The Best Cheap Home Insurance (2026)
- Amica ($130/month) and AIG ($146/month) are among the most affordable home insurance companies in 2026.
- Compare quotes with The Zebra to see other affordable options with trusted companies in minutes
Finding the cheapest (and best) homeowners coverage
The average cost of homeowners insurance in the United States is $2,802 per year ($234 per month), but cheaper homeowners coverage may be available depending on certain factors.[1]
The best coverage may not always come with the cheapest price tag; the key is to strike a balance between the two. If you're in a high-risk area, this is especially important to consider. The companies below are known for their great customer satisfaction and also offer lower price tags compared to other insurers.
Amica: $130 per month
Amica's rates average $130 per month, and the company also has a great reputation for customer service.
AIG: $146 per month
AIG home insurance averages $146 per month and ranks well above average when it comes to customer satisfaction, according to a J.D. Power survey. [2]
State Farm: $189 per month
A typical home insurance policy from State Farm costs $189 per month. State Farm is available nationally and should be accessible to most insurance shoppers.
What are the cheapest homeowners insurance companies?
The best way to find affordable home insurance is to compare quotes, and we’ve done the legwork to help you start.
The Zebra analyzed thousands of home insurance rates nationwide to find the cheapest companies across a range of scenarios. Below, you’ll see average premiums from top insurers so you can get a clearer sense of who offers the best value for your situation.
Updating data...
| Company | Avg. Annual Premium | Avg. Monthly Premium |
|---|---|---|
| Amica Mutual | $1,555 | $130 |
| AIG | $1,753 | $146 |
| State Farm | $2,269 | $189 |
| Chubb | $2,295 | $191 |
| USAA | $2,515 | $210 |
| Allstate | $2,669 | $222 |
| Nationwide | $2,762 | $230 |
| Farmers | $3,424 | $285 |
| American Family | $4,182 | $349 |
| Travelers | $8,365 | $697 |
Source: The Zebra
The Zebra’s Dynamic Insurance Rating Tool data methodology
The Zebra’s Dynamic Insurance Rating Tool for home and auto insurance rates utilizes the latest ZIP code-level rate filings from across the U.S., sourced from Quadrant Information Services and S&P Global. These filings, typically updated annually or biennially by insurers, are verified through Quadrant’s QA process and then integrated into The Zebra’s estimator.
The displayed rates are based on a dynamic home and auto profile designed to reflect the content of the page. This profile is tailored to match specific factors such as age, location, and coverage level, which are adjusted based on the page content to show how these variables can impact premiums.
For a comprehensive understanding, see our detailed methodology.
While we recommend starting your search with these insurance companies, please note that our homeowner profile may not precisely match yours. Because many rating factors are taken into account when insurers calculate premiums, there is no “one size fits all” option for home insurance pricing.
Find the best coverage for the cheapest rate.
How to find the best cheap homeowners insurance
There are many ways to get affordable homeowner insurance. Here's a look at the most common.
What to expect when applying for homeowners insurance
When you apply for coverage, insurers will ask about your home’s:
- Age and condition
- Roof type and building materials
- Renovations and upgrades
Having these details handy speeds up the quoting process and ensures your estimate is accurate.
Be sure your coverage limits—especially for dwelling replacement cost—match both your personal needs and your lender’s requirements. You may also want to consider add-ons like scheduled personal property coverage for jewelry or other valuables.
Keep in mind: Your initial quote may change after a home review or inspection. If the final premium feels too high, you’re free to shop around before committing.
"The best way to shop for home insurance is to bundle it with your auto insurance for some quick savings. But don't skimp on the coverage to save a few bucks. It's usually only a few hundred dollars more to get better coverage than the bare minimum. As your home is your most important asset, you want it protected."
Hunter Black — Licensed insurance professional at The Zebra
How your deductible affects your rate
Your homeowners' insurance deductible plays a key role in your premium, though it doesn’t weigh quite as heavily as your home’s replacement cost; it’s still an important pricing factor.
The relationship is straightforward:
-
Lower deductible = higher premium
-
Higher deductible = lower premium
That’s because a higher deductible means you’re taking on more financial responsibility before your coverage kicks in. Insurers reward that by charging you less each month.
Updating data...
| Avg. Annual Premium | Avg. Monthly Premium |
|---|---|
| $2,999 | $250 |
Source: The Zebra
Rating factors for home insurance
Wondering what drives your home insurance cost? These four key factors play the biggest role.
📍 Location
Rates are higher in areas prone to wildfires, hurricanes, or high theft. Your proximity to a fire station also plays a role.
🛡️ Coverage choices
The replacement cost, deductible amount, and any extra coverage (like for jewelry or flooding) affect how much you’ll pay.
🏠 Home characteristics
Size, age, roof condition, and materials all affect your rate. Older or less durable homes usually cost more to insure.
👤 Personal profile
Credit score, past claims, and whether you’ve bundled policies can all influence your price.
How location affects insurance cost
Where you live has a big impact on what you’ll pay for home insurance. Areas with a high volume of claims—like those prone to hurricanes, wildfires, or theft—tend to see higher premiums. Your ZIP code’s risk profile is a major factor.
Fire protection ratings also play a role. If your home is far from a fire station or a reliable water source—especially in wildfire-prone regions—insurers may charge more or even decline coverage altogether. Fair Access to Insurance Requirements (FAIR) Plans provide insurance for individuals who may not otherwise qualify. In especially high-risk states, like California, this is often the best way (and sometimes the only way) to get insurance for your house.
"Most home insurance rates are out of your control. They are based on the insurance carriers' loss ratios for your location. Loss ratios are determined by the amount of claims the insurance company pays out and the amount of premiums it brings in. So if you are in a location that has a lot of bad weather, or catastrophic events that damage homes, you could be seeing high premiums even if you've never filed a claim."
Hunter Black — Licensed insurance professional at The Zebra
Does Home Insurance Cover Natural Disasters?
Your home insurance coverage after a natural disaster depends on your location. Most natural disasters, hurricanes, floods, and earthquakes are not covered by homeowners insurance.
Why replacement cost matters
Your home’s replacement cost doesn’t just determine how much coverage you need for the structure—it also impacts other parts of your homeowners insurance. These are typically set as percentages of your total replacement cost:
| Coverage Type | Percentage of Replacement Cost | Example Amount (for $250,000 coverage) |
|---|---|---|
| Detached structures | 10% | $25,000 |
| Personal belongings | 50% | $125,000 |
| Loss of use | 20% | $50,000 |
That’s why it’s crucial to estimate your home’s replacement cost as accurately as possible, including current labor and material prices. Your premium is based on this value, so getting it right ensures you’re well-protected without overpaying.
The table below illustrates how the amount of dwelling coverage (the cost to rebuild) affects the premium amount. The more expensive the home is to rebuild, the more you'll pay for insurance.
Homeowners with high-value properties that exceed these coverage amounts should expect higher rates.
Updating data...
| Dwelling | Avg. Annual Premium |
|---|---|
| 100000 | $1,364 |
| 200000 | $2,081 |
| 300000 | $2,802 |
| 400000 | $3,501 |
| 500000 | $4,217 |
| 600000 | $4,930 |
Source: The Zebra
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How your home’s condition, materials, and age affect your rate
Insurers charge higher premiums when they see more risk, and the condition of your home plays a big role. Homes that are older, poorly maintained, or built with riskier materials are more likely to suffer damage, which can lead to denied coverage or higher costs.
Key risk factors insurers consider include:
- Construction type: Wood-framed homes are more flammable than brick, stucco, or stone.
- Roof type: Older or lower-quality roofs are more prone to weather damage or fire.
- Home age: Older homes may be more vulnerable to damage due to wear or outdated materials.
Pools, hot tubs, trampolines, and similar features are considered attractive nuisances—they increase the risk of injuries on your property. Because of this added liability, insurers typically charge higher premiums to cover the increased risk.
How to get insurance after claims
Filing a claim can raise your premium—and in some cases, make it harder to get affordable coverage. But some companies are more forgiving than others when it comes to claim history.
If you’ve filed one or more recent claims, look for insurers that:
- Specialize in high-risk or claims-heavy profiles
- Offer claim-free discounts that you can earn back over time
- Cap rate increases after your first claim
It also depends on the type of claim. A liability claim, for instance, can raise your rate by about 19% annually. Shopping around is key—some companies weigh claim history more heavily than others.
Tip: If your past claim was small, you might benefit from a fresh quote after a year or two of claim-free history.
Other rate factors for homeowners insurance costs
Beyond location, replacement cost, and deductible, several personal and home-specific details can influence your premium. Here’s a quick look:
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Credit score:
- Lower credit scores often lead to higher premiums.
- Excellent credit can significantly lower your rate in many states.
- Some states restrict or ban the use of credit in pricing—check local rules.
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Claim history: Past claims can raise your rate and stay on your CLUE report for 5–7 years.
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Home age: Older homes often cost more to insure due to wear and outdated systems.
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Construction type:
- Wood-frame homes may cost $152 more per year than fire-resistant homes.
- A wood roof adds an average of $131 more per year compared to slate.
Tip: Think carefully before filing a small claim—just one can impact your rate for years. According to the Insurance Information Institute, about one in 20 insured homes makes a claim each year.[3]
Updating data...
| Company | Average | Poor | Good | Excellent | Fair | Very Good |
|---|---|---|---|---|---|---|
| Allstate | $2,991 | $6,213 | $2,669 | $2,155 | $3,351 | $2,407 |
| American Family | $4,542 | $7,285 | $4,182 | $3,491 | $4,903 | $3,835 |
| Amica Mutual | $1,679 | $2,488 | $1,555 | $1,253 | $1,791 | $1,417 |
| Farmers | $3,823 | $10,631 | $3,424 | $2,700 | $4,298 | $3,026 |
| Nationwide | $2,914 | $4,230 | $2,762 | $2,446 | $3,082 | $2,609 |
| State Farm | $2,634 | $5,474 | $2,269 | $1,662 | $3,051 | $1,947 |
| Travelers | $11,416 | $26,691 | $8,365 | $2,310 | $14,436 | $5,339 |
| USAA | $2,757 | $5,052 | $2,515 | $2,178 | $3,041 | $2,330 |
Source: The Zebra
Compare home insurance rates online.
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How to save on home insurance
-
Check your home’s replacement cost
Make sure your coverage reflects the true cost to rebuild—not just market value—so you’re not overpaying. -
Set your coverage priorities
Decide what matters most: extra liability, flood protection, or great customer service? Clarifying your needs helps you choose the right policy. -
Compare quotes across insurers
Shopping around is the simplest way to find better rates for similar coverage. -
Raise your deductible
A higher deductible can lower your premium—just be sure you can afford it after a claim. -
Bundle your policies
Combining home and auto (or life) insurance with the same provider can earn you a solid multi-policy discount. -
Take advantage of discounts
Look for savings tied to how you pay (EFT, paperless), your home’s features (new roof, security system), or personal factors (age, occupation, smoke-free status).
We're here to help you find the right coverage.
Best cheap home insurance FAQs:
Data Methodology.The Zebra
2024 Homeowners Insurance Study. JD Power
Facts and Statistics about Home and Renters insurance. Insurance Information Institute
Dog Bite Liability. Insurance Information Institute
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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 editorial 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.