Travelers Homeowners Insurance Review of 2023
If you have a mortgage, your lender has probably required you to buy homeowner’s insurance to protect its interests. If you’ve already paid off your mortgage, PropertyNest recommends that you continue to keep homeowners insurance in place to protect your investment should you ever have to rebuild your home after a disaster strikes and replace your personal property. You also need to have the liability protection a homeowner’s insurance policy affords in case a guest is injured on your property or any of their possessions are destroyed.
In this review of Travelers Homeowners insurance, we feature a company with over 155 years of experience as a property casualty insurer. You’ll find their coverage to be complete, and their financial ratings to be solid. Read on to learn about Travelers, its coverage, discounts, rates, and how it compares to some other major home insurers.
About Travelers and the Company’s History
Through a chance meeting at a Hartford, Connecticut post office in 1864, James Batterson and James Bolter entered into a conversation about the formation of an accident insurance company that would be based in Hartford and serve the entire United States, a lofty ambition considering the Civil War was just ending. The company was subsequently formed, and Batterson served as the first president of Travelers from 1864 until he died in 1901.
In 1855, shortly before Travelers was formed, seventeen St. Paul, Minnesota, business owners established a company to insure against the increasing threat of fire. That company was known as the St. Paul Fire and Marine Insurance Company for over 100 years until it formed what was known as The St. Paul Companies, Inc. in 1968.
On April 1, 2004, Travelers and The St. Paul merged and became one of the largest property casualty companies in the U.S. They called the new company The St. Paul Travelers Companies, Inc, before changing its name to The Travelers Companies in February 2007. You’re probably familiar with their logo featuring the open red umbrella, symbolizing protection during stormy periods of life.
Travelers currently offers homeowners insurance in 45 states and the District of Columbia.
Travelers Overview
Travelers' standard homeowners coverage includes the same coverage you’ll find with other major homeowners insurers. There are also many add-ons available to enhance the standard coverage.
Policies and Coverage
Though it’s customizable through various add-ons, Travelers' standard homeowner's policy contains the following types of coverage:
- Dwelling: pays to repair or rebuild the structure of your home
- Other structures: covers damage to unattached structures, like a detached garage, fence, or shed
- Personal property: pays for the replacement or repair of your personal belongings, such as clothing, electronics, or furniture
- Loss of use: also known as “additional living expenses,” if you must relocate while covered repairs are being made to your home, your lodging expenses, meal costs, or other expenses beyond your average living expenses are covered
- Personal liability: pays for your damages and legal expenses if you’re responsible for injuries to other people or their property
- Medical payments: covers injuries to someone visiting your home, no matter who was at fault
In addition to the basic coverage listed above, your Travelers homeowners insurance policy can be customized through these add-ons:
- Extended replacement cost: raises your dwelling coverage limit (typically 25% to 50%) if your home is damaged or destroyed and the rebuilding cost exceeds your policy limit
- Special personal property: extends your basic policy’s personal property coverage to causes of damage or loss not covered, such as lost or misplaced items
- Replacement cost personal property: pay for the replacement of damaged or stolen personal property without deductions for depreciation made from your reimbursement
- Scheduled personal property: increases your coverage limits on expensive valuables on a “per item” basis, such as a single piece of jewelry (i.e., diamond ring, Rolex watch, antique serving tray, etc.)
- Jewelry and valuable items: covers an entire category of valuable personal property, such as “jewelry” and “silverware.” More general than scheduled personal property
- Water backup: covers repairs if your home is damaged because of water backing up from a sewer line or your drain
- Identity fraud: provides up to $25,000 in coverages for lost wages, legal expenses, and other costs you sustain while restoring your identity
- Green home: will cover the cost of repairing or rebuilding your home with green materials due to damage caused by a covered peril
Coverage Limits
When purchasing a Travelers homeowners insurance policy, you begin by selecting your deductible (the amount you pay for a claim before Travelers begins to pay) and your policy limits, which is the value of your home (does not include the land).
The policy limits are typically calculated as percentages of your dwelling limit. For example, if you decide that $500,000 is the appropriate amount of dwelling coverage, the other limits on your policy could be:
- Dwelling: $500,000
- Other structures: 10% of dwelling coverage amount ($30,000)
- Personal property: 50% of dwelling coverage amount ($250,000)
- Loss of use: 20% of dwelling coverage amount ($100,000)
Discounts
If you buy a Travelers homeowners insurance policy, be sure to ask your agent or Travelers representative about the discounts they offer, including:
- Multi-policy discount: save up to 12% on your home insurance when you have three policies with Travelers, like auto, umbrella, or boat insurance, or a personal articles floater.
- Protective device discount: includes devices such as automatic water shut-off systems, home security systems, fire alarms, smoke detectors, sprinkler systems, and smart or connected home technology that alerts you when a fire, water damage, or burglary is occurring.
- Early quote discount: save up to 10% when you purchase your policy, depending on how far in advance you buy before coverage starts.
- Loss-free discount: if you have no claims or losses within a specified term, you can receive a discount (usually three to five years).
- Green home discount: if your home is LEED-certified green, you may receive up to 5% off.
Rates
The average rate in the U.S. for Travelers homeowners insurance is about $1,570 per year, which is around 15% cheaper than the national average. Your rates are going to vary depending on your home’s location and your coverage limit.
Some examples of Travelers’ average cost for some dwelling coverage limits:
- $100,000: $755 annually
- $200,000: $1,230 annually
- $300,000; $1,570 annually
- $400,000: $1,830 annually
These prices are before any discounts are applied.
Claims
After filing a claim with Travelers, you can check your claim status online or through an app on your phone. You can also find a service provider, such as a contractor or medical professional who can help, and upload files. The company also has a “Claim Guide Library” to help you navigate the claim process.
To file a claim by phone, call (800) 252-4633 and have the following information ready:
- Your policy number
- The place, date, and time the incident occurred
- A description of the damaged property
- The cause of the damage
- Details regarding any injuries suffered
- Your contact information
You’ll also need this information if you file a claim online.
Customer Service and Financial Rating of Travelers
Like all insurance companies, Travelers has its share of both fans and critics who have posted online concerning their experience with customer service. Taking opinion out of the equation, J.D. Power’s 2022 ranking of homeowners insurance companies listed Travelers as third from the bottom out of 20 companies with a score of 794, compared to the average of 819.
However, Travelers has the highest possible AM Best rating of A++, which indicates superior financial strength and claims-paying ability.
| J.D. Power (out of 1,000) | 794 |
|---|---|
| A.M. Best - Financial Strength Rating | A++ |
| BBB | A |
| NAIC Complaint Index | 3.88 |
Customer Service Options & Availability
Travelers makes it easy to make contact, whether it be digitally or through a phone call. You can get in touch with the company in several ways.
Website: Travelers offers a robust, easy to navigate website from which you can manage your policy from start to finish. On the website, you can get a quote, pay your bill, update your policy, submit and track claims, and contact your agent.
Mobile App: Travelers’ mobile app is compatible with both iOS and Android devices. Similar to the website, you can pay your bill, report a claim, view your policy information, and manage your payment.
Telephone: Travelers customer service is available 24/7 at (866) 336-2077.
Live Chat: Is available on the website from 7 am to 6 pm Eastern on weekdays. Live Chat is not yet available on the app.
How Does Travelers Compare to Other Homeowners Insurance Companies?
Travelers stands up well to competition from the big names in home insurance, such as Allstate and State Farm.However, It doesn’t fare quite as well in some respects against online competitor, Lemonade.
Travelers vs. Allstate
Travelers and Allstate are two giants when it comes to property casualty insurance. They both have a substantial number of agents selling their policies, although Allstate’s agents are company employees while Travelers’ agents are independent representatives.
Allstate offers homeowners more discounts than Travelers, such as a welcome and loyalty discount of 10% when you switch to Allstate and 10% each year you remain a policyholder, a discount for making automatic payments, and a 10% discount on your premium when you sign up for a new policy at least seven days before your current one expires.
Like Travelers, Allstate also scores below average on the J.D. Power annual survey of homeowners insurance companies. Allstate’s home insurance rates also come in higher than Travelers in numerous studies.
| J.D. Power (out of 1,000) | 815 |
|---|---|
| A.M. Best - Financial Strength Rating | A+ |
| NAIC Complaint Index | 2.05 |
| BBB | A- |
Travelers vs. State Farm
State Farm and Travelers both have an A.M. Best rating of A++, but State Farm excels in two key areas compared to Travelers, rates and customer satisfaction. State Farm’s average cost of a home insurance policy for a $350,000 dwelling is about $1,475, which is approximately 10% lower than Travelers. State Farm also ranked 6th best out of 20 companies in the 2022 J.D. Power customer satisfaction rankings for homeowners insurance companies, compared to 17th for Travelers.
Another aspect of State Farm that many people prefer is its 19,200 agents representing the company in neighborhoods across the U.S. Though an increasing number of people prefer to buy insurance online, many consumers still like to deal with someone local and meet with an agent who can advise them on policy limits and coverage.
| J.D. Power (out of 1,000) | 829 |
|---|---|
| A.M. Best - Financial Strength Rating | A++ |
| BBB | A+ |
| NAIC Complaint Index | 1.77 |
Travelers vs. Lemonade
Like Travelers, Lemonade offers a variety of policy types, including life, auto, and homeowners insurance. The big difference between the two companies is how they conduct business.
Lemonade offers a 100% online experience, from getting a quote, completing an application, making a payment, and filing a claim. Lemonade does not have any agents representing the company. Travelers also offers many of the same online services as Lemonade, except you have to buy your Travelers homeowners insurance through an agent, which some people try to avoid.
Another differentiator is the longevity of the companies. While Travelers began operations in 1864, Lemonade began selling insurance in 2015. Lemonade does not have an AM Best rating for financial strength, while Travelers has a rating of A++, Best’s highest rating. This is not an indicator one way or another of Lemonade’s ability to pay claims.
Lemonade is also incorporated as a public benefit corporation. It has a program called Giveback, by which policyholders can designate a charity where any excess premiums will be donated. This money comes from net premiums received minus a fixed percentage of premiums and the amount of claims paid.
Because of not having brick-and-mortar offices, Lemonade is known to have among the lowest rates for homeowners insurance. However, Lemonade only sells policies in 23 states and Washington, D.C., at this time.
| J.D. Power (out of 1,000) | 870 |
|---|---|
| BBB | B+ |
| NAIC Complaint Index | 1.94 |
Conclusion
Travelers is a well-established, trusted brand that offers a comprehensive basic homeowners insurance policy with several optional add-ons that help customize the policy. The company has superior ratings for financial strength, though it scores low in customer satisfaction scores. Travelers sells policies through independent agents, which can result in a wide variance of satisfaction levels, depending on the agent who sells the policy. Travelers' rates are competitive compared to insurers of a similar size, such as Allstate and State Farm.