The Best Homeowners Insurance in 2021
Finding the right homeowners insurance may be a bit tricky as you want to protect your property and belongings with the utmost care. Which perils should be covered by your policy and do you need to consider adding optional coverages? There are plenty of companies offering different coverage limits but how do you choose the right one for you? Let’s have a look at the best homeowners insurance companies in 2021.
Homeowners insurance protects you and your home in case of most natural disasters and perils listed on the policy like burglary, or vandalism. If your property gets damaged, the costs of repair will be covered by your insurer. The same applies to the personal property inside your home – if your personal belongings get stolen or damaged, the insurance company will pay to replace them. Homeowners insurance will also help you with medical costs in case your guest gets injured while staying at your home. As you can see, this type of insurance has your back if unforeseen mishaps or hazards happen so you should give proper consideration to choosing your insurer.
- How to choose the best homeowners insurance
- What should be included in your policy?
- The best homeowners insurance companies in 2021
How to Choose the Best Homeowners Insurance
This decision may seem to be a bit challenging and time-consuming but actually, you just need to consider some features to make up your mind. You will have to assess the value of your property and its contents. The next step is more complex as you need to review the insurance market in search of the best coverage from a reputable company at a fair price. However, we have good news – that’s exactly what we built Gabi for! We’ll research the available options and let you know which one is the best fit for you. All for free! Here’s what you should decide on to help us find the right company:
What should be included in your policy?
First of all, you need to assess what your policy should cover. Do you live in an area of high flooding or earthquake risk? If yes, you’d probably want to buy additional flood/earthquake insurance. If you own valuable items inside your property (like jewelry, artwork, furs), consider purchasing optional coverage. Also, think about liability coverage – it’ll protect you against lawsuits submitted by others. This can extend to covering cases like your dog biting a neighbor or damages done by your children. It will have your back if someone gets injured while staying at your home, too. According to the Insurance Information Institute, you should opt for at least $300,000 worth of Personal Liability Coverage.
Moreover, you should consider additional living expenses coverage which reimburses costs you need to bear while your property is being rebuilt or renovated. This can include paying for a hotel room, eating in a restaurant, and similar types of expenses (limits apply, depending on the insurance company).
Once you decide on coverage, you have to choose the limits. Count the worth of your personal belongings, appliances, furniture, and clothing. How much per square foot would it cost if you had to rebuild or renovate your home? Find out more here.
If you’re not sure what to add and what kind of limits would be suitable for you, one of our licensed Gabi advisors will help you with the decision to make sure you’re well-covered.
The Best Homeowners Insurance Companies in 2021
Everyone has different needs so no one company will suit all. We’ve researched the available options and here are the top homeowners insurance companies:
- Amica Mutual – their offer includes three various coverage types and protects both your property and contents inside. Also, this insurer offers a wide range of discounts and won J.D. Power’s Home Insurance Overall Customer Satisfaction Ranking from 2019 (scored 5 out of 5). However, their homeowners insurance is not available in AK and HI.
- Erie Insurance – in J.D. Power’s ranking mentioned, Erie was ranked second place taking customers’ satisfaction into account. Their home insurance includes Guaranteed Replacement Cost coverage which means you’re covered even in the need of rebuilding your home. Also, their financial strength was rated A+ (superior) by A.M. Best. The biggest con is that their coverage is available in only 12 states and Washington D.C.
- Allstate – their financial strength was rated A+ (Superior) by AM Best and they offer a lot of discounts which can help lower your premium. If you’re a recent homebuyer or purchase a newly constructed property, you can count on a more affordable premium with a home buyer discount. Also, Allstate has better rates for those whose homes have theft or fire protection equipment. One minus is they have customer satisfaction slightly below the average.
- Travelers – offers a wide range of ways to lower your policy rate. You’ll pay less for having certain devices at your home, such as smoke detectors, fire alarms, interior sprinklers, or home security systems. Home Buyer Discount applies to customers whose home was purchased within 12 months before the policy effective date. The company’s Financial Strength Rating is A++, according to AM Best. They provide coverage in all 50 states. Customer satisfaction ratings are below average.
If you don’t know the answer to which insurer to choose, we’re here to help! Our licensed agents will assist you with determining coverage limits and assessing any additional features you may want to purchase. We want you to get the most out of it and be protected against any unexpected events and financial problems. Sign up here to find the best homeowners insurance for you!
Editorial content on Gabi.com is not written by a licensed insurance agent. It is intended for informational purposes only and should not be considered legal or financial advice.