Best homeowners insurance companies of May 2024

If a huge, unexpected disaster were to occur and damage your home and items in it, you likely wouldn't be able to afford to fix and replace everything out-of-pocket. This is where homeowners insurance comes in.

Homeowners insurance is a type of insurance policy that protects your home and associated structures (like your fence or garage) in the event it is damaged due to incidents and disasters that affect your home. It can also protect your personal belongings (like your computer) if it is lost, stolen or damaged due to an incident in your home — such as a fire or sewage backup. You can also get extra protection for certain valuables like professional cameras, jewelry, fine art and more.

Hopefully, you'll never need to file an insurance claim to cover significant damages to or within your home, but if you do, many insurance companies try to make the process as simple as possible so you can get paid with ease.

CNBC Select rounded up the best homeowners insurance companies to help you choose the best for your needs. We evaluated insurance companies based on policy coverage, accessibility and opportunities to save, among others (see our methodology below).

Who's this for? Nationwide is a trusted household name in the insurance industry, which can be appealing to those who want to go with an insurer they're likely already very familiar with. Insurers typically provide discounts for bundling your homeowners insurance with other insurance offerings like auto insurance, but Nationwide takes it even further with a host of other ways to save money.

Policyholders can receive a discount for having protective devices in their home, like a fire alarm or smoke detector. They can also receive a home renovation credit for getting work done on their home plumbing, heating, cooling or electrical systems. Policyholders can even secure savings by having the age and surface type of their home's roof evaluated. See their savings page for more opportunities for discounts.

Who's this for? Chubb's Masterpiece policy is meant for those with significant high-value items to protect such as fine wine, antiques, fine art, jewelry and more, in addition to standard property and personal liability coverage. Typically, homeowners would need to purchase extra coverage to make sure these items are insured. But with Chubb, coverage for these kinds of items is already built into the policy. Just keep in mind that as a result, your monthly costs may be higher.

Policyholders can also add on coverage for some unexpected events like floods, HVAC equipment breakdown or data restoration so you can recover computer data from a virus. Complimentary home inspections may also include HomeScan — which helps you identify any potential fire hazards and moisture problems in your home with the help of a consultant.

Because Chubb places a large emphasis on protecting high-value items, this insurer may not be ideal for those who don't own many high-ticket items like fine art or fine wine. A more cost-effective route may be to consider going with a different insurer and purchasing add-on protection for valuables. If you aren't sure whether or not Chubb is best for your needs, you can request a quote for more personalized pricing.

Who's this for? Lemonade boasts the ability to get customers paid for simple claims almost instantly (make sure you provide all necessary information). Just keep in mind that there may be some circumstances where the claim would need to be more deeply reviewed, or there may be property liability claims that just take longer to settle.

To file a claim, policyholders can open up the Lemonade app and tap the "File a Claim" button; from there, the app will guide you through the rest and once your claim is approved, the funds will be deposited directly into your bank account.

Homeowners can choose to pay for Lemonade's insurance either through an escrow account or through a credit card. You also have the option to incorporate your insurance costs into your closing costs when you buy a home.

Who's this for? USAA typically offers additional benefits to individuals who are Veterans or part of the military. Through homeowners insurance, these individuals can receive coverage for things like the cost of uniforms and equipment, and they'll have their deductible waived if their personal property is lost or damaged due to war.

This insurer also offers policyholders the ability to adjust payment due dates to better suit their needs and file and track claims online. And if policyholders need repairs done on their homes, USAA will connect them with contractors who can get the job done.

In addition to some standard savings discounts (like savings for bundling and claims-free savings), USAA lets policyholders save up to 5% on their premiums when they remain with USAA for three consecutive years.

To sign up for homeowners insurance, choose your desired insurance company and enroll for coverage. You'll need to choose a certain coverage amount, which will depend on what kinds of liabilities and items you're looking to protect. This is the maximum amount you'd be reimbursed in the event of an incident. There are also some add-ons you can opt for, which will increase your monthly premium but will provide you with additional protection.

You'll pay a monthly premium for the policy, which will depend on the company's rates. If you never have to file an insurance claim, your monthly premium will essentially just be another monthly "bill" that you pay.

If you do need to file a claim, though, you'll typically pay an upfront deductible. A deductible is a portion of the cost to replace the items that you must pay before your insurance kicks in and covers the rest. Usually, the larger your monthly premium, the smaller your deductible will be.

So while insurance doesn't necessarily make it totally "free" to replace lost or damaged items or pay for personal liabilities, it can significantly reduce your out-of-pocket cost.

Though it can often feel like another bill that you have to pay, homeowners insurance can come in handy if your home were to be damaged by circumstances beyond your control. Instead of having to foot the entire cost of replacing those items, the insurance company will cover you once you pay your deductible amount. Hopefully, you never need to file a claim but homeowners insurance can always provide that peace of mind of knowing that you're covered if anything were to happen.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every homeowners insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best homeowners insurance.

To determine which homeowners insurance companies are the best, CNBC Select analyzed dozens of U.S. insurance companies that come with policies to suit an array of needs.

When narrowing down and ranking the best homeowners insurance companies, we focused on the following features:

• Cost: While monthly premiums can depend on the amount of coverage an individual needs, location, the value of your possessions and other variables, some insurance options offer policies with lower monthly starting costs.
• Policy coverage: Standard policies tend to include coverage for structural damage, personal property loss or damage, personal liability and medical payments to others. Some companies may also include water damage, water backup and high-value items as add-ons for extra coverage.
• Coverage amount: It is common for insurance companies to provide different coverage amounts for different concerns. The maximum amounts vary from company to company. We have noted maximum coverage wherever possible.
• Policy discounts: Insurance companies typically allow policyholders to earn a small discount for signing on to bundle homeowners insurance with other policies such as auto insurance, RV insurance, boat insurance and more. Some companies may also offer an additional discount for having certain safety features in one's home, including smoke detectors and burglar alarms. A rate reduction may be applied for those whose policy remains claim-free for a certain amount of time.
• Availability: For some insurance companies, policy availability will depend on the city or state, as not all companies offer nationwide policies and discounts for policies.
• Claim filing: Many insurance companies allow policyholders to file a claim via their app or through their online accounts. In loss of use cases, policyholders may be required to retain receipts to submit alongside their claim.
• Streamlined signup process: We considered whether insurance companies offered a convenient, fast online signup process.
• Customer support: Every insurance company on our list provides customer service available via telephone, email, secure online messaging and/or through an app. We also opted for lenders with an online resource hub or advice center to help you educate yourself about homeowners insurance policies and claims.

After reviewing the above features, we sorted our recommendations by best for covering high-value items, best for quick claim approval, best for discounts and best for military members and Veterans.

Note that the premiums and policy structures advertised for homeowners insurance are subject to fluctuate in accordance with the company's policies.

Catch up on CNBC Select's in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date