Get Started Now! Get Your Credit Repair Do It Yourself!!

5 of the best — and most affordable — homeowners insurance companies of 2021

New IdentityTheft Scam

MarketWatch has highlighted these products and services because we think readers will find them useful. This content is independent of the MarketWatch newsroom and we may receive a commission if you buy products through links in this article.

To find the cheapest homeowners insurance companies on the market, look for providers that offer discounts, competitive rates and unique benefits. Since your home is likely your most important investment, covering it with a comprehensive policy from one of the best homeowners insurance companies is crucial, but it doesn’t have to break the bank. 

We obtained cost information from insurance carriers (see methodology below) and have identified five companies that consistently offer affordable policies relative to other major players in the industry. For apples-to-apples comparisons, we have included sample quotes below on a 2,000-square-foot single-family house in Richmond, Va., with a rebuilding cost of around $275,000. Because home insurance pricing will depend on your personal information, property details, required coverage and exact location, we recommend getting quotes from a few providers and comparing rates. Use this home insurance quote tool, call 855-948-5219 or use the form below to get started on a quote from insurers in your zip code.

Top 5 homeowners insurance companies with more affordable policies
  • Best deductibles: Travelers

  • Best mobile app: Lemonade

  • Best discounts and savings: Liberty Mutual

  • Best coverage options: Nationwide

  • Best for new homeowners: State Farm

1. Best deductibles: Travelers

Travelers has some of the most affordable homeowners insurance policies and offers a variety of deductible options, which can help decrease your premium. When signing up for a policy from this insurer, you’ll get to choose between nine deductibles ranging from $1,000 to $50,000. 

Though our sample quote included a deductible of $2,500, the premium dropped to $452 a year when we switched to a higher deductible option. Additionally, this insurer offers a decreasing deductible add-on that decreases your deductible by $100 each year that you keep your policy.

Pros

Cons

Offers 24/7 claims support, including on holidays

Your dwelling limit can’t be customized beyond 125% of the estimated replacement cost

Has been in business for more than 160 years 

Doesn’t offer a water backup endorsement

Offers five personal property coverage options from 25% to 100% of dwelling coverage

Sample annual premium: $825.00

Discounts available for consumers who:

  • Have a history of paying bills on time

  • Get a quote and submit their first payment before their current policy expires

  • Have a LEED-certified house

  • Install protective devices like a fire alarm or home security system

  • Are new home buyers

  • Bundle with auto insurance

For a customized quote from Travelers, visit the company’s website.

2. Best mobile app: Lemonade

Not only is Lemonade one of the cheapest home insurance companies on the market, it’s also one of the most accessible, providing a mobile app with AI technology that helps customers sign up for a policy, file claims and manage documents. Lemonade also has a unique giveback program, which donates a portion of consumer’s unclaimed premiums to charity. To get an instant home insurance quote online or to learn more about the company, visit Lemonade’s website.

Pros

Cons

Includes specific electronics coverage in standard policies

Has only been in business since 2015

Offers coverage add-ons for swimming pool liability and musical instruments

Is only available in 23 states and Washington, D.C.

Offers customizable coverage limits for dwelling, personal property and liability

Sample annual premium: $885.00

Discounts available for consumers who:

  • Install fire safety equipment, such as fire extinguishers and alarms

  • Own homes located in a gated community

  • Live near a fire hydrant and fire station

  • Have a monitored burglar alarm

3. Best discounts and savings: Liberty Mutual

Liberty Mutual offers the most discount options compared with the other home insurance providers in this review. For example, if you have a full-time job or a higher level of education, you could qualify for additional savings. Not to mention, you could qualify for up to 12% off your premium just for purchasing a policy online.

Pros

Cons

Been in business more than 100 years

Its personal property coverage limit isn’t customizable

Offers an earthquake coverage add-on 

Its policies often include separate deductibles for hurricanes and wind/hail perils

Is available in all 50 states

Sample annual premium: $897.00

Discounts available for consumers who:

  • Buy online

  • Have certain types of jobs or have attained higher education 

  • Are a new home buyer

  • Shop early before their current policy expires

  • Have a newer home or recent renovation

  • Insure their dwelling up to or over the appraised value of the home

  • Have a claim-free history

  • Have a new roof

  • Install protective devices like a monitored fire alarm or security system

  • Bundle with auto insurance 

For specific cost information, get a free online quote from Liberty Mutual.

4. Best coverage options: Nationwide

Another cheap homeowners insurance provider is Nationwide. In addition to its competitive pricing, this insurer is known for its comprehensive coverage and add-on options. Standard Nationwide policies include coverage options that typically cost extra when offered by other companies. For example, our sample quote included personal property replacement coverage, inflation protection, loss assessment, identity theft protection up to $25,000 and building ordinance coverage — all items that would cost extra from other companies.

Pros

Cons

Has a mobile app for policy management

Some states require contacting an agent for a quote

Is available in all 50 states

Customer service department can be hard to reach

Features a helpful quote tool with educational resources

Sample annual premium: $900.62

Discounts available for consumers who:

  • Install protective devices, such as fire alarms and extinguishers

  • Have a claim-free history

  • Recently constructed or renovated their home

  • Have a newer roof 

  • Bundle with auto insurance

  • Purchased the home within the last 12 months

5. Best for new homeowners: State Farm

We recommend State Farm for new homeowners, since it connects you with a local agent who can help you sign up for the right coverage. Although the sample premium we received from State Farm was a bit higher than the other insurance carriers in this review, we were quoted another premium of $745 a year for a policy bundled with auto insurance, making it the cheapest option for those who already have an auto policy with State Farm.

Pros

Cons

Includes specific coverage for firearms and silverware in standard policies

Offers fewer discounts than competitors

Provides extra add-ons through your local agent

Some states don’t offer instant quotes

Is available in all 50 states

Sample annual premium: $1,137.00

Discounts available for consumers who:

  • Bundle with other policies

  • Install impact-resistant roofing materials

  • Bundle with car insurance

  • Have home alert protection systems

  • Have a claim-free history

What impacts your home insurance premiums?

We always recommend getting quotes from a few home insurance providers, since home insurance premiums are based on a variety of factors, such as your location, payment history and property details. Here are a few factors to consider before buying a home insurance policy:

  • Location: Your state and zip code could dramatically affect your premiums. For example, Louisiana, Florida and Texas are often the most expensive states for home insurance due to their coastal proximity. Premiums for homes located inland, such as Arizona or Idaho, tend to be less expensive.

  • Payment history: Some companies may require you to enter your Social Security number when getting a quote to check your payment and credit history. If you have any unpaid bills or debt, your premium may be higher than average.

  • Claims history: If you’ve filed a claim within the past three to five years, you may see a spike in your premium. When getting a quote, address these previous claims to get the most accurate estimate.

  • Property details: If you have a pool or trampoline on your property, your home insurance rates could be much higher due to the liability concerns and added risks taken on by the insurer.

  • Coverage needs: Your coverage needs may increase your homeowners insurance rates. For example, if you have a high home value, your dwelling limit will be higher, which means your insurance carrier will have to pay more to rebuild your home after a covered peril. You can often customize your coverage limits to lower your premium, but don’t decrease your limits too much or you run the risk of not having enough coverage in the event of a calamity.

  • Deductibles: The lower your deductible, the higher your premium. If you raise your deductible to the highest option available, your rates should be much lower.

What does homeowners insurance cover?
Type

Details

Dwelling coverage (Coverage A)

Covers the repair or replacement of the physical structure of your house. The typical coverage limit on a policy is close or equal to the appraised value of the home.

Other structures (Coverage B)

Covers the repair or rebuilding of extra structures on your property that aren’t considered part of the home, such as a fence or shed. Although some companies like Travelers allow you to customize the coverage limit, most policies come with coverage for 10% of the dwelling limit.

Personal property (Coverage C)

Covers the contents of your home and your personal belongings if they’re stolen or lost during a covered peril. The limit for this category usually falls around 70% of your dwelling coverage.

Loss of use (Coverage D)

Covers additional living expenses that may be associated with a covered peril. For example, if you’re forced to stay somewhere else because your home is unlivable after a disaster, your provider will pay for extra costs, such as hotel fees or gas.

Liability coverage (Coverage E)

Covers attorney fees or medical costs after someone on your property gets injured and you’re liable for the incident. This coverage typically starts at $100,000, but you can select higher limits when you receive your quote.

Medical payments to others (Coverage F)

Covers the medical bills for when someone gets injured specifically from no-fault accidents. This coverage is usually between $1,000 and $5,000.

The bottom line

Whether you’re leaning toward Travelers for its deductible options, Lemonade for its technological accessibility, Liberty Mutual for its extensive discounts, Nationwide for its impressive coverage options, or State Farm to insure your first home, we recommend getting quotes from at least three companies to compare prices. Call 855-948-5219 or use this easy online tool to get started with a quote from cheap home insurance providers in your area.

Frequently asked questions

How can I lower my home insurance premium?

To lower your insurance premium, look for discount opportunities, such as a home and auto insurance bundle. You can also get better prices when you lower your coverage limits, select a higher deductible, maintain a good credit score, renovate your home and remove any risky elements on your property, such as a trampoline or broken fence. When requesting a quote, it also doesn’t hurt to reach out to an insurance agent to see what additional savings options may be available to you.

Do I need homeowners insurance?

Purchasing a homeowners insurance policy can provide peace of mind if your home and personal belongings suffer damage from a natural disaster, fire, theft or other covered peril. While it isn’t required by law, your mortgage lender will likely require a policy with a certain minimum coverage limit.

Is homeowners insurance expensive?

The cost of homeowners insurance varies greatly depending on factors such as your location, property details, claims history and credit score. The best way to determine the price of home insurance is to get a few quotes from different providers and compare prices.

Our methodology

The Home Media team surveyed dozens of home insurance providers and created a scoring system to judge each company’s quality and service. We reached out for sample quotes, both over the phone and on the internet, to simulate a real customer experience. Here are the factors accounted for in our provider reviews:

  • Coverage (20%)

  • Customer service (15%)

  • Technology (15%)

  • Reputation (15%)

  • Additional benefits (15%)

  • Cost (20%)

Companies with the best customer service exhibit 24/7 availability, educational resources on their website, useful digital tools and a seamless claims-filing process. To score reputation, we compared data from each company’s Better Business Bureau page, customer reviews, registered complaints and years of experience.

Additionally, we dug into specific quotes and policy details to determine the value that each company offers in coverage, cost and additional benefits. Providers that offer extensive discount options, endorsements, customizable coverage options and unique features score significantly higher than those that don’t, putting them toward the top of our recommendations to readers.

Source: on 2021-04-26 17:45:00

Read More At Source Site

Add a Comment

Your email address will not be published. Required fields are marked *

7 + 1 =