3 Best Homeowners Insurance Companies Of 2022

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Your home is probably your biggest investment, which means protecting it should be one of your highest priorities.

A homeowners insurance policy will give you that kind of financial protection—insuring your home and possessions in the event of a fire, theft, or other accident.

There are a handful of companies that will offer you great coverage at an affordable rate. Here are four of the best homeowners insurance companies to consider.

1. Liberty Mutual

As the sixth-largest property and casualty insurance company in the world, Liberty Mutual is a name that is familiar to most people. The company is known for offering many different types of coverage. When you bundle homeowners and auto insurance, the company claims you could save $842.

Why we like it: You can file a claim online in just 5 – 10 minutes. Liberty Mutual offers all sorts of discounts, from purchasing online to insuring a newly purchased home.

Why we like it: You can get multiple quotes in minutes, compare options in one place, and get rates from companies you might not have thought to check out.

2. Lemonade

Lemonade is a homeowners insurance company that is able to keep premiums low, thanks to a 100% digital service. Using the company’s artificial intelligence bot, you can get insured in as little as 90 seconds, and you can submit a claim and get paid in as little as 3 minutes. Lemonade even helps you make the switch from your current policy.

Why we like it: Policies start as low as $25 per month. From your premium, Lemonade takes a flat fee, pays claims quickly, and uses leftover money to give back to causes of your choice.

3. EverQuote

EverQuote is an insurance comparison site that allows you to get multiple home insurance quotes at once. All you have to do is provide EverQuote with a few details about your home, and this company will do all of the shopping for you — tracking down rates for you to compare in one place.

Why we like it: You can get multiple quotes in minutes, compare options in one place, and get rates from companies you might not have thought to check out.

What Do Homeowners Insurance Policies Cover?

Homeowners insurance is designed to provide financial protection for not only your home but also your belongings. Most basic policies will include the following:

  • Dwelling Protection. This provides coverage for the basic structure of your home (foundation, roof, walls, etc.) and may often cover other structures, such as your deck or garage.
  • Personal Property Protection. This provides coverage for your personal belongings up to a certain amount. Of course, the more protection you need, the higher your policy will typically cost.
  • Liability Protection. This provides coverage in the event that someone (not living with you) is injured on your property, covering medical bills and legal expenses.
  • Additional Living Expenses (ALE). This provides coverage for hotel bills, restaurant meals, and other extra costs in the event that you cannot live in your home for a certain period due to damage on an insured claim.

It’s worth noting that there are certain disasters — such as earthquakes and floods — that are not always covered in homeowners insurance policies. If you live in an area that is prone to these types of events, you will need to purchase the necessary insurance or make sure it is added to your homeowners insurance policy.

How Much Homeowners Insurance Do I Need?

In most cases, your homeowners insurance company will be able to recommend a coverage limit for your home’s structure — based on how much you paid for your home or the current market price — but it’s also wise to consider factors such as local rebuilding costs and your home’s “hard-to-replace” features.

As for personal property protection, it’s easy to underestimate how much stuff you own. The term applies to furniture, appliances, clothes, electronics, jewelry, and much more, so you should do a full inventory check to determine the total value of your possessions. It’s also important to note that high-ticket items, such as expensive jewelry or musical instruments, may require additional coverage.

Most homeowners insurance policies have a minimum liability coverage amount of $100,000, but it’s highly recommended that you get at least $300,000 – $500,000 in liability coverage if possible.

Finally additional living expenses (ALE), you will need to estimate the difference between your typical cost of living and what you would need to spend as a result of not being able to occupy your home for a certain period. So, if you typically spend $150 a week for groceries and now need to pay $300 a week because you’re going out to eat, ALE would cover the $150 difference — not the full $300.

What Is the Best Home Insurance?

The best home insurance company for you will depend on a handful of factors, such as the state you live in and what you value most in a home insurance company.

The four homeowners insurance companies on our list are only a few of the top options you should strongly consider.

Who Has the Cheapest Home Insurance?

Home insurance rates vary from state to state and are also dependent on the type of coverage you need.

For someone who needs minimal coverage, company “A” may have the lowest rates, whereas for someone who needs additional coverage, company “B” may have the lowest rates.

It’s wise to get multiple quotes before ultimately purchasing a new home insurance policy, as the cheapest policy for someone else may not necessarily be the cheapest policy for you.

What Is the Typical Cost of Home Insurance Coverage?

On average, homeowners insurance costs $1,445 annually and roughly $120 per month, but the average premium also varies by state.

A state such as Delaware has some of the lowest home insurance rates, while a state such as Oklahoma has some of the highest rates.

How Can I Lower My Homeowners Insurance?

There are a handful of ways to lower your homeowners insurance costs.

To start, shop around. Get quotes from multiple companies and find out who is offering the lowest premium for the coverage you need.

Also, if you think you may have more coverage than what you actually need, or if are willing to pay more money out of pocket during a claim, you might choose to reduce your coverage or raise your deductible — which may also lower your annual premium.

Do I Need Homeowners Insurance If My Home Is Paid Off?

If your home is paid off, you are not legally required to purchase homeowners insurance.

With that said, it’s not recommended that you drop your homeowners insurance. The reality is that disaster could strike at any time, and you would still want to have financial protection for all of your assets.

Is Flood Insurance Included with My Homeowners Insurance Policy?

Neither flood insurance nor earthquake insurance is typically included in a standard homeowners insurance policy.

If you want flood insurance, you should consider purchasing special insurance or adding it to an existing policy — particularly if you live in a high-risk flood zone.

Make Sure Your Home and Belongings Are Safe

You never know when disaster will strike or when theft will incur, so it’s critical that you purchase a homeowners insurance policy. The relatively small premium paid towards your policy each month could pay off in a big way if the unexpected were to happen.

With four of the best homeowners insurance companies and some key information to help you determine the coverage you need, shop around for a few quotes today and get protection for your assets!