The Best Cheap Home Insurance (2024)
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) but cheaper homeowners coverage may be available depending on certain factors.[1]
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. To start you off, we've also compiled the cheapest overall home insurance companies below.
Auto-Owners has an average homeowners insurance rate of $108 per month, though isn't available in all states.
A typical home insurance policy from Nationwide costs $112 per month. Nationwide is available nationally and should be accessible to most insurance shoppers.
Homeowners insurance through Erie costs $116 per month, on average. Erie also topped JD Power's list of top homeowners insurance companies in 2023.[2] However, Erie may not be available in your state.
What are the cheapest 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.
| Company | Avg. Annual Premium | Avg. Monthly Premium |
|---|---|---|
| Auto-Owners | $1,302 | $108 |
| Nationwide | $1,350 | $112 |
| Erie | $1,390 | $116 |
| Chubb | $1,503 | $125 |
| State Farm | $1,531 | $128 |
| USAA | $1,535 | $128 |
| Allstate | $1,652 | $138 |
| Travelers | $2,974 | $248 |
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, keep in mind our homeowner profile may not 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.
Looking for a quote? Compare rates and find the best homeowners policy for you.
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.
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.
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.
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
"The best way to shop for home insurance is to bundle it with your auto. Don't cheap out on the coverage either. 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
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.
Amica is the insurer with the cheapest rates for a home with a replacement cost of $200,000 (a typical replacement cost in many parts of the country). Rates come in at $108 per month on average.
More about replacement cost
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.
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. Amica comes in as the cheapest overall for a $1,000 deductible.
Amica comes in as the cheapest major carrier with a $1,000 homeowners deductible at $91 per month. On top of good pricing, Amica also rated highly in the JD Power homeowners study.
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 |
"Another savings tip is a higher deductible for wind/hail. If you feel like you live in an area where the weather is always nice without any high winds with no trees around, go for the higher deductible."
Hunter Black — Licensed insurance professional at The Zebra
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 |
What's the cheapest home insurance after claims?
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:
State Farm comes in at an average cost of $122 per month after a fire claim.
USAA is the company that has the cheapest rates after a weather claim, coming in at $110 per month.
| 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 |
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, about one in 20 insured homes makes a claim each year.[3]
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.
"Most home insurance rates are out of your control. They are based on insurance carriers's loss ratios based on your location. Loss ratios are determined by how much the insurance company pays out on claims and how much premium they bring 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
| 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.[4]
At an average of $116 per month, Allstate is the cheapest major carrier for owners of aggressive dog breeds.
| 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 |
The Zebra's data suggest owning an "aggressive breed" dog does not move the insurance pricing needle too much (only about 1%).
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 JD 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.
FAQs
Data Methodology. The Zebra’s Dynamic Insurance Rating Tool
JD Power: 2023 Homeowners Insurance Study
Insurance Information Institute: Facts and Statistics about Home and Renters insurance
Insurance Information Institute: Dog Bite Liability
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.