Our exclusive findings will help you find top-notch coverage at a great price
At an average of $8,394, roofing problems were one of the most expensive home insurance claims, according to the Consumer Reports survey.
By Tobie Stanger
To find America’s best home insurance companies, Consumer Reports conducted an exclusive survey of tens of thousands of our members.
Specifically, 59,670 people told us about 65,000 experiences they had with their home insurance company, including claims payment in the last five years, prices paid for insurance premiums, policy reviews, and other key aspects of buy and have this important coverage.
We have taken this approach because it is not enough to know how well a home insurance company treats customers over the phone or how easy the policy is to read, although these are some of the attributes we take into account. It is after a catastrophe occurs (a storm, a fire, a theft or even a liability lawsuit), when you really discover if you have a reliable ally, who responds during the claims payment process and pays reliably. fair.
Responses to our survey support the ratings of 24 homeowners insurance companies available to CR members. Our list includes well-known homeowners insurance companies like Allstate, Amica, Farmers, Nationwide, State Farm, Travelers, and USAA.
We’ve named three true winners in our home insurance ratings, though only one insurer excelled in all aspects of our survey. The other two insurers were not far behind and, like the highest-rated homeowners insurance company, earned exemplary overall satisfaction scores.
Notably, the members of this triumvirate are all “direct underwriters,” meaning their own employees, not independent agents, sell and handle their policies typically online. In theory, bypassing the intermediary can save the insurer money, which can result in lower premiums for policyholders. One of the three main ones is a mutual company, owned by its policyholders, and another operates on a mutual basis; in good years they can pay qualifying homeowners a portion of the surplus they have earned in the form of dividends. All of the companies in this trio apply relatively strict criteria to new customers, which means that not everyone may qualify for coverage.
Consumer Reports members can keep reading to see which companies topped our homeowners insurance ratings. They can also view the performance of 21 other companies, many with commendable or satisfactory overall ratings and more open qualifying requirements.
The best home insurance companies
• USAAHeadquartered in San Antonio, Texas, sells homeowners insurance in every state and the District of Columbia. USAA, which stands for United Services Automobile Association, serves only people with direct ties to the United States military: members of the military and their families, honorably discharged veterans, as well as as children and spouses of USAA clients (read more about how to qualify for USAA coverage). Consumer Reports members gave USAA top scores in all aspects of the homeownership, claims and buying experience. USAA is a reciprocal exchange between insurances, in which coverage is pooled to spread risk and potentially save money for policyholders. In good times, USAA offers dividends, but currently that’s just for auto insurance.
• NJM Insurance, based in West Trenton, New Jersey, sells homeowners insurance policies in Connecticut, Maryland, New Jersey, Ohio and Pennsylvania. NJM exceeded our ratings based on surveys of premium pricing, customer service, advice and help, and policy review experience. In other rating categories, NJM received favorable scores. NJM operates on a mutual basis, which means homeowners may qualify for a dividend credited to their premium when they renew their policy.
• Amica Mutual Insurance Co.., headquartered in Lincoln, Rhode Island, offers homeowners insurance coverage in every state except Alaska, Florida, and Hawaii. In our member survey, policyholders rated Amica’s claims experience as outstanding; They did the same with customer service, advice and help, and the policy review process. In terms of premium price, breadth of coverage, and policy clarity, Amica scored favorably. Amica offers the ability to save money in dividends on a version of your home insurance policy; that coverage costs more up front. Dividends are also not available in all states.
These three companies have a track record of excellence. They were among the highest rated when CR first surveyed its members on homeowners insurance in 2019 and 2016. Six other insurers, mostly moderate-sized companies, are also in our “green zone,” receiving favorable overall satisfaction scores. , light green: Auto-Owners, Chubb, Cincinnati, COUNTRY (company capitalizes), Erie, and Farm Bureau Property & Casualty.
Conspicuous by their absence from the green zone are many of the domestic brands that dominate the advertising waves, observes David Gopoian, research program manager in CR’s Survey Research department, who led the homeowners insurance survey project. CR’s house.
As in previous surveys, the largest and most well-known homeowners insurance companies (Allstate, Farmers, The Hartford, Liberty Mutual, Nationwide, State Farm, and Travelers) are in the “yellow” zone of our ratings, representing mean overall satisfaction scores. None received full marks on any of our survey attributes. Only two insurers even earned light green “favorable” scores: State Farm for customer service and policy review, and Nationwide for claims handling.
Consumers identify the keys to satisfaction
Taken together, the 24 insurers in our survey satisfied 77% of CR members when it came to handling claims payments. On the opposite side, they only satisfied about half, 56%, in terms of the price of the premiums.
“These attributes are the two best predictors of overall satisfaction,” Gopoian says. But he adds, “they pull in different directions.” For most insurers, there is a trade-off between relatively good marks they get for satisfaction with claims and relatively low marks they get for the prices they charge customers.”
Chubb Group is an example of this dynamic. The Warren, New Jersey-based home insurance company specializes in high-end homes, the kind of properties that may require additional coverage for collectibles, valuables and unique features like custom closets. Chubb was rated excellent in handling claims, but unfavorable in pricing. Overall, the insurer was near the top of our ratings.
The worst home insurance companies are based in Florida
Only two home insurance companies scored below average overall: Tower Hill Insurance and Universal Property & Casualty. Both are based in Florida, where homeowners pay the highest premiums in the country (PDF).
Gainesville-based Tower Hill was rated unfavorably overall; received mediocre marks for premium prices, advice and help, and clarity of policies. The company recently announced that it would not renew half of its Florida home insurance policies and that the other half would be assigned to a new affiliate, a “reciprocal exchange” in which policyholders share the risk of insuring each other.
Ft. Lauderdale-based Universal Property & Casualty received a failing grade. It got poor marks for claims, premium prices, and advice and help; on all other attributes, it received ratings below satisfactory. A company spokesperson declined to comment on these results.
Consumer Reports is an independent, nonprofit organization that works side by side with consumers to create a fairer, safer, and healthier world. CR does not endorse products or services, and does not accept advertising. Copyright © 2023, Consumer Reports, Inc.
Consumer Reports has no financial relationship with the advertisers on this site. Consumer Reports is an independent, nonprofit organization that works with consumers to create a fair, safe, and healthy world. CR does not endorse products or services and does not accept advertising. Copyright © 2023, Consumer Reports, Inc.