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Top 5 Cheap Homeowners Insurance Companies
According to our in-depth analysis, these are the cheapest homeowners insurance companies that offer high quality coverage and are available to homeowners in the majority of the United States:
- State Farm: Our pick for new homeowners
- Auto-Owners: Our pick for discounts
- Erie: Our pick for customer service
- USAA: Our pick for military members
- Allstate: Our pick for extended coverage
Compare the cost of the cheapest homeowners insurance companies based on your dwelling coverage amount using the charts below:
For homeowners who need $250,000 in dwelling coverage, State Farm and Erie are the cheapest insurance companies.
| Provider | Monthly Cost | Annual Cost |
|---|---|---|
| State Farm | $141.53 | $1,698.33 |
| Auto-Owners | $149.57 | $1,794.86 |
| Erie | $145.68 | $1,748.11 |
| USAA | $163.14 | $1,957.63 |
| Allstate | $164.32 | $1971.84 |
For homeowners who need $350,000 in dwelling coverage, State Farm and Auto-Owners are the cheapest insurance companies.
| Provider | Monthly Cost | Annual Cost |
|---|---|---|
| State Farm | $173.74 | $2,084.90 |
| Auto-Owners | $186.37 | $2,236.38 |
| Erie | $193.90 | $2,326.78 |
| USAA | $200.78 | $2,409.42 |
| Allstate | $201.20 | $2,414.37 |
For homeowners who need $450,000 in dwelling coverage, State Farm and Auto-Owners are the cheapest insurance companies.
| Provider | Monthly Cost | Annual Cost |
|---|---|---|
| State Farm | $212.98 | $2,555.80 |
| Auto-Owners | $228.13 | $2,737.52 |
| Erie | $239.84 | $2,878.11 |
| USAA | $235.75 | $2,829.02 |
| Allstate | $241.34 | $2,896.14 |
For homeowners who need $750,000 in dwelling coverage, State Farm and USAA are the cheapest insurance companies.
| Provider | Monthly Cost | Annual Cost |
|---|---|---|
| State Farm | $319.60 | $3,835.22 |
| Auto-Owners | $352.26 | $4,227.14 |
| Erie | $370.17 | $4,442.00 |
| USAA | $334.12 | $4,009.47 |
| Allstate | $358.82 | $4,305.81 |
State Farm
New Homeowners
4.8
Our Rating
Cost: 3.9
Availability and Ease of Use: 5
Brand Trust: 4.8
Coverage: 4.3
Our Review
A.M. BestA++J.D. Power829/1000Annual Cost$2,084.90
MONTHLY COST$173.74
Pros and Cons
Pros Offers a vast network of local agents nationwide Provides online resources to help with policy shopping and management Features a convenient online quote process Cons Does not offer a flood damage endorsem*nt, a con for homeowners in flood-prone areas Does not offer some typical discounts seen with other companies, even for customers with a claims-free history
Why We Chose State Farm
State Farm is the cheapest home insurance provider on our list with policies averaging $174 per month. The company offers opportunities for homeowners insurance policyholders to save on costs by bundling their coverage with auto insurance, claiming customers who do so can save an average of $1,073 annually, according to our research. The insurer also offers a discount for installing home security features and using impact-resistant roofing products.
Depending on your location, you can also qualify for a discount if your property has features that protect it against wind damage. Plus, its website, national network of agents and online resources may benefit new homeowners navigating the insurance buying process for the first time.
Cost and Discounts
State Farm charges an average of $2,084 annually for a homeowners policy, which is about $174 per month — $427 less than the national average of $2,511. It’s the cheapest option for a policy in Rhode Island, Delaware, North Carolina, New Jersey, Maine and Massachusetts, based on our review.
The insurer may lower your premium if you qualify for the following discounts:
- Multi-policy bundling
- Home security
- Roofing
- Wind mitigation
Auto-Owners
Our pick for customer service
4.2
Our Rating
Cost: 4.3
Availability and Ease of Use: 4.2
Brand Trust: 4.3
Coverage: 4.3
Our Review
A.M. BestA++J.D. Power834/1000Annual CostN/A
MONTHLY COST$186.37
Pros and Cons
Pros Provides easy online policy management, including the ability to access your policy at any time using a mobile app Holds an A++ with the credit rating agency AM Best, indicating financial strength Offers multiple discounts to help lower premium costs Cons Does not provide online quotes Service area does not extend nationwide
Why We Chose Auto-Owners
While each company on our list provides discounts to help lower costs, Auto-Owners has the most options with nearly a dozen ways to save, our research found. For instance, it offers a discount if customers make timely payments over a certain period, enroll in paperless billing and online payments, have an approved whole-water shut-off system or bundle other qualifying insurance policies. You can also lower your premium by choosing a policy with a higher deductible — although, this means you will have to pay more out-of-pocket if you file a claim.
Cost and Discounts
The average annual cost of a homeowners policy with Auto-Owners is $2,236, which is $186 per month. This is $275 less than the national average of $2,511. Auto-Owners is the most affordable provider in Minnesota, Iowa, Georgia, Colorado, South Dakota, Kentucky and Michigan, based on our review.
You may qualify for the following discounts with an Auto-Owners homeowners policy:
- Multi-policy bundling
- Payment history
- Green discount
- Protective devices discount
- Automatic backup generator discount
- Wind mitigation discount
- Favorable loss history
- Mortgage-free discount
- Water shut-off system discount
- Advance quote
- Paid-in-full
Erie
Best Value
4.5
Our Rating
Cost: 3.5
Availability and Ease of Use: 4.2
Brand Trust: 4.9
Coverage: 4.3
Our Review
A.M. BestA+J.D. Power856/1000Annual Cost$2,326.78
MONTHLY COST$193.90
Pros and Cons
Pros Highest score on J.D. Power’s customer satisfaction study of the providers we reviewed Provides many additional coverage options to customize your plan Customers can save up to 25% with the multi-policy discount Cons Has a limited number of discounts compared to other companies on our list Does not offer online sign-up, you must speak with an agent to finalize your quote
Why We Chose Erie
Erie scored highly on the 2023 J.D. Power customer satisfaction study with a score of 856 out of 1,000, earning it our pick for customer service. Depending on your location, Erie can also provide savings on homeowners insurance policies with a discount of up to 25% when you purchase more than one type of policy, according to our research. You can also earn a discount by installing a safety and security system, and by obtaining a quote seven to 60 days before your existing policy renews.
Cost and Discounts
The average cost of a homeowners policy with Erie is $2,326 per year or about $194 per month. The insurer charges about $185 less than the national average of $2,511. Erie is the cheapest home insurance provider in Silver Spring and Rockville Maryland with policies that cost around $1,700 annually. Erie also has one of the strongest auto bundle discounts with an average savings of 24% on the total policy cost.
Homeowners choosing Erie may also qualify for these discounts:
- Fire, burglary alarm or sprinkler system credit
- Advanced quote discount
- Multi-policy discount
USAA
Military Members
4.5
Our Rating
Cost: 3.7
Availability and Ease of Use: 4.6
Brand Trust: 5
Coverage: 3.6
Our Review
A.M. BestA++J.D. Power881/1000Annual Cost$2,409.42
MONTHLY COST$200.79
Pros and Cons
Pros Provides several endorsem*nts to help homeowners customize coverage Includes replacement cost coverage as standard in its base policy Offers additional coverage against flood damage Cons Only qualified USAA members can purchase coverage Only offers policies to homeowners with a military background
Why We Chose USAA
USAA provides homeowners insurance coverage at an affordable cost and offers policyholders several additional opportunities to save, based on our review. For instance, you can save up to 15% on your policy if you have not filed any claims for the past five years. Also available is USAA’s bundling discount, which can lower your premium by up to 10% if you purchase more than one type of insurance policy — such as auto and homeowners coverage. However, coverage is only available to active-duty military members, veterans and their families
Cost and Discounts
The average annual cost of a USAA homeowners insurance policy is $2,196, which is around $200 per month. The company charges around $221 less than the national average, which is $2,511. Based on our review of national premiums, USAA is the most affordable insurer in Arizona, the District of Columbia, Illinois, Connecticut, Tennessee and Arkansas.
USAA policyholders may also qualify for these discounts:
- Multi-policy bundling
- Protective devices
- Connected home
- Loyalty
- Claims-free history
Allstate
Extended Coverage
4.8
Our Rating
Cost: 4.3
Availability and Ease of Use: 4.2
Brand Trust: 4.5
Coverage: 4.6
Our Review
A.M. BestA+J.D. Power809/1000Annual Cost$2,414.37
MONTHLY COST$201.20
Pros and Cons
Pros Options available for customers looking to bundle policies Offers several endorsem*nts for policy customization Charges a relatively affordable premium compared to other providers on our list Cons Below-average score in J.D. Power’s customer satisfaction study Does not offer online estimates for every location
Why We Chose Allstate
In addition to offering nearly a dozen endorsem*nts to customize and enhance coverage, our research found that Allstate offers up to 25% off premiums for customers who bundle home and auto insurance. Plus, the company makes it easy to sign up for a bundled policy, based on our review. You can also earn a discount by paying your premiums on time, opting for full policy payment or signing up for automatic payments.
Cost
On average, you might pay around $2,414 per year for an Allstate homeowners policy, which is $201 monthly. This average cost is $97, less than the national average of $2,511. Based on our review, Allstate is the cheapest option for homeowners insurance in Washington, Hawaii, Vermont, Pennsylvania, Virginia, California, Indiana, South Carolina, Mississippi and Nebraska.
Policyholders can also benefit from the following discounts:
- Multi-policy bundling
- Responsible payment
- Claim-free history
- Welcome and loyalty
- Homebuyer
- Easy pay plan
- Protective device
- Early signing
How To Find the Cheapest Home Insurance Policy
Here are the standard coverage limits for a typical HO-3 insurance policy, according to the National Association of Insurance Commissioners (NAIC), along with expert commentary from John Espenschied, owner of Insurance Brokers Group, on how to save money without under-covering yourself.
| Coverage Type | Standard Limit | How to Save Money |
| Dwelling | For full protection, you should carry dwelling coverage equal to your home’s replacement value — the amount needed to fully replace or rebuild it. | “Most dwelling coverage comes with a replacement cost provision, so it will pay the full cost of replacing damaged items with new ones. However, if you’re willing to accept used replacements instead of new ones, you can make adjustments accordingly and save money.” |
| Other structures | 10% of Dwelling Coverage limit | “Generally, other structures is an automatic 10% of coverage A (dwelling coverage). You can see if the carrier will adjust or remove the coverage, but generally it’s going to be fixed regardless of other structures on the property.” |
| Personal property | 50% of Dwelling Coverage limit | “A good way to reduce this coverage without sacrificing too much protection would be increasing your deductible. It’s also important to keep an inventory list of all personal items in case they need replacing after being damaged or stolen; this will help ensure that you get compensated properly in the event of a claim.” |
| Loss of use | 10% of Dwelling Coverage limit | “The bottom line is where are you going to go or live if you have a major fire or water damage? This type of policy can help cover costs associated with temporary relocation while repairs are being done.” |
| Liability | $100,000 – $500,000 | “Some carriers will actually give slightly better rates if you choose higher liability limits, especially if you carry an umbrella liability policy. For example, raising your underlying home insurance liability coverage from $300,000 to $500,000 would reduce your premium on an umbrella policy, which would help lower your overall premium. Additionally, you may receive a more favorable rate if you previously carried higher liability limits.” |
| Medical payments | Most providers offer low limits such as $1,000 to $5,000 | “Keep at least the minimum of $1,000. This will help offset someone’s health insurance deductible and a show of good will if they are hurt on your property. If possible, you’d like to avoid being sued and really having an issue with finding affordable insurance in the future.” |
*Standard limits reflect a typical policy, according to the National Association of Insurance Commissioners (NAIC). Your policy may vary.
Deductible: Home insurance policies include an annually resetting deductible or amount of money you have to pay before your coverage kicks in. Choosing a lower deductible will limit this out-of-pocket expense when you file a claim but increase your premium payments. Likewise, choosing a higher deductible will help you save money on premiums at the cost of more financial responsibility when you file a claim.
Endorsem*nts: Also called floaters or riders, endorsem*nts are policy add-ons that expand your coverage. Flood, earthquake, water backup and extended personal property are just a few common endorsem*nts to choose from. When shopping for the cheapest policy, consider your needs carefully. For example, earthquake coverage probably isn’t as useful in Nebraska as it is in California.
Discounts: Many providers offer home insurance discounts for bundling policies, fitting your home with safety or security systems, having no recent claims history and other common criteria. However, not all providers offer the same discounts, so make sure to factor in the savings you’re eligible for before deciding which company offers you the best price.
Replacement cost vs. actual cash value: Replacement cost coverage pays to replace property or contents without a deduction for condition or depreciation. Actual cash value (ACV) coverage pays a reduced amount with depreciation factored in. Keep in mind that replacement cost coverage is more expensive, and it is important to weigh the coverage you need with the risks you’re willing to take before making an informed decision.
Cheapest Homeowners Insurance by Location
Location is one of the most important factors that affect your home insurance premiums. Your state, city and even ZIP code inform insurers of perils that are common to your area. “Is [the house] in a fire zone or not? Is it in a brush fire area? Can we write it or not? So, the carriers look at it, I hate to say it, by address even,” said Espenschied.
Underwriters also consider your home’s distance from a fire department, which helps determine firefighters’ response time and ability to mitigate damage to your home. Finally, your local cost of living impacts labor and material costs, and therefore the price you pay for coverage.
State Farm is the cheapest home insurance provider in 22% of states and Allstate is the cheapest provider in 18% of states. Use the map below to see which homeowners insurance provider offers the cheapest coverage in your state.
Although the state you live in plays a huge role in the cost of coverage, your city will provide the best estimate of your home insurance premium. Use the chart below to find the cheapest home insurance provider in your city.
Other Factors That Affect Home Insurance Premiums
In addition to your home’s location, many factors play into your overall risk level and cost of home insurance. How large your home is, which coverage you purchase and how much and your claims history are just a few. Here are some of the most important factors that affect your bottom line.
Dwelling Coverage Limit
Your coverage needs may increase your homeowners insurance rates. For example, if you have a high home value, your dwelling limit will be higher, which means your insurance carrier will have to pay more to rebuild your home after a covered peril. You can often customize your coverage limits to lower your premium, but it’s unwise to decrease your limits enough that you risk being undercovered during a calamity.
Here are the cheapest insurance companies by dwelling amount. Sort the table by clicking on the headers.
Claims history
Home insurance providers look at your last five to seven years of claims history when calculating your premium. If you have filed claims recently, even small claims or claims on a previous property, it indicates you’re more likely to do so again. If you file too many claims in quick succession, providers may deny coverage altogether.
Knowing when — and when not to — file a claim can save you money in the long run. Consider paying out of pocket for incidents that do not exceed the cost of your deductible or are considered typical wear and tear or maintenance problems. You may also want to hold off on filing claims if you’ve filed one in the last few years.
Here are the cheapest providers if you have a recent claim on record:
Credit history
Most states legally allow home insurers to check your credit-based insurance score as a measure of risk when calculating premiums. According to the NAIC, this rating relies on portions of your credit history to predict your likelihood for a future insurance loss. California, Hawaii, Maryland, Michigan and Massachusetts prohibit or limit providers’ use of credit-based insurance scores.
For consumers calling other states home, this credit score can potentially have a large impact on your home insurance premiums. Your credit is probably one of the largest driving factors [of home insurance cost].” said Espenschied. “If your credit is in the dumps, it could be 50% to 100% higher in premium.”
Below are the cheapest home insurance companies for consumers with poor credit:
Bundling
Most insurers offer a generous multi-policy discount when customers purchase a home insurance policy along with another line of insurance, such as car insurance. The benefits are twofold. Bundling is one of the best ways to save money on insurance, with companies offering anywhere from 10% to 30% in savings. It also makes things simple if you already have an auto insurance provider. With both policies under one roof, so to speak, you have fewer portals, passwords, and paperwork to keep track of.
Here are the cheapest home insurance providers based on their average premium when bundled with auto insurance:
Frequently Asked Questions About Cheap Homeowners Insurance
Based on our data provided by Quadrant, the average cost of home insurance in the U.S. is $2,511.25 per year.
If you file a claim on your homeowners insurance, it can lead to a premium increase, though it depends on a few factors, such as the severity and frequency of the claims for the home or the insured. You will likely see the highest impact on your premium through claims for fire, hail, lightning and wind.
Purchasing a homeowners insurance policy can provide peace of mind if your home and personal belongings suffer damage from a natural disaster, fire, theft or other covered peril. While it isn’t required by law, your mortgage lender will likely require a policy with a certain minimum coverage limit.
The most basic homeowners insurance coverage is the HO-1 policy. It’s the least expensive but leaves the average homeowner exposed to various risks. Most insurers don’t offer HO-1 policies because of the limited coverage they provide. The most common policy is HO-3 insurance, which provides additional coverage for six perils plus the 10 covered in an HO-1 policy.
Other Insurance Resources From MarketWatch Guides
Read our comprehensive guides on the following insurance categories to find top providers and peace of mind that you have all aspects of life covered.
- Leading Pet Insurance Companies
- Top Travel Insurance Companies
- Best Homeowners Insurance Providers
- Leading Renters Insurance Companies
- Affordable Renters Insurance Providers
- Top Term Life Insurance Providers
Methodology: How We Chose the Cheapest Homeowners Insurance Companies
Our team surveyed dozens of home insurance providers and created a scoring system to assess and compare each company’s quality and service. Here are the factors that account for our provider scores:
- Cost (27%): We compare cost data for homes nationwide to assess how competitively priced each provider is. We also consider each company’s available discounts when determining its overall cost of coverage.
- Coverage (28%): We analyze the comprehensiveness of each provider’s standard home insurance policy and compare optional policy endorsem*nts to determine the quality of coverage.
- Availability and ease of use (15%): We evaluate each company’s customer service options, such as live chat, a customer support phone line, and multiple channels for filing claims and generating quotes. Similarly, we score providers based on their digital resources, such as a mobile app or online customer portal.
- Brand trust (15%): We gauge reputation by evaluating consumer reviews and third-party financial strength and customer experience ratings, including from J.D. Power, AM Best and customer review aggregators.
Companies with the best customer service exhibit 24/7 availability, useful digital tools and a seamless claims-filing process. Providers that offer extensive discount options, endorsem*nts, customizable coverage options and unique features score significantly higher than those that don’t, putting them toward the top of our recommendations to readers.
AM Best Disclaimer
If you have questions about this page, please reach out to our editors at editors@marketwatchguides.com.
Mike MillerSenior Writer
Mike Miller is a writer with a decade of experience producing product and service content to help consumers make informed purchasing decisions. Mike has a bachelor’s degree in creative advertising. In his spare time, Mike enjoys riding and fixing motorcycles, reading a good book and spending time with his wife and two cats.
Sabrina LopezSenior Editor
Sabrina Lopez is an editor with over six years of experience writing and editing digital content with a particular focus on home services, home products and personal finance. When she is not working on articles to help consumers make informed decisions, Sabrina enjoys creative writing and spending time with her family and their two parrots.
Mark FriedlanderAdvisor
Mark Friedlander is Director, Corporate Communications, at the Insurance Information Institute (Triple-I), a New York-based nonprofit research and education organization focused on providing consumers with a better understanding of insurance. Mark serves as a national spokesperson for the Triple-I, handling a wide array of insurance industry media issues. His responsibilities also include spearheading the association’s hurricane season communications strategy and its member company support and media outreach in Florida, where he is based.
