A home is likely the most expensive asset for a homeowner, so it must be adequately protected. Although home insurance may seem complicated, it's actually fairly straightforward. For consumers who are shopping for their own homeowners insurance, they first must determine the value of the home and its contents and then select a company and plan that provides the coverage needed at a reasonable price. However, to ensure the consumer is getting the best price and coverage, insureds should work with an insurance agent or broker, who can go to the market to find the best policy. To help homeowners' determine the best policy and insurer for them, U.S. News released its rankings of the best homeowners insurance companies of 2020. Find the top 10 insurers of 2020 in the slideshow above, along with each company's A.M. Best rating and average monthly policy cost. 

Tips when purchasing a home insurance policy

U.S. News also offered the following steps to purchase homeowners' insurance:

1. Decide what to insure. A standard homeowners insurance policy may not cover valuable jewelry, artwork, or other collectibles. Likewise, if there is a trampoline, pool, or something else on the property that raises liability risk because it poses an increased risk of injury or death to others, additional coverage may be needed. And if the area is flood-prone, the homeowner will probably need a separate policy for flood insurance from the home insurer or the National Flood Insurance Program. Similarly, if the home is in an earthquake-prone region, it will need additional insurance to cover related damage.
2. Determine how much home insurance is needed. Take an inventory of all personal property. If there are receipts for purchases, file them away. Use this information to decide how much coverage is needed for personal property. For the home and other structures on the property, get an estimate from the insurance company or a Realtor for the average rebuilding cost in the area per square foot. Determine how much it might cost for a hotel, meals out, and other living expenses if the home is destroyed or becomes uninhabitable after a loss. The Insurance Information Institute can help walk policyholders through the process, as can a licensed insurance agent or Realtor.
3. Choose an insurance company. Choosing the right homeowners insurance company requires finding an insurer that sells policies with the coverage and other features a homeowner needs at an affordable price. In addition, look for a company that has a high financial strength rating from A.M. Best or another rating agency, gets good consumer and professional reviews, and allows for the policyholder to file a claim or seek assistance 24/7.
4. Choose a policy. The right home insurance policy will provide sufficient coverage, has terms that are easy to understand, and may even offer discounts. Consider purchasing a replacement cost policy that will reimburse for the cost of replacing damaged or lost property with new items, rather than a cash value policy that only pays the depreciated value.

Related:

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• Best homeowners insurance companies 2019