Homeownership is within your grasp. You spend your nights dreaming of building a life and raising a family in that home. But, wait. What’s that dark thought sneaking in from the back of your mind? It’s a spark from outdated wiring that causes a fire. Suddenly your dreams disappear in a fury of flames. You don’t need to give up your dream. But, you do need to protect it. Home insurance is one way to protect your house, your beloved belongings and your financial stability.
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Home Insurance Rates
|Average Annual Rate||$1,271|
|Average Monthly Rate||$105|
Property Crime Statistics
|Odds of being victim||1 in 37|
The Best Homeowners Insurance:
- Best Overall Homeowners Insurance: Hippo
- Most Affordable Homeowners Insurance: Lemonade
- Best for Size and Experience: State Farm
- Best for Home Discounts: Allstate
- Best for Comparison Shopping: Progressive
- Best for Upgrades: Esurance
- Best for Customizing: American Family
- Best for Ease of Personalization: Farmers
- The Best Homeowners Insurance:
- Do You Need Homeowners Insurance?
- Average Annual Home Insurance Premium in the US
- How are Homeowners Insurance Rates Determined?
- What Does Homeowners Insurance Cover?
- What Does Homeowners Not Insurance Cover?
- Best Homeowners Insurance Providers
- Protect You Can’t Afford to Be Without
- Frequently Asked Questions
Do You Need Homeowners Insurance?
Homeowners insurance covers the structure of your house and its contents in case of a disastrous event like a fire. Home insurance policies also include coverage for your legal responsibility for injuries and property damage to others caused by you or your family. You wouldn’t drive a car without wearing a seatbelt. Why own a house without securing proper insurance?
And if your home, its contents and your liability aren’t enough to convince you, lending policies will. Mortgage lenders require that you secure homeowners insurance as part of the lending agreement. No home insurance, no loan. And if your bank account is fat enough to buy a home outright, do you want to be financially on the hook if a visitor trips and falls or if a tree from your property falls on your neighbor’s house? Homeowners insurance makes good sense.
Average Annual Home Insurance Premium in the US
Average home insurance nationally: $1,200
You can easily check to see how much is home insurance in your area. Remember that the price isn’t set in stone. Many companies offer discounts. Possible savings include:
- Multi-policy: Having more than 1 type of policy with a company
- Automatic payment: Choosing to schedule payments automatically
- Claim-free: Instead of “use it or lose it” considering, “don’t use it and lower your premium”
- Anti-theft: Protecting your home (and lowering your rate) with features like security cameras, motion lighting and deadbolt locks
- Loyalty: Renewing your policy with the same company
- New/renovated home: Upgrading to current standards and adding tech features
- Alarm: Successfully detering would-be thieves
- Weatherproofing and safeguarding: Installing storm shutters and hail-resistant roofs; making your home safe from the elements to save you money
- Senior: Your golden years qualifying you for this money-saver
- Military: Earning a discount for your service
- Employer: Partnering with local and national companies so employees earn a discount based on that affiliation
How are Homeowners Insurance Rates Determined?
Many factors influence homeowners insurance rates. Those factors include some that are within your control and some that are beyond your control. Within your control are things like your credit history and the coverage and deductible amounts you choose. Other things that are outside your control include the age of your home and its location.
The likelihood of natural disasters affects rates. Also, if your home is located in a densely populated area, chances are home values are higher. If home values are higher, repairs cost more and that drives rates up. Weather patterns also play a role. Rates increase in areas with severe weather and you might need to purchase specialized insurance.
What Does Homeowners Insurance Cover?
Homeowners insurance typically covers the following:
- Repairs or rebuilding your home if it’s damaged or destroyed by events like fire, hurricane, hail or lightning.
- Replacement of personal property like furniture, clothes, electronics and sports equipment if it suffers damage or is stolen; expensive items like artwork, jewelry and collectibles need separate coverage.
- Protection from liability like lawsuits for bodily injury or property damage that you or your family cause to other people, including damage by pets.
- No-fault medical coverage if a visitor or guest is injured on your property.
What Does Homeowners Not Insurance Cover?
Unfortunately, home insurance doesn’t cover everything. Some things require special insurance policies or are just up to you. Things not covered by homeowners insurance include:
- Floods, earthquakes and hurricanes are all special additions to an insurance policy or require a separate policy altogether.
- Routine wear and tear. If you’re looking to upgrade carpet or refinish hardwood floors because the wear patterns could be mistaken for a path, the expense is your responsibility.
- Have you ever been so angry you could punch or kick a wall? Well, go to the gym instead. If you purposely damage your home, the cost to repair the damage comes out of your pocket.
Best Homeowners Insurance Providers
There’s no shortage of available home insurance options. From the newcomers bursting onto the scene like Hippo and Lemonade to the reliable players like State Farm and Allstate and the companies in-between like Progressive and Esurance, there’s an insurance option for every need and every budget. The following options are some of the best.
1. Best Overall: Hippo
Savings on premiums, fast quotes and humans who care? Yes, please. Hippo knows what homeowners need out of a home insurance plan. Its insurance claims and automating processes save you up to 25% on monthly premiums.
Choosing to focus on what runs your home, Hippo coverage includes enhanced protection for things like appliances, electronics, and water and sewer backup. It is also a proponent of smart home technology. So much so that it offers discounts for tech that helps detect problems early to avoid damage and provide a complimentary smart home sensor kit.
Hippo also offers enhanced rebuilding coverage, coverage for house cleaners and babysitters and full replacement costs. You can get a quote in less than 60 seconds.
2. Most Affordable: Lemonade
Taking the traditional insurance model and flipping it over, Lemonade offers home insurance for the price-conscious consumer. It provides an insurance experience that’s fast, affordable and hassle-free. Using the Lemonade app you can get insurance in 90 seconds.
Home insurance premiums start at about $25 per month. It takes about 3 minutes to get paid for a claim. Boasting simplicity and transparency, Lemonade takes a flat fee, pays claims quickly and donates what’s leftover to causes close to your heart. It’s like receiving and giving all in one.
Coverage includes things like theft (whether inside or outside your home), perils (fire, water damage, storm damage) and extra living expenses.
3. Best for Size and Experience: State Farm
There’s a reason State Farm’s tagline is “Like a good neighbor, State Farm is there.” That’s because it’s been “there” for nearly 100 years. State Farm is there for good and bad things in life. Moving into your new home: good. A tree falling onto your garage: bad.
Either way, State Farm is available online, over-the-phone and in person. State Farm policies cover weather-related damage like wind, hail and lightning. But take note that floods and earthquakes require separate insurance policies. The company also covers nonweather-related damage like theft and vandalism.
Because State Farm is a major player in the insurance industry you can qualify for discounts if you bundle your homeowners insurance with other insurance needs like auto, life, liability and small business.
4. Best for Discounts: Allstate
Allstate provides quality coverage for your home. Local agents make sure you’re getting the right coverage for you and your home. Coverage includes things like theft, fire and smoke, windstorm or hail, falling objects and frozen plumbing.
You’ll need special policies to cover events like floods or earthquakes. Agents will help you take advantage of the company’s innovative tools and a plethora of discount opportunities. Discount opportunities include multi-policy, payment, claim-free, protect device, loyalty and early signing.
Allstate also offers many resources and learning tools to help you understand different types of insurance and how it can benefit you.
5. Best for Comparison Shopping: Progressive
With Progressive homeowners insurance, you get a lot of standard coverage and the opportunity to add more. This insurer is not afraid to put its offerings to the test. Directly from the Progressive site, you can compare rates and coverages from multiple companies.
Insurance coverage includes damage from wind, fires, lightning and theft. Coverage also extends to injuries that happen on your property and liability claims. You can also score a lot of discounts for things like bundling homeowners with auto insurance, getting quotes 10 days prior to the beginning of your policy start date, and alarms and safety devices.
6. Best for Upgrades: Esurance
Seeking to uncomplicate homeowners insurance, Esurance offers protection against damage to your home’s structure from things like fires, windstorms, explosions, riots or civil upheavals, and theft or vandalism. Coverage also includes additional living expenses, water backup, personal property, family liability and guest medical protection.
You also can choose some helpful optional coverages including identity theft protection, home daycare coverage and building codes coverage if your home’s repairs after damage require more expensive rebuilding. Discount opportunities include bundling your car and auto insurance, using its DIY home inspection app, smoke-free home, and safety and security features.
7. Best for Customizing: American Family
American Family understands that you don’t just live in a house, but a home. And everything that makes up that home is uniquely yours and worth protecting. American Family homeowners insurance policies are customizable so that your policy, like your home, is unique to you. Its coverage includes the usual damage from storms, fires, theft and the like. It also includes personal property, temporary living and liability protection.
It offers many extras like equipment breakdown, sump pump and water backup, matching siding protection, and credit theft protection and monitoring. American Family is a solid choice for if you want to make your home insurance policy fit you and your stuff, rather than trying to fit into a policy.
8. Best for Ease of Personalization: Farmers
While one feature in your home may have tipped the scales toward your purchase, you still need to protect your entire home, its contents and your family. Farmers gets it. It offers 3 policy tiers: You pick the tier that fits your budget and needs best.
From there, each of the tiers is flexible so you can add or change coverage. It gives you a starting point if you need a little direction when it comes to insuring your home. Farmers also offers value-added features at each policy level. These features include declining deductibles, claims-free discount, claim forgiveness and cosmetic damage. Something not often considered is cosmetic damage. Cosmetic damage covers the cost after the functional damage is fixed.
So, if a pipe bursts inside your wall, regular protection will cover fixing the pipe. Cosmetic damage coverage will patch and paint your wall so it’s as good as new.
Protect You Can’t Afford to Be Without
Homeownership is yours and you’ve worked hard to achieve it. Make sure you secure the proper home insurance coverage to protect the physical structure, your belongings and you and your family. Without home insurance, you could face insurmountable costs to repair or rebuild after catastrophic damage, replace personal items and account for liability.
Find Other Home Insurance Providers
Tip: compare 2-3 companies
Frequently Asked Questions
1) Q: How long will it take for my homeowners insurance claim to be processed?
It depends on the company, but you can expect an initial response between 24 and 48 hours.
2) Q: What does home insurance cover?
Most modern home insurance policies cover your home for nearly all risks. However, every policy has exclusions, among which you’ll find things like neglect, wear and tear, and ordinance or law. Land movement, including earthquakes, and floods are excluded as well but can be insured with a separate policy. Personal property and liability coverage is also part of most home insurance policies. Get the best policy quote here.
3) Q: What are the most common types of home insurance claims?
Wind and hail claims top the list with nearly 40% of all home insurance claims due to these two acts of nature. Fire and lightning are the second most common, but claims due to fire tend to much bigger than claims dues to other types of risk. The possibility of a total loss is why it’s so important to insure your home for the full cost of rebuilding. Get a custom quote today.