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Last updated on Apr 03, 2020

The Best Cheap Homeowners Insurance Companies

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The best cheap homeowners insurance providers offer sufficient coverage at a price you can afford. To find the one that's right for you, consider the discounts and coverage offered by several providers and compare quotes. Our quote tool can help you in your search.

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How We Found the Best Cheap Homeowners Insurance Companies

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5 ratings systems considered

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25 discounts evaluated

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7 top picks

The best cheap homeowners insurance companies offer abundant discounts to cut prices without slashing protection. We looked at ratings from industry leaders like J.D. Power and AM Best to find companies that balance lower premiums with good customer service, ample coverage, and financial stability. To choose the best — and cheapest — for you, we recommend gathering quotes from all seven of our top picks.

The 7 Best Cheap Homeowners Insurance Companies

Liberty Mutual Allstate American Family Nationwide USAA Amica State Farm
Our review Our review Our review Our review Our review Our review Our review
Best for Inflation protection New homeowners Ways to save Replacement coverage Military members and families Customer ratings Personalized quote
AM Best financial strength rating A A+ A A+ A++ A+ A++
2019 J.D. Power Home Insurance Study 2/5 3/5 3/5 2/5 5/5 5/5 4/5
S&P Global financial strength rating A AA- A+ A+ AA+ n/a AA
Moody’s financial strength rating A2 Aa3 n/a A1 Aa1 n/a n/a
Get a quote Get a quote Get a quote Get a quote Get a quote Get a quote Get a quote

Source: J.D. Power 2019 U.S. Home Insurance Study

5 Tips For Finding Cheap Home Insurance

Finding cheap homeowners insurance can take some time but it’s worth it in the long run in making sure your home is protected without breaking the bank. Here are just some of the things that will help you get the cheapest homeowners insurance:

Step 1: Read reviews. Consult customer reviews and scores in order to get an idea of the common complaints and praises for each provider.

Step 2: Look for discounts. Don’t limit your decision to which provider has the most. Instead, look to maximize your opportunities by going with a provider that offers the most discounts that apply to you.

Step 3: Improve your risk profile. Insurers use different factors to estimate how likely you are to have a claim when pricing your policy. Some factors, like your age and how many claims you’ve filed in the past, are out of your control, but some offer an opportunity to save. For example, increasing your credit score and limiting the claims you make going forward can help keep your premiums down.

Step 4: Upgrade your home’s safety and stability. Not only will installing a security system and utilizing weather-resistant materials make your home that much stronger, they might also save you some money.

Step 5: Bundle policies. If you can get your homeowners insurance from the same provider covering your car, you should see if the provider offers a bundling discount. For example, providers like American Family will help you save 29% on auto by bundling, and you’d also get 20% off your home coverage.

Step 6: Shop around. As with any big investment, you don’t want to pull the trigger on signing for a policy until you’ve exhausted every possible opportunity. Take some time to really shop around and put a list together of your top picks. You can use ours as a starting point.

Average Cost of Homeowners Insurance

The average annual cost of homeowners insurance is $1,211, according to a recent National Association of Insurance Commissioners (NAIC) study. Rates can vary widely, however, based on factors like location, the age of your home, and your coverage level, so the only way to know the best rate for your home is to request personalized quotes to compare.

Methodology – How We Chose These Companies

Value

We’d never recommend picking an insurance company based on price alone. The entire point of carrying insurance is to be taken care of in rough times. When that time comes, a super cheap policy with paper-thin protection won’t be worth even the tiny premiums you paid for it.

“The best way to find the cheapest homeowners insurance is to comparison shop – and price isn’t the only consideration when making those comparisons. Homeowners should make sure they take the amount of coverage into account. Of course a policy that covers less will be cheaper, but those savings won’t help homeowners when it’s time to file a claim and they are primarily paying for damages out of pocket.”


Ruth Awad

Content Director at Kin Insurance

Plus, rates aren’t one-size-fits-all. A ton of factors impact your home insurance quote: everything from the age of your house and its neighborhood statistics to your geographic area and its natural disaster risk. We already surfaced a collection of great companies in our review of the best homeowners insurance companies. Here, we identify which among them offer the greatest value by isolating customers’ satisfaction with pricing relative to their coverage.

Discounts

When building your insurance policy, companies will offer discounts on your premium if you take measures that make you a lower-risk investment. For example, many companies give you a break for taking certain safety measures, like installing deadbolts or a security system. Most will knock their prices even lower if you don’t have a long claims history or if you sign up for autopay. We took into account the number and type of discounts offered to help maximize your chance at an affordable policy.

Financial strength

Independent agencies like AM Best, S&P Global, and Moody’s provide ratings on the financial strength of insurance companies. These agencies assess the ability of an insurance company to remain solvent in the event of major crisis or difficult economic times. While companies of such status seem invulnerable to failure, not even these have limitless funds. One notable example: American International Group (AIG) needed a government bailout during the 2008 recession. While many circumstances can influence the financial state of these corporations, their agency ratings are a valuable metric. A good rating is confirmation that an insurer can back your claim when it matters most.

Customer satisfaction

J.D. Power’s annual U.S. Household Insurance Study and Consumer Reports’ customer experience survey measure communication, price satisfaction, claims process, and timely reimbursement. From J.D. Power, we required companies to have a score of three out of five or better, plus an above-average Reader Score from Consumer Reports. High scores reflect a company’s ability to handle claims and communication kindly, effectively, and without frustration.

Endorsements

“There are many coverage options and additional riders that people should know about when shopping for homeowners insurance. People should also be aware of risk of loss for their location or specific property. For example, California residents may be more prone to damages from earthquakes and fires so it is important they understand their options for covering those potential losses.”


Ali Hashemian President of Kinetic Financial

We catalogued optional coverage additions that can fill gaps in your policy or cater to specific disaster-prone regions. Earthquakes, for example, aren’t covered in a standard policy, but for those living near fault lines, an endorsement that will cover damage resulting from an earthquake is wise. It’s important that insurance companies offer a variety of useful endorsements to help create a policy tailored to your home’s true risks.

Best for Inflation Protection: Liberty Mutual


Best for Inflation Protection
Liberty Mutual
Liberty Mutual


Pros

Excellent customer service
Ample discounts
Unique dividends policy

Cons

Limited online resources
High premiums

Why we chose it

Inflation protection

We were impressed with the inflation protection offered by Liberty Mutual. Simply put, Liberty Mutual will automatically adjust your coverage limits in order to take inflation into account. A lot of houses on the market sell at a much lower cost than it took to build them. As a result, it’s easy to fall into the trap of insuring your home for the price you paid rather than what it will actually cost to rebuild. Add to that the overall increase in the value of your property, and you start to see the problem. However, Liberty Mutual’s inflation protection helps to guard against this financial faux pas while also granting a discount on your policy premium.

Lots of discounts

Like State Farm, Allstate, and Amica, Liberty Mutual doesn’t skimp when it comes to discounts. The provider features some pretty standard ways to save, including discounts for having multiple policies, opting into autopay, and being claim-free. There’s also a military discount, which we didn’t find with any of our other top picks. (The only other provider with perks geared toward military members is USAA, which specializes in this.)

Points to consider

Unexceptional claims process

Liberty Mutual doesn’t have the highest scores from J.D. Power when it comes to interactions with agents and the overall claims process. Consumer Reports also gave Liberty Mutual a less-than-perfect score with regard to the ease of filing a claim through the company. While this doesn’t guarantee that you’ll have a bad experience, if you’d rather not leave anything up to chance, you might consider Amica, which boasts both a great customer service experience and ample discounts.

Best for New Homeowners: Allstate


Best for New Homeowners
Allstate
Allstate


Pros

Expansive online tools
Extensive endorsements

Cons

Mediocre customer service

Why we chose it

Expansive online tools

Allstate stands out for its comprehensive educational tools — it’s a great resource for new homeowners, or anyone who doesn’t like to buy anything without full knowledge of the space. With a robust guide filled with general homeowners insurance information, Allstate helps 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.

Screenshot taken from: https://ourstory.allstate.com/forourcustomers/innovating/

Extensive endorsements

Another feature that made Allstate stand out from the rest of our top picks was the massive amount of optional coverages available. These include everything from your standard endorsements like identity theft restoration and expanded coverage for landscaping to more unique ones like a green reimbursement option and coverage for your musical instruments. The only other provider on our list with more endorsements was Nationwide.

Points to consider

Mediocre customer service

You may get a cheaper quote from Allstate, but customers have mixed views as to whether they’re getting their money’s worth. J.D. Power gave Allstate three out of five power circles for customer satisfaction. These fair rankings were also reflected by Consumer Reports’ analysis of the customer experience, like agent courtesy and the time it took for payments to be received. If price truly is the most important factor to you, Allstate may very well offer you the cheapest quote. However, you should always weigh the cost against what you’re getting. If you can afford to pay a little more for exemplary claims processing and agent interactions, another provider such as Amica might be a better option.

Most Ways to Save: American Family


Most Ways to Save
American Family Insurance
American Family Insurance


Pros

Detailed online quote
Excellent financial strength

Cons

Few advertised discounts

Why we chose it

Lots of advertised discounts

American Family stood out for having more advertised discounts than a lot of other providers on this list. These include all the ones you might expect, like a discount for making your home safer (by installing smoke/heat sensors and home security) a discount for holding multiple policies. Notable were some less common ways to save, such as a discount for customer loyalty (Amica was the only other service to offer this) and a generational discount for if your parents happen to be American Family customers.

Bundling bonus

Say you wanted to add an auto coverage policy through American Family; not only would you save 29% on auto by bundling, but you’d also get 20% off your home coverage. Not to mention, bundling keeps things simple, as all of your payments go through one provider.

Points to consider

Less-than-stellar claims process

According to the Consumer Reports homeowners insurance survey, American Family customers found the claims process unintuitive. If you’re looking for a provider with a more streamlined process, we recommend Amica. While the company might not have as many discounts as American Family, you can rest assured knowing that Amica received the highest possible marks for everything from the simplicity of filing a claim to the courtesy of the agents.

Best for Replacement Coverage: Nationwide


Best for Replacement Coverage
Nationwide
Nationwide


Pros

Inflation protection
Lots of discounts

Cons

Unexceptional claims process

Why we chose it

Unique coverage options

Nationwide stood out to us because of its unique and valuable coverage options, such as better roof replacement. With this coverage, customers who have suffered a covered loss can have their roofs rebuilt with stronger materials. Nationwide was also one of the few providers on our list that offers flood insurance.

“Home damage caused by a flood can range from the low thousands of dollars all the way up to the total value of the home. Coverage for floods is NOT covered under a standard homeowners insurance policy and needs to be covered under a separate flood insurance policy.”


Joel Ohman
Certified Financial Planner™ and Founder of InsuranceProviders.com

Most homeowners insurance providers don’t cover floods, instead directing you to the National Flood Insurance Program.

Reimburses full value of belongings

Nationwide’s Brand New Belongings coverage doesn’t just pay to repair or replace your damaged and stolen possessions; it provides money at the depreciated value of your covered items. Then, once you’ve paid for repairs or purchased replacements, you can send your receipt to Nationwide and the company will pay the difference. Few homeowners insurance companies will go the extra mile to reimburse the full value of your belongings.

Points to consider

Not the cheapest premiums

All of Nationwide’s perks come at a price, unfortunately. Nationwide is not known for being the absolute cheapest homeowners insurance provider, although it’s also not the most expensive. You might be able to do better with Liberty Mutual, which provides protection for your possessions and offers as many ways to save as Nationwide.

Best for Military Members and Families: USAA


Best for Military Members and Families
USAA

Pros

Lots of advertised discounts
Bundling bonus

Cons

Less-than-stellar claims process

Why we chose it

Stellar customer service

USAA offers all the hallmarks of a good homeowners insurance provider, like coverage against fire, theft, vandalism, and weather-related events. However, excellence in customer service is what really makes the company stand out. J.D. Power rated USAA five out of five for overall customer satisfaction.

Exceptional financial strength

Whether you consult AM Best, Moody’s, or S&P Global, the outcome is the same: USAA is a financial powerhouse, with an A++, Aa1, and AA+, respectively. This means that when disaster strikes, you can depend on USAA to settle your claim and help get you back on your feet.

Points to consider

Not for everyone

USAA is only available to military service members and their families. This drastically limits the appeal of what is otherwise a reliable, professional, and pleasant homeowners insurance provider to work with. However, if you meet its requirements, you’ll find plenty to appreciate about USAA. And if you’re in the military but find that USAA just isn’t for you, consider Liberty Mutual, which offers a military discount and, frankly, more discounts than USAA.

Best Customer Ratings: Amica


Best Customer Ratings
Amica

Pros

Unique coverage options
Reimburses full value of belongings

Cons

Not the cheapest premiums

Why we chose it

Excellent customer service

Amica earned all five power circles from J.D. Power in the U.S. Home Insurance Study. In addition, Amica received top marks from Consumer Reports in all aspects of the survey, including agent courtesy, the simplicity of the claims process, and how long it took for claims to be paid.

Ample discounts

Amica is second only to Allstate in terms of discount quantity. Notably unique is its paperless bill discount, which can save you both work and money, as you won’t have to mail in your check every month. The only other provider in our top picks that offered this was Liberty Mutual. You can also take advantage of a full gamut of standard discounts for security and safety — things like owning or installing fire extinguishers, sprinklers, and fire alarms.

Unique dividends policy

On top of traditional price cuts, Amica offers policyholders the chance to actually make money through their house insurance. Because it’s a mutual company, Amica is member-owned, not investor-owned, and pays dividends to policyholders, not stockholders. If you opt for a dividends policy and the company does exceptionally well financially at the end of any given term, you stand to receive a payback between 5% to 20% 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 and some related blog posts. Unlike Allstate, you won’t have access to tools and guides to help educate yourself about insurance. You can get an online quote, but because of the bare-bones nature of the website, we’d recommend calling.

Most Personalized Quote: State Farm


Most Personalized Quote
State Farm
State Farm


Pros

Stellar customer service
Exceptional financial strength

Cons

Not for everyone

Why we chose it

Detailed online quote

State Farm has the most thorough online quote process of our top picks. 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 360 Value 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.

Excellent financial strength

We required a strong financial outlook for all our top picks, but State Farm stood out for receiving the highest possible rating from AM Best (A++), as well as a top score of (AA) from S&P Global. These high ratings indicate that the company is able to pay out its claims, even in disaster circumstances where many customers are filing claims.

Points to consider

Few advertised discounts

When it comes to saving on your investment, State Farm does offer discounts, but they’re standard and fairly limited. Home additions like sprinklers, fire extinguishers, and alarms will get you a price break. But if you’re a new homeowner or if you’ve 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.

Frequently Asked Questions

The Best Homeowners Insurance by State

Every state has different insurance providers, as well as unique circumstances that affect policies and coverage. We’ve reviewed the five largest, highest-rated providers in every state using a methodology similar to the one employed in this review on nationwide companies.

About the Authors

Danika Miller

Danika Miller Staff Writer

Danika Miller is a writer for Reviews.com. Over the last three years, she has covered Insurance and other topics. She holds a bachelor’s degree in creative and technical writing from Western Washington University.