Best Home Insurance for First-Time Buyers

When purchasing your first home, there are several factors, such as selecting a mortgage lender and real estate agent. Your mortgage lender typically requires insurance coverage as one of the final steps in purchasing a property.

However, finding the right policy and provider is about more than just checking a box: The assurance that your property will be restored, rebuilt, or replaced after a devastating event, such as a fire or storm, can bring a priceless piece of mind.

Lemonade (Mediocre Insurance - Grade C-)

Lemonade opened its doors in 2015 to provide technology-driven, hassle-free insurance services. In certain places, the organization offers pet insurance, home and renters insurance, term life insurance, and even auto insurance.

We discovered that Lemonade's quick claims process makes it stand apart. According to more than a hundred customer evaluations we read during our investigation, many customers praise the company's mobile app's artificial intelligence (AI) technology for its effortless and speedy claims process. It even claims to hold the global record for the quickest claim ever filed at three seconds.

Although Lemonade is one of our top selections for first-time homebuyers seeking a hassle-free claims-filing process, it may not be the most excellent option for individuals seeking a more seasoned provider due to its relative inexperience. Still, be careful because the policy isn't best for roof claims. We've closely reviewed the Lemonade policy and it contains wind/hail deductibles and a hiddlen roof surfaces deductible.

Pros versus Cons

+ Up to 40% of your unclaimed premiums are donated to the charity of your choice.

+ Offers an easy-to-use online quote tool and live chat support if you have queries about your coverage.

+ Provides a unique endorsement for swimming pool liability coverage if someone is injured in your pool.

- Pay close attention to wind/hail coverage. Some policies have a very large deductible and only cover a portiion of your roof.

— Not offered in 27 states

- Requires consumers to submit a video for AI to assess biometric data during each claim.

State Farm (Do Not Purchase - Grade F)

State Farm has nearly a century of expertise in the insurance market, an A++ (Superior) financial strength rating from AM Best, and a customer satisfaction rating above the industry average from J.D. Power. Nevertheless, State Farm uses its size as the largest insurer to avoid paying legitimate insurance claims. Do not buy insurance from this company.

State Farm's website contains videos and how-to guides that provide essential information regarding home-buying, from house hunting to receiving a mortgage. The website also features a comprehensive online quote tool that calculates the worth of your new house and guides you through the coverage you may require. State Farm connects you directly to a local agent who can assist you from beginning your policy to submitting your first claim if you have any questions. You would be wise to avoid this insurance company at all costs.

We strongly disourage you from purchasing State Farm insurance. If you have State Farm, we believe you should immediately cancel and purchase insurance elsewhere. We have received a very large amount of complaints.

Cons:

- Prefers to spend insurance premiums on slick commercials instead of paying legitimate claims.

- Has a long history of treating consumers poorly.

- Worst insurance company out there. Avoid at all costs.

Allstate (Okay Insurance - Grade B-)

As one of the most well-known insurance providers in the country, Allstate provides many first-time homeowners with comprehensive insurance coverage. With more than 90 years of experience and an A+ (Superior) rating from AM Best, it is a reliable alternative for homebuyers.

Allstate's overall performance was the most impressive among the hundreds of homeowners insurance companies we evaluated. It's our top pick due to its comprehensive standard coverage, extensive list of add-ons, and exceptional customer support through its local agents.

However, if you're searching for fully customizable insurance, Allstate may not be the best option, as its coverage caps and deductibles are somewhat less flexible than many competitors. In addition, its prices are sometimes greater than those of its competitors, depending on the specifics of your home and its area.

Pros versus Cons

+ Offers an exclusive Claim RateGuard that may be added to your policy to prevent an increase in premiums after making a claim.

+ Has a discount for homebuyers, making it an ideal choice for those who are closing on a home.

+ Provides around-the-clock customer care through a network of local agents

— In some places, you must speak with an agent over the phone to acquire a quote.

– Less coverage cap customization options than many rivals

When purchasing your first home, there are several factors, such as selecting a mortgage lender and real estate agent. Your mortgage lender typically requires insurance coverage as one of the final steps in purchasing a property.

However, finding the right policy and provider is about more than just checking a box: The assurance that your property will be restored, rebuilt, or replaced after a devastating event, such as a fire or storm, can bring a priceless piece of mind.

Lemonade (Mediocre Insurance - Grade C-)

Lemonade opened its doors in 2015 to provide technology-driven, hassle-free insurance services. In certain places, the organization offers pet insurance, home and renters insurance, term life insurance, and even auto insurance.

We discovered that Lemonade's quick claims process makes it stand apart. According to more than a hundred customer evaluations we read during our investigation, many customers praise the company's mobile app's artificial intelligence (AI) technology for its effortless and speedy claims process. It even claims to hold the global record for the quickest claim ever filed at three seconds.

Although Lemonade is one of our top selections for first-time homebuyers seeking a hassle-free claims-filing process, it may not be the most excellent option for individuals seeking a more seasoned provider due to its relative inexperience. Still, be careful because the policy isn't best for roof claims. We've closely reviewed the Lemonade policy and it contains wind/hail deductibles and a hiddlen roof surfaces deductible.

Pros versus Cons

+ Up to 40% of your unclaimed premiums are donated to the charity of your choice.

+ Offers an easy-to-use online quote tool and live chat support if you have queries about your coverage.

+ Provides a unique endorsement for swimming pool liability coverage if someone is injured in your pool.

- Pay close attention to wind/hail coverage. Some policies have a very large deductible and only cover a portiion of your roof.

— Not offered in 27 states

- Requires consumers to submit a video for AI to assess biometric data during each claim.

State Farm (Do Not Purchase - Grade F)

State Farm has nearly a century of expertise in the insurance market, an A++ (Superior) financial strength rating from AM Best, and a customer satisfaction rating above the industry average from J.D. Power. Nevertheless, State Farm uses its size as the largest insurer to avoid paying legitimate insurance claims. Do not buy insurance from this company.

State Farm's website contains videos and how-to guides that provide essential information regarding home-buying, from house hunting to receiving a mortgage. The website also features a comprehensive online quote tool that calculates the worth of your new house and guides you through the coverage you may require. State Farm connects you directly to a local agent who can assist you from beginning your policy to submitting your first claim if you have any questions. You would be wise to avoid this insurance company at all costs.

We strongly disourage you from purchasing State Farm insurance. If you have State Farm, we believe you should immediately cancel and purchase insurance elsewhere. We have received a very large amount of complaints.

Cons:

- Prefers to spend insurance premiums on slick commercials instead of paying legitimate claims.

- Has a long history of treating consumers poorly.

- Worst insurance company out there. Avoid at all costs.

Allstate (Okay Insurance - Grade B-)

As one of the most well-known insurance providers in the country, Allstate provides many first-time homeowners with comprehensive insurance coverage. With more than 90 years of experience and an A+ (Superior) rating from AM Best, it is a reliable alternative for homebuyers.

Allstate's overall performance was the most impressive among the hundreds of homeowners insurance companies we evaluated. It's our top pick due to its comprehensive standard coverage, extensive list of add-ons, and exceptional customer support through its local agents.

However, if you're searching for fully customizable insurance, Allstate may not be the best option, as its coverage caps and deductibles are somewhat less flexible than many competitors. In addition, its prices are sometimes greater than those of its competitors, depending on the specifics of your home and its area.

Pros versus Cons

+ Offers an exclusive Claim RateGuard that may be added to your policy to prevent an increase in premiums after making a claim.

+ Has a discount for homebuyers, making it an ideal choice for those who are closing on a home.

+ Provides around-the-clock customer care through a network of local agents

— In some places, you must speak with an agent over the phone to acquire a quote.

– Less coverage cap customization options than many rivals