Home insurance protects your house, belongings, and liability from covered perils. This guide compares the best homeowners insurance companies for 2025.
Home Insurance Quick Facts 2025
- Average cost: $1,900/year nationally
- Coverage needed: Replacement cost of your home
- Standard policy: HO-3 (most common)
- Bundle savings: 15-25% with auto insurance
Top Home Insurance Companies 2025
| Company | Avg Annual Cost | Best For | J.D. Power | Rating |
|---|---|---|---|---|
| State Farm | $1,800 | Bundling | 835/1000 | |
| USAA | $1,400 | Military | 885/1000 | |
| Allstate | $2,100 | Customization | 810/1000 | |
| Lemonade | $1,200 | Digital-first | N/A | |
| Amica | $1,700 | Customer service | 860/1000 |
BEST OVERALL
State Farm
- Average cost: $1,800/year
- Market share: Largest home insurer in US
- Agents: 19,000+ local agents
- Discounts: Bundling, smart home, claims-free, new home
- Pros: Strong financials, local service, excellent bundling
- Cons: Higher rates in some areas, limited online options
BEST FOR MILITARY
USAA
- Average cost: $1,400/year (lowest rates)
- Eligibility: Military members and families only
- Customer satisfaction: #1 rated consistently
- Discounts: Multi-policy, claim-free, home security
- Pros: Lowest rates, best service, comprehensive coverage
- Cons: Military-only, no local agents
BEST DIGITAL
Lemonade
- Average cost: $1,200/year
- Technology: AI-powered claims in 3 minutes
- Model: B-Corp, donates unclaimed premiums
- App: Fully digital experience
- Pros: Fast claims, affordable, easy sign-up
- Cons: Limited coverage options, newer company
What Home Insurance Covers
| Coverage Type | What's Covered | Typical Limit |
|---|---|---|
| Dwelling (Coverage A) | House structure | Replacement cost |
| Other Structures (B) | Garage, shed, fence | 10% of dwelling |
| Personal Property (C) | Belongings | 50-70% of dwelling |
| Loss of Use (D) | Living expenses | 20% of dwelling |
| Liability (E) | Lawsuits, injuries | $100,000-500,000 |
| Medical Payments (F) | Guest injuries | $1,000-5,000 |
Average Home Insurance by State
| State | Annual Cost | State | Annual Cost |
|---|---|---|---|
| Oklahoma | $4,500 | Vermont | $900 |
| Florida | $4,200 | Oregon | $1,000 |
| Texas | $3,500 | Utah | $1,100 |
| Louisiana | $3,200 | Idaho | $1,050 |
FAQ
What's not covered by home insurance?
Standard policies exclude: floods (need separate policy), earthquakes, maintenance issues, and intentional damage. High-value items may need scheduled coverage.
How much home insurance do I need?
Enough to rebuild your home at today's costs (replacement cost), not the market value. A 2,000 sq ft home might cost $300,000-500,000 to rebuild.