Erie Homeowners Insurance Review

This homeowner insurance is a good fit for: People willing to pay a bit more for an established insurer with great customer service ratings.

Erie Insurance may only be available in 12 states and the District of Columbia, but it has better customer service ratings than most of the big guys.

Founded nearly 100 years ago (1925) Erie is now the 15th largest property insurer in the United States, with an AM Best rating of A+. What does this mean for the average consumer? It means that when things go south, Erie has the finances to make its customers whole again.

Erie works with more than 13,000 independent agents, meaning it's just around the corner for many consumers in the states in which it operates.

Top perks

Ability to work with a real agent

Anyone who feels as though technology has taken the place of good old human interaction will enjoy the fact that Erie home insurance places an emphasis on relationship building and having dedicated agents available for customers to turn to.

Outstanding "extras" included in standard coverage

Coverages often considered "add-ons" are part of a standard Erie homeowners insurance policy. This includes things like cash and precious metal coverage, pet coverage, and guaranteed replacement cost.

Excellent customer service

As predictable as the sun rising in the east, Erie routinely lands near the top of customer service satisfaction surveys. The fact that Erie is one of the lowest-priced insurers on the market coupled with customers having access to a personal Erie insurance agent may help explain what makes the company so popular.

What could be improved

Expansion into more states

Erie is one of those companies that makes it tough to live in a state outside their service area. After all, everyone wants access to an insurer that boasts low-cost homeowners insurance premiums, great customer service, and coverage that goes beyond the basics.

Lackluster online tools to manage account

While old-fashioned customer service is nice, everything from purchasing a policy to making a claim means calling an Erie insurance agent. For a generation that has grown up on technology, it can be a tough issue to overcome.

Higher rates that some of its competitors

All that top-notch customer service comes at a premium. Compared to many of it's competitors, Erie's prices rank near the top.

Alternatives to consider

When looking for homeowners insurance that can be managed almost entirely online: Geico shines where Erie does not. Geico customers can do almost everything, from managing their homeowners insurance policy to making a claim, online or through the Geico mobile app. What Erie has that Geico doesn't, though, are old-school agents who know their customers and their specific needs. It's a far more personal relationship that may be the best option for someone who finds comfort in calling the same agent to answer questions or to walk them through a claim.

Rates / Pricing

Using a standardized scenario, we compared rates among insurance carriers nationwide. The national average is $1,684. We then took a deeper dive into North Carolina, one of the 12 states serviced by Erie. Erie's rates were the highest, although discounts are available.

Discounts available

Shopping for the lowest insurance premium means looking for a company with homeowners insurance discounts available. Here are some of the discounts offered by Erie:

• Mutlipolicy discount: Between 16% and 25%, depending on the state
• Advanced quote: For homeowners with another insurance company who request an Erie quote 7 to 60 days before their current homeowners policy expires
• Safety systems: For homeowners who install smoke alarms, a burglary alarm system, or automatic sprinklers

Coverage options

One of the things that sets Erie apart is the way it slips "premium" coverage features into a standard homeowners insurance policy. Basic insurance coverage includes the following.

Structural damage

Erie will repair or rebuild structural damage caused by a covered peril.

Guaranteed replacement cost

Erie goes above and beyond when it comes time to replace and rebuild. With its guaranteed replacement cost coverage, Erie promises to spend whatever it takes to make the homeowner whole, rather than paying only the depreciated value of damaged or destroyed items.

Personal property coverage

If the contents of the home are damaged, Erie pays to repair or replace them.

Liability

If a visitor or their possessions are damaged while on the homeowner's property, Erie offers protection.

Living expenses

Living expenses are available to homeowners who cannot stay in the home due to damage by a covered peril.

Theft protection

In the event a theft takes place in the home, Erie home insurance will cover the loss.

Cash and precious metal coverage

Erie is ideal for collectors of cash and precious metals, as it insures against the loss of either.

In addition, the following optional coverage makes an Erie homeowners policy customizable to fit the needs of the homeowner.

Earthquake coverage

Earthquakes can happen anywhere. A homeowner with an optional add-on earthquake rider knows that they will be covered following an earthquake. While the deductible may be higher than a standard deductible, having earthquake insurance means a homeowner will not lose one of their most valuable assets because they cannot afford to rebuild on their own.

Flood coverage

If a river, lake, ocean, or other body of water overflows, most homeowners policies will not cover the water damage. Erie offers a separate flood insurance policy that will.

Service line protection

Any service line that runs from the house to the street, like buried gas, electric, water, or cable, is covered by this policy add-on.

Water backup and sump pump overflow

If a sump pump fails, the sewer line is clogged, or the water system is somehow damaged, Erie will pay to make repairs and cover damages.

Identity recovery

Identity theft can cost more than money. It's a headache that may take months to straighten out. Erie helps restore the homeowner's credit following identity theft.

Computer and equipment

This add-on provides extra insurance coverage for expensive equipment like high-end computers.

Firearms

Erie covers the loss of firearms, especially antique or collectible guns.

Jewelry and other high-end valuables

Expensive jewelry, fine art, or other items of high value are protected by this additional coverage.

Application process

By following a link on Erie's homepage, homeowners are directed to an Erie representative near them. As mentioned, Erie is all about human connection. Homeowners begin the application by calling an Erie insurance agent near them, and that agent will walk them through the application process.

Customer service and ratings

Customer service is one of the primary selling points for Erie. From requesting a quote and purchasing a policy to calling in the middle of the night because the roof blew off, Erie customers routinely praise how company representatives handle their insurance needs. On a 1,000-point scale, Erie scored 839 on the most recent J.D. Power Overall Customer Satisfaction Rating. To put that in perspective, only four companies ranked higher -- and not by much. Additionally, the Better Business Bureau (BBB) gives Erie a rating of A+.

This homeowners insurance is the best option if:

Erie homeowners insurance is best for customers who:

• Seek a company with outstanding customer service
• Can afford to pay a bit more for coverage with a superior customer satisfaction rating
• Appreciate a basic policy with built-in upgrades
• Enjoy working with "real people" as opposed to voices on the other end of the line or sophisticated computer software

But homeowners may want to consider Hippo if they're looking for a company that's tech-heavy, sleek, and accessible without the need for agent assistance. Homeowners who like the idea of working with a personal agent might want to consider State Farm if Erie is not available in their state.