5 Best Home Insurance Companies
Now More Than Ever, You Need to Select Carriers Based on Value:
Claims Handling, Service and Price
"Who are the best home insurance companies?" At ValChoice, we get this question all the time. The answer shocks people. The answer is "if your insurance company advertises on TV, they're probably not great about paying claims." When our CEO was asked this question in a TV interview, he said exactly that. It was fun to watch. The TV anchor nearly fell out of his chair.
A State by State List of the Best Home Insurance Companies
Click on a state to see the top 5
Who are the 5 best homeowners insurance companies?
There are a couple of surprising points about the five best home insurance company lists, including:
- There's a good chance that homeowners have never heard of any of these companies
- The five best home insurance companies differ, a lot, from state to state
The reason these homeowners insurance companies are not household names is they don't advertise. Effective advertising is expensive. Effective advertising is also a specialized discipline within marketing. However, the best insurance companies aren't marketing companies. No, they're insurance companies. First and foremost, these companies excel at helping customers recover when terrible things happen.
Identifying the Best Home Insurance Companies
There are only a few ways to identify the best insurance companies. The three most common methods for identifying the best car insurance companies are listed below. Of the three, only one method works.
Two Approaches That Don't Work
- Online reviews - Consumers rarely respond to requests to review insurance companies, unless a) they're paid, b) they're very angry. Paid for reviews are meaningless. Hence, online reviews of insurance companies are meaningless. Consumers should ignore online reviews of insurance companies.
- User-surveys - These can work, but have two significant limitations. 1) The questions asked and to whom the questions are asked are both common methods for manipulating the results of user-surveys. 2) Collecting enough data to analyze small companies is difficult. Therefore, only companies with the largest advertising budgets are rated with user surveys.
The Approach That Does Work
Data analytics - Use high-quality data. Data collected by state departments of insurance.
Enabling Consumers to Compare Homeowners Insurance Companies
Properly comparing homeowners insurance companies requires analyzing every company in the industry. Otherwise, the comparisons are not accurate. Not including all companies skews the data.
Here's an analogy. Not analyzing all companies is like not including the best teams in a playoff. All the teams that compete for the championship finish closer to the top than they would have. Does that mean these teams have improved?
In the insurance company ratings business, most of those doing ratings only rate the homeowners insurance companies with the biggest advertising budgets. This is good for revenue, but is it good for consumers? To rate all companies, technology and a data-driven approach is required. Hence, ValChoice is the first company to enable consumers to truly compare home insurance. Finally, consumers have access to accurate, easy-to-understand comparisons.
Along with the 5 best home insurance companies lists, we offer side-by-side comparisons. Previously, the side-by-side comparisons were only available to insurance agents. This service is slowly rolling out because we are asking insurance companies to opt-in. However, it shouldn't be hard to get the buy-in. For companies that don't advertise, letting us brag for them about how great they are should be an easy decision.
ValChoice is an independent insurance company rating and analytics company. Every year, we evaluate more than 25,000 companies across the United States. We use a combination of data — including information collected from SERFF, state insurance commissioners, the National Association of Insurance Commissioners, AM Best Company, and S & P Market Intelligence — to determine the top-rated insurance companies in each state. No other organization does what we do. We're independent, unbiased, and trusted.
Check back regularly. We will keep updating this page.