Everyone’s circumstances are different, so one size doesn’t fit all when looking for the best mortgage insurance company.
This guide will help you review options for closing your mortgage and help you find the most suitable protection for your needs. There are two types of Mortgage Protection Insurance that you should consider :
1. Mortgage Insurance
Protect your life and pay at once to the beneficiaries at your death (or potentially if you develop a critical illness if you add this to your policy) to pay off the rest of your mortgage debt.
2. Mortgage Payment Protection
Offer short-term assistance if you cannot work because of an accident or are sick or potentially unemployed, including monthly mortgage payments of up to two years.
What is the Best Mortgage Insurance Company?
When looking at various policies to protect your monthly mortgage payments, there are many things you should consider if you want to find the best Mortgage Payment Protection Insurance for your situation.
1. Amica Mutual
Amica Mutual was ranked top in our list of the best homeowners insurance based on their performance in the US Home Insurance Study in 2018 by JD Power. The company receives high marks in all the categories covered, including customer satisfaction, policy offerings, prices, billing processes and policy information, interactions, and claims. It was placed at the top of JD Power’s ranking for 17 years in a row.
Amica Mutual offers homeowners insurance policies that can be adjusted to meet your unique needs. They offer discounts to customers who combine other policies such as car insurance, and they report an A + rating for financial strength and ability to pay claims from AM Best Company. Amica Mutual also offers a 95% retention rate, which means that most consumers who change their homeowner’s policy to Amica Mutual choose to stay with the company.
2. Erie Insurance
Erie Insurance also received high marks in the 2018 JD Power survey. While they received at least 3 out of 5 stars in each category, Erie scored very well on prices – specifically, how their customers view prices in relation to their level of coverage.
Erie promises 24/7 customer service and helps you claim and guarantee the cost of replacing your home at all times if you need to make a claim. Erie also allows customers to make choices when structuring their policies to suit their needs. In addition to basic homeowner insurance, customers can add additional coverage for earthquakes, floods, overflowing water reserves and sump pumps, upscale jewelry and valuables, and much more.
Erie Insurance is the 9th largest homeowner insurance company in the US and the company received an AM Best rating from A + for its financial stability.
3. State Agriculture
State Farm is another national company that offers homeowner insurance along with car and life insurance options. They rank above the average in each category assessed in the JD Power Home Insurance Study, including price. State Farm also offers consumers discounts that incorporate several policies in several states, along with discounts for home security systems, impact resistant roofing systems, and choosing a higher discount.
Like several other companies on this list, State Farm gives customers flexibility in their policies. You can add special riders to your homeowner’s insurance policy, for example, and you can increase the amount of coverage and move your deductible up and down to reach the premium you want.
Also note that State Farm has achieved very good ratings in the insurance industry, including an A ++ rating from AM Best and AA rating from S&P Global Ratings for their financial strength.
Allstate is another best mortgage insurance company that offers personal protection for homes, cars, rental property, recreational vehicles, and more. Allstate received better than average grades in the JD Power Home Insurance Study, and they received an A + rating from AM Best for their financial strength as a company.
Allstate allows homeowners to choose and choose from their choices to create policies that meet their unique needs, including the ability to add additional coverage for flooding, recovery of identity theft, and more. They also offer special savings and discounts for customers who have not submitted claims, and their Claim Free Bonus feature can help you qualify for bonus savings in endless years.
While Allstate features many brick and mortar offices throughout the country, they also have a powerful online platform and tool that can help you file claims and pay premiums online.
5. Farmer Insurance
Farmers Insurance lists our best home insurance companies based on their performance in the JD Power Home Insurance Study and their latest ratings. Not only did Farmer Insurance attract solid ratings with JD Power, but they received an A + rating from AM Best for their financial strength in early 2018.
Farmers Insurance has three different levels of coverage for consumers who buy homeowners insurance policies – standard, improved, and primary. When their standard policies are directed to families who are just starting out, the enhanced policies include higher coverage limits and additional features. Their main policies, on the other hand, include the highest limits on coverage and personal property and can even include guaranteed guaranteed replacement costs for your home if certain requirements are met.
Like Allstate, Farmers offers special discounts for customers who remain claim free. You can also receive $ 50 for your deductions each year your policy remains in effect along with “claim remission” if you remain claim-free for five years continuously.
Choosing the Best Mortgage Insurance Company
To get the most accurate estimate of how much your homeowner’s insurance costs, we recommend using an online bidding tool, whether that’s on the insurance company’s website or a comparison tool at the top of this post.
To give you an idea of the premium forms of some of the best home insurance providers, we ask for a price quote for a house in the suburbs of Chicago.
Here are the monthly quotes we receive:
- Amica: $ 75.33
- State Agriculture: $ 117.75
- Mutual Mutual: $ 129
- Farmer: $ 150
Amica comes out to be much cheaper than the next provider in this scenario.
Each home insurance company requests slightly different information, but when we read each tool online, we use the same profile with the following characteristics:
- Location: The address is on the outskirts of Chicago.
- House Value: $ 315,000
- Deductible: $ 1,000
- Size: 1,900 square feet
- Applicant Age: 40
- House Type: 1 floor
- Roof Type: asphalt shingles
- Payment Terms: Monthly
The best thing about online tools is that you determine the right type of coverage you want, choose a level that can be deducted from you, and choose payment terms. It might take a little extra hard work, but the online quote tool really gives you the power to find the cheapest policy.
Many online tools, such as those provided by Liberty Mutual, allow you to change the level of coverage you choose, so you can clearly see how changing one component directly impacts the price of your policy. For example, you can enter a low value for your deductible, see what your rates are like, then enter a higher value and see how your rate changes.