• December 22, 2017 - We’ve updated this review to reflect changes in provider policies and offerings and to include a more comprehensive guide to cutting your insurance costs. A top pick, State Farm, replaced MetLife for having better financial strength and a highly personalized online quote process.

The Best Cheap Homeowners Insurance

Homeowners have a variety of options to lower the cost of their insurance, regardless of provider. But sacrificing coverage and quality of service will end up costing you more when disaster strikes. To find the best cheap homeowners insurance, we vetted companies for their financial strength, coverage options, customer service, and opportunity for discounts. Our three favorites nail these requirements and individually excel in those categories. To find your best (and your cheapest), we recommend getting quotes from all three and comparing their policies.

Amica has a well-earned reputation for exceptional customer service and long history of doling out dividends (a percentage of the companies earnings). It earned a 94/100 from Consumer Reports readers and won the J.D. Power customer service award. Amica offers lots of opportunity for discounts, too — including unique savings for paying online and remaining a loyal customer.

With Allstate, you’ll find ample guides for understanding and purchasing homeowners insurance. If you Google questions about homeowners insurance, it’s likely an Allstate article that will pop up with unbiased and comprehensive information. Stocked with tools that evaluate your local risks and infographics that neatly sum up everything you need to know, Allstate stands out for its great online resources. It also boasts eleven discounts, with unique price cuts for new customers during their first two years and for purchasing a policy before your current one expires.

State Farm offers the most detailed online quote process, which catalogues features like the percentage of carpet-covered floors and the breed of dog you have. It will leave you confident in the quote you’re given. It also has the strongest financial ratings of out top picks, indicating a strong likelihood the company can back its policyholders in times of crisis.

Our Picks for the Best Cheap Homeowners Insurance

Amica: Best Customer Rating

Amica - Homeowners Insurance

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.

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.

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 5-20% of your annual premium. One drawback: Premiums tend to be slightly higher for mutual companies. But between dividends, discounts, and high customer ratings, Amica is a clear frontrunner and potentially your cheapest option.

Allstate: Best for New Homeowners

Allstate - Home Insurance

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, you can arm yourself with everything you need to know as a newbie. You can even get a personalized walkthrough of insurance-relevant stats for your specific address using Allstate’s GoodHome tool. The tool uses Google Street View to display 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.

Whether you want a price break for bundling, setting up automatic premium payments, or securing your home with burglar alarms and fire extinguishers, Allstate offers a discount for it. 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.

Allstate ranked in the better half of all homeowner insurers for customer satisfaction, notably beating out Nationwide, Farmers, MetLife, and Safeco, though it doesn't fare as well as Amica and State Farm. You may get a cheaper quote from Allstate, but customers have mixed views as to whether they’re getting their money’s worth. Its 3/5 rating from J.D. Power and 80 from Consumer Reports indicate that Allstate customers are less satisfied than Amica customers with 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

State Farm - Homeowners Insurance

As the most popular insurance company with the highest percentage of market share, State Farm has excelled in customer retention for its reliable financial strength, fair discounts, and good customer service.

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 willing and able to pay out its claims, even in disaster circumstances where many customers are filing claims. Insurance companies aren’t invincible; Even American International Group (AIG) needed government bailout during the 2008 recession. Around that time, Moody’s downgraded AIG’s rating to reflect a negative outlook. While many circumstances can influence the financial state of these corporations, their agency ratings are a valuable metric.

When it comes to saving on your investment, State Farm primarily offers discounts around specific preventative home additions: sprinklers, fire extinguishers, and all kinds of alarms. In addition, you can receive a discount for having a new utility system and a certified impact-resistant roof.

With an 82/100 satisfaction score from Consumer Reports and 4 power circles across the board from J.D. Power, State Farm’s customer service trends better than Allstate. State Farm scored best in their damage amounts and policy offering categories, likely because they have 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.

A Guide to Cheaper Homeowners Insurance

If you’ve still got price on your mind, there 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.

While you can’t control the location of your home, (and its natural disaster risks), you can control some other common liabilities and precautions that qualify for discounts. 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.

If you make any home improvements, 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 (that are monitored). That also extends to improvements that help guard against natural disasters, like storm shutters and stronger windows. Similarly, you’ll want to keep tabs on your personal belongings to make sure any notable additions or subtractions are reflected.

Want to know what makes your homeowners insurance company cringe? Trampolines, swimming pools, and “risky” dog breeds such as pit bulls. 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.

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.

The Best Cheap Homeowners Insurance: Summed Up

Cheap Homeowners Insurance
The Best
Amica
Customer Rating
Allstate
For New Homeowners
State Farm
Personalized Online Quote