Best Cheap Homeowners Insurance

Knowing how your home insurance premium is calculated — and what a fair rate looks like — are key to finding a cheap homeowners policy.

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Which homeowners insurance companies have the cheapest rates?

Homeowners insurance is designed to protect you and your assets — your home, personal property, your liability, and more — from certain perils that can leave you financially underwater. It’s an extremely important safeguard to have even if you do not live in an area that’s susceptible to natural disasters. Accidents can happen at the most unexpected of times; understanding your coverage and knowing how to get it at an affordable price is integral in protecting one of the biggest investments you’ll make in your life.

To help you in your search for cheap homeowners insurance, we surveyed some of the top insurers across the nation using a standard homeowner profile: $250,000 replacement cost for the dwelling and a $1,000 deductible.

Learn more about our rating methodology here and see the results in the chart below.

Insurance CompanyAverage Annual Premium
Allstate$1,394
American Family$1,724
Farmers$1,860
Liberty Mutual$1,414
Nationwide$1,426
Progressive$1,736
State Farm$1,464
Travelers$1,496
USAA$1,526

With an average monthly rate of $116, Allstate was the cheapest home insurance company. Liberty Mutual was the second-cheapest, with a monthly insurance premium of just a dollar more than Allstate’s rate.

While we recommend starting your search with these insurance companies, keep in mind our homeowner profile likely doesn't match yours precisely. Because myriad rating factors are taken into account when insurers calculate premiums, there is no “one size fits all” option for home insurance.

Curious about what your rate will be? Enter your ZIP code below and we can help you compare personalized homeowners insurance rates side-by-side. For more information on other important rating factors and how they affect premiums, along with the cheapest companies, continue reading below.

 

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How to find the cheapest homeowners insurance — table of contents:

The cheapest home insurance by:
Other rating factors for homeowners insurance:
How to save money on homeowners insurance

 


 

The cheapest home insurance by replacement cost

The replacement cost of your home, i.e., the amount of money required to rebuild to match its former state if it’s destroyed or damaged, is one of the most important factors used by insurance companies to price your premium. This is because dwelling coverage is the pillar of any homeowners policy, as it protects the structure of your home.

Your home's replacement cost also dictates coverage limits for other parts of your home insurance policy. Generally, these are percentages of your replacement cost:

  • 10% for other structures (detached)
  • 50% for personal property
  • 20% for loss of use

So if your home is insured for $250,000, you have $25,000 for other structures, $125,000 for personal property, and $50,000 for loss for use.

This is another reason why it’s important to calculate replacement value as accurately as possible, including the cost of labor and materials at current market values. Your premium will be commensurate to your home’s replacement cost. This relationship is illustrated below, including the cheapest companies based on differing replacement costs.

AVERAGE ANNUAL INSURANCE PREMIUMS BY REPLACEMENT COST
Insurance Company$100,000$250,000$400,000
Allstate$754$1,394$2,090
American Family$1,060$1,724$2,362
Farmers$926$1,862$2,870
Liberty Mutual$806$1,414$2,018
Nationwide$708$1,428$2,204
Progressive$1,004$1,728$2,634
State Farm$812$1,464$2,004
Travelers$796$1,498$2,186
USAA$900$1,526$2,072

The cheapest home insurance companies by replacement cost amount:

  • $100,000 — Nationwide
  • $250,000 — Allstate
  • $400,000 — State Farm

If you live in a high-value home that surpasses these dwelling coverage amounts, expect even higher rates. Learn more about insurance for high-value homes.

 


 

The cheapest home insurance by deductible amount

The deductible you choose for your homeowners insurance policy also has quite a bit of sway in what you pay in premium. While it doesn’t have as much weight as replacement cost, it remains an important rating factor.

As with auto insurance deductibles, your premium and deductible carry an inverse relationship: lower deductibles raise your premium while higher deductibles lower your rate. This is because of the amount of financial responsibility you assume when you select your deductible amount. If your deductible is high, it means your claim payout will be less than had you chosen a low deductible. Insurance companies will charge cheaper premiums if you voluntarily opt to take a larger slice of financial responsibility in the event you need to file a claim.

The table below shows how deductibles directly correlate to home insurance rates. A $5,000 deductible results in the lowest premiums, no matter what company.

AVERAGE ANNUAL PREMIUMS BY DEDUCTIBLE AMOUNT
Insurance Company$500$1,000$1,500$2,000$5,000
Allstate$1,541$1,395$1,317$1,230$1,006
American Family$1,778$1,710$1,665$1,626$1,471
Farmers$2,027$1,862$1,786$1,690$1,408
Liberty Mutual$1,518$1,409$1,375$1,283$1,127
Nationwide$1,487$1,420$1,334$1,199$1,026
Progressive$1,848$1,738$1,738$1,514$1,328
State Farm$1,583$1,461$1,381$1,324$1,193
Travelers$1,609$1,489$1,407$1,274$1,067
USAA$1,680$1,527$1,327$1,315$1,070


The cheapest home insurance companies by deductible amount:

  • $500 — Nationwide
  • $1,000 — Allstate
  • $1,500 — Allstate
  • $2,000 — Nationwide
  • $5,000 — Allstate

Find the best homeowners insurance rate by comparing today!

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How your home’s condition, materials, and age affect rates

First and foremost, insurance companies are risk-averse. The number of claims that are filed directly affects their bottom line via claims payouts. If a client’s rating factors indicate that they are more likely to file a claim, insurance companies make up for this likelihood by charging a higher premium.

The quality of the primary asset you are insuring — your home — definitely matters to your insurer. Depending on the level of disrepair or quality of materials, insurance companies may even deny coverage. This is because a home that hasn’t been maintained over the years is far more susceptible to damage.

Here are some examples of home conditions, materials, and age that concern insurance companies:

  • The use of wood over harder, drier materials like brick, stucco or stone makes the home more flammable
  • The quality, condition and age of the roof and roofing materials
  • Older homes that may be degraded or constructed from flammable materials

Regular maintenance and upkeep of the structure of your home is a great way to put insurance companies at ease. In general, newer home constructions are cheaper to insure.

 


 

Location and homeowners insurance rates

Insurance companies keep track of the number of claims that are filed in your area. This number correlates to how much risk a certain area represents. If the location of your home has had a history of claims — such as hurricane-related losses or a high degree of burglaries — insurers will charge higher premiums in that ZIP code to anticipate for more claims filed in the future.

The same applies to your location’s fire protection rating. This measures the distance between your home and the nearest water source and fire department. For instance, if you live in a rural area susceptible to wildfires, and the closest fire station is miles away in the next town, this will unsettle insurance companies enough to charge you a higher rate. Sometimes, they will deny coverage altogether to avoid the risk.

 


 

Do pools increase premiums?

In insurance-speak, outdoor features like pools, hot tubs, playgrounds, and trampolines are called attractive nuisances. While these are nice to have on your property, these can pose serious liabilities. Having attractive nuisances makes it more likely that someone can injure themselves, thereby increasing the likelihood of having your insurance company step in to defend your liability. Having any of these features will increase your rate to account for the elevated risk.

 


 

How does claim history affect home insurance?

In the auto insurance world, you may have trouble finding an insurance company willing to insure you if you’ve racked up too many claims in the past. This also applies to homeowners insurance.

A longer-than-average claims history is a red flag to insurers. Historical data indicate that policyholders who have filed at least one claim are more likely to file another one. Thus, home insurance companies will charge higher premiums if you’ve had a covered loss in the past. Depending on the company, they may even refuse coverage for having more than one claim within a specific range of time — usually three years. Home and car insurance claims stay on the national property claim database for five to seven years.

This is a crucial reason why knowing when and when not to file a homeowners claim is important if you’re looking for cheap home insurance.

 


 

Does bad credit increase rates?

Credit score is one of the risk indicators insurance companies use to calculate your premium. While credit score isn’t rated as heavily as it is in auto insurance, it’s still a factor insurers consider as part of your risk profile. Past data tells them that those with lower credit scores are more likely to file claims, so insurance companies will impose higher premiums to cushion the financial impact of potential losses.

 


 

The best homeowners insurance companies with aggressive pets

Even our furry friends can pose a risk. If you own a dog, insurance companies will want to know if it’s a breed considered “aggressive” or “restricted.” Keep in mind this is very company-specific, and some are more dog-friendly than others. Some companies care less about the breed, and more about bite histories.

Our data suggest that owning an aggressive breed does not move the needle all that much in terms of your premium — nationally, the difference was only about 1%. Below is a snapshot of average premiums from popular insurance companies with a restricted breed as a rating factor.

AVERAGE ANNUAL PREMIUMS WITH AN AGGRESSIVE BREED PET
Insurance CompanyAverage Annual Premium
Allstate$1,394
American Family$1,730
Farmers$1,862
Liberty Mutual$1,414
Nationwide$1,428
Progressive$1,738
State Farm$1,464
Travelers$1,498
USAA$1,526

The cheapest home insurance company with an aggressive dog in your household is Allstate, with an average monthly rate of about $116. Learn more about pets and homeowners insurance.

Shopping for homeowners insurance quotes? Use our tool to compare rates instantly. Enter your ZIP code below to get started, or continue reading to explore our tips on how to save.

Compare home insurance rates from across the nation!

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How to save money on homeowners insurance

While homeowners insurance isn’t legally required, your mortgage lender usually mandates it as a condition of the loan. Finding ways to save money on insurance costs after making a significant property purchase doesn’t have to be complicated. Here are our tips on how to lower your rate.

Get an accurate estimate of your home’s replacement cost

As mentioned previously, the replacement cost of your home significantly impacts your rate. Every few years, have your insurer assess its replacement value to ensure you’re not paying for insurance coverage you don’t need. In addition, this will help you reevaluate your needs so you can get rid of unnecessary coverage options and add-ons.

Choose a higher deductible

If you accept a larger portion of financial responsibility, that’s less money your insurance company will need to pay out for if you need to file a claim, and this will result in a lower premium. Learn more about how to choose a deductible.

Be smart with your claims

Even having one recent claim on your record sets off warning signals to insurance companies. Knowing what kinds of losses are worth insurance company involvement will save you money, time, and hassle in the future.

Bundle multiple policies with one company

If you already have an auto insurance policy with one company, consider bundling it with your homeowners insurance. Most companies offer a multi-policy discount for enrolling in more than one line of insurance through the same provider.

Home insurance discounts to consider

Discounts vary from company to company. Whichever company you choose for homeowners insurance, make sure to always inquire about discounts. Here are some of the most common cost-cutting measures to be aware of:

  • Payment methods: EFT, paperless, automatic, or pay in full
  • New home construction
  • Senior discount
  • Occupational
  • Home security systems
  • Fire prevention systems
  • Roof upgrades
  • Smoke-free

Learn more about popular home insurance discounts.

 


 

Summed up: how to find cheap homeowners insurance

With all things insurance, certain rating factors are considered more indicative of your risk profile than others. In homeowners insurance, it’s of the utmost importance to choose your replacement cost and deductible wisely. In addition, it’s prudent to practice good habits that make your insurer happy and ensure your home holds its value: maintain the structural integrity of your home by making upgrades, improve your credit score, and understand your coverage to avoid filing claims that may end up hurting you in the future.

It’s also beneficial to do your research into specific companies before paying for your policy. Look for customer satisfaction and financial strength ratings from J.D. Power and A.M. Best to get a sense of how insurers treat their policyholders — especially during the claims process — and to ensure they have the financial stability to pay out for losses. To see The Zebra’s reviews of insurance companies across the nation, see more here.

Ultimately, the best way to save money and find the cheapest home insurance coverage is by shopping around with as many insurers as you can. Every company weighs these factors differently. The Zebra can help you compare home insurance quotes from insurers across the United States seamlessly and easily — simply enter your ZIP code below to start comparison shopping.

Compare homeowners insurance rates and save!

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Kristine Lee LinkedIn

Kristine is a licensed insurance agent and one of The Zebra’s in-house content strategists. With a background in copywriting, she covers the ins and outs of the home and car insurance industries. She has been a contributor to numerous publications focused on the nuances of insurance, including BestCompany.com.