Best Home Insurance for 2014 - The Simple Dollar

If you’re looking for the best home insurance, there are several national and local insurance companies that will want your business. However, it’s hard to decide which company to pick with so many choices.

Companies like Amica Mutual stand out in customer surveys, but they aren’t available everywhere. The best way to find fair rates on homeowners insurance is to get free online quotes from a variety of companies.

There’s more to take into account than just price, but it’s a good starting point. I’ve included a quote tool below so you can shop around right away. Enter your zip code in the box and click “Get Quotes” and you’ll be presented with a list of 3-5 of the best homeowners insurance companies in your area. You can research policies from each provider and determine which is the best fit for your home and your budget.

Enter Your Zip Code: 

The best home insurance companies will perform exceptionally well in three critical categories:

• Price
• Claims
• Coverage

Although Amica ranks highest in customer satisfaction by J.D. Power, companies like State Farm, Liberty Mutual, and Allstate also rank well in these areas and are worth considering.

There are many reputable national carriers offering similar types of coverage. To find the ideal option for you, the best way to start is by getting an online quote to get an idea of the average rates and companies offering insurance in your location.

Choosing the Best Homeowners Insurance Company

Price

In order to get the most accurate estimate of what your homeowners insurance will cost, I recommend utilizing the online quote tools found on the insurer’s website or the comparison tool I included at the top.

To give you an idea of what insurance prices look like from some of the best insurance providers, I got a quote for a home in a Chicago suburb.

These are the monthly quotes I received:

Amica: $75.33
State Farm: $117.75
Liberty Mutual: $129
Farmers: $150

Amica came out to be considerably cheaper than the next provider in this scenario.

Each homeowners insurance company asks for slightly different information, but as I went through each online tool I used the same profile with the following characteristics:

Location: Address located in a Chicago suburb
Home Value: $315,000
Deductible: $1,000
Size: 1,900 square feet
Applicant Age: 40
Home Type: 1 story
Roof Type: Asphalt shingle
Payment Terms: Monthly

The great thing about online tools is that you determine the exact type of coverage you want, select the level of your deductible, and choose the payment terms. It might take a little extra legwork, but online quote tools really do put the power in your hands to find the cheapest policy.

Many online tools, like the one provided by Liberty Mutual, enable you to modify the coverage levels you select, so you can clearly see how changing one component directly impacts the price of your policy. (For example, you could enter a low value for your deductible, see what your rates look like, then enter a high value and see how your rates changed.)

Homeowners Insurance Discounts

All of the best homeowners insurance companies offer a variety of discounts. If you fail to take advantage of these discounts, you’re just leaving money on the table.To give you one example, if you took advantage of a multi-policy discount and bundled the same State Farm home insurance policy quoted above with an auto insurance policy, your monthly rate would drop from $117.75 to $76.50. That’s almost $500 in savings per year!

When it comes to discounts, Liberty Mutual is one of the most competitive providers.

Some of their discounts include:

• Multiple-policy Discount: Available if you have an auto, life, or other type of insurance policy with the same provider.
• Protective Device Discount Available if you have a home security system, sprinkler systems, fire alarms, or other security devices in your home.
• Claim-Free Discount: Available if you haven’t filed a claim over a certain period of time.
• Exclusive Group Savings Available if you have membership or affiliation with certain businesses or organizations. Liberty Mutual’s group savings networkincludes more than 14,000 employers, alumni associations, and professional associations.
• Newly Purchased Home: Available if you recently purchased your home.
• New/Renovated Home Available if you recently renovated your home.
• Early Shopper Discount: Available if you request a quote before your current policy expires.
• Insured to Value Discount: Available when you insure up to 100% of the cost to replace your home.

Take advantage of Liberty Mutual’s discounts by completing an online quote on their website.