Best Homeowners Insurance
Based on In-Depth Reviews

Best homeowners insurance for older homes

Older homes come with a unique set of considerations, from outdated electrical systems to at-risk roofs. These risks can complicate your search for the best home insurance policy, as they typically result in higher premiums. This is where the wealth of discounts offered by Liberty Mutual comes in handy.

While most homeowners insurance companies offer discounts, Liberty Mutual stands out as offering some of the broadest and deepest discounts in the industry. Many consumers are likely to find that they qualify for more than one discount and will save significantly on their premium payments. These discounts can go a long way in helping to lower the overall cost of insuring an older home.

Broadly speaking, Liberty Mutual offers three categories of discounts:

• Personal discounts, which are based on actions you have (or haven’t) taken;
• Premises discounts, which are based on aspects of your home; and
• Policy discounts, which are based on aspects of your relationship with Liberty Mutual and the terms of the policy you choose

Not all discounts are available in all states, but the company’s online quote generator automatically applies all the discounts you qualify for to your premium estimate.

Available Discounts

Personal Discounts

Liberty Mutual offers three personal discounts. Two of these are based on your claims experience either with your previous homeowners insurer or with Liberty Mutual. The third is a clever “early shopper” discount which may reward you if you apply for Liberty policy before your current policy terminates.

Screenshot of https://www.libertymutual.com/ 4/8/2020

Premises Discounts

You may be entitled to a discount based on the age of your home, on the condition of its roof, and when you purchased the property. Newer and renovated homes and homes with new roofs are less expensive to insure, presumably because there is less risk of something occurring to them that could give rise to a claim.

Screenshot of https://www.libertymutual.com/ 4/8/2020

Policy Discounts

As with most other multi-line insurance carriers, Liberty Mutual offers an auto-and-home bundle that is less expensive than the total of those policies purchased separately would be. This discount not only saves money, but also simplifies billing and the policy application process. There is also a discount available for people who insure the full replacement cost of their homes, rather than the market value. This opportunity is known as an insured-to-value discount https://www.insuranceopedia.com/definition/2435/insurance-to-value . Discounts in this category are also available for consumers who enroll in autopay and who agree to a “paperless policy” delivered electronically.

Screenshot of https://www.libertymutual.com/ 4/8/2020

*Subject to eligibility requirements, and may vary by state. In some states, weather-related claims are not considered qualified claims in determining eligibility for this discount.
*Discount will vary by customer and are subject to policy deductible. Not available in Texas.
*Discounts and savings are available where state laws and regulations allow, and may vary by state. To the extent permitted by law, applicants are individually underwritten; not all applicants may qualify.

Financial Strength

When it comes to any long-term coverage, such as a homeowner’s policy, it’s generally a good idea to select a company that has been around for a long time and has continued to operate throughout a variety of economic circumstances. The firm that was later renamed Liberty Mutual was founded in 1912 and has remained in operation through two world wars, the Great Depression, and multiple recessions. This suggests that the company is well-managed and not likely to go under in tough times.

The ratings of the most respected industry analysts bear out this conclusion. It has “A” ratings from Standard & Poor’s and A.M. Best and an “A2” from Moody’s. These are very respectable, solid marks.

Consumers may also do well to consider Liberty Mutual’s size as an element of its financial strength. Generally speaking, larger carriers are better able to weather high claims experience brought on by localized disasters than local or regional insurers are. Liberty Mutual is the fifth largest property and casualty insurer in the US and has a homeowners insurance market share of 7.31%.

Policyholder Experience

In J.D. Power's 2022 U.S. Home Insurance Study, Liberty Mutual ranked below average in terms of overall customer satisfaction. However, J.D. Power's survey ranks insurers on a 1,000-point scale, and Liberty Mutual is only 44 points shy of the highest-ranking insurer (and a mere 14 points away from the average). This relatively negligible margin suggests that Liberty Mutual offers a policyholder experience on par with the best of its competitors. 

Best homeowners insurance for first-time buyers

Allstate’s expansive educational content and resources, combined with its discounts for first-time home buyers and first-time Allstate policyholders (10%), make it ideal for new homeowners who might need more guidance or want to save hundreds on insurance each year. Allstate also offers discounts for bundled policies (up to 25%) and discounts for having no recent claims. 

Tools & Quotes

One of Allstate's most useful customer support features is their Common and Costly Claims tool, which lets consumers check out the most common claims by zip code to get a better idea of their potential risks.

Allstate’s homeowners insurance policies offer the standard protection for the physical structure of the home as well as personal belongings and liability. Optional coverages include water backup, scheduled personal property, business property, identity theft restoration, and electronic data recovery, among others.

Homeowners can get free quotes using Allstate’s online shopping tool. Homeowners will also need to provide detailed personal information such as their driving record, home and auto insurance histories, whether or not they smoke, and whether or not they own a dog breed that's considered aggressive.

Screenshot allstate.com, August 2019.

Financial Strength

As the nation's second-largest homeowners insurance company holding 9.02% of the current market share, Allstate continues to receive high ratings by all major credit rating agencies, including Standard & Poor's (AA-, among the best), A.M. Best (A+, Superior), and Moody’s (Aa3, not on watch).

A large market share can be a good indicator of a company's competitiveness and profitability, and may often translate into greater savings for consumers and a more diverse product offering.

Financial strength, on the other hand, confirms the company's financial ability to pay out claims after a widespread disaster, such as a hurricane or wildfire.

Large Network of Agents & Multiple Locations

Allstate gives consumers four different ways to file a claim: contacting an agent (in person service), by phone, using the company’s mobile app, or through its website.

One of Allstate’s biggest strengths is the number of professional agents they employ and the fact that they have locations in every state, which makes the process of getting in-person assistance easier.

Although they've received 3,245 customer complaints through the BBB over the last 3 years, it’s worth pointing out that this number is quite small considering they service about 16 million households. Allstate also takes the time to respond to reviews and complaints on their BBB profile, having closed out about half of those complaints over the last year. This is a sign of reliability and a customer-centric service philosophy.

The company scored a 0.74 on the 2022 NAIC Company Complaint Index, which is significantly lower than the national average of 1.00 and indicates a relatively low rate of consumer dissatisfaction when compared to other insurers. 

Best homeowners insurance for veterans

The United Services Automobile Association (USAA) is another leading insurance provider offering highly-rated customer support from the initial quote to the claims process.

The company, which has been in operation since 1922, provides financial and investment services as well as insurance products exclusively to military service members and their direct families.

Despite its fixed customer base, USAA is deemed among the best insurance companies in the industry in terms of customer experience. According to the J.D. Power 2022 U.S. Property Claims Satisfaction Study, USAA earned the highest score out of the 17 eligible insurers included in the survey. 

In addition, the company's 2022 NAIC Company Complaint Index score for homeowners insurance was 0.30. This is well below the industry average of 1.00, indicating that USAA earned far fewer complaints than expected when compared to other insurance companies.

Screenshot usaa.com, August 2019.

Homeowners Insurance Without Depreciation
One of the factors that set this company apart from the competition is that it offers a full replacement cost homeowners insurance policy that doesn't depreciate over time, and having a product that offers such protection means you don't have to pay out of pocket for expensive repairs.

USAA’s homeowners insurance policy protects against the most common perils, including fire, theft, vandalism, liability, identity theft, and most weather-related events. It also offers a discount for those who bundle their auto and home policies.

Another great detail about their homeowners insurance policy is that it provides full-value reimbursement for personal items, which also includes military uniforms for deployed or overseas servicemembers, without a deductible.

Strong Financial Ratings

USAA's property and casualty insurance segment holds some of the highest possible financial strength ratings in the industry with an A++ (Superior) from A.M. Best, an Aaa (Exceptional) from Moody's, and an AA+ (Very Strong) from Standard & Poor's. The company is also the fourth largest homeowners insurance provider in the nation, meaning that they are trusted by millions of policyholders.

Those wondering about the claims process through USAA should know the company offers different ways to file a claim, either by phone, online or through the mobile app. Policyholders who file claims online or through the app can do so 24 hours a day, 7 days a week, and a representative will be assigned to the case immediately.

USAA has proven itself to be a top-rated insurer with an excellent reputation, a comprehensive suite of products, and strong financials. Overall, this company appears to be a great fit for military servicemembers.

As mentioned before, homeowners interested in getting a quote from USAA must be military servicemembers or their direct families. Those who are eligible can easily apply for a quote online by entering their personal information, military connection, and social security number.

Best homeowners insurance for manufactured homes

Progressive is one the most well-known and established insurance companies in the U.S., offering a wide array of coverage options, especially for homeowners looking to insure their manufactured or mobile homes. All of Progressive's homeowners insurance policies include coverage for the structure, personal property, loss of use and personal liability. 

Progressive also offers add-on options for replacement cost coverage, which pays to replace items without any depreciation, and a single deductible option for bundled auto and home insurance policies. This single deductible option allows customers to choose one deductible amount for both policies, resulting in a lower overall deductible when filing a claim for an event that causes damage to both your home and car.

One of the most unique add-on options available from Progressive is its trip collision coverage, which covers any damage that occurs to a mobile or manufactured home in the event of a collision when it's being moved. This coverage lasts for a period of up to 30 days, providing peace of mind when in the stressful process of relocating your entire home. 

Large Number of Discounts

Another especially attractive aspect of Progressive's policy offerings is its large selection of discounts, which can save customers hundreds on their annual premiums. The following are some of the most common discounts available:

• Home & auto bundle discount 
• Safety and alarm discounts
• Quote in advance (get a quote at least ten days before your policy starts)
• New purchase
• Receive documents by email
• New home construction
• Pay in full (paying for your 12-month policy upfront)

Screenshot Progressive.com, July 2023.

Financial Strength

Progressive holds 1.84% of the current homeowners insurance market share, making it the tenth-largest home insurance provider in the country. The company has a financial strength rating of A+ (Superior) from A.M Best, AA from Standard & Poor's, and Aa from Moody's. This puts Progressive near the top of the industry when it comes to financial strength and stability, allowing customers to rest easy knowing that the company is capable of meeting its long-term financial obligations. 

Policyholder Experience

In J.D. Power's 2022 U.S. Home Insurance Study, Progressive made it into the top ten best insurers for policyholder experience, coming in at number ten. While this puts several other insurers ahead of them, it does show that their customer service and claims handling are generally satisfactory and still rank fairly high among the entire industry. 

The company scored a 1.29 on the 2022 NAIC Company Complaint Index for homeowners insurance. This means that they have slightly more complaints than the national average of 1.00, indicating a relatively standard level of customer dissatisfaction when compared to other insurers.

Best homeowners insurance for condos

A general homeowners insurance policy needs to cover both the home itself, such as the structure and any attached fixtures, as well as outside areas, like a detached garage or shed. When it comes to condos, however, the coverage only needs to cover the inside of your unit. This is because the common areas and other parts of the structure, such as the roof and exterior walls, are already covered by a “master” policy that you share with the other unit owners. For this reason, it’s important to select a home insurance provider that offers specialized policies for condo coverage. 

Lemonade offers homeowners, renters, and condo insurance policies to mostly urban residents. Its basic coverage includes dwelling, personal property, and liability protection and also protects your personal electronics, clothing, and furniture. 

Additionally, the company offers scheduled personal property coverage, which means you can add valuable items like jewelry, fine art, musical instruments, and electronics to your policy, protecting them against theft, fire, or physical damage. There is even an option to add on equipment breakdown coverage, which is not usually included in standard homeowners coverage and can be a lifesaver if you need to repair or replace costly equipment like air conditioning, dishwashers, and other appliances. 

Excellent Digital Experience

Lemonade is an insurtech company that only offers its services online and through its mobile app, which could be a fitting option for those looking to purchase insurance completely online without having to talk to an agent.

Something worth highlighting about Lemonade is that it donates its excess revenue from premiums to worthy causes identified by its policyholders. This program, Give Back, raised $1,873,588 in 2022, which went to 59 nonprofits.

Because it was originally certified as a Public Benefit Corporation by the third-party nonprofit B-Lab, Lemonade states it adheres to a higher standard of social and environmental accountability, as evidenced by the fact that they are fully paperless and one of the few environmentally-conscious insurance agencies in the market.

Screenshot lemonade.com, August 2019.

Competitive Premiums & Claims in 3 Seconds

Lemonade advertises rates as low as a $5 monthly premium for renters insurance and a $25 monthly payment for homeowners and condo insurance. Because it uses the latest technology to streamline the claims process, the company can offer low rates and donate excess premiums to charitable organizations. 

Lemonade emphasizes that no claim is too small, which is a different approach from that of other insurance providers. The company states it approves claims in just seconds, and once filed on the company’s app, its AI runs 18 anti-fraud algorithms to approve the claim automatically and pay eligible claims almost instantly. 

The company also says that 40% of filed claims are paid automatically. If the claim isn't approved immediately, it's handed over to Lemonade's team of agents for further evaluation. 

Fully Automated Customer Service

Conducting business with Lemonade is done primarily through their multifunctional mobile application, which is available for Apple and Android devices. Its website offers a wealth of information regarding the company's processes and tools, including a quote calculator, and a customer service chat with AI.

Lemonade is a young company but already has demonstrated excellent customer service. In 2022, the company received a score of 1.04 on the NAIC Company Complaint Index. This means that Lemonade received an average amount of complaints when compared to other insurance companies.