A home insurance policy helps pay for repairing or rebuilding your home in the event of an unexpected disaster. It also protects you and your family from liability for injuries sustained on the property, as well as personal property such as furniture, electronics and clothing. Homeowners insurance doesn’t cover earthquakes or floods, but you can get separate coverage for those risks.

There are many factors that go into determining the cost of a home-insurance policy, including the location of your home, its age, the quality and materials used in its construction, and more. You should always compare rates from several providers to find the best deal, and be sure you’re getting the coverage you need for your budget.

Your claims history plays a big role in how much your home insurance will cost, too. Insurers look at how likely you are to file a claim in the future to help determine the risk factor associated with your policy, and a history of previous claims can raise or lower your premiums. Insurers may also raise or lower your premium based on the size of your deductible—the higher you choose, the lower your annual premium, but beware that small claims can quickly add up.

A comprehensive home insurance policy should cover you for everything that can potentially damage your home, including the cost of replacing your personal belongings and other structures like detached garages and sheds. Make sure your policy has a high enough dwelling coverage limit to adequately cover the cost of repairing or replacing your house, and check for optional coverages such as an Ordinance or Law Endorsement that pays for the additional expense of rebuilding your home to meet updated building codes or local laws that were not in effect when it was originally built.

If you have other types of insurance with the same provider, such as auto or health insurance, you may be able to get a discount on your homeowners policy. This is one of the most popular ways to save on home insurance, and some companies offer bundling discounts for up to 10% or more.

While you may want a company with a great customer satisfaction score, it’s also important that it is financially stable and can pay out your claims in the event of an emergency. You can do a little research to learn more about the financial stability of potential home insurance companies by visiting sites that track consumer complaints and ratings, such as A.M. Best, Moody’s and J.D. Power.

Our 2023 top picks for the best home insurance companies combine excellent customer service with competitive average premiums and a variety of coverage options. We also analyzed the companies’ financial stability and ratings, as well as their overall customer satisfaction ratings from J.D. Power and other sources, to create our list. However, the best home insurance for your needs and budget will vary based on your specific home and neighborhood, so be sure to shop around and consider all of your options before making a decision.