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The Cheapest Homeowners Insurance Companies

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    Reviews Report

    • New Jersey Manufacturers (NJM) offers the cheapest homeowners insurance at $499.99 a year on average, based on available data.
    • Top cheap home insurance companies include NJM, Auto-Owners, and Cincinnati Insurance.
    • Homeowners can find cheap home insurance by bundling other policies and saving up to 25% on premiums.

    Shopping for cheap home insurance can be quite an undertaking when there are so many home insurance companies to shop and compare. However, coverage options can vary considerably, so it’s important not to just pick a cheap homeowners insurance provider. An important part of keeping insurance premiums low is finding the right provider that offers the needed protection for personal property and at a price you can afford. 

    We compare expert analysis with industry ratings and in-depth research to provide an accurate portrait of today’s best cheap home insurance companies. When it comes time to find a new homeowners insurance policy for your home, these six leading companies are an excellent place to start for your cheap home insurance quote.

    The 6 Cheapest Home Insurance Companies

    Compare the Best Cheap Home Insurance

    Reviews.com Score Score is based on company’s customer experience, financial stability, and coverage options. Avg. Annual Premium* J.D. Power* J.D. Power scores are based on surveys for customer satisfaction and product quality. AM Best Rating AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
    Pin NJM4.75 $499.99N/AA+
    Pin Mercury Insurance2.75 $917.96N/AA
    Pin Erie3.8$988.23839A+
    Pin Cincinnati Insurance4.25$1,004.96N/AA+
    Pin Nationwide4 $1,291.35808 A+
    Pin Auto-Owners 4.8 $1,376.87843 A++

    Information accurate as of July 2021

    *Data provided by Coverage.com
    *J.D. Power’s 2020 Home Insurance Satisfaction Study average rating across all regions. Based on a 1,000-point scale.

    Cheap Homeowners Insurance Companies, Reviewed

    New Jersey Manufacturers

    Cheapest Home Insurance

    Why we chose it

    Not only does New Jersey Manufacturers have a high Reviews.com score, but it offers the cheapest homeowners insurance with average yearly premiums of $499.99.
    • 4.75 Reviews Score Score is based on company’s customer experience, financial stability, and coverage options.
    • $499.99* Average Premium Pricing data comes from our partners at Coverage.com.
    • N/A J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.
    • A+ AM Best Rate AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.

    Why we chose it

    Not only does New Jersey Manufacturers have a high Reviews.com score, but it offers the cheapest homeowners insurance with average yearly premiums of $499.99.

    Pros

    • Bundling discounts available
    • Opportunity to receive dividends
    • Wide variety of endorsements

    Cons

    • Not rated by J.D. Power
    • Some coverages and discounts are not available in every state
    • Fewer online tools and resources than some competitors
    Read More

    Available Discounts

    • Multi-policy
    • Smoke alarm/fire sprinkler system
    • Retired homeowner
    • Backup or portable generator
    • Non-smoker
    • Storm shutters and hurricane glass
    • Pay in full
    • Electronic payment

    Additional Coveragef

    • Scheduled personal property
    • Credit card fraud
    • Valuable items
    • Identity theft fraud
    • Family liability
    • Fungi, wet/dry rot, and bacteria
    • Supplemental loss assessment
    • Water backup/sump pump
    • Earthquake insurance
    • Flood insurance

    More NJM Insurance Reviews

    Mercury Insurance

    Best for Specialty Add-On Coverage

    Why we chose it

    Mercury’s service lines and cyber management specialty add-ons offer homeowners unique coverage options not seen from many of its competitors.
    • 2.75 Reviews Score Score is based on company’s customer experience, financial stability, and coverage options.
    • $917.96* Average Premium Pricing data comes from our partners at Coverage.com.
    • N/A** J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.
    • A AM Best Rate AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.

    Why we chose it

    Mercury’s service lines and cyber management specialty add-ons offer homeowners unique coverage options not seen from many of its competitors.

    Pros

    • Flood and earthquake insurance available (separately)
    • Special endorsements available
    • Dedicated agent for every customer

    Cons

    • Not rated by J.D. Power
    • Not available nationwide
    • No online claims available
    Read More

    Available Discounts

    • Bundling
    • Protective devices
    • Fire-resistant materials
    • Newer home
    • Gated community

    Additional Coverage

    • Home systems coverage
    • Flood
    • Earthquake
    • Identity/cyber theft
    • Service lines 
    • Extended replacement cost
    ERIE Insurance

    Best for Basic Home Insurance

    Why we chose it

    Although we dubbed it “basic,” Erie’s cheap homeowners insurance is anything but. Included in its base policies are higher-than-average limits for valuables such as precious metals and coins, and coverage for gift cards, animals, and hard-to-replace items such as passports.
    • 3.8 Reviews Score Score is based on company’s customer experience, financial stability, and coverage options.
    • $988.23* Average Premium Pricing data comes from our partners at Coverage.com.
    • 853* J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.
    • A+ AM Best Rate AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.

    Why we chose it

    Although we dubbed it “basic,” Erie’s cheap homeowners insurance is anything but. Included in its base policies are higher-than-average limits for valuables such as precious metals and coins, and coverage for gift cards, animals, and hard-to-replace items such as passports.

    Pros

    • Strong financial ratings from AM Best
    • Lower-than-average customer complaint ratings
    • Two flood insurance coverage options

    Cons

    • Not available nationwide
    • No home insurance mobile app or online claims
    • Limited discounts
    Read More

    Available Discounts

    • Smoke/burglary alarm system or automatic sprinkler system
    • Advanced quote
    • Multi-policy

    Additional Coverage

    • Water backup and sump pump
    • Identity theft
    • Service lines

    More Erie Insurance Reviews

    Cincinnati Insurance

    Best for High-Value Homes

    Why we chose it

    Cincinnati Insurance crafted specialty home insurance policies for homes at least $500K or $1 million, perfect for homeowners with high-value structures in the event of a disaster.
    • 4.25 Reviews Score Score is based on company’s customer experience, financial stability, and coverage options.
    • $1,004.96* Average Premium Pricing data comes from our partners at Coverage.com.
    • N/A** J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.
    • A+ AM Best Rate AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.

    Why we chose it

    Cincinnati Insurance crafted specialty home insurance policies for homes at least $500K or $1 million, perfect for homeowners with high-value structures in the event of a disaster.

    Pros

    • High-value home coverage
    • Strong financial ratings
    • Coverage for landscape features available

    Cons

    • No online quotes
    • Fewer discounts than competitors
    • Some coverages only available with high-value home policies
    Read More

    Available Discounts

    • Multi-policy
    • New home
    • Claims-free
    • Protective device

    Additional Coverage

    • Earthquake insurance
    • Golf cart insurance
    • Identity theft insurance
    • Family shield coverage
    • Assisted living coverage
    • Flood insurance
    • Water backup/sump pump coverage
    • Green updates coverage
    • Service line coverage
    • Equipment breakdown coverage
    • Cyber protection
    • Emergency event cancellation coverage
    • Single deductible
    • Loss prevention device coverage
    Nationwide

    Best for Valuables Coverage

    Why we chose it

    Nationwide provides a generous personal belongings replacement coverage through its brand new belongings, extended valuables, and replacement value plus coverage.
    • 4 Reviews Score Score is based on company’s customer experience, financial stability, and coverage options.
    • $1,291.35* Average Premium Pricing data comes from our partners at Coverage.com.
    • 808** J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.
    • A+ AM Best Rate AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.

    Why we chose it

    Nationwide provides a generous personal belongings replacement coverage through its brand new belongings, extended valuables, and replacement value plus coverage.

    Pros

    • Low customer complaint ratings
    • Brand new belongings coverage
    • Will replace roof with stronger, better materials

    Cons

    • Lower-than-average customer satisfaction
    • Mobile app is geared toward auto policy management
    Read More

    Available Discounts

    • Better roof replacement
    • Brand new belongings
    • Identity theft
    • Water backup
    • Earthquake
    • Flood
    • Replacement value plus
    • Valuables
    • Credit card coverage

    Additional Coverage

    • Identity theft
    • Valuables Plus®
    • Replacement cost plus
    • Water backup
    • Earthquake
    • Flood insurance

    More Nationwide Insurance Reviews:

    Auto-Owners Insurance

    Best for Customer Service

    Why we chose it

    Auto-Owners nearly tops J.D. Power’s home insurance satisfaction study and is accompanied by low NAIC complaint index scores.
    • 4.8 Reviews Score Score is based on company’s customer experience, financial stability, and coverage options.
    • $1,376.87* Average Premium Pricing data comes from our partners at Coverage.com.
    • 843* J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.
    • A++ AM Best Rate AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.

    Why we chose it

    Auto-Owners nearly tops J.D. Power’s home insurance satisfaction study and is accompanied by low NAIC complaint index scores.

    Pros

    • A dozen possible discounts
    • Low customer complaint and high customer satisfaction rating
    • Guaranteed home replacement cost coverage

    Cons

    • No online or mobile claims capabilities
    • No online quotes available
    Read More

    Available Discounts

    • Multi-policy
    • Paperless billing
    • Good payment history
    • Protective device
    • Pay in full
    • Backup generator
    • Mortgage-free
    • Auto water shutoff
    • Favorable loss
    • Advanced quote

    Add-on Coverage

    • Identity theft
    • Sewer or drain backup
    • Ordinance or law coverage
    • Extended personal property
    • Equipment breakdown

    More Auto-Owners Insurance Reviews

    *J.D. Power’s 2020 Home Insurance Satisfaction Study average rating across regions. Based on a 1,000-point scale.

    Cheap Home Insurance: What You Need to Know

    According to Coverage.com, the average cost of home insurance is $1,124 per year. However, the cost of home insurance included in our buyer’s guide is based on a few very specific rate factors, such as these:

    • Location: Where you live has a huge impact on how much you pay for home insurance. For example, if you live in a state like Florida or Texas that is prone to tornadoes or hurricanes, your home insurance could cost a lot more due to these increased risks.
    • Coverage amount: The dwelling coverage portion of your policy is a huge portion of what determines the cost of your home insurance policy. If you experience structural damage, this is what pays for the repair or replacement, so it is based upon the total value of your home. Furthermore, the value of the personal property covered under the policy will affect the insurance premium.
    • Level of risk: Insurance providers will consider both your credit history and claim history to determine your level of risk and insurability. If you have a history of late payments or you have lots of claims throughout your insurance coverage, companies will charge more to cover these additional risks.

    Other factors that determine the cost of your home insurance include the age and structure of your home, its condition, and the materials used to build it.

    How to Shop for Cheap Home Insurance Online

    To make sure you get the best cheap home insurance quotes for you, these are some tips to consider. 

    1. Shop around: Be sure to compare home insurance quotes to see which company offers the best pricing and discounts for you.
    2. Check ratings: Expert analysis and ratings from industry leaders can help you determine which providers’ services are proven and which are not. Check ratings from J.D. Power for customer satisfaction, AM Best for financial stability, and the National Association of Insurance Commissioners for customer complaints.
    3.  Bundle where you can: When you find an insurance company that you like, it pays to bundle your home and auto insurance with the right provider. Many companies offer additional savings on monthly premiums when bundling multiple insurance policies with the same company.
    4. Ask about discounts: Most insurance companies have an entire roster of savings and discounts that can reduce premiums. Some discounts may be based on the policyholder’s profile like age, credit score, and address. Others may offer discounts for safe driving, low annual mileage, military members, and retirees. 

    Bundling Home and Auto Insurance

    When purchasing more than a single policy with an insurance company, homeowners don’t just save money from bundling your insurance, they enjoy far more convenience, too. Instead of juggling multiple policies and providers, homeowners can simplify the process by working with a single provider for all insurance needs. It also can pay off in extra savings and discounts.

    \When shopping for cheap home insurance online, talk to an agent about any opportunities for bundling for extra savings and discounts. Most companies allow the opportunity to bundle home and auto insurance. You can also bundle other types of insurance, such as condo insurance, renters insurance, car insurance, boat insurance, motorcycle insurance, life insurance, travel insurance, and even pet insurance.

    Cheap Homeowners Insurance Discounts

    Home insurance is one item you should never try to buy at face value. Before purchasing a home insurance policy, be sure to thoroughly research options to see which one offers the best discounts. For example, Allstate offers discounts for multi-policy and claim-free discounts, while State Farm will discount policies for home security devices or a new roof. 

    Cheap homeowners insurance providers typically offer a variety of discounts that fall into a few different categories.

    Type of discountExamples
    IndividualAge
    Where you live
    Marital status
    Employment
    Education
    Memberships
    Policy
    Bundle discounts
    Loyalty
    Legacy or family
    Claims-free
    PaymentAuto-pay
    Paperless statements
    Paid-in-full
    Early renew
    HomeNew home or renovation
    Construction type
    Age of home
    Materials it is built from
    Safety upgrades or devices

    Home Insurance Companies with Bundle Discounts

    Home Insurance CompanyBundle Discount
    AllstateUp to 25%
    NationwideUp to 20%
    Progressive12%
    State FarmUp to $854
    USAAUp to 10%

    Cheap Homeowners Insurance Rates in the U.S. 

    *Data provided by Coverage.com

    Cheap Home Insurance FAQ

    Methodology 

    We evaluated cheap homeowners insurance companies based on availability, customer satisfaction, financial stability, and coverage to determine Reviews.com score and create our best home insurance reviews. To compare home insurance companies with other providers across the board, we calculate each Reviews.com score based on the following:

    • Coverage: The more options a home insurance company has for insurance add-ons and coverages, the higher it scores in our methodology.
    • Customer Experience: We reviewed the National Association of Insurance Commissioners’ National Complaint Index and compared each homeowners insurance company’s complaint rating.
    • Customer Satisfaction: With J.D. Power’s 2020 Home Insurance Satisfaction Study, we assigned a score to each company based on the rating it received.
    • Financial Stability: Reviews.com utilized AM Best ratings to assign a score based on each home insurance company’s financial stability.
    • Discounts: We reviewed and compared the number of discounts advertised on each home insurance company’s website. The more available discounts, the higher the score in this metric.

    About the Authors

    Lena Borrelli

    Lena Borrelli Contributing Writer

    Lena Borrelli is a freelance writer for Reviews.com. Over the last year, she has covered insurance, finance, and more. She has been featured in TIME with NextAdvisor, Bankrate, The Simple Dollar, MYMOVE, Million Mile Secrets, Coverage.com and more. My favorite article is “How to Invest in Real Estate During COVID?” on Reviews.com.

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