Consumer Reports Says These Are The 3 Best Home Insurance Companies

According to the Consumer Federation of America, home insurance rates went up an average of 24% between 2021 and 2024. In 2025 the average insurance premium went up 8.5% from the year before, Insurance Business magazine reported, while deductibles climbed 22%. And insurance rates are projected to go up another 8% in 2026, a December 2025 report from Cotality added.

Homeowners insurance affected the housing market by keeping housing costs high. Home insurance rates and policies have also made home buying for those who need a mortgage more complicated, Bankrate reported. And not making things any cheaper or easier are insurance companies pulling out of states considered risky, creating what NPR called insurance deserts. Among the states that insurance companies are pulling out of is Florida where many homeowners are stuck with Citizens Property Insurance Company, which Consumer Reports says is the worst home insurance company in the country.

But the good news is that if you live in a more stable state or if you have served in the military, you have the option of getting a plan from a company that Consumer Reports deemed as being among the three best home insurance companies in the nation. CR's September 2025 report is based on responses from nearly 24,000 policy holders using criteria that included premium costs, policy clarity, coverage quality, advice, and service on non-claim related matters. Learn more about these three companies recommended by Consumer Reports.

The company based in West Trenton, New Jersey, received the highest total score out of 28 companies surveyed by Consumer Reports. NJM Insurance Group earned high marks for service as well as help and advice, policy clarity, coverage policy review, website, and mobile app. (CR did not receive enough information about how NJM processed claims to assign a score.) Incidentally, NJM was named by Consumer Reports as the second best car insurance company, and bundling NJM auto insurance with NJM homeowners' insurance can provide extra discounts, CR reported.

The lowest score NJM received from CR was for its premium prices, although, per Bankrate, its average rate as of November 2025 was just $806 a year for $300,000 worth of dwelling coverage as opposed to average annual charge across the country of $2,424 for same coverage. And while coverage is available for jewelry, the same can't be said for pricey artwork or rare collectibles, per CR. And NJM won't cover damages for things like flood, earthquakes, vermin, sinkholes, nuclear disasters or war, per U.S. News & World Report. So NJM coverage isn't ideal for those living in a flood zone, by a fault line, or near a nuclear-powered facility. Also key is that coverage is available only in five states: Connecticut, Maryland, New Jersey, Ohio and Pennsylvania.

Founded in 1925 and based in Erie, Pennsylvania, Erie Insurance received CR's second highest score after its reviewers gave the company top ratings for service and high marks for nearly all other categories, including customer satisfaction on how it processes claims.

Erie's lowest score from CR was for its premium rate, which was $2,985 a year for $300,000 worth of dwelling coverage as of November 2025, per Bankrate. That figure was $561 higher than the national average. However, customers can get discounts if they bundle other Erie insurance plans, and for whatever it's worth, Erie Insurance was named by Consumer Reports as being among the six most trustworthy car insurance companies.

Erie provides home insurance in Washington, D.C., as well as the states of Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and Wisconsin, per Erie Insurance. Among the states not covered by Erie are Florida, California, and Oklahoma, where high home insurance rates helped rank the Sooner State as one of the worst for retirement.

Listed by Consumer Reports as one of the best car insurance companies for people making less than $50,000 a year, San Antonio-based USAA Group earned the third highest score from CR for its home insurance plans as well. It received its highest ratings for service and top marks for nearly every other CR category. The two exceptions were claims satisfaction and premium rates, for which USAA Group received an average score.

Regarding premiums, USAA's average annual premium as of November 2025 was $1,243, which was $1,181 less than the national average, per Bankrate. And its home coverage is available in all 50 states plus the District of Columbia. The catch? To qualify for USAA home insurance, you'll have to be a current or former member of the U.S. military or presently or previously have been an employee for specific federal agencies such as the Drug Enforcement Administration, the Federal Bureau of Investigation, or the Secret Service, per CR.

Other USAA drawbacks are the company's limited customer service hours and that it doesn't offer as many discounts as other carriers, per Bankrate. But if you are in the military or a veteran and own a home in a costly Florida city, you might consider USAA, which scored better than Citizens Property Insurance Company.