Homeowners insurance pricing and availability have shifted notably in recent years, so clear, up‑to‑date information matters. The answers below draw on current national rate studies and consumer resources from organizations such as NerdWallet, Bankrate, Forbes Advisor, and the Insurance Information Institute, plus state and regulatory guidance (for example, California’s Safer from Wildfires program). We also note market context (e.g., the BLS CPI trend for household insurance and catastrophe activity tracked by NOAA) so you can interpret quotes in 2025 conditions.
Who Has the Cheapest Homeowners Insurance?
“Cheapest” depends on your state, ZIP code, coverage limits, deductible, roof and home features, credit (where permitted), and claims history. Across multiple current national studies, carriers that frequently price among the lowest include Auto-Owners, Erie, USAA (military families only), Nationwide, State Farm, and Travelers — with availability varying by state. Regional standouts (e.g., Amica, Country Financial, Farm Bureau affiliates, Mercury, MAPFRE, AAA/Auto Club) can be the most affordable in their home territories. See recent comparisons from NerdWallet, Bankrate (2025 update), Forbes Advisor, and MoneyGeek. Finding the lowest price still requires quotes — start with these and compare to our review of companies that tend to offer cheaper rates.
How Can I Get Cheap Homeowners Insurance?
Rates have generally risen in many states due to higher catastrophe losses, reinsurance costs, and reconstruction inflation, so a methodical approach pays off. These steps are backed by current research and consumer guidance:
Read reviews. Use independent, state‑level rate comparisons and company profiles to spot low-cost options where you live — for example, recent analyses from Bankrate, NerdWallet, and Forbes Advisor — alongside customer feedback.
Look for discounts you can actually qualify for. Typical savings from basic protective devices (smoke detectors, burglar alarms, deadbolts) are about 5% with many insurers, while higher‑grade systems (e.g., monitored alarms plus residential sprinklers) can reach the mid‑teens or around 15–20% with some carriers — program and state rules vary (Insurance Information Institute; see also carrier programs like State Farm and Travelers). In some states, verified mitigation can drive even larger credits on catastrophe portions of your premium — for example, California’s Safer from Wildfires wildfire-hardening discounts or Florida’s statutory windstorm mitigation credits (Fla. Stat. §627.0629).
Improve your home’s safety and stability. Upgrades that reduce losses are increasingly rewarded: impact‑resistant or IBHS FORTIFIED roofs in wind/hail zones; wildfire defensible space, ember‑resistant vents, and Class A roofs in wildfire areas (Safer from Wildfires); and smart water‑leak detection with automatic shutoff (check your insurer’s recognized device list). These measures can qualify you for meaningful mitigation credits where approved.
Bundle policies. Multi‑policy discounts are among the most reliable savings levers. Allstate advertises “save up to” amounts for bundling (Allstate); State Farm presents an average annual savings figure for home+auto bundles rather than a fixed percentage (State Farm); and American Family markets a multi‑product discount with explicit “save up to” percentages by line (American Family). Actual savings depend on your state and profile. Telematics programs (Allstate Drivewise, State Farm Drive Safe & Save) and digital discounts can stack in many states.
Shop around. Get quotes from at least 4–6 carriers, including strong regional options, and compare identical coverage/deductibles. In catastrophe‑exposed states, also price your state’s FAIR Plan or insurer of last resort as a baseline and check admitted‑market options with/without hurricane or wildfire endorsements as applicable (Bankrate; MoneyGeek). You can use our picks as a starting point and refine by ZIP code.
What Factors Affect the Price of My Premium?
Premiums are driven by location‑specific hazard exposure, your home’s construction and roof condition, coverage choices and deductibles, and individual rating variables (claims, credit where allowed). Market forces also matter: the BLS household insurance CPI has outpaced overall inflation, and reconstruction costs tracked by CoreLogic remain above pre‑pandemic norms, while catastrophe losses and reinsurance costs keep pressure on base rates (NOAA). Exact rating factors are summarized by the Insurance Information Institute. This is a non‑comprehensive list of factors that may affect the price of your policy:
- Credit score
- Location
- Condition of plumbing and electrical equipment
- Vulnerability to large-scale weather events (wind damage/earthquakes/floods/etc.)
- Claim history
- Replacement cost
- Dog breed
- Wood-burning stove
- Home-based business
- Remodeling
- Home liability limits
- Insurance score
- Marital status
- Age and construction of home
- Ownership of trampolines, swimming pools, or hot tubs
- roof condition
- Proximity to fire station
- Square footage
- Number of inhabitants
- Local area claim history
- Home security system and safety features
What Is a Good Price for Homeowners Insurance?
There isn’t a single “good price” because averages vary widely by state risk, home profile, and coverage. A practical benchmark is to compare your quotes to current state averages for a standard modeled profile (many studies use around $300k–$350k dwelling coverage with a $1,000 deductible and clean claims) published by Bankrate (2025 update), NerdWallet, Forbes Advisor, and MoneyGeek. Current research shows national averages have risen, and state averages span from under $1,000 in some lower‑risk states to well above $3,000 in high‑risk areas, so judge a “good” rate relative to your state’s latest figures and your coverage/deductible selections. See more on the circumstances that can affect your quote.
How Much Homeowners Insurance Should I Buy?
Start by estimating what it would cost to rebuild your home today (replacement cost), inventorying your belongings, and assessing local perils. Insurers typically calculate replacement cost using reconstruction cost data and apply an inflation guard at renewal to keep limits aligned (CoreLogic). Consider separate flood insurance because standard homeowners policies exclude flood (FEMA/NFIP). Also review whether wind/hail or hurricane percentage deductibles apply in your area (NAIC).
- Estimated repair cost of your home
- Estimated value of your belongings
- If your home is located in an area prone to flooding or other weather-related concerns
We recommend putting together a home inventory and consulting with a home insurance agent to verify replacement cost inputs (square footage, roof year/material, finishes) and to tailor endorsements (e.g., water backup, ordinance or law, scheduled property) and liability limits to your risk profile.
Of all the variables that affect your premium, the most important is replacement cost value — the estimated amount to rebuild your home after a covered loss. This differs from market value and loan balance. Keep this figure current and understand how deductibles (flat vs. percentage for wind/hurricane) affect out‑of‑pocket costs and premiums (NAIC). Many carriers include an inflation guard that adjusts your dwelling limit over time.
What Is Covered by Homeowners Insurance?
Standard policies (often HO‑3/HO‑5) address six main areas: your dwelling, other structures, personal property, loss of use/Additional Living Expenses, personal liability, and medical payments. Coverage is subject to exclusions and special limits. For example, sudden water damage from a burst pipe is generally covered, but flood from external rising water is not and requires a separate policy (FEMA/NFIP). Insurers outline these categories and common exclusions in consumer guidance (Insurance Information Institute).
Standard coverages of homeowners insurance
- Dwelling (also called Coverage A). This includes the main building and its plumbing, heating, and air conditioning systems against damage from outside forces.
- Other structures (or Coverage B). This pays for damage to fences, sheds, garages, guest cottages, and any other structure not connected to your house.
- Personal property (or Coverage C). This reimburses you for lost, stolen, or ruined possessions such as furniture, electronics, and clothing, even when they aren’t on your property. You can choose to insure them for their actual cash value (the original value, less depreciation) or their replacement value (what it costs to buy a replacement in similar condition).
- Loss of use (or Coverage D). This pays for your living expenses during the time you’re unable to live in your damaged home.
- Liability (or Coverage E). This covers your financial loss if you or anyone in your family is sued for damages or injuries to someone else. The event doesn’t have to happen on your property. Increased limits for liability coverage — important if you own valuable assets that could be targeted in a lawsuit — can be added on as “umbrella coverage.”
- Medical payments to others (or Coverage F). This is intended to pay for relatively minor medical bills resulting from an injury, like if a friend cuts their finger while helping you make dinner.
Generally, standard policies exclude flood and earth movement (including earthquake), as well as war; wear and tear, fungi, contamination, and pests are also excluded. Separate policies or endorsements may help close gaps (e.g., NFIP/private flood, standalone earthquake in select states). Deductibles may differ for catastrophes like wind/hail or named storms in some areas (III; NAIC).
Will My Premiums Go up After Making a Claim?
Often, yes. Insurers typically review prior property losses via consumer claims databases such as LexisNexis CLUE, which generally retain up to seven years of history. Even a single claim can raise your renewal premium; multiple claims within a 3–5‑year window are more likely to trigger larger surcharges or even nonrenewal, subject to state rules (NAIC consumer resources). Many states restrict rating or nonrenewal actions for certain no‑fault or weather‑related losses; check your state’s guidance. Before filing a small claim, ask your agent how it could affect price and eligibility in your state.
What’s the Difference Between Homeowners Insurance and a Home Warranty?
Homeowners insurance covers sudden, accidental losses from covered perils (fire, wind, theft) to your dwelling, belongings, and liability; it’s generally required by mortgage lenders (Freddie Mac) and excludes flood (separate policy needed via NFIP/private flood). A home warranty is a service contract for breakdowns of specified systems/appliances due to normal wear and tear, typically with a per‑visit service fee (often about $75–$125) and coverage caps (CFPB; FTC). Warranties are not insurance and the provider usually selects the contractor. If that sounds like something you want, check out our review of the best home warranty companies.
Which Companies Offer Home and Auto Insurance Bundles?
Many home and auto insurance companies offer discounts if you purchase more than one policy. As advertised today: Allstate promotes multi‑policy “save up to” bundle savings (Allstate); State Farm cites an average annual savings figure for home+auto bundles (varies by state/profile; State Farm); and American Family markets a multi‑product discount with explicit “save up to” percentages by line (American Family). In practice, combined savings for bundling commonly fall in the 10%–25% range depending on carrier and state (Bankrate). Always compare both bundled and unbundled quotes across multiple companies — the cheapest total may come from separate providers, especially in high‑risk states.
