To help you find the best and cheapest home insurance, MoneyGeek studied average premiums for various dwelling coverage levels and individual home insurance needs. Remember, insurance rates can vary by company, state, coverage level and more, so it’s important to determine the ideal policy for your needs and compare quotes from there.2024
Cheapest Home Insurance Providers on a National Level
State Farm is the most affordable homeowners insurance provider among major companies nationwide, charging an average of $85 per month, or around $1,026 per year. Nationwide is not far behind, offering average premiums of $103 per month — a small difference of $18 per month.
To ensure fair comparisons, these rates are based on a home insurance policy with $100,000 in dwelling coverage and $50,000 in personal property coverage. Look at the table below to compare home insurance quotes from the cheapest providers.
State Farm stands out as a top choice for affordable homeowners insurance, offering policies at an average of $85 per month. This affordability is complemented by a range of discounts to further reduce costs for homeowners. Two notable discounts include the Protective Device discount, which rewards homeowners for installing security devices like burglar and smoke alarms, and the Home Renovation discount for those who’ve recently renovated their houses.
Nationwide is another excellent choice for cheap homeowners insurance, offering policies at an average of $103 per month. The company has a range of discounts to make their policies even more affordable, such as a Multi-Policy discount for those who bundle their home insurance with other policies like auto insurance and a Gated Community discount, which benefits homeowners residing in secured communities.
The price gap between Travelers, the most expensive provider, and State Farm, the cheapest, highlights how shopping around can save you thousands per year. With the difference between the two insurers being $221 per month or a whopping $2,648 annually, it’s evident that being proactive and exploring different insurance options can help you find the cheapest home insurance policies.
However, it’s important to note that your insurance rates could vary significantly from the average premiums listed. Insurers determine pricing for each policy based on various factors, including your coverage level, location and home age. Additionally, while affordability is important, you also want to get value for your money. Different providers offer varying benefits, from comprehensive coverage to exceptional customer service. By comparing and contrasting, you’re not only getting cheap home insurance but also getting the best home insurance policy for your needs.
Cheapest Home Insurance Providers by Dwelling Coverage
The cheapest provider for a home insurance policy with $100,000 in dwelling coverage is State Farm, charging an average of $85 per month. However, the “cheapest” provider can vary depending on your dwelling coverage limits, as these largely determine your costs. While State Farm is predominantly the most affordable home insurance provider across different dwelling coverage limits, remember that rates can still change based on your location, credit score, home’s age and other factors unique to you.
Find out which companies offer the cheapest home insurance based on your desired dwelling coverage limits below.
Cheapest Home Insurance Providers by State
Finding affordable home insurance largely depends on where you live — State Farm, for instance, is the cheapest in 23 states, such as Colorado and Illinois, but Farmers is more affordable in 11, like California and New Hampshire.
Insurers use your location when determining rates since certain areas may be more prone to weather-related risks or higher theft rates, while others may be far from emergency services or have stricter building codes, all of which can affect the potential cost and frequency of claims.
Look at the table below to see which companies are cheapest in your state for your desired dwelling coverage.
By assessing location-based risks, insurers can accurately price policies to reflect the potential cost of claims. For instance, homes in coastal regions, such as Florida, might face higher threats from hurricanes. In contrast, properties in dry areas, such as California, could be at greater risk of wildfires. Urban locations have higher theft rates, whereas rural areas face challenges with emergency response times.
Cheapest Home Insurance Providers in Big Cities
The cheapest home insurance also depends on your city. In Peoria, Illinois, for instance, Nationwide is the cheapest, but in Chicago, State Farm is the most affordable. Like how it depends on your state, home insurance premiums can vary by city, as each has its own crime rates, population densities, building regulations and more.
Filter the table below to your state and determine which company is cheapest in your city.
Cheapest Home Insurance Providers for Bad Credit Homeowners
Having a poor credit score can take a toll on your finances, costing you an average of $2,685 more annually in comparison to homeowners with good credit scores — but by shopping around, you might be able to find cheaper premiums. Home insurance providers use your credit score as an indicator of financial responsibility, believing that individuals with higher scores are less likely to file claims and can manage risks more effectively. However, it’s worth noting that the law prohibits insurers from using your credit score to set rates in states like California, Hawaii or Massachusetts.
If you have a poor credit score, Nationwide is the cheapest provider for you, charging an average of $173 per month. See which provider may be the most affordable for you depending on your credit score and desired dwelling coverage below.
Cheapest Home Insurance Providers for Your Home’s Age and Type
The cheapest provider for insuring older homes built around 2000 is State Farm, charging an average of $85 per month. However, the “cheapest” provider can shift when considering the specific age and construction of the home, as these significantly influence the cost. Newer homes, for instance, might find cheaper home insurance with Nationwide, with premiums averaging $42 per month.
Apart from your home’s age, the type of roof and construction also significantly influence premiums. For instance, tile roofs are more fire-resistant than shake-treated ones but might be prone to breakage. Construction-wise, frame homes can be more fire-vulnerable, while masonry offers better windstorm protection. These factors, combined with the age of the house, influence the likelihood of claims, which makes insurers adjust premiums accordingly.
To find the cheapest home insurance provider for your needs, use the table below to filter between your home’s age, frame type, roof type and desired dwelling coverage.
7 Steps to Reduce Your Homeowners Insurance Costs
Who has the cheapest homeowners insurance? There is no single answer to that question. Still, there are steps you can take to find the most affordable homeowners insurance for you, including:
- Compare quotes: Comparing quotes from multiple insurance companies can help you find the lowest available rate.
- Shop for discounts: Every insurance company offers discounts. Some are pretty basic and widely available, such as discounts for bundling your insurance coverages, while others are more complex. For example, Allstate offers a discount to members who use automated payment options.
- Take advantage of your claims-free status: Farmers and Allstate are just a few insurance companies that provide a substantial discount for members who go for three to five years without filing a claim.
- Increase your deductible: The higher your deductible, the lower your rates will be each year.
- Improve your credit score: Paying your credit card bills on time can save you money on late fees, but if it helps improve your credit score, it can also reduce your homeowners insurance rates.
- Choose your home wisely: A home near a fire hydrant or the fire department is cheaper to insure. The same is true of homes that are not in a flood zone.
- Review your policy each year: Every year, you should review your policy to ensure you have the correct amount of coverage. However, you should also get quotes from other companies to ensure you still pay the lowest possible rate.
Frequently Asked Questions About Comparison Shopping for Cheaper Home Insurance
Finding the best deal on your homeowners insurance can be tricky, even with all the information presented above. Many people still have questions about buying insurance, so some of the most frequently asked questions regarding shopping for affordable home insurance are listed below.
Home insurance isn’t typically required by law, but you may be required to maintain insurance by your lender if you have a mortgage. Even people without a mortgage should still carry insurance to protect themselves in case of an emergency, whether a fire destroys your home or someone gets injured on your property and sues you.
Allstate is the cheapest company, according to the information presented above. However, getting multiple quotes is still essential to ensure you get the lowest possible rate for your insurance.
Dwelling coverage is the part of your insurance policy that covers the cost of repairing or rebuilding your home’s physical structure in the event of a covered loss. This is typically the largest portion of your insurance policy, so it is crucial to make sure you are not underinsured or overinsured for your dwelling coverage.
Personal property coverage, sometimes called content coverage, is the part of your policy that pays to replace your personal possessions (clothes, electronics, furniture, etc.) in the event of a covered loss.
Fires are covered perils under almost every home insurance plan, but not every fire is considered equal. For example, arson and other intentional fires are not covered by any insurance company, so it’s important to review your policy to see what exclusions apply to your specific coverage.
Theft is typically covered under the personal property portion of your homeowners insurance, both while your possessions are in your home and while they are not. If you are traveling and your belongings are stolen, your insurer will cover the loss. Each policy is different, though, so read your policy details carefully.
Earthquake and flood damage are both excluded from a typical home insurance policy, but this can vary based on your location. You can purchase both flood and earthquake insurance separately. Still, depending on your property’s location, you might have to pay a significant amount for the coverage.
Most home insurance payments are built into your mortgage, which means every month, when you make your mortgage payment, the bank sends a portion of that money to the insurance company. If your coverage is billed separately from your mortgage, you will need to work with your insurance company directly to make payments.
Home insurance rates are not based on age, which means the most affordable home insurance for seniors is also State Farm, costing an average of $85 monthly
Expert Insight on Affordable Homeowners Insurance
Alan Himmel
Licensed/Bonded Public Insurance Adjuster and Founder of Florida Allstar Public Adjusting, Inc.
Are there any homeowners insurance endorsements (flood coverage, guaranteed replacement cost, etc.) that you recommend for most, if not all, buyers?
When it comes to adding special endorsements to your insurance policy, there is no perfect policy that’s universal and that everyone should buy. This is because every insured person has different needs. Moreover, as you add endorsements to a policy, your premium goes up. Still, it’s better to have coverage and never need it than to need it and not have it. That being said, it’s important to look at your requirements. Do you have a dog?
Many homeowner insurance policies don’t automatically include liability coverage for dog bites unless you specifically add it to your policy as an endorsement. Do you have a screen pool enclosure? If so, you may want to buy an endorsement for this also since homeowner policies no longer automatically include this coverage, and they are usually one of the first things that get damaged in a wind storm.
Insurance can be a very complicated thing, and unless you have a good agent, it’s easy to make a mistake and find out when it’s too late that you made a mistake on your coverage. You are not expected to know everything when buying insurance or purchasing a house, so it’s common, especially among first-time home buyers, to make mistakes.
Is there a common mistake that first-time buyers make and, if so, how can they avoid it?
One easy mistake a first-time home buyer can avoid is buying a property with a history of claims. Interestingly enough, a bad claim history follows the property, so the next house owner could be in for a shocker when they find out their premium is higher than expected. My advice on this would be to have your agent pull up a CLUE report. This is a free report you can request when purchasing a property, which gives you the claim history associated with the house. You wouldn’t want to buy a property that has been flooded, had fires or had multiple water leak insurance claims.
Are there any homeowners insurance exclusions that might be surprising to a first-time buyer?
Finally, it may surprise everyone, including first-time home buyers, but buyers should be aware that there could be certain exclusions on their homeowner policy. One exclusion is for flood, which is never part of a homeowner’s policy and will have to be added separately. Another exclusion a first-time home buyer may be surprised to learn about is water leak coverage on older properties. You may have fallen in love with a quaint old house and purchased it because it has loads of character and you feel it will be a great place to raise a family. However, often, old houses can only be insured with a certain type of policy called an HO8, and these policies have exclusions for water leak damage due to a burst pipe. This is not good, especially because most insurance claims are for damages caused by plumbing leaks.
