Your home is among your most valuable possessions, so you ought to protect it with homeowners insurance. Choosing among the many insurance providers can feel like an overwhelming task, but if you focus on the best home insurance companies, you can make things a lot easier for yourself. Here are some of our favorite home insurance providers for several common scenarios.

Homeowners insurance is a type of insurance policy that protects the policyholder's home and personal property against storm damage, theft, vandalism, and other hazards. It can also help homeowners pay to stay somewhere else if they're forced to vacate their current home.

However, a typical homeowners insurance policy doesn't protect homeowners against everything. Flood and earthquake damage are typically excluded. Those interested in these types of coverage must purchase a separate flood or earthquake insurance policy.

Homeowners who have mortgages often have to deal with homeowners insurance lender requirements. This is where lenders require homeowners to purchase insurance to ensure it will still get paid even if the home is destroyed in a natural disaster.

Those who own their home outright aren't required to purchase homeowners insurance, but it's a good idea to have coverage anyway. Without homeowners insurance, you must pay for any damage to your home on your own, and this could easily cost tens or hundreds of thousands of dollars.

While homeowners insurance costs can vary based upon a variety of factors, data shows that there is a difference in cost for newer construction versus older homes. The national average premium for a home constructed in 2022 is $984 per year compared to homes built in 2012 which average $1464 per year. The average premium for homes built in 1972 is $1,755.Additionally, homeowners who make improvements to their home can actually bring their home insurance premiums down with the right home updates. For example:

• An electrical upgrade in 2022: lowers premiums by $122 per year
• A heating upgrade in 2022: lowers premiums by $112 per year
• A plumbing upgrade in 2022: lowers premiums by $111 per year
• A roof upgrade in 2022: lowers premiums by $300 per year

There are two considerations when determining how much homeowners insurance coverage to buy:

• The types of protections you should put in place
• The policy limits for your insurance policy

Types of protections

Homeowners must get the right kinds of protections so they can transfer an appropriate amount of risk to an insurer. Specifically, it is important for a homeowner to have:

• Replacement value coverage for their dwelling and other structures. This will pay to repair or rebuild the home and other structures such as sheds or pools, in the event of a covered loss. Replacement value coverage is superior to market value coverage, which pays up to the amount the home is currently worth. If a home has declined in value, it could cost more to rebuild than it would sell for on an open market. Homeowners should make certain they can pay to replace their property, even if it is not worth that amount to rebuild.
• Liability coverage so they do not have to pay legal fees out of pocket or pay for a settlement or court judgment if someone is hurt on their property or if their pet harms someone.
• Loss of use coverage so they can pay the costs associated with being displaced if a covered loss occurs.
• Replacement value personal property coverage, which will pay to replace or repair possessions such as furniture and electronics that are destroyed by a covered loss. Replacement value coverage is especially important as old TVs and furniture may be worth very little and generally would cost much more to replace than their market value.

Without these coverages, a homeowner could face significant financial loss if something goes wrong.Homeowners also should make sure they have coverage for all of the potential causes of loss they are at risk for. For example, many standard homeowners policies exclude floods or sinkholes. If these are a potential concern in the area where the home is located, homeowners should add a standalone policy or a rider that covers them.

Policy limits

Homeowners also must consider their policy limits. This is the maximum amount the insurer will pay when a covered loss occurs. If a property has replacement value coverage with a policy limit of $400,000, the insurer would pay a maximum of $400,000 in damages if the home was damaged or destroyed.If the policy limits are too low, a homeowner may face uncompensated losses. This is a major concern especially with liability insurance as a victim could sue a homeowner personally to recover uncompensated damages above policy limits when serious injuries occur.Many insurers also require property owners to buy coverage with a policy limit equal to at least 80% of the replacement value of the home. So, someone with a $400,000 home would need a policy limit of $320,000 or higher. Otherwise, the insurer would not pay the full amount of damages in the event of a covered loss.Determining the replacement costs of a home can be complicated. Homeowners may be able to calculate this on their own if they know the square footage of their home and the rough cost of construction per square foot in their area. Online home value calculators or professional appraisers can also help homeowners determine how much home insurance coverage they need.

There are certain steps it is important to take when buying homeowners insurance. Here's what property owners need to do.

1. Determine the coverage they need

It is important to understand exactly what kinds of protections should be put in place when buying homeowners insurance. Homeowners typically require:

• Dwelling coverage to protect the dwelling
• Other structures coverage to protect other structures on the property, such as sheds and freestanding garages
• Personal property coverage to protect their possessions
• Loss of use coverage to pay for costs if displaced from a home
• Liability coverage to pay for losses caused to others

Homeowners should also consider whether they want open peril coverage, which pays for losses caused by any cause that isn't specifically excluded, or named peril coverage that pays only for losses by specified causes.And, many people in dangerous parts of the country will need to obtain additional coverage not offered as a part of standard homeowners policies, such as sinkhole coverage, earthquake coverage, or flood insurance.

2. Decide on a deductible

Homeowners must pay a deductible out of pocket when making a claim. A deductible could be as low as a few hundred dollars or as high as a few thousand dollars.A policy with a low deductible has higher premiums but homeowners will pay higher out-of-pocket costs. A policy with a high deductible has lower premiums, but the homeowner won't have to pay as much in the event of a covered loss.Homeowners should consider the size of their emergency fund, as well as whether they would prefer to pay more to transfer additional risk and limit unexpected costs.

3. Obtain multiple home insurance quotes

Homeowners should obtain at least three different insurance quotes once they have determined what coverages they need. This can help to ensure they are getting the best price.It's quick and simple to obtain insurance quotes online from most insurers. Homeowners can also choose to work with an agent. It is important to find an independent agent that has relationships with multiple insurers, as this will enable a homeowner to compare multiple different companies. Agents that work for a single insurer can only provide information on that insurer's policies.When comparing quotes, remember this is just an estimate and the actual amount of premiums due may change after a formal application is submitted.

4. Compare apples to apples

When comparing quotes, homeowners need to ensure they are comparing similar offers from different insurers. This involves looking carefully at:

• The types of coverage
• The policy limits
• Whether the coverage is replacement value coverage (and will pay to replace property) or market value coverage (and will pay only what the property is currently worth)
• Add-ons or riders
• Whether the policy is an open peril or named peril policy
• What riders or add-on coverage is included
• The deductible

If a policy is more expensive but offers far more comprehensive coverage with a lower deductible, that policy could actually be the better deal. That's why it's so important to make sure quotes that are being compared offer a similar level of coverage.

5. Check to see if bundling coverage is worthwhile

Homeowners can often save by bundling insurance coverage. This means buying multiple policies from the same carrier, such as buying both home and auto insurance. Savings for bundling can be as high as 25% with some carriers.However, this doesn't always mean that bundling is cheaper, especially if one insurer charges significantly higher rates for a specific kind of coverage such as homeowners insurance in a high-risk state. Consumers should get quotes for both bundled and separate coverage from different insurers to see what will provide the best price overall.Consumers should also research the insurer's reputation for customer service and claims handling for all types of insurance that would potentially be bundled. That's because some insurers excel in providing a particular type of coverage, but offer substandard customer service with other policy types.

6. Research discounts available

Many discounts could be available when purchasing home insurance, including savings for avoiding claims for a certain number of years, working in a specific profession, membership in specific organizations, or working for a particular employer.Having certain safety devices installed, such as an alarm or sprinkler system, could also result in reduced premiums.Homeowners should research discounts different insurers offer, so they can see which provides the lowest price coverage after all their savings is applied.

7. Check the insurer's reputation

The purpose of insurance is to provide protection against loss. No homeowner wants to face a problem getting a claim paid. As a result, it is important to check the reputation of the insurer.When buying coverage, consumers should review the database of the to check how many complaints have been received for a particular company. It's also helpful to look at to see how satisfied customers generally are with particular home insurance companies.

8. Consider the insurer's financial strength

It's important that an insurer be financially sound so it can pay out claims promptly even in the event of a large-scale disaster. A.M. Best and Standard & Poor ratings offer insight into whether an insurer is financially sound.

9. Read the fine print

Finally, homeowners should read the fine print on their insurance policy when purchasing coverage.It is important to understand what losses are covered, what is excluded, and whether any special policy limits apply. For example, many insurers limit coverage of jewelry or weapons or art or furs to $1,500, so those who have large gun collections or expensive jewelry or other specialized collections may need to buy add-on coverage.By carefully reviewing a policy, a homeowner can make sure they have the coverage they need before disaster strikes and they are left without the financial support they need to rebuild.

There are many factors homeowners must consider to determine if they are choosing the right home insurance company. Here are some of the big things a consumer should look at when shopping for insurance.

• Customer service: Homeowners want to be sure their insurer will pay a claim promptly and without hassle if a covered loss occurs. When shopping for insurance, it is helpful to read reviews of insurers online. Consumers can also look at . They should also review the complaint database of the to see how their potential insurer fared in terms of the number of consumer complaints received.
• Available policy options: There are differences in coverage options among different insurers. For example, some insurers may offer add-ons like building code coverage that pays extra to bring old properties up to current codes in the event of a covered loss. Some also offer more options for add-on protections, such as sinkhole coverage. It is important for homeowners to ensure their preferred company provides the desired protections.
• Premium price: On average, U.S. homeowners pay around $1,800 annually for coverage. However, the size of a home, its value, and its location all play into how much coverage costs. Homeowners will need to compare prices among several different insurers to see which offers the most affordable premiums.
• Policy discounts: Many homeowners insurance companies offer discounts for things like affiliation with a particular company or organization or the installation of certain safety features in a home such as an alarm system. Homeowners should explore the types of discounts each insurer offers to make sure they are not missing opportunities to save.
• Bundling options: It is often less expensive to buy multiple types of coverage from the same insurer. This is called bundling. For example, a homeowner could save up to 25% by combining home and auto coverage. Typically, the more policies an insurance buyer bundles from a company, the greater the savings. So, homeowners may want to look for a company offering multiple types of coverage they are interested in.
• Financial strength: Homeowners want to ensure their insurance company has the money to pay out claims as promised and will not fail if a covered disaster such as a tornado affects many houses and causes many claims to be made. A.M. Best and Standard & Poor both provide financial strength ratings for insurance companies, which policyholders should review.

Homeowners may also wish to consider other factors such as the ease of applying for coverage, and whether in-person customer service is available if desired.

Bundling home and auto insurance coverage typically saves consumers around 25% although the specific savings can vary by insurer. Bundling also has other advantages, including the following:

• Easier policy management: It can be easier to work with just one insurer when buying coverage. If a claim must be made, it's often also easier to work with only one insurer. For example, if a tree falls on a vehicle in a driveway and a homeowner has bundled home and auto coverage, there are fewer complications in determining which insurer should pay for damages.
• Eligibility for umbrella insurance: Homeowners may wish to purchase an umbrella policy that provides supplementary coverage. This pays for excess damages above liability policy limits if the homeowner is responsible for hurting someone and damages are extensive. To cover a homeowner for injuries that occur both at home and while in a vehicle, some umbrella insurers require the homeowner to have home and auto policies with the same carrier.
• Reduced risk of losing coverage: A policyholder who has multiple policies with the same company is less likely to be dropped if a problem arises, such as an accident or a speeding ticket, that makes them a higher-risk customer.

There are also some downsides to bundling home and auto though. Specifically:

• Loss of ability to choose the best company for each specific kind of protection. In some cases, an insurer excels at handling auto claims but isn't as good at handling home insurance claims. This could mean a consumer settles for poor customer service with one type of policy if they bundle coverage.
• Higher premiums. Usually a bundled coverage discount makes buying multiple policies from the same carrier cheaper. But there are times when it would be more cost effective to buy separate policies from different companies if each one independently offers lower rates for a specific kind of coverage.

Before bundling coverage, consumers should research the customer service ratings and complaints for both home and auto coverage with the carrier they are considering. They should also compare prices for separate and bundled coverage to ensure they are getting the best deal, and should make sure the carrier offers the types of protections they need for both home and auto coverage.

The data found on this page is a combination of publicly available quote data obtained directly from the carrier as well as insurance rate data from Quadrant Information Services. These rates were publicly sourced from the top ten (10) to fifteen (15) carrier markets, within each state, based on annual written premium and should be used for comparative purposes only -- your own quotes may be different.Insurance products are then rated on a scale of one to five stars, primarily focusing on:

Pricing

With so many options for insurance across the board these days, it's easiest, and quite effective, to first look at the bottom line. Do single out competitive prices across insurance categories it's important to focus on:

• Deductibles
• Terms
• Coverage
• The fine print

Discounts

Insurance provides coverage for unexpected financial burdens and piece of mind. But it's important to check your policies and see how you can lower your premium. Insurance companies offer discounts for all sorts of things now from safety devices to good grades to automatic bill pay. Pay attention to:

• Discounts offered
• Variety of discounts
• Discount qualifications

Perks/Benefits

The benefits of insurance these days have gone far beyond just what your policy covers. Most companies and policies come with perks -- some of which may be completely unrelated to your insurance policy. Take a look at:

• Non-pricing related perks offered
• Benefits unrelated to your coverage
• Perks that stand out in the industry
• Will you actually use the benefit?

Customer Service/Claims Process

Policy research and coverage options are great, but how is the process when you have to actually use your insurance policy? The best coverage doesn't hold much value if it's a hassle to get paid out. Pay special attention to:

• How hard it is to file a claim
• If your provider has a history of resisting payouts
• The customer satisfaction scores for your provider