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Insurance companies come in all sizes, from the small, local companies offering coverage in just one or two states, to the largest property and casualty insurers offering coverage across the U.S. Large insurance companies tend to have 24/7 claims and customer service available, a vast network of insurance agents and the ability to provide lower rates as risk can be distributed across multiple states.
However, small home insurance companies may offer specialized and local coverage options, personalized service and could offer better rates for your situation, with less rate increases than their larger competitors. While your circumstances ultimately dictate what your rates will be, these are a few considerations to keep in mind when looking at your options.
Largest home insurance companies
Some of the largest home insurance companies are often considered the best and most trusted in the industry. Each company has superior financial strength to pay claims and offers standard coverage options plus additional add-ons so you can tailor your home insurance to your needs.
Based on North American market share, the top 25 homeowners insurance companies are:
Top 5 largest home insurance companies
The following table shows the top five largest home insurance companies in North America, ranked by direct written premiums, or the total amount policyholders paid for insurance coverage, and their market share in 2020.
|Home insurance company||2020 percentage of market share||Direct premiums written||Average cost of insurance for a $250K dwelling||J.D. Power customer satisfaction rating|
State Farm is the #1 largest home and auto insurer in North American, holding 17.87% of the home market share in 2020. State Farm has been a “good neighbor” since 1922, offering a wide range of insurance and investment products nationwide for almost 100 years with 19,000 agents across the country. Many customer needs can be met online, including paying bills, finding a repair facility and managing your accounts. State Farm also has a free mobile app, allowing you to bank, file a claim and check your account on the go.
Allstate has an entire suite of insurance products, including event, phone protection, voluntary employee benefits and off-road insurance. With a recent acquisition of National General and selling off its annuity and life insurance business, the company saw an 11.4% personal property-liability growth in the first quarter of 2021. Claims can be filed and tracked online, even if you are not an Allstate policyholder. Like State Farm, Allstate uses local agents to provide a personalized experience for each customer. Allstate is above average in the Home Insurance and Property Claims Satisfaction Studies by J.D. Power, surpassing State Farm in both.
Though USAA only offers coverage to past and present military and their immediate families, it still holds the third spot for largest home insurer in the nation. USAA rewards loyalty with discounts on its insurance products and also offers members special rates on vacations, rental cars and travel. The home and auto insurer is also partnered with ADT to offer discounted home security systems, which can reduce the price you pay for home insurance. Military members and their families can grow and move through each life stage with USAA, thanks to its wide range of insurance products and banking and financial services, plus the insurance companies’ commitment and knowledge of military life.
Liberty Mutual is the fourth largest home insurance company with 6.34% of the market share. The company offers homeowners a long list of discounts to provide cheap insurance rates, including home renovations and an insured to value discount, which rewards homeowners who insure 100% of the replacement cost of their home. Shopping for a quote before your current policy renews and going five or more years without a claim can also reduce your homeowners rates with Liberty Mutual. With an easy-to-navigate website and claims filing process, Liberty Mutual makes managing your insurance needs simple.
Farmers may not have as many insurance products as the other large companies, but it makes up for its unique features on their auto and home policies. Homeowners can choose a Smart Plan Home policy with customizable features and a $40 declining deductible reward for each year you keep your policy with Farmers. Being claims-free for five straight years also provides a claim forgiveness reward, which is rare on homeowners policies. Though Farmers is a large home insurer, it offers the small company feel with dedicated agents offering personalized service for over 90 years.
Advantages and disadvantages of large insurance companies
Large insurance companies typically have more insurance products, competitive pricing, and longer hours for customer service and claims. However, smaller insurance companies can offer personalized service, may have cheaper rates for some coverages and can offer more flexibility for policyholders. Depending on your circumstances and insurance needs, as well as your preference for customer interactions, a large insurance company may or may not be the best fit.
Advantages of a large insurance company
Large insurance companies have some advantages over smaller companies, which can include:
- Multiple insurance products: If you are looking to insure everything with one company, you will likely find a wider range of insurance products with a large company versus a small company.
- Customer service hours: Larger insurance companies usually have more capability to hire customer service representatives, so can stay open longer and handle a higher volume of calls.
- Competitive pricing: Each large insurance company uses its own rate structure, which means you can shop and get different rates from each company. It also means the company will price their insurance products competitively to win your business from competitors, even compared to local insurers.
- Multiple access points: Whether you prefer to handle your insurance business over the phone, online or through the app, large insurance companies offer multiple ways to access your policy and claims day or night.
Disadvantage of a large insurance company
Although there are advantages of using a large insurance company, there are some disadvantages to consider:
- Lack of personal service: Depending on the insurance company, you may have to call an 800 number to speak to a representative. It is unlikely your agent will have a longstanding history with you and your family, and you will not always be able to speak to the same person twice, except in some cases with an assigned claims adjustor.
- Potential for long claims process: In the event of a natural disaster or large number of claims in an area or across multiple states, large insurance companies may take some time to process your claim.
- Pricing: Though large insurance companies can offer competitive pricing, they may not be able to provide the cheapest rates for some coverages like small, local insurance companies may be able to offer.
- Specialized coverages: Small insurance companies typically work closely with a local customer base and can provide specialized coverages to meet their needs better than larger insurers providing coverage to the entire country.
What makes a home insurance company the “largest”?
The largest homeowners insurance companies are determined by the amount of market share a company handles in a given area.
What’s the best homeowners insurance company?
The best home insurance company offers features that are important to you. Whether it’s price, coverage, discounts, financial strength, agent availability or a combination, finding the right insurance company will often be the best when it meets your personal requirements.
Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:
- Coverage A, Dwelling: $250,000
- Coverage B, Other Structures: $25,000
- Coverage C, Personal Property: $125,000
- Coverage D, Loss of Use: $50,000
- Coverage E, Liability: $300,000
- Coverage F, Medical Payments: $1,000
The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).
These are sample rates and should be used for comparative purposes only. Your quotes will differ.