The Best Cheap Home Insurance (2023)
Knowing what goes into homeowners insurance rates is the key to finding cheap home insurance.
Finding the cheapest (and best) homeowners coverage
The average cost of homeowners insurance in the United States is $1,406 per year ($117 per month). Understanding homeowners coverage and knowing where to find an affordable policy are important first steps toward getting coverage.
The Zebra performed an in-depth analysis of thousands of home insurance rates from across the U.S. to find the cheapest insurance companies for homeowners in a variety of scenarios.
Key takeaways:
- The average cost of homeowners insurance in the US is $1,406 per year or $117 per month
- USAA and Nationwide are the cheapest home insurance companies with average monthly costs of $103
- To find the best home insurance, compare quotes and consider factors such as customer satisfaction and claims satisfaction
The cheapest home insurance companies
Nationwide's average homeowners insurance rate is $103 per month.
A typical home insurance policy from USAA costs $103 per month. Eligibility is limited to active-duty military and veterans, as well as select family members.
Homeowners insurance through Progressive costs $113 per month, on average.
Other affordable homeowners insurance companies
Finding the cheapest coverage for your home begins by comparing homeowners insurance quotes. To get you started, The Zebra has compiled average rates for some of the top home insurance companies to give you the chance to compare. Take a look at the table below to get an idea of how much these companies charge for home insurance coverage.
| Insurance Company | Annual Premium | Monthly Cost |
|---|---|---|
| USAA | $1,231 | $103 |
| Nationwide | $1,236 | $103 |
| Progressive | $1,355 | $113 |
| State Farm | $1,356 | $113 |
| Liberty Mutual | $1,414 | $118 |
| Travelers | $1,444 | $120 |
| Farmers | $1,455 | $121 |
| Allstate | $1,594 | $133 |
| American Family | $2,261 | $188 |
Homeowners insurance data methodology
The homeowners insurance rates published in this guide are based on The Zebra's analysis of the cost of home insurance in every U.S. ZIP code. These rates are based on a sample user profile: a 45-year-old married homeowner living in a 2,500-square-foot single-story home built in 2011 with these coverage levels:
- $200,000 for the dwelling
- $20,000 for other structures
- $100,000 for personal property
- $100,000 for personal liability
- $1,000 deductible
To generate pricing for particular rating factors, we adjusted the homeowner profile based on common pricing factors used by major home insurance companies. These factors include location, coverage limits, claims record and others.
While we recommend starting your search with these insurance companies, keep in mind our homeowner profile likely doesn't match yours precisely. Because many rating factors are taken into account when insurers calculate premiums, there is no “one size fits all” option for home insurance pricing.
Curious about what your homeowners insurance 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.
Looking for a quote? Compare rates and find the best homeowners policy for you.
Home insurance rate analysis
An in-depth assessment of which companies are the cheapest, depending on your situation.
Homeowners insurance rates by:
The cheapest home insurance by replacement cost
The replacement cost of a home, i.e., the amount of money required to repair it in the event it’s damaged, is one of the most important factors used by insurance companies to set premiums. This is because dwelling coverage is the pillar of any homeowners policy, as it protects the home itself.
A home's replacement cost also dictates coverage limits for other parts of the home insurance policy. These are generally assessed as percentages of the total replacement cost:
- 10% for other structures (detached)
- 50% for personal property
- 20% for loss of use
If a home is insured for $250,000, this assigns $25,000 in coverage 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. The policy premium will match the home’s replacement cost. This relationship is illustrated below, including the cheapest companies based on differing replacement costs.
| Insurance Company | $100,000 | $200,000 | $300,000 | $400,000 | $500,000 | $600,000 |
|---|---|---|---|---|---|---|
| Allstate | $1,175 | $1,691 | $2,282 | $2,907 | $3,558 | $4,208 |
| American Family | $1,652 | $2,459 | $3,340 | $4,243 | $5,128 | $5,994 |
| Amica | $912 | $1,291 | $1,797 | $2,296 | $2,783 | $3,260 |
| Farmers | $1,278 | $1,709 | $2,355 | $3,001 | $3,584 | $4,106 |
| Nationwide | $986 | $1,470 | $2,155 | $2,791 | $3,458 | $4,188 |
| Progressive | $1,018 | $1,464 | $2,023 | $2,558 | $3,115 | $3,743 |
| State Farm | $999 | $1,565 | $2,081 | $2,597 | $3,217 | $3,814 |
| Travelers | $1,188 | $1,754 | $2,326 | $2,879 | $3,564 | $4,181 |
| USAA | $943 | $1,326 | $1,710 | $2,060 | $2,402 | $2,727 |
Residents of high-value homes surpassing these dwelling coverage amounts should expect more expensive 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 impacts how expensive your policy is. 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 $2,500 deductible (or higher) results in the lowest premiums, no matter what company.
Cheapest insurance companies by deductible
Common deductible levels
- $500 — Amica
- $1,000 — Amica
- $2,000 — Nationwide
- $2,500 — Amica
| Insurance Company | $500 | $1,000 | $2,000 | $2,500 |
|---|---|---|---|---|
| Allstate | $1,763 | $1,594 | $1,391 | $1,322 |
| American Family | $2,474 | $2,261 | $2,084 | $2,003 |
| Amica | $1,181 | $1,089 | $991 | $944 |
| Farmers | $1,523 | $1,455 | $1,349 | $1,325 |
| Nationwide | $1,365 | $1,236 | $974 | $968 |
| Progressive | $1,462 | $1,355 | $1,259 | $1,117 |
| State Farm | $1,470 | $1,356 | $1,234 | $1,207 |
| Travelers | $1,561 | $1,444 | $1,257 | $1,231 |
| USAA | $1,364 | $1,231 | $1,049 | $1,049 |
Compare rates and find a policy.
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 higher premiums.
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 used by insurance companies when they price policies:
- Construction type: The use of wood over harder, drier materials like brick, stucco or stone makes the home more flammable
- Roof type: The quality, condition and age of the roof and roofing materials can make them more susceptible to damage or more flammable
- Age of the home: Older homes may be more likely to be degraded or constructed from flammable materials
See the below tables to see how construction type and roof materials can affect your rate.
| Insurance Company | Frame/Wood | Masonry | Fire-resistive |
|---|---|---|---|
| Allstate | $1,594 | $1,530 | $1,461 |
| American Family | $2,261 | $2,137 | $2,138 |
| Amica | $1,089 | $1,039 | $1,002 |
| Farmers | $1,455 | $1,466 | $1,466 |
| Liberty Mutual | $1,311 | $1,260 | $1,174 |
| Nationwide | $1,236 | $1,113 | $925 |
| State Farm | $1,356 | $1,228 | $1,050 |
| Travelers | $1,444 | $1,338 | $1,302 |
| USAA | $1,231 | $1,182 | $1,173 |
If you live in a wood frame home (as opposed to something fire-resistive), expect to pay an extra $152 in premium per year to account for the flammability of your home's construction materials. The same idea holds true for wood roofs, which costs an extra $131 a year to insure over slate roofs:
ANNUAL AVERAGE PREMIUMS BY ROOF TYPE
| Insurance Company | Asphalt | Metal | Slate | Wood |
|---|---|---|---|---|
| Allstate | $1,591 | $1,538 | $1,578 | $1,654 |
| American Family | $2,250 | $2,168 | $1,986 | $2,245 |
| Amica | $1,089 | $1,089 | $1,089 | $1,089 |
| Farmers | $1,467 | $1,209 | $1,541 | $1,585 |
| Liberty Mutual | $1,355 | $1,309 | $1,275 | $1,411 |
| Nationwide | $1,244 | $1,223 | $1,184 | $1,265 |
| State Farm | $1,356 | $1,372 | $1,356 | $1,392 |
| Travelers | $1,415 | $1,345 | $1,351 | $1,588 |
| USAA | $1,287 | $1,264 | $1,263 | $1,387 |
Regular maintenance and upkeep is a great way to earn cheaper home insurance rates.
Home insurance and swimming pools
Outdoor features like pools, hot tubs, playgrounds and trampolines are known as 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.
Home age and insurance
In general, newer homes are cheaper to insure. Homes built 30 or more years ago cost about 76% more to insure than do new construction homes.
Progressive is the cheapest home insurance company for new builds.
Amica is the most affordable company for insuring a home between 10 and 50 years old.
| Insurance Company | New Construction | 10 Years Old | 20 Years Old | 30 Years Old | 40 Years Old | 50 Years Old |
|---|---|---|---|---|---|---|
| Allstate | $1,033 | $1,594 | $1,709 | $1,755 | $1,750 | $1,759 |
| American Family | $1,422 | $2,261 | $2,396 | $2,405 | $2,409 | $2,422 |
| Amica | $772 | $1,089 | $1,145 | $1,152 | $1,152 | $1,144 |
| Farmers | $1,093 | $1,455 | $1,606 | $1,553 | $1,539 | $1,516 |
| Nationwide | $693 | $1,236 | $1,447 | $1,487 | $1,524 | $1,542 |
| Progressive | $533 | $1,355 | $1,913 | $1,941 | $1,884 | $1,810 |
| State Farm | $885 | $1,356 | $1,520 | $1,524 | $1,531 | $1,532 |
| Travelers | $929 | $1,444 | $1,671 | $1,716 | $1,703 | $1,692 |
| USAA | $706 | $1,231 | $1,477 | $1,484 | $1,495 | $1,475 |
How do claims affect home insurance?
You may have trouble finding a car insurance company willing to insure you if you’ve racked up too many claims in the past. The same concept applies to homeowners insurance. According to the Insurance Information Institute[1], about one in 20 insured homes makes a claim each year.
The cheapest insurance company after a fire claim is State Farm. Following weather-related insurance claims, the most affordable companies were USAA and Nationwide. Compared to Allstate's 37% increase after a fire, and American Family's 17% rate hike post-weather claim, State Farm, USAA and Nationwide stand out as appealing options.
The below table shows how a fire or weather claim can affect your homeowners rate with some of the top homeowners insurance companies:
| Insurance Company | No Claims | Fire Claim | Weather Claim |
|---|---|---|---|
| Allstate | $1,594 | $2,188 | $1,798 |
| American Family | $2,261 | $2,573 | $2,652 |
| Farmers | $1,455 | $1,776 | $1,498 |
| Liberty Mutual | $1,506 | $1,699 | $1,685 |
| Nationwide | $1,236 | $1,795 | $1,402 |
| State Farm | $1,356 | $1,464 | $1,464 |
| Travelers | $1,444 | $1,849 | $1,631 |
| USAA | $1,231 | $1,528 | $1,314 |
A longer-than-average claims history is a red flag to insurers. Historical data indicates 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. Some auto insurers may even refuse coverage for drivers with 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 — known as the Comprehensive Loss Underwriting Exchange (CLUE) — 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. See more comprehensive information and detailed rates on how much you can expect your premium to increase in our guide to homeowners insurance after a claim.
Compare home insurance rates online.
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 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 and lead to higher rates. Some home insurance companies will deny coverage altogether to avoid the risk.
| State | Company | Average Annual Premium |
|---|---|---|
| Alabama | USAA | $1,452 |
| Alaska | Western National | $794 |
| Arizona | USAA | $815 |
| Arkansas | Farmers | $1,665 |
| California | Mercury | $564 |
| Colorado | American Family | $1,878 |
| Connecticut | National General | $649 |
| Delaware | Nationwide | $544 |
| Florida | Progressive | $894 |
| Georgia | Farmers | $778 |
| Hawaii | Allstate | $283 |
| Idaho | Farm Bureau | $457 |
| Illinois | State Farm | $690 |
| Indiana | Indiana Farmers Mutual | $786 |
| Iowa | West Bend Mutual | $1,080 |
| Kansas | USAA | $1,984 |
| Kentucky | USAA | $1,099 |
| Louisiana | State Farm | $1,545 |
| Maine | Vermont Mutual | $352 |
| Maryland | Travelers | $767 |
| Massachusetts | Heritage | $749 |
| Michigan | Michigan Farm Bureau | $662 |
| Minnesota | Auto-Owners | $1,011 |
| Mississippi | Southern Farm Bureau | $1,542 |
| Missouri | AAA | $1,544 |
| Montana | USAA | $1,667 |
| Nebraska | USAA | $1,890 |
| Nevada | Travelers | $618 |
| New Hampshire | Vermont Mutual | $467 |
| New Jersey | Travelers | $608 |
| New Mexico | Farmers | $1,081 |
| New York | NYCM Insurance | $525 |
| North Carolina | North Carolina Farm Bureau | $1,092 |
| North Dakota | North Star | $981 |
| Ohio | Cincinnati Insurance | $665 |
| Oklahoma | Oklahoma Farm Bureau | $2,557 |
| Oregon | State Farm | $760 |
| Pennsylvania | Erie | $565 |
| Rhode Island | Heritage | $445 |
| South Carolina | United | $1,046 |
| South Dakota | North Star | $1,214 |
| Tennessee | Erie | $1,145 |
| Texas | Progressive | $1,816 |
| Utah | Allstate | $639 |
| Vermont | Vermont Mutual | $356 |
| Virginia | Erie | $885 |
| Washington | PEMCO | $444 |
| Washington D.C. | Chubb | $666 |
| West Virginia | USAA | $641 |
| Wisconsin | West Bend Mutual | $486 |
| Wyoming | USAA | $641 |
How does credit score impact home insurance?
While your credit score may not be a huge factor in what you pay in premium, insurance companies still use it to assess the risk you present. Insurers assign a credit-based insurance score to help determine your rate.
In our analysis of cheapest homeowners insurance providers by credit tier, Amica proved to be the most affordable no matter how good or bad your credit is.
| Insurance Company | Excellent (800-850) | Very Good (740-799) | Good (670-739) | Fair (580-669) | Poor (300-579) |
|---|---|---|---|---|---|
| Allstate | $1,412 | $1,525 | $1,664 | $1,980 | $3,254 |
| American Family | $2,006 | $2,154 | $2,261 | $2,492 | $3,513 |
| Amica | $872 | $921 | $989 | $1,112 | $1,455 |
| Farmers | $1,016 | $1,238 | $1,552 | $2,054 | $5,436 |
| Nationwide | $1,181 | $1,242 | $1,306 | $1,446 | $2,040 |
| Progressive | $1,198 | $1,299 | $1,355 | $1,601 | $2,254 |
| State Farm | $1,183 | $1,351 | $1,543 | $2,013 | $3,435 |
| Travelers | $1,036 | $1,342 | $1,635 | $2,245 | $3,989 |
| USAA | $1,068 | $1,152 | $1,256 | $1,517 | $2,553 |
The cheapest insurance companies for homeowners with aggressive breed dogs
Furry friends can result in higher homeowners insurance rates. Insurance companies maintain lists of dog breeds 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 the individual dog's bite history. You may be asked by your insurer to pay an increased premium due to your pet's history of aggressive behavior. Others may ask you to sign a liability waiver.[2]
The Zebra's data suggest owning an "aggressive breed" dog does not move the insurance pricing needle too much (only about 1%).
The cheapest home insurance company with an aggressive dog in the household is Allstate, offering average monthly rates of about $116. Below is a snapshot of average premiums from popular insurance companies with a restricted breed as a rating factor.
| Insurance Company | Average 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 |
How to find the best cheap homeowners insurance
There are a number of ways to get affordable homeowner insurance. Here's a look at the most common.
- Local agents: Some homeowners prefer having a local agent with a brick-and-mortar location. While some of these agents are appointed to sell from multiple different carriers, others are what's called "captive" agents and only sell through one company. This can limit your choices and impact potential savings.
- Insurer websites: Most insurance companies have online quoting tools. While this can allow you more convenience than shopping with individual agents, it can be time-consuming as you will have to input your personal information for each company.
- Comparison sites: These sites — like The Zebra — allow you to compare home insurance quotes from the top homeowners insurance companies all in one place. As opposed to individual carrier sites, you only need to input your information once to get quotes.
How to save money on homeowners insurance
In six steps, here's the best approach for getting the cheapest homeowners insurance.
1. Get an accurate estimate of your home’s replacement cost
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.
2. Evaluate other coverage needs
Think about what matters to you most in terms of what you need protection for and what you expect from an insurer: maybe you're looking for specialized coverage (like flood insurance) or concerned about having enough liability coverage. How important are a company's customer service and claims servicing to you? This is the time to outline your wants and needs for your policy and your provider.
3. Shop around and compare homeowner quotes
Getting quotes from many different insurers is the best way to compare coverage options and pricing.
4. Consider raising your deductible
If you accept a larger portion of financial responsibility (i.e. paying more out of pocket after a claim), you'll pay a lower premium. Learn more about how to choose a deductible.
Best home and auto bundles
Based on The Zebra's Customer Satisfaction Survey for auto and home coverage, the following companies below offer the best rates for bundling your policies:
- USAA - 4.6 overall rating
- Erie - 4.5 overall rating
- State Farm - 4.4 overall rating
5. Bundle policies
If you already have an auto insurance policy with one company, consider bundling it with your homeowners insurance. Most companies offer multi-policy discounts. Such discounts can also apply to other types of insurance when bundled with your home policy, such as life insurance.
6. Use discounts
Below are common home insurance cost-cutting measures:
- 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
What to expect when applying for cheap homeowners insurance
Shopping for cheap homeowners insurance is not much different from shopping for any other kind of policy, but it could be more involved than auto insurance. Use these tips while shopping so you know what to expect:
- Insurance companies will ask for details about your home, like the roof type and its age, construction materials, when the property was built, if there are any upgrades and more. Having these details on hand will make getting quotes easier and more accurate.
- When evaluating your quotes, ensure that your homeowners insurance coverage limits (specifically dwelling coverage) are sufficient for the home's replacement cost. Consider if you need any additional coverage options, as well. For example, if you have a large collection of fine jewelry, a rider can supplement your policy to expend coverage for these items.
- Make sure the replacement cost set in your quote meets or exceeds your mortgage lender's requirements.
- Remember that the quote you initially receive may not be the exact premium you'll end up paying. Once you send in your application, the insurance company will confirm the details of your policy and property. If the finalized quote is higher than you expect, you can always walk away and try another insurer.
The best cheap homeowners insurance: summary
Certain rating factors affect your home insurance risk profile more than others, so it’s important to choose your replacement cost and deductible wisely. It's also prudent to practice good habits: 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 costing you in the future.
It’s also beneficial to research specific companies before choosing a policy. Look for customer satisfaction and financial strength ratings from J.D. Power and AM 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. Learn more by reading The Zebra’s reviews of top home insurance companies. The best way to save money and find the cheapest home insurance coverage is to compare rates from as many insurers as possible. Every company weighs rating factors differently and there are a variety of reasons your homeowners rates might be expensive.
The Zebra can help you compare home insurance quotes from insurers across the United States in just a few minutes — simply enter your ZIP code below to start comparison shopping.
Compare homeowners insurance rates, bundles and coverage options.
FAQ
About The Zebra
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
- The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
- The Zebra’s insurance content is not subject to review or alteration by insurance companies or partners.
- The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
- The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.