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From choosing a mortgage lender to picking a real estate agent, there’s a lot to consider when purchasing your first home. One of the final steps in the home-buying process is purchasing an insurance policy, and your mortgage lender usually requires it. 

But finding the right policy and provider can do more than check a box: It can provide valuable peace of mind that your property will be repaired, rebuilt or replaced after a destructive event, such as a fire or storm. We at the Home Media reviews team have analyzed the best homeowners insurance companies on factors important to homeowners looking to purchase a policy, such as overall coverage, brand reputation and customer service. 

Keep reading to learn more about our top picks for the best home insurance for first-time home buyers.

After in-depth research, we found the following to be the best homeowners insurance providers for first-time buyers:

According to the Insurance Information Institute (III), the average cost of homeowners insurance premiums in the United States was $1,272 per year in 2019. However, homeowners insurance rates vary based on your location, square footage and other factors. To get your personalized quote, use our free tool below.

Lemonade opened its doors in 2015 to deliver a hassle-free, technology-driven insurance experience. The company offers pet insurance , home and renters insurance, term life insurance and even car insurance in select areas.

We found that Lemonade stands out for its fast claims process. Based on more than 100 customer reviews we read during our research, many customers rave about the hassle-free and quick claims process through the company’s artificial intelligence (AI) technology on its mobile app. It even asserts that it has earned the world record for the fastest filed claim of three seconds.

Although Lemonade is one of our top picks for first-time home buyers looking for a hassle-free claims-filing experience, it may not be best for those who want a more experienced provider since it is newer to the industry. 

​​+ Donates up to 40% of your unclaimed premiums to a charity of your choice + Has an easy online quote tool with a live chat if you have any questions about your coverage ​​+ Provides a unique swimming pool liability endorsement for coverage if someone gets hurt in your pool

– Isn’t available in 27 states – Requires users to submit a video during each claim for its AI to analyze biometric data

Lemonade provides a handful of discount opportunities for homes with safety devices, such as fire alarms, fire extinguishers, deadbolts, sprinkler systems, water-leak detectors and burglar alarms. First-time buyers can also get a discount if they have a claims-free history or if their home is in a gated community.

When we secret-shopped for a Lemonade policy, we were offered additional options for water backup coverage, swimming pool liability coverage, extended reconstruction cost coverage and appliance breakdown coverage to help pay for replacing or repairing your appliances and electronics if they have mechanical failures or breakdowns.

However, the company is facing a class-action lawsuit regarding its alleged collection of biometric data during the claims process, which requires a video submission. Regardless, we consider Lemonade to be a reputable provider with affordable coverage, useful online tools and a commitment to philanthropy.

Get your personalized home insurance quote from Lemonade . 

To Learn More: Lemonade Home Insurance Review

State Farm has nearly 100 years of experience in the insurance industry, an impressive A++ (Superior) financial strength rating from AM Best and a higher-than-average customer satisfaction rating from J.D. Power. As a result, it scored exceptionally well in our review as a reputable pick for new homeowners. 

State Farm’s website features videos and how-to guides with valuable information about the home-buying process — from shopping for a home to securing a mortgage. The site also has a comprehensive online quote tool that estimates your new home’s value and walks you through the coverage you may need. If you have any questions, State Farm connects you directly to a local agent near you who can work with you from the start of your policy through filing your first claim.

Although State Farm is our top pick for first-time home buyers, it may not be best for those looking to maximize their budget with discount opportunities since it offers fewer savings opportunities than many competitors.

​​+ Has the highest J.D. Power rating of the providers in this review, indicating high customer satisfaction ​​+ Provides a personal liability coverage limit option of $1,000,000, which is higher than many competitors + Offers additional protection, such as off-premises structures coverage and incidental business coverage, which can be purchased with your policy through a local agent

– Customer service availability can vary depending on your local agent’s hours of operation – Provides fewer discounts than most competitors in this review

State Farm commonly offers discounts to homeowners who have a home security system installed on the property, have a recently replaced roof or purchase multiple lines with the company, including car insurance .

When getting your quote with State Farm, you can add coverage endorsements for water backup or sewer coverage, earthquake protection, identity theft coverage, loss assessment coverage (if you’re a member of an HOA), sinkhole collapse coverage, energy efficiency upgrade coverage, home systems protection and service line coverage.  You can also purchase from an extensive list of extra coverage through your local agent, depending on what they can provide.

To Learn More: State Farm insurance review

As one of the most popular insurance companies in the country, Allstate serves many first-time buyers with comprehensive homeowners insurance policies. With more than 90 years of experience and an A+ (Superior) AM Best rating, it’s a trustworthy option for home buyers.

Allstate scored the highest in our review of dozens of homeowners insurance companies with an impressive overall performance. It’s our top pick for its combination of generous discounts to help homeowners save on their policy, comprehensive standard coverage, extensive list of add-ons and impressive customer service through its local agents.

However, Allstate may not be your choice if you’re looking for highly customizable policies since its coverage caps and deductibles are a bit more limited than many competitors. Additionally, its prices can sometimes be higher than competitors’ prices, depending on your home’s details and location.

​​+ Provides a unique Claim RateGuard that can be added to your policy to keep rates from increasing after filing a claim + Has a discount for being a home buyer, making it an excellent choice if you’re closing on a property + Offers 24/7 customer service through its network of local agents

– Requires you to speak to an agent on the phone to receive a quote in some areas – Has less customizable coverage cap options than many competitors

First-time home buyers can take advantage of plenty of discount opportunities from Allstate for things such as being a recent home buyer, setting up automatic payments, having theft or fire prevention devices, bundling with your Allstate auto insurance policy and being a new Allstate customer.

Allstate offers plenty of optional coverages that can be added to your policy to help fine-tune your coverage on your first home, such as green improvements coverage for upgrading to more energy-efficient equipment during a claim, extended coverage for high-value personal property, identity theft expense coverage, building code coverage, roof surfaces extended coverage, water backup coverage and building structure extended coverage limits.

Get your personalized home insurance quote from Allstate .

To Learn More: Allstate Home Insurance Review

American Family (AmFam) is a top insurance provider that performed well in our review compared with other providers. For more than 90 years, it has established itself in the industry, offering comprehensive coverage and quality customer service for homeowners.

We chose AmFam as a top choice for new home buyers looking for helpful online resources to assist with purchasing and managing their home insurance. Its website features extensive information about common perils, a coverage calculator, a home inventory tool, a home-buying closing-cost calculator and a detailed first-time home-buying guide.

However, AmFam is not an option for those living in or moving to 31 U.S. states. The provider is only available to homeowners buying a house in Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Nevada, North Dakota, Ohio, Oregon, South Dakota, Utah, Washington and Wisconsin.

​​+ Includes some extra coverage in the standard policy, such as fungi coverage, ordinance coverage and pollutant cleanup coverage ​​+ Has a higher J.D. Power customer satisfaction rating than many competitors + Partners with a wildfire defense service to offer assistance to its customers during wildfires in certain states

– Isn’t available in 31 states – Doesn’t allow you to customize specific coverage limits like most competitors do

When getting your online quote from American Family, you may be offered savings opportunities for bundling with another policy, signing up for autopay, purchasing a home younger than 15 years old, buying a recently renovated home or having parents who are currently American Family policyholders.

In our sample quote, American Family offered us endorsements for equipment breakdown coverage, identity fraud expense coverage, hidden-water coverage for water damage from a leak hidden behind your walls, extra personal property coverage for high-value belongings, personal injury coverage and service line coverage. You also may be able to purchase a flood insurance policy through your agent from the National Flood Insurance Program (NFIP).

Get your personalized home insurance quote from American Family .

To Learn More: American Family Home Insurance Review

As the oldest insurer in this review, operating since 1864, Travelers has the most experience serving drivers and homeowners throughout the country with top insurance policies. It has grown to be one of the most financially strong providers with an A++ (Superior) rating from AM Best and more than 30,000 employees and 13,500 independent agents.

We were most impressed with Travelers in our research for its Decreasing Deductible, which can be added to your policy for a few extra dollars per month. It credits your deductible with $100 when you purchase your policy and each year that you renew it, reducing your deductible to as little as $0. This can help save you money on the deductible you pay out of pocket during a claim.

One downside is that Travelers has lower customer satisfaction ratings from J.D. Power than many other top insurers. It also can’t be your choice if you’re buying a mobile or manufactured home since it doesn’t offer insurance for those.

​​+ Offers a unique endorsement for matching your undamaged roofing and siding materials with the repaired ones during a claim + Provides highly customizable deductibles with nine options between $1,000 and $50,000, depending on your preference and budget ​​+ Features a home history report tool to help you find out about renovations and significant work that’s been done to your new home in the past

– Doesn’t offer insurance for home buyers of mobile or manufactured homes – Has an Android mobile app with low ratings compared with many competitors

Travelers commonly offers discounts on policies to homeowners who have multiple policies with the company, have bought a home within 12 months of the policy’s effective date, have a certified green home by the Leadership Energy and Environmental Design (LEED) organization and have protective devices in their home, such as smoke detectors, home security systems and smart-home devices.

On our sample quotes, we were offered additional coverage for the replacement cost of personal property, equipment breakdown coverage, roof and siding matching coverage, identity theft protection and a general additional coverage package that includes loss assessment coverage, refrigerated property coverage, personal injury coverage and personal property replacement coverage.

Get your personalized home insurance quote from Travelers online or by calling 844-204-3517 .

To Learn More: Travelers Insurance Review

The following terms describe what standard home insurance policies cover. You should be familiar with what each coverage type means before purchasing a policy.

Like most insurance products, there are dozens of rating factors that go into each quoted home insurance premium that carriers use to assess risk on the policy. Because of this, pricing can vary greatly depending on those factors, so it’s best to get custom quotes from various providers to compare which ones fit your budget based on your unique details.

Here are some things to expect to provide when getting your home insurance quote:

Whether or not your mortgage lender requires it, a home insurance policy is a smart purchase to protect your new home from damaging unexpected perils. State Farm is our top pick for new homeowners, since its website and network of local agents can help guide you toward the right coverage. 

However, other companies may make more sense to your specific situation, such as Lemonade for its fast claims process or Travelers for its deductible credits. Regardless of which company interests you the most, we recommend that first-time home buyers get quotes from at least three companies to compare specific coverage and prices based on their new home’s details and location.

Get instant quotes from insurers by entering your zip code here or calling 855-948-5219 .

The national average is $1,272 per year, according to the III’s latest report in 2021 , which is based on the most recent data from 2019. However, the cost of homeowners insurance for your new home will vary depending on its specific details, such as its age, construction type and location.

No, floods aren’t considered a covered peril in any standard homeowners insurance policy. If you’re particularly worried about floods or you’re buying a home located in a flood zone — as defined by the Federal Emergency Management Agency (FEMA) — you can purchase flood insurance from the National Flood Insurance Program (NFIP) either directly from the organization or through your home insurance agent.

If you have a mortgage on the property, you’ll likely be required to purchase your homeowners insurance policy for your new home before closing. Even if you didn’t take out a loan for the home, you might still want to purchase the policy before closing to protect your wallet from unexpected events.

The purpose of your escrow account is for your mortgage lender to deposit enough money from your mortgage payment each month to cover homeowners insurance premiums, real estate taxes and mortgage insurance, ensuring it’s all paid on time. Then, the money for your policy’s premium will be distributed to your home insurance provider when it’s due.

Our team surveyed dozens of home insurance providers and created a scoring system to judge each company’s quality and service. We reach out for sample quotes, both over the phone and on the internet, to simulate an authentic customer experience. Here are the factors that account for our provider reviews:

Companies with the best customer service exhibit 24/7 availability, educational resources on their website, useful digital tools and a seamless claims-filing process. Providers that offer extensive discount options, endorsements, customizable coverage options and unique features score significantly higher than those that don’t, putting them toward the top of our recommendations to readers.

Ratings listed in this article are accurate as of April 2022.

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