It’s been a year that’s felt like a chaos-ridden manifestation of the adage “when it rains, it pours.” Hopefully, stressing about your home insurance coverage will be the least of your worries. In fact, we could all use a little insurance here and there in our lives. If you’re unsure about your home insurance plan, or just simply want to make sure you’re getting the most out of your monthly payment, keep reading. And then breathe a sigh of relief.
That’s because the short answer is that there’s not one singular home insurance plan that trumps them all. However, there are plenty of plans out there. Most of them are customizable to your situation and available from a wide array of companies. Since you’re probably short on time (isn’t everyone?), we’ve put together a list of the most common plans that homeowners have taken advantage of.
Because let’s face it: you’ve got too much on your plate already. Marking one more thing off your to-do list will help keep your momentum going. And let you rest easier knowing your home is safe.
A Quick Run-Down of the Eight Types of Home Insurance
As you search for a homeowners insurance company, you’ll want to understand thedifferent types of insurance available. It will help you figure out which ones should be covered under your policy. Here’s a short list for your reference:
- HO-1: The most basic type of home insurance. This one covers “the ten perils,” including damage from aircraft, vehicles, explosions, fire/smoke, hail/windstorms, lightning, riot/civil commotion, theft, vandalism, and volcanic eruption. Note: personal belongings within the home are not typically covered.
- HO-2: Adds a few more perils to the list, plus coverage for liability and personal property.
- HO-3: You’ll probably hear this one thrown around a lot, since it’s the most common type. It’s catch-all for most perils, and protects attached structures as well.
- HO-4: This one is renters insurance and doesn’t cover the building itself. However, it will insure your personal belongings inside.
- HO-5: Referred to as an “open-peril policy” or a “comprehensive form,” this type of insurance is a bit broader than the basic HO-3 type.
- HO-6: This type is specifically intended for condo owners. It covers the walls, floors, and ceiling, along with liability and personal property.
- HO-7: Choose this type if you own a mobile and/or manufactured home.
- HO-8: If you’re looking for a basic policy like you’d find in the HO-3 but have an older home, check out this type. Historical homes are often covered under an HO-8 plan.
Are you ready to compare home insurance rates and plans? Before we get to the nitty-gritty, let’s look at a few ways you can dig a little deeper on your own.
How You Can Compare Home Insurance Plans?
We encourage you to do your own research on the companies we list below. But how can you be sure the company you finally choose is one you can trust?
For starters, there are plenty of websites out there that will provide a third-party reviews of popular insurance companies. These websites include J.D. Power, AM Best, and Consumer Affairs, to name a few. You can also check with the National Association of Insurance Commissioners (NAIC), Consumer Reports, or comparison sites like Policygenius.
“Given the cost of homeowners insurance,” suggests ValuePenguin,” you should have confidence that your insurer will answer your questions and offer the support you need if you need to make a claim.” Start by researching companies you’ve heard good things about. Then continue by obtaining personalized quotes for your situation and needs.
Best Home Insurance Plans for 2020
Here they are, in no particular order. These are the best homeowners insurance plans for 2020 as they apply to the general public.
Lemonade Insurance: Best Online Presence
Though relatively new in terms of insurance companies, Lemonade Insurance is positively recognized by many review sites. They are rather “advanced in technology,” says BankRate. “Lemonade provides a unique approach to insurance by leveraging algorithms and artificial intelligence.” It’s worth noting the affordable rates it provides for both homeowners and renters insurance. If you’re looking for a home insurance company that’s exclusively online, Lemonade Insurance fits the bill.
Amica Mutual: Best Total Value
You’d be hard pressed to find a homeowners insurance review article and not find Amica on the list. In fact, it’s been called best for a number of reasons, from overall value to customer service and satisfaction. It’s possible you might pay a higher monthly premium if you choose Amica. However, this is one of those times when you get what you pay for. When you need homeowners insurance the most, it’s often best to have paid for top-notch coverage. Your blood pressure may depend on it.
USAA: Best for the Military
As with many financial institutions, USAA specifically deals with military members and their families only. This makes it a bit of an exclusive insurance company. However, there are plenty of (well-deserved) benefits available for those who do qualify.
Allstate: Best for Discounts
You’ve likely heard of Allstate, since it is one of the bigger companies out there. But did you know there are plenty of discounts you can take advantage of with this company? The Simple Dollar named it best for “claim-free rewards and premium protection.” As long as you don’t live in a disaster-prone area, you should be able to benefit from these generous discounts.
State Farm: Best for New Homeowners
Praise for State Farm includes appreciation of the “great support from local agents,” “most affordable rates,” and even the “best home insurance for in-app service.” Financial stability is what put State Farm on the map for The Spruce. Suffice to say State Farm makes a strong case to be your trusted insurance partner when things at home go south.
Farmers: Best for Basic Coverage
Many review sites list Farmers as a valuable company to choose when it comes to home insurance. The Spruce named it best value. Meanwhile ValuePenguin noted its “high coverage limits.” Finally, The Simple Dollar marked it as the best insurance “for simple policies.” Though it may not be the first insurance company on the tip of your tongue, Farmers does offer great value to their customers.
Find Your Best Home Insurance Plan
The best home insurance plan is the one that fits your budget and lifestyle. Whichever company offers the coverage you’re looking for (at a price your monthly budget can handle), be sure that you’re getting the most bang for your buck. Especially given how expensive home repairs and/or legal fees can be when it comes to making a claim.
We encourage you to speak to any insurance companies in your area for individualized quotes. Research your choice and shop around before you sign any paperwork. This article should be only the first step in an educational process aimed at securing home insurance you can depend on. Protect your investment (and your belongings), so you can focus on making memories in your home, instead of worrying about it.