What is home insurance? Home insurance covers loss and damage to your property if something unexpected happens, such as a fire or burglary. When you have a mortgage, your lender wants to make sure your property is covered by insurance. This is why lenders usually require proof that you have homeowner’s insurance.
What Does Homeowners Insurance Cover?
A typical homeowners insurance policy (also known as an HO3 policy) usually covers your home and your personal property and helps cover the cost of losses resulting from covered incidents such as:
- Fire
- Theft
- Hail
- Lightning
- Windstorms
- Vandalism
- Weight of snow, ice, or sleet
- Freezing of plumbing, air conditioning, heating, or other household systems.
Top 10 US Home Insurance Providers in 2023
These are the top 10 biggest home insurance providers based on the latest data from the association.
1. State Farm
- Market share: 24.26%
- Direct premiums earned: $20.7 billion
- Direct premiums were written: $22 billion
State Farm is not only the biggest insurance company in the US, the Illinois-headquartered insurance giant is also the nation’s largest provider of auto and P&C insurance. State Farm has over 57,999 employees and 18,999 agents serving 83 million policies and accounts nationwide.
It offers basic coverage on most homeowner policies, but customers can choose from a few extras. These include an increased housing limit that automatically extends replacement cost coverage to 20% if the home is insured to at least the estimated replacement cost.
Policies could also be updated to include coverage for earthquake damage, identity fraud, vandalism, and replacing cooling and heating appliances with energy-efficient ones. State Farm has one of the biggest customer satisfaction ratings in the latest J.D. Power, scoring 835 points out of 1000, which is a good result for 3rd place.
2. Allstate
- Market share: 11.56%
- Direct premiums earned: $10 billion
- Direct premiums written: $10.5 billion
Allstate operates in seven segments and serves more than 145 million active policies, including approximately 35 million property and liability policies. Its home insurance products are part of the Allstate Protection segment, which also includes auto insurance.
Allstate offers basic coverage for all types of homes, including apartments, mobile homes, and condominiums. Policyholders can also choose from a range of add-ons, including water backup, green improvement, e-data recovery, identity theft recovery, yard and garden coverage, and commercial property.
Owners renting out their homes through Airbnb or other vacation rental platforms can choose to share accommodation insurance, which provides up to $10,000 per rental period, to help pay for repairs that standard home insurance doesn’t cover. Allstate has an above-average customer satisfaction rating in the J.D. Power.
3. USAA
- Market share: 8.79%
- Direct premiums earned: $7.6 billion
- Direct premiums written: $7.9 billion
USAA offers a range of insurance and financial products to US military personnel, reservists and veterans, and their families. In addition to standard inclusions, the insurer provides earthquake protection in individual states, as well as cohabitation coverage, a feature designed for those who rent out their homes.
Some homeowners may even qualify for identity theft and umbrella insurance. In terms of discounts, USAA offers packages with other insurance products. Although the company is not eligible to participate in the J.D. Power, it scored the highest score of 882 in the poll, beating the next-place company by a mile.
4. Travelers
- Market share: 6.12%
- Direct premiums earned: $5.1 billion
- Direct premiums written: $5.5 billion
Travelers offer home insurance in more than 44 states and Washington, DC. Homeowners can customize their policies with a range of add-ons, including “green home” coverage, which pays for the use of sustainable materials in property renovations or restorations. It also offers additional coverage for identity theft and valuable items.
However, one downside is the number of complaints received by the company in terms of customer service and claims handling. Traveler customer satisfaction scores below the industry average for the J.D. power.
5. Nationwide
- Market share: 3.88%
- Direct premiums earned: $3.4 billion
- Direct premiums written: $3.5 billion
Nationwide offers one of the cheapest policies of any insurer on the list. Insureds can save even more with a range of rate-cutting options, including a home renovation loan, a new home discount, and a pre-insurance discount.
Nationwide also provides other benefits that its competitors don’t have, such as statutory or statutory insurance, which covers the cost of restoring a home to current building codes, and credit card coverage, which pays out for unauthorized transactions and fake checks. However, the insurance company scored below the industry average in J.D. power.
6. Chubb
- Market share: 3.53%
- Direct premiums earned: $3.1 billion
- Direct premiums written: $3.2 billion
Chubb is the country’s largest commercial insurer, holding over a tenth of the total market share. It offers a range of personal insurance policies including auto, accident, life, and renter insurance in addition to homeowner protection. The Chubb Masterpiece Homeowners policy includes features that other home insurance providers offer as add-ons, such as replacement cost, backup water coverage, and cyber and identity theft insurance.
The company will even restore data if an insured’s computer is targeted by cybercriminals and install new locks on their homes if they lose their keys. It also offers earthquake insurance and its own flood insurance as an alternative to the National Flood Insurance Program that most insurers use.
7. American Family Insurance
- Market share: 2.98%
- Direct premiums earned: $2.6 billion
- Direct premiums written: $2.7 billion
American Family Mutual Insurance provides personal and commercial P&C insurance nationwide. This includes auto, homeowner, travel, farm and ranch, retail, and commercial liability insurance. It also offers life insurance, annuities, and complementary health insurance plans.
Coverage for pump overflow and sewer backup, identity theft, equipment breakdown, appropriate siding protection, and home business liability and property coverage can be added to the company’s standard home insurance policies. American Family is ranked sixth in J.D. Power with a score of 831 points.
8. Progressive Insurance
- Market share: 2.44%
- Direct premiums earned: $2 billion
- Direct premiums written: $2.2 billion
Progressive offers insurance policies to homeowners through its network of Progressive Home Advantage insurers, including its own division, American Strategic Insurance. It also provides clients with access to the HomeQuote online tool, which allows them to compare quotes from different insurance companies.
Progressive provides policyholders with a variety of opportunities to receive discounts, including prepayment, early policy completion, and choosing to receive documents by email. Additional features the firm offers include water backup, personal liability, and personal injury insurance.
9. Erie Insurance
- Market share: 2.15%
- Direct premiums earned: $1.8 billion
- Direct premiums written: $1.9 billion
In addition to homeowner policies, Erie Insurance sells specialized insurance for apartment owners, mobile homeowners, and renters. It is also one of the few companies that offer a replacement cost as part of the standard coverage.
Erie provides policyholders with a range of discount options, including a bundling policy. In terms of add-ons, the insurer offers home-sharing, identity recovery, and felony reimbursement of up to $25,000. Erie is ranked third in the J.D. Power Customer Satisfaction Index.
10. Auto-Owners
- Market share: 2.11%
- Direct premiums earned: $1.8 billion
- Direct premiums written: $1.9 billion
Auto-Owners Insurance operates in 26 states and is represented by over 6,200 independent agencies with 48,000 agents. It offers auto, home, liability, and workers’ compensation insurance to more than five million policyholders. A Better Business Bureau (BBB) accredited insurance company offers all standard homeowner insurance coverage, including home protection, liability, personal property, and additional living expenses.
Policies can also be personalized to include a few extras such as guaranteed home replacement, ordinance or law coverage, identity theft protection, and coverage for appliance leaks and food damage resulting from power outages. Auto-Owners is ranked sixth in the J.D. Power Customer Satisfaction Index.