, identity fraud, vandalism, and replacing cooling and heating appliances with energy-efficient units. State Farm has among the highest customer satisfaction rating in J.D. Power’s latest survey, scoring 835 out of a 1,000-point scale, good for a tie for third place.
Market share: 11.56%
Direct premiums written: $10.5 billion
Direct premiums earned: $10 billion
Allstate operates through seven segments and serves more than 145 million policies in force, including an estimated 35 million property and liability policies. Its home insurance products are under the Allstate Protection segment, which also includes auto insurance.
Allstate offers standard insurance for all types of homes, including apartments, condo units, and mobile houses. Policyholders can also choose from a range of add-ons, including water backup, green improvement, electronic data recovery, identity theft restoration, yard and garden and business property coverage.
Owners renting out their homes via Airbnb or other vacation rental platforms can opt for home-sharing insurance, which provides up to $10,000 per rental period to help pay for repairs that the standard home insurance does not cover. Allstate has an above-average customer satisfaction rating in J.D. Power’s index.
Read more: Allstate financial results take a hit
Market share: 8.79%
Direct premiums written: $7.9 billion
Direct premiums earned: $7.6 billion
USAA offers a range of insurance and financial products for members of the US armed forces, reserves, and veterans, along with their families. Apart from standard inclusions, the insurer provides earthquake protection in select states, as well as home-sharing coverage, a feature tailored for those who rent out their homes.
Some homeowners may even be eligible for identity theft coverage and umbrella insurance. In terms of discounts, USAA offers bundles with other insurance products. Although not eligible in J.D. Power’s rankings, it has achieved the survey’s highest score at 882, leading the next-placed company by a mile.
Market share: 6.12%
Direct premiums written: $5.5 billion
Direct premiums earned: $5.1 billion
Travelers offers home insurance in 45 states and Washington, D.C. Homeowners can customize their policies with a range of add-ons, including green home coverage, which pays for the use of environment-friendly materials when repairing or rebuilding the property. It also offers optional coverage for identity theft and valuable items.
One drawback, however, is the number of complaints the company has received in terms of customer experience and claims processing. Travelers’ customer satisfaction rating is below the industry average in J.D. Power’s index.
Read more: Taking property claims to the next level
Market share: 3.88%
Direct premiums written: $3.5 billion
Direct premiums earned: $3.4 billion
Nationwide offers one of the least expensive policies of all the insurers on the list. Policyholders can save further with a range of rate-reduction options, including home renovation credit, new home discount, and prior insurance discount.
Nationwide also provides other benefits that its competitors do not such as ordinance or law insurance, which covers the cost to rebuild the home to current building codes, and credit card coverage that pays out for unauthorized transactions and forged checks. The insurer, however, scored below the industry average in J.D. Power’s customer satisfaction ratings.
Read more: Nationwide on enhancing agency success
Market share: 3.53%
Direct premiums written: $3.2 billion
Direct premiums earned: $3.1 billion
Chubb is the country’s largest commercial insurer, taking up more than a tenth of the overall market share. It offers a range of personal insurance policies, including auto, accident, life, and renters’ coverage in addition to homeowners’ protection. Chubb’s Masterpiece Homeowners policy is designed to include features other home insurance providers offer as add-ons such as replacement cost, water back-up coverage, and cyber and identity theft insurance.
The company will even restore data if a policyholder’s computer is targeted by cybercriminals and fit new locks to their homes if they lose their keys. It also offers earthquake coverage and its own flood insurance as an alternative to the National Flood Insurance Program that most insurers use.
Market share: 2.98%
Direct premiums written: $2.7 billion
Direct premiums earned: $2.6 billion
American Family Mutual Insurance provides personal and commercial P&C insurance across the country. This includes auto, homeowners’, travel, farm and ranch, retail business, and commercial liability insurance. It also offers life insurance, annuities and supplemental health plans.
For the company’s standard home insurance policies, coverage for pump overflows and sewer backups, identity theft, equipment breakdown, matching siding protection, and home business liability and property coverage can be added. American Family ranks tied for sixth in J.D. Power’s customer satisfaction rating, with a score of 831.
Market share: 2.44%
Direct premiums written: $2.2 billion
Direct premiums earned: $2 billion
Progressive offers homeowners’ insurance policies through its Progressive Home Advantage network of insurers, including its own American Strategic Insurance unit. It also gives customers access to its online HomeQuote tool, which allows them to compare quotes from various home insurers.
Progressive provides policyholders with a lot of opportunities to get discounts, including when making advance payments, signing up for a policy earlier, and opting to receive documents by email. Among the optional features that the firm offers are water back-up, personal liability, and personal injury coverage.
9. Erie Insurance
Market share: 2.15%
Direct premiums written: $1.9 billion
Direct premiums earned: $1.8 billion
Apart from homeowner’s policies, Erie Insurance sells specialized coverage for condo owners, mobile homeowners, and renters. It is also among the few companies that offer replacement costs as part of standard coverage.
Erie provides policyholders with a range of discount options, including bundling policies. In terms of add-ons, the insurer offers home-sharing, identity recovery and criminal defense reimbursement of up to $25,000. Erie ranks tied for third in J.D. Power’s customer satisfaction index.
Market share: 2.11%
Direct premiums written: $1.9 billion
Direct premiums earned: $1.8 billion
Auto-Owners Insurance operates in 26 states and is represented by more than 6,200 independent agencies, consisting of 48,000 agents. It offers auto, home, liability, and workers’ compensation coverage to more than five million policyholders. The Better Business Bureau-accredited (BBB) insurer offers all the standard homeowner coverages, including dwelling protection, liability insurance, personal property and additional living expenses coverage.
The policies can also be personalized to include several add-ons such as guaranteed home replacement, ordinance or law coverage, identity theft protection, and coverage for appliance leaks and food spoilage resulting from power failures. Auto-Owners sits tied for sixth place in J.D. Power’s customer satisfaction index.