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Last updated on Apr 07, 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.

Heads up: Coverage and pricing vary.

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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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5 top picks

Price isn’t the only consideration when shopping for homeowners insurance. You must also consider the insurer’s ability to pay claims, the quality of coverage, and level of customer care a provider offers.

When searching for home insurance, consider the level of coverage a company offers in its standard policy, along with optional coverages and discounts. To compile our list of the best homeowners insurance companies, we looked for providers that offer the best combination of financial stability, coverage, customer support, and price.

Best Homeowners Insurance Companies

  • Amica – Best discounts
  • Erie – Best personal property coverage
  • Nationwide – Best standard coverages
  • Progressive – Best rates
  • USAA – Best for military members

JD Power Home Insurance StudyAM Best Financial Strength RatingAverage Cost
Amica5 out of 5 starsA+ (Superior)$1,626
Erie5 out of 5 starsA+ (Superior)$ 839
Nationwide2 out of 5 starsA+ (Superior)$837
Progressive3 out of 5 starsA+ (Superior)$640
USAA5 out of 5 starsA++ (Superior)$1,073

*Data as of 3/15/2020.

Amica: Best discounts

Pros

  • Available in all states and Washington, D.C.
  • multi-policy discounts up to 30%
  • Platinum Choice Home package includes dwelling and personal property replacement cost coverage
  • Ranked #1 in J.D. Power’s 2019 U.S. Home Insurance Study

Cons

  • More expensive than many other carriers
  • Sets rates based on credit-based insurance scoring
  • Agents not available in all areas

In its 2019 U.S. Home Insurance Study, J.D. Power awarded Amica its top ranking. While Amica scored five out of five stars in all Power’s rating categories, we are most impressed with the carriers discount programs, which include a multi-policy discount of up to 30%.

We also like Amica’s Platinum Choice Home package, which includes standard coverage, along with business, computer, credit card, and water backup coverage. Amica isn’t the cheapest home insurance on the market, but it writes policies in all U.S. states.

Erie: Best personal property coverage

Pros

  • Guaranteed replacement cost dwelling coverage in standard policies
  • Multi-policy discounts up to 25%
  • Base policy covers pets up to $500
  • Availability of local agents

Cons

If a fire destroys your home, most insurers will settle your claim by paying the actual cash value of the property, but Erie includes replacement cost coverage in its standard home policies. 

Erie also offers discounts for installing fire alarms and security systems and up to 20% when you bundle car and home insurance.

Erie is only available in 12 states and Washington, D.C., but if you live within its service area, request a quote.

Nationwide: Best standard coverage

Pros

Cons

Nationwide writes homeowners policies in all states, except Alaska and Hawaii, and Washington, D.C. Nationwide’s website offers online quotes and policyholders can file claims online.

Nationwide’s standard policies go the extra mile by including contents, credit card, dwelling, loss of use, medical payments to others, law and ordinance, and other structures coverages. You won’t find such comprehensive coverage with many insurers.

Progressive: Best rates

Pros

Cons

Progressive offers the lowest homeowners insurance rates we’ve found. To reduce your rate, Progressive also offers discounts, including a single deductible option when you bundle home and auto policies.

Progressive’s online quote application — which provides a price comparison with affiliated carriers — makes shopping easy, while also providing you more choices.

USAA: Best for military members

Pros

  • Earthquake and home share coverage included in standard policies
  • 5-star J.D. Power rating
  • Up to 10% claims-free discount
  • Replacement cost coverage included in standard policy

Cons

  • Only available to military members and their families
  • Must be a member to get a quote
  • No local agents

USAA only offers insurance products to military members and their families. Nonetheless, the carrier’s standard policy features comprehensive protection, including earthquake and home sharing coverages, which other companies only offer as add-ons.

USAA scored five out of five stars in J.D. Power’s 2019 U.S. Home Insurance Study and AM Best gives the insurer its top credit rating.

Cheapest Homeowners Insurance by State

Top 10 Cheapest Homeowners Insurance States

Average Cost by StateAverage Annual Premium
Hawaii$326
Delaware$497
Oregon$589
Vermont$614
Utah$651
New Hampshire$684
Jew Jersey$727
Idaho$730
Alaska$740
Ohio$744

Top 10 Expensive Homeowners Insurance States

Average Cost by StateAverage Annual Premium
Florida$3,276
Oklahoma$2,736
Nebraska$2,623
Louisiana$2,361
Michigan$2,298
Colorado$2,086
Virginia$2,055
Kansas$2,021
Texas$1,944
South Dakota$1,942

 

Homeowners Insurance by Age of Home

Age of Home TierAverage Annual Premium
0-10$1,461
10-25$1,899
25-50$1,961
50+$1,966
Average across tier$1,822

Guide to Finding the Cheapest Homeowners Insurance

Insurance carrier discounts can help lower your premium, but there are also ways you can help reduce the amount you pay.

Raise your deductible

Low deductibles mean less out-of-pocket costs when you file a claim, but they also increase your premium. To lower your rate, consider increasing your deductible.

Maximize discount opportunities and limit liabilities

Always take advantage of every discount program your insurer offers. Also, limit your liabilities by making home repairs quickly and following a regular maintenance program.

Consider Bundling

By bundling your home and auto insurance, you can usually save 10% or more. Some companies even offer a single deductible on bundled policies.

Curtail your Claims

After filing a claim, your insurer may raise your rate. For minor home damages, consider paying out of pocket for repairs to avoid a rate increase.

Pay attention to your Credit Score

Most states allow insurance companies to set rates based on your credit score. For the best insurance rates, always pay all your bills on time.

How We Chose the Best Cheap Homeowners Insurance Companies

To determine the best cheap homeowners insurance companies, we considered several factors. Price is important to all homeowners, but you also must consider the financial strength of the insurer you choose.

Financial strength is the primary factor in an insurance company’s ability to cover its claims obligations. To assess each company’s financial strength, we turned to AM Best.

We also evaluated insurers based on the level of customer care they provide policyholders. To narrow the field, we chose companies that performed well on J.D. Power’s 2019 U.S. Home Insurance Study.

Ultimately, we chose five companies that offer the best combination of financial strength, price, and quality coverage.

AM Best

Founded in 1899, AM Best is the world’s oldest credit rating agency.  AM Best maintains close relationships with insurance carriers’ management teams and compiles financial and non-financial data to assess a company’s assets, claims expenditures, and stability, to produce an independent rating.

J.D. Power

Founded in 1968, J.D. Power is a leading consumer research company. Every year, J.D. Power conducts a study of the U.S. homeowners insurance market, evaluating each company’s performance in billing practices, claims handling, customer support, policy information and offerings, and price to produce a detailed ranking of the top providers.

FAQs

About the Authors

Michael Evans

Michael Evans Contributing Writer

Michael Evans is a freelance finance writer. His work has been published by Bankrate, Fox Business, The Guardian and Yahoo Finance.