Homeowners insurance pays to repair or rebuild your home and replace its contents if they’re damaged by specific perils like fire, theft or a weather event such as wind or lightning.
If you’re not familiar with home insurance coverage and its policies, you might end up paying more than you should for inadequate coverage. To help you find a homeowners insurance policy that works for you, here are the seven best home insurance companies of 2022.
Our Top Picks for the Best Homeowners Insurance
- Lemonade – Best Home Insurance Company for Online Service
- Hippo – Best Home Insurance Company for Added Features
- Erie Insurance Company – Best Home Insurance Company for Range of Coverage Options
- State Farm – Best Home Insurance Company for Nationwide Coverage
- Amica Mutual – Best Home Insurance Company for Customer Service
- USAA – Best Home Insurance Company for Military Members
- AIG – Best for High-Value Homes
- Other Home Insurance Companies We Considered
PROS
- Unusually fast quotes and claims payments
- Unused claims money is paid to a non-profit of your choice
- Flat fee for administration, in addition to low monthly premiums
- Demotech Financial Stability Rating: A
CONS
- Not available in all 50 states
- Financial strength hasn’t been rated by A.M. Best
- Auto insurance only available in three states, which limits bundling options
Why we chose Lemonade: Lemonade’s streamlined online services and use of AI make the process of getting quotes and filing claims easier and faster.
Lemonade Insurance is an online-only insurance company that uses artificial intelligence to provide notably fast home insurance quotes and claim payments. The company can provide a quote in a few minutes — you simply fill out a form on its website and choose the coverage amount you want.
It’s also just as easy to file claims: you just press the claim button in the app and proceed to fill out any necessary information. The use of AI also makes this claims process unusually quick, with many reimbursements paid in a matter of minutes, the company says.
Lemonade also has unique and appealing approaches to paying for its operations and using company profits. Its operations are funded, at least in part, through a flat fee that’s added to the policy’s premium. Then, through its Lemonade Giveback program, it will donate up to 40% of premiums that haven’t been used to pay out claims to a non-profit organization of your choice.
Lemonade also offers a Standard selection of coverage options, including:
- Dwelling coverage
- Other structures coverage
- Personal property coverage
- Personal liability
- Medical payments
- Loss of use
How We Chose the Best Homeowners Insurance Companies:
To compile our list of the best homeowners insurance companies, we used a methodology based on the following factors:
- Coverage.Looked through dozens of insurers and coverage options and narrowed our choices based on policy options, average premium, customer service, additional benefits and claims processing speed.
- Satisfaction rating. We used J.D. Power’s 2021 U.S. Property Claims Satisfaction Study to gauge customer satisfaction with claim settlement, claim process, First Notice of Loss (FNOL), estimation and repair.
- Customer complaints. We evaluated each underwriter’s homeowners insurance complaint ratio based on data from the National Association of Insurance Commissioners (NAIC).
- Financial strength. We eliminated companies with A.M. Best financial strength ratings below an A.
