What does homeowners insurance cover?

Standard homeowners insurance covers dwelling, personal property, liability, and additional living expenses. It does NOT cover floods, earthquakes, or maintenance issues.

What's the difference between HO-3, HO-4, and HO-6 policies?

HO-3 is standard homeowners insurance for single-family homes. HO-4 is renters insurance. HO-6 is condo insurance.

How do I choose the right deductible?

Higher deductibles lower your premium by 15-30%. Choose $1,000-$2,500 if you can afford that out-of-pocket.

What discounts should I ask about?

Common discounts include bundling auto+home (10-25%), new home (10-15%), smart home devices (5-15%), security systems (5-10%), and claim-free history (5-10%).

Do I need flood insurance?

Standard homeowners insurance does NOT cover floods. Flood insurance is cheap ($400-1,000/year) and highly recommended if you're near water.

How much coverage do I need?

Your dwelling coverage should equal the replacement cost of your home. For personal property, insure 50-75% of dwelling coverage. For liability, $300,000-$500,000 is standard.

Best Homeowners Insurance in 2026

Protect your home and belongings with affordable coverage. Compare rates from top providers.

Quick Answer

Best for military & family: USAA — $1,100–$1,600/yr, cheapest in our table.
Best for fast digital claims: Lemonade — $1,200–$1,800/yr, AI-driven claims paid in minutes.
Best for local-agent service: State Farm — $1,400–$2,000/yr, largest US agent network + bundle discounts.
Best for high-value items / customization: Liberty Mutual — strongest add-on/endorsement library.
Best balance of digital + brand: Allstate — $1,300–$1,900/yr, broad agent + app coverage.

Why Homeowners Insurance Matters

Homeowners insurance protects your most valuable asset. A house fire, theft, natural disaster, or liability claim can cost hundreds of thousands of dollars.

Dwelling Coverage

Covers the cost to rebuild your home structure.

Liability Protection

Protects you from lawsuits if someone is injured on your property.

Personal Property

Covers furniture, electronics, and belongings.

Compare Homeowners Insurance Providers

Feature	Lemonade	State Farm	Allstate	USAA	Liberty Mutual
Best For	Tech-savvy homeowners who want quick claims	Bundling with auto, best for stability	Flexible coverage and claim support	Military members and their families	Customizable coverage and discounts
Avg Annual Premium	$1,200-1,800/yr	$1,400-2,000/yr	$1,350-1,950/yr	$1,100-1,600/yr	$1,300-1,900/yr
Discount Options	Roommate, first-time buyer, eco discounts	Bundle, loyalty, smart home, accident forgiveness	Safe driving, new home, protective devices	Military affiliation, bundling, safe home	SmartHome, claim forgiveness, new purchase
Rating	4.7/5	4.6/5	4.5/5	4.8/5	4.4/5

How to Save on Homeowners Insurance

Bundle with auto insurance: Save 10-25% by combining policies.
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Visit Lemonade Visit State Farm Visit Allstate Visit USAA Visit Liberty Mutual
Increase your deductible: Raising from $500 to $2,500 can save 15-30%.
Install security systems: Alarms and smart locks reduce premiums 5-10%.
Stay claim-free: No claims for 3-5 years earns loyalty discounts.

Which homeowners insurer should you pick?

The right answer depends less on price and more on how you'll file claims. Pick by the experience you want when something goes wrong.

You're a military member, veteran, or familyUSAACheapest in our table at $1,100–$1,600/yr with member-only pricing.
You want fully-digital claims and fast payoutsLemonadeAI-driven claims with payouts in minutes for routine cases.
You want a local agent who knows your areaState FarmLargest agent network in the US and stackable auto-bundle discounts.
You want maximum customization for high-value itemsLiberty MutualStrongest add-on/endorsement library among the five.
You want a balance of digital tools and big-brand stabilityAllstateMid-range pricing ($1,300–$1,900/yr) with broad agent + app coverage.