The perfect home insurance in July 2021 – NextAdvisor

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A home is one of the most important investments you are likely to make in your life, and of course you want to protect it. This is where home insurance comes into play. Most home insurance policies offer the same basic protection. Still, some companies are one step ahead in customer service and offer more extensive coverage at a better price than others.

When you buy homeowners insurance, you want an insurer with affordable rates, good customer service, and quality coverage. If you don't know what to look for in home insurance, you may be paying more for insufficient coverage.

To help you find the home insurance that's right for you, NextAdvisor researched more than a dozen insurance companies and considered their financial ratings, customer service and claims satisfaction ratings, discounts, and additional insurance options.

Based on our research, here are the homeowner insurance policies that we think will stand out in 2021.

Our tips for the best home insurance

Company overview

Nationwide

Nationwide was founded nearly 100 years ago and has grown to become one of the largest insurance companies in the market, offering coverage in all 50 states. The company is known for its auto insurance, but it also offers a wide variety of home and life insurance. Nationwide's wide range of personal, auto and life insurance allows you to consolidate your coverage with the same brand while getting discounts – and when it comes to discounts, Nationwide is your best bet. It offers eight different home insurance perks, making it relatively easy for you to reduce your insurance premiums.

Average annual premium for a $ 250,000 home: $ 1,042

Nationwide coverage types

  • Personal liability insurance
  • Sickness insurance
  • Home insurance
  • Personal property insurance
  • Other construction insurance
  • Loss of use insurance
  • Prescription Insurance
  • Credit card coverage
  • Identity Theft Insurance
  • Replacement costs plus insurance
  • Valuables plus cover
  • Water backup cover
  • Earthquake insurance
  • Flood insurance
  • Brand new items cover
  • Better roof replacement coverage

Nationwide discounts on home insurance

  • Discount for multiple policies: You can get a lower tariff when you bundle your home, auto and life insurance.
  • Protective device discount: If your home is equipped with smoke alarms, fire alarms or a security system, you can qualify for a discount.
  • No-claims discount: If you have not had any insurance claims in recent years, you may be able to get a discount on your premium.
  • Home Renovation Discount: If you've recently renovated your home's plumbing, heating, cooling, or electrical systems, you can get a lower price.
  • Roof service discount: nationwide, policyholders can save money depending on the age of the roof and the surface finish of their house.
  • New Home Discount: If you insure a home you bought last year, you may be able to qualify for a discount.
  • Previous Insurance Discount: If you switch to Nationwide from another insurance provider, you can receive a discount based on how long you have been insured with the other carrier.
  • Gated Community Discount: Homeowners who live in a gated community that is protected by security guards, residence cards or key-lock devices can get a lower rate for their home insurance.

traveler

Travelers is not the biggest player in auto insurance, but it is powerful when it comes to home insurance.

The company not only offers basic protection for a home, but also household contents insurance for environmentally conscious homeowners and many optional additional services. It offers a 5% green home discount and a green home cover that provides additional protection for the use of green materials when rebuilding after a covered incident. In addition to the Green Home discount, it also offers several other policy discounts. For example, you can save up to 12% on average on home insurance if you have car insurance and three other policies with Travelers, according to the website.

Household contents insurance for travelers is usually competitive. The average annual traveler's premium is $ 1,269, according to Bankrate data, slightly below the national average of $ 1,312.

Average annual premium for a $ 250,000 home: $ 1,269

Types of insurance for travelers

  • Home insurance
  • Personal property
  • Personal liability
  • Loss of benefit
  • Covering other structures
  • Green house reporting
  • Special protection for personal property
  • Jewelry and valuables
  • Identity Fraud Protection

Discounts on home insurance for travelers

  • Multi-Policy: Just like with cars, bundling policies saves money.
  • New Homeowner: New homebuyers get a special discount.
  • Loss-free: Expect a better tariff if you have not made any claims against your home insurance.
  • Green Home Discount: If your home is a certified Green Home from LEED, the Leadership Energy and Environmental Design Organization, save 5%.
  • Protective equipment: Install protective equipment such as smoke detectors, smart home technology or indoor sprinkler systems to reduce premiums.

Progressive

Founded in 1937, Progressive is the third largest insurance provider after Geico and State Farm and holds 12.2% of the total US insurance market. The Ohio-based company offers 34 insurance products as well as a personal loan program.

Progressive gets high marks for some of the most innovative insurance technologies and online resources of any provider. It is one of the few companies that mainly uses online tools to offer its pool of services.

Progressive home insurance is pretty straightforward in terms of coverage, but the company offers more than five home insurance discounts and additional ways to save the cost of your policy. For example, you can save an average of 5% if you bundle residential buildings and auto insurance with Progressive. Progressive also has a HomeQuote Explorer tool that allows you to compare Progressive's prices with some of its biggest competitors. The average cost of home insurance with Progressive is the lowest of our top picks at $ 1,026.

Average annual premium for a $ 250,000 home: $ 1,026

Progressive types of coverage

  • Home insurance
  • Covering other structures
  • Personal liability
  • Personal property
  • Loss of use coverage
  • Health insurance coverage
  • Water backup cover
  • Personal injury insurance

Progressive home insurance discounts

  • Multi-policy discount: You can save an average of 5% when you bundle home and car insurance with Progressive.
  • Security and Alarms Discount: If your home is equipped with a security system, fire alarms or automatic sprinklers, you are eligible for a discount.
  • Price reduction in advance: You can lower your tariff if you obtain an offer for home contents insurance from Progressive at least 10 days before the start of the insurance.
  • Full discount: Policyholders who pay their annual premium upfront and in full can save some money on their insurance.
  • New home discount: If you recently bought a new home or switched from progressive tenant insurance, you will receive a lower tariff.
  • New building discount: A reduced insurance tariff applies to newly built houses.
  • Digital Document Discount: Policyholders who sign up for bank statements sent by email can receive a discount.

Honorable mentions for the best home insurance

USAA

USAA has offered auto, life, homeowner, health, and property insurance exclusively to active military personnel, veterans, and their families since 1922. While unavailable to civilians who have never served, the USAA still serves more than 13 million members nationwide and has a solid reputation for financial stability, customer service, and claims satisfaction.

USAA homeowner insurance provides all of the usual safeguards, including coverage for fire, theft, vandalism, or weather-related events, and even helps cover liability costs and identity theft. According to the latest Bankrate data, the USAA's average annual premium for a $ 250,000 apartment is $ 992, which compares to the national average of $ 1,312.

Average Annual Premium for a $ 250,000 Apartment: $ 992

USAA coverage types

  • Housing coverage
  • Personal possessions
  • Loss of benefit
  • Personal liability
  • Other structures
  • Home sharing coverage
  • Earthquake coverage

USAA home insurance discounts

  • Multi-Policy Discounts: Bundling your home insurance with USAA Auto Insurance can save you 10% on your premiums
  • No claims discount: Insured persons who have not reported any damage for five years receive a 10% discount
  • Protection Equipment Discount: USAA partners with ADT to offer discounts to homeowners who install their home security systems

Summary of the best home insurance policies for July 2021

insurance company Average annual premium for $ 250,000 home J.D. Power Customer Satisfaction Index, 2020 Best rating in the morning, 2020 Available states
Nationwide $ 1,042 808 A + 43
traveler $ 1,269 803 A ++ 50
Progressive $ 1,026 867 A + 50
USAA (Honorable Mention) $ 992 889 A ++ 50

Bundling options

Bundling your home insurance with other insurance policies from the same company is an easy way to save money, with the convenience of a single bill and minimal paperwork. This can translate into a sizeable discount on the policy, up to a 25% discount with certain insurers such as Allstate and GEICO, as well as other perks like a one-time deductible if your home and car suffer an insured loss.

However, there are cases when using two separate providers could still be cheaper. Hence, it is always a good idea to search for unbundled offers and bundled offers to compare. For example, customers only save an average of 4% when they bundle home and car insurance with Progressive.

According to J.D. Power, homeowner customers have a significantly higher bundling rate and are likely to stay with the same company for twice as long as customers who only have auto insurance.

If you go for the bundling idea, look for companies that write multiple policies of their own. Most major insurance companies offer the bundle option, but some insurers offer policies from several different companies as "bundles" at discounted rates. While the savings can be worth it, when the time comes to update your policy or make a claim, it can prove to be a headache since you have to speak to two different insurers.

"It's important to be careful because you may have two claims at two different companies and they won't talk to each other," said Ken Gregg, CEO and president of Orion180, a Florida-based home insurance company.

How to choose the best home insurance provider

Choosing an insurer can be tricky if you don't know what to look for or where to start. When purchasing home insurance, here is a checklist of the things you should do.

  1. Get multiple offers: Getting multiple quotes is important when purchasing insurance, but it is especially important for home insurance as coverage needs can vary widely. Getting three to five quotes will give you a good sense of what people are offering and will give you leverage in negotiating.
  2. Do company health checks: Do a little bit of research on the home insurance companies you are considering by checking out the National Association of Insurance Commissioners website and the websites of the best credit reporting agencies, including A.M. Best, Moody's, J.D. Power and Standard & Poor’s. These websites track data related to consumer complaints, claims processing, and corporate financial health. "Does she have the financial resources to secure the market over the long term and the resources to meet debts?" Says Gregg. You also want to find an insurer with a track record of providing fair and timely billing.
  3. Identify the company's claims process: Before buying a policy, find out how each company deals with claims. Can you make claims online, over the phone, or through an agent? Do you need to speak to a third party company or partner to process the claim? The answers to these questions can influence your decision.
  4. Research customer satisfaction: Ask your agent or a company representative about the insurer's retention rate – d. H. what percentage of policyholders renew each year. You can also find customer satisfaction data and ratings in annual reports, online reviews, and firsthand experiences from people you know. "Check out the Google reviews to see what others are saying about the company they're dealing with," says Gregg.
  5. Look beyond the price: The price you pay for home insurance is important, but it shouldn't be the only deciding factor. You also need to compare covers and boundaries. "Make sure they have adequate coverage and boundaries to suit your needs," says Gregg.

methodology

To help make our pick of the best home insurance companies, we started with a list of the top 25 home insurance companies by premiums accumulated based on data from the National Association of Insurance Commissioners. From there, we applied a number of filters to narrow the field down to key categories like cost, availability, and customer satisfaction.

First of all, all of our top picks must be universally available to all consumers in at least 40 states. Our top tips all offer at least three discount programs that are critical to lowering premiums. To gauge affordability, we looked at Bankrate's average annual premium on these airlines and eliminated any with an average annual cost of more than $ 1,300 for a home with a home coverage of $ 250,000, which is a mid-range home. (Bankrate, like NextAdvisor, is owned by Red Ventures.) Next, we looked at JD Power's 2020 US Home Insurance Customer Satisfaction Study and excluded all companies that were below 800 on a 1,000-point scale (the industry average was 823). .

Finally, we looked at the morning hours of each insurance company. Best rating that evaluates a company's financial performance. Financial soundness is important for insurance companies as their customers rely on them to settle their claims if they have an accident or suffer an insured loss. In other words, an insurance company with the wherewithal to stay in business is more reliable in the long run. We've ruled out any company that A.M. Top grade of A + or higher. We have also eliminated all companies involved in active fraud investigations.

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