Home insurance is a major purchase. The national average cost of a policy is $2,532 annually for $300,000 in dwelling coverage, according to Insurify data. And while it’s natural to want to avoid higher rates, the best home insurance companies offer more than just low prices.
Considering the bigger picture can help you find home insurance coverage that suits your long-term needs. Insurer reputation, quality, coverage options, and claims-processing matter. Insurify analyzed premiums, discounts, customer service, financial strength, and market share to identify the best insurers to consider when you shop for homeowners insurance.
Best homeowners insurance companies
Each homeowner has unique needs. The age or condition of your home, whether it’s in a densely populated area, regional climate risks, and more factors could all influence what you need out of a home insurance policy.
Maybe you want basic coverage and an ongoing relationship with an insurance agent. Maybe you want a fully customized policy with an insurance company that has a user-friendly app. Whatever it is, doing your research and comparing home insurance companies will help you find the right fit.
To get you started, here are our five best home insurance companies. The average monthly premium shown is for a policy with $300,000 in dwelling coverage:
State Farm: Best for customer service
American Family: Best for first-time homeowners
Allstate: Best for add-on coverages
Farmers: Best for environmentally conscious homeowners
Nationwide: Best for high-value homes
5 tips for choosing the best home insurance
Whether you’re buying home insurance for the first time or just re-evaluating your coverage, here are some tips to help you navigate the process:
How to buy home insurance
If you’re ready to find the best home insurance coverage for your unique needs, we’re here to explain the process. Here’s a step-by-step guide on how to buy a home insurance policy.
Why homeowners insurance is so expensive
Increasingly frequent and severe weather events and rising building repair costs are contributing to high home insurance rates, according to Insurify’s home insurance report. The average annual cost of home insurance rose by 9% in 2024, per Insurify analysis. The average annual premium for $300,000 of dwelling coverage was $2,584 by the end of 2024.
Florida is the most expensive state for home insurance, Insurify data shows. The average annual premium is $5,640 for $300,000 of dwelling coverage — much more than the national average.
In Florida, hurricane and windstorm damage has led to billions of dollars in insurer losses. Insurance fraud and legal system abuse also drive up rates, according to the Insurance Information Institute (Triple-I). State regulators have passed legislative reforms aimed at addressing Florida’s home insurance crisis.
Higher building and reconstruction costs mean it’s more costly for insurers to pay out claims. The average construction cost per square foot for a single-family dwelling is the highest it’s ever been, according to the National Association of Home Builders.4 Total residential reconstruction costs increased by 4.2% from October 2023 to October 2024, according to Verisk’s 360Value 2024 Quarterly Reconstruction Cost Analysis.5