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The Cheapest Homeowners Insurance Companies

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    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 and most affordable homeowners insurance companies, we looked for providers that offer the best combination of financial stability, coverage, customer support, and price.

    The Best Cheap Homeowners Insurance Companies

    Average Price J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality. AM Best 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 Amica$1,626845A+
    Pin Erie$839838A+
    Pin Nationwide$837796A+
    Pin Progressive$640809A+
    Pin USAA$1,073878A++

    *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.

    Read our full review of Amica Homeowners Insurance.

    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

    • Only available in 12 states and the District of Columbia
    • No online quotes
    • Can’t file a claim online

    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

    • Standard policy includes loss of use coverage and ordinance or law insurance
    • Available in most states
    • Online quotes and claims filing
    • Inflation protection with standard policies

    Cons

    • Average J.D. Power rating
    • No loyalty or senior discounts

    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.

    Read our full review of Nationwide Homeowners Insurance.

    Progressive: Best rates

    Pros

    • Low rates
    • Single deductible when bundled with auto insurance
    • Online quotes with price comparison
    • 24/7 customer service

    Cons

    • No online claims filing
    • Few optional coverages
    • No earthquake or flood insurance options

    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.

    Read our full review of Progressive Homeowners Insurance.

    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.

    Read our full review of USAA Homeowners Insurance.

    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 Cost by Age of Home

    Age of Home TierAverage Annual Premium
    5$1,461
    20$1,899
    35$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.

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