The Best Cheap Homeowners Insurance

  • Amica
    Best Customer Rating
  • Allstate
    Best for New Homeowners
  • State Farm
    Most Personalized Quote
  • Progressive
    Extended Endorsements
  • MetLife
    Best Replacement Coverage

Our Picks for the Best Cheap Homeowners Insurance

Amica: Best Customer Rating

Pros Cons
Excellent customer service Limited online resources
Ample discounts High premiums
Unique dividends policy

Why we chose it

Excellent Customer Service

Amica is the only company to earn all five power circles from J.D. Power in each of the six survey categories: overall satisfaction, policy offerings, pricing, billing and payment, interaction, and claims. Amica is also the only company to receive such a high rating in price, which means you have the highest chance of being satisfied with the cost of your coverage plan. In addition, Amica received top marks in customer satisfaction from Consumer Reports, with a Reader Score of 94/100. That’s a fairly significant lift over State Farm (82) and Allstate (80) and will likely mean a more painless process during times of turmoil.

Ample Discounts

With 10 discounts in total, Amica is second to Allstate for most discounts. Notably unique are its paperless bill and loyalty discounts, which save you work and money (you won’t have to mail in your check or shop around for new providers). You don't have to sweat missing out on standard discounts for security and safety, either — unlike Safeco, which fails to offer discounts for fire extinguishers, sprinklers, or fire alarms.

Unique Dividends Policy

On top of traditional price cuts, Amica offers a unique dividends policy. Because it’s a mutual company, the policyholders (rather than investors or stockholders) back the company. Amica policyholders could receive a dividend at the end of the term if the company does exceptionally well financially. This payback can be between 5 percent to 20 percent of your annual premium.

Points to consider

Limited Online Resources

You won’t find extensive information or resources on Amica’s website. The company’s site is pretty simple, with just a few pages of basic info about its products. Unlike Allstate, you won’t have access to tools and guides to help educate. You can get an online quote, but because of the bare-bones nature of the website, we’d recommend calling.

High Premiums

Premiums tend to be slightly higher for mutual companies, and that rings true for this provider. But between Amica’s discounts and the potential for dividends, it still might be your cheapest option.

Allstate: Best for New Homeowners

Pros Cons
Expansive online tools Mediocre customer service
The most discounts

Why we chose it

Expansive Online Tools

Allstate stands out for its comprehensive educational tools and extensive resources. It’s a great place to start if you’re new to the game of homeownership, and it also earns its spot on our list of cheap homeowners insurance companies by having the most discounts. With a robust guide filled with information about homeowners insurance that's not provider-specific, Allstate lets you arm yourself with everything you need to know. You can even get a personalized walkthrough of insurance-relevant stats for your specific address using Allstate’s GoodHome tool, which displays home details like market value, energy costs, and average repair costs of the most common hazards in the area (like fire or water damage). It also suggests tips for easing costs and choosing coverage.

The Most Discounts

Whether you want a price break for bundling, setting up automatic premium payments, or securing your home with burglar alarms and fire extinguishers, you can find a discount from Allstate. Unlike other providers, Allstate also has a “welcome” discount that lasts for your first two years, plus a discount for early shoppers who sign up before their current policy expires.

Points to consider

Mediocre Customer Satisfaction

You may get a cheaper quote from Allstate, but customers have mixed views as to whether they’re getting their money’s worth. The company’s 3/5 rating from J.D. Power and its score of 80 from Consumer Reports indicate that Allstate customers are less satisfied than Amica customers when it comes to policy price, interactions, and claims. If price truly is the most important factor to you, and Allstate offers you the cheapest quote, brace for potential frustration — but know that they’re dedicated to creating the best online resources for their customers.

State Farm: Most Personalized Online Quote

Pros Cons
Excellent financial strength Few discounts
Detailed online quote

Why we chose it

Excellent Financial Strength

We required a strong financial outlook for all our top picks, but State Farm stood out for receiving the highest possible ratings from A.M. Best (A++), as well as top scores from S&P (AA) and Moody’s (Aa1). These high scores are an indication and assurance that the company is able to pay out its claims, even in disaster circumstances where many customers are filing claims.

Detailed Online Quote

With an 82/100 satisfaction score from Consumer Reports and 4/5 power circles across the board from J.D. Power, State Farm’s customer service trends better than Allstate. State Farm scored best in damage amounts and policy offering categories, likely because it has the most thorough online quote process. You’ll need a binder full of details about your home to get a quote — with information as specific as the number of corners in your home’s frame. The quote process includes a 360Value tool that helps you calculate the Estimated Replacement Cost of your home, complete with detailed pictures to help you determine whether your interior cabinets are “Custom” or “Standard.” All this works together to give you an online quote that you can feel confident in.

Points to consider

Few Discounts

When it comes to saving on your investment, State Farm offers pretty standard and limited discounts. Home additions like sprinklers, fire extinguishers, and alarms will get you a price break. But if you’re a new homeowner or recently renovated, it might pay to shop elsewhere. You won’t have any luck with discounts for enrolling in autopay, being retired, or sticking with State Farm for the long term. If you want to maximize discount opportunities, we’d recommend Allstate.

Progressive: Extended Endorsements

Pros Cons
Renowned customer service Assorted underwriters
Extended endorsements

Why we chose it

Renowned Customer Service

Ranked right alongside State Farm and Allstate, Progressive earned a 3/5 from J.D. Power. One of the most popular praises is Progressive’s reasonable prices, likely due to the fact that you’ll get several policies to choose from with Progressive. Its attentive online quote tool will pair you with several of its several underwriting partners and their policy options. Other companies who use underwriters (like Geico), will automatically pair you with an underwriter. But with Progressive, the customers have options to prioritize and choose their policy.

Extended Endorsements

There are several unique endorsements that Progressive offers, so you can expand and customize your coverage. Its Inflation Guard option is pretty self-explanatory — your coverage amounts will adjust to match inflation rates. If you ever need to file a claim, you'll know that rising market costs won't leave you with too little coverage. If your home is decked out with fences, pools, and sheds, you can extend your home’s coverage to protect these items at no additional cost. You can also extend your personal liability and medical to cover any motor boats or small sailboats with its watercraft endorsement.

Points to consider

Assorted Underwriters

Before you grab a quote from Progressive, you should know that coverage and discount may vary depending on your state. This is because the company doesn’t back homeowners policies itself, but partners with other companies to offer it to Progressive Auto customers. As the company explains it, “Insurance through the Progressive Home Advantage® program is underwritten by select companies that are not affiliates of Progressive and are solely responsible for claims, including Homesite Group Incorporated, IDS Property Casualty Co., and ASI Lloyds, and their affiliates.” It’s definitely worth grabbing a quote, especially if you’re already a Progressive customer.

MetLife: Best Replacement Coverage

Pros Cons
Rare replacement coverage Dated website
First-rate customer service

Why we chose it

Rare Replacement Coverage

Typically, your insurance policy will pay 25 to 50 percent more than the value of your home when it (and everything inside) has been destroyed. This is called extended replacement cost coverage. But the cost of rebuilding is sometimes greater than a home’s value, which can leave a customer short in the event of a loss. Building materials and labor will continue to rise, but market value of a home is always in flux thanks to factors like neighborhood and the housing market. That means a home valued at $250,000 could end up costing $500,000 to replace. Other providers may only pay up to $425,000 in that scenario, but with MetLife’s unique guaranteed replacement coverage, you’ll receive the full $500,000. This will extend to cover both your home’s structure and its contents, and can be a major life saver in the event of an emergency.

First-Rate Customer Service

Ranked just after Amica by Consumer Reports, MetLife scored a solid 89/100 for customer service. Customers enjoyed timely payouts and the claims-filing experience in particular, two essential metrics for when you’ll need your insurance provider the most. With Metlife, you can trust it’ll reimburse and support you during disasters.

Points to consider

Dated Website

When it comes to online resources, don’t expect much information or assistance from MetLife. Its website is barebones, with nothing more than a seven-question FAQ and landing page. Even more dismaying, only people in 10 states have the option to get a quote online. For those who like to do extensive research online before making a call to a sales person, MetLife won’t have the online presence to satisfy a purchasing decision.

A Guide to Cheaper Homeowners Insurance

If you’ve still got price on your mind, here are a few ways you can lower your costs without sacrificing your coverage.

Raise your deductible.

By raising the amount you’ll pay out of pocket before your insurance kicks in, you’ll lower your premiums (monthly/yearly payments). You can save as much as 25 percent by raising your deductible to $1,000. This can be a risky choice, though, and should be considered carefully — it’s important that you don’t raise your deductible so high that you can’t afford to pay it when something goes wrong. If you live in a disaster-prone area or have trouble saving, keeping a low deductible and investing in protection on a monthly basis is the safer choice.

Maximize discount opportunities and limit liabilities.

If you make any home improvements or security upgrades, you might be able to reduce your premium — but only if you tell your insurer. Before investing in any renovations on your home, double-check what discounts are available. Chances are you already have the basics down, such as deadbolts and smoke alarms. But your insurer may reduce your rate if you go the extra mile with carbon monoxide detectors and home security systems (provided they're monitored). That also extends to improvements that help guard against natural disasters, like storm shutters and stronger windows. However, not every addition will help your premium. Trampolines, swimming pools, and “risky” dog breeds such as pit bulls will make your homeowners insurance company cringe. They’re all liability concerns, and liability concerns make rates go up.

Limit your claims.

Carefully consider the claims you file on your homeowners insurance, as it will raise the price you pay going forward. If you make several claims within a few years, you could be bumped into a “high risk” category with a potential 20 percent increase in premiums.

Consider bundling your insurance.

Companies universally offer a discount for holding multiple policies with them. By bundling auto, home, and life insurance, you can save money and maintain consistency in handling claims and communications.

Don’t ignore your credit score.

Most states allow insurers to factor in your credit score when deciding what you’ll pay. The logic? Customers with high credit scores are less likely to make claims, and the insurer will return some of those expected savings in the form of lower rates.

Homeowners Insurance FAQs

What are typical homeowners insurance rates?

When it comes to their prices, any of our favorites could be the cheapest for you. Most annual premiums for homeowners insurance range from $600 to $2,000 ($50 to $170 monthly). These rates vary because they’re influenced by highly personal circumstances. Is your home old or new? Is it framed with brick or wood? Is it in a busy city or a rural area? Is there a high risk of natural disasters such as hurricanes, floods, or tornadoes? Are you bundling your policy with other types of insurance, such as auto or life? Those are only a few of the circumstances that can affect your quote.

What else affects your premium?

Factors include: credit score, location, condition of plumbing and electrical, vulnerability to wind damage/earthquakes/floods, claim history, replacement cost, dog breed, wood-burning stove, home-based business, remodeling, home liability limits, insurance score, marital status, age and construction of home, trampoline or swimming pool or hot tub, roof condition, proximity to fire station, square footage, number of inhabitants, area claim history, security systems and safety features, and more.

How much homeowners insurance should you have?

Of all the variables that affect your premium, the most important will be replacement cost value. This accounts for the amount of money to completely rebuild or replace your home in the face of catastrophe. And the higher the replacement cost, the higher your premium. This value is critical — don’t underestimate it, even if you’re trying to trim your policy costs. That number isn’t going to be the same as what you paid for your home (it should account for appreciation), nor the market value (which accounts for the plot of land and location). It’s best to hire an independent appraiser to get this number right and then confirm it with an appraiser from your insurance company.

Is it against the law to not have homeowners insurance?

Technically, no — you can legally own a home without homeowners insurance. But realistically, you will be required to have it by your lender, if you pay a mortgage. After you’ve paid off your mortgage, you won't be legally required to maintain homeowners insurance. But because of the massive investment a home is, we would highly recommend it.

The Best Cheap Homeowners Insurance: Summed up

Amica
Allstate
State Farm
Progressive
MetLife
A.M. Best Financial Strength Rating
A+
A+
A++
A+
A+
J.D. Power Score
5/5
3/5
4/5
3/5
3/5
Consumer Reports Reader Score
94/100
80/100
82/100
N/A
89/100