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Cheapest homeowners insurance in June 2023

Erie and USAA offer the cheapest home insurance at rates less than $1,428 per year, according to Bankrate's average premium analysis.

Updated Jun 01, 2023
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Compare the cheapest home insurance companies

Based on our research, Erie and USAA offer the cheapest average home insurance rates in the U.S. Erie is available in 12 states and Washington, D.C., while USAA serves active-duty military, veterans and their qualified family members. If neither company is an option for you, you might want to get homeowners insurance quotes from the other options on our list: Auto-Owners, Nationwide, Travelers and Allstate.

In the tables below, you’ll find the average premiums for these six cheap home insurance companies to help get you started on your shopping journey.

Caret Down
Erie
Rating: 3.1 stars out of 5
3.1
Bankrate Score
Info
Monthly premium*
$80
Annual premium*
$957
Savings vs natl. avg.*
- $471
Get a quote
USAA
Rating: 3.7 stars out of 5
3.7
Bankrate Score
Info
Monthly premium*
$81
Annual premium*
$969
Savings vs natl. avg.*
- $459
Get a quote
Auto-Owners
Rating: 3.2 stars out of 5
3.2
Bankrate Score
Info
Monthly premium*
$87
Annual premium*
$1,049
Savings vs natl. avg.*
- $379
Get a quote
Nationwide
Rating: 3.2 stars out of 5
3.2
Bankrate Score
Info
Monthly premium*
$96
Annual premium*
$1,153
Savings vs natl. avg.*
- $275
Get a quote
Travelers
Rating: 3.3 stars out of 5
3.3
Bankrate Score
Info
Monthly premium*
$104
Annual premium*
$1,249
Savings vs natl. avg.*
- $179
Get a quote
Allstate
Rating: 3.5 stars out of 5
3.5
Bankrate Score
Info
Monthly premium*
$112
Annual premium*
$1,340
Savings vs natl. avg.*
- $88
Get a quote
*Based on policies with $250k dwelling coverage for 2023
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Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

Erie
Rating: 3.1 stars out of 5
3.1
Bankrate Score
Info
Annual premium*
$1,269
Monthly premium*
$106
USAA
Rating: 3.7 stars out of 5
3.7
Bankrate Score
Info
Annual premium*
$1,208
Monthly premium*
$101
Auto-Owners
Rating: 3.2 stars out of 5
3.2
Bankrate Score
Info
Annual premium*
$1,308
Monthly premium*
$109
Nationwide
Rating: 3.2 stars out of 5
3.2
Bankrate Score
Info
Annual premium*
$1,519
Monthly premium*
$127
Travelers
Rating: 3.3 stars out of 5
3.3
Bankrate Score
Info
Annual premium*
$1,654
Monthly premium*
$138
Allstate
Rating: 3.5 stars out of 5
3.5
Bankrate Score
Info
Annual premium*
$1,772
Monthly premium*
$148
*Based on policies with $350k dwelling coverage for 2023
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This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

Erie
Rating: 3.1 stars out of 5
3.1
Bankrate Score
Info
Annual premium*
$1,601
Monthly premium*
$133
USAA
Rating: 3.7 stars out of 5
3.7
Bankrate Score
Info
Annual premium*
$1,440
Monthly premium*
$120
Auto-Owners
Rating: 3.2 stars out of 5
3.2
Bankrate Score
Info
Annual premium*
$1,584
Monthly premium*
$132
Nationwide
Rating: 3.2 stars out of 5
3.2
Bankrate Score
Info
Annual premium*
$1,884
Monthly premium*
$157
Travelers
Rating: 3.3 stars out of 5
3.3
Bankrate Score
Info
Annual premium*
$2,051
Monthly premium*
$171
Allstate
Rating: 3.5 stars out of 5
3.5
Bankrate Score
Info
Annual premium*
$2,205
Monthly premium*
$184
*Based on policies with $450k dwelling coverage for 2023
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This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

How Bankrate picked the cheapest homeowners insurance companies

To find the cheapest home insurance companies, Bankrate’s insurance editorial team started by obtaining 2023 premium information for the largest homeowners insurance companies by market share from Quadrant Information Services. Because we know that many people want to find the best home insurance, we also used J.D. Power customer satisfaction scores and AM Best financial strength ratings in our research. Our analysis method allowed us to identify our top picks for the cheapest home insurance companies on the market. To qualify for ranking on this list, the companies had to meet these criteria:

  • Have an average annual premium below the national average for $250,000 in dwelling coverage
  • Have a Bankrate Score of 3.0 or higher
  • Have an AM Best rating of A+ (Superior) or higher
  • Be ranked in the 2022 J.D. Power U.S. Home Insurance Study
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carriers reviewed
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Top 5 most affordable home insurance companies

Erie

A good choice for first-time homebuyers on a strict budget

Rating: 3.1 stars out of 5
3.1 Bankrate Score
JD Power: 827 AM Best: A+

Average annual premium

$ 957 for $250k dwelling
Erie Review Get a personalized quote

Erie offers the cheapest rates of the property insurers we analyzed, making it a top choice for customers looking for cheap homeowners coverage. The company provides numerous coverage options, like service line protection and sewer backup coverage, to help you tailor your policy to your needs. Over 13,000 local independent agents across its 12 states can help you get a quote and buy a policy. The regional company also ranks highly in customer satisfaction, which may give first-time homebuyers both peace of mind and financial breathing room. It holds an A+ (Superior) financial strength rating from AM Best.

Standout discounts:

  • Advanced quote
  • Fire alarm, burglar alarm, sprinkler system
  • Multi-policy

USAA

USAA logo

A good option for military-focused coverage

Rating: 3.7 stars out of 5
3.7 Bankrate Score
JD Power: 884 AM Best: A++

Average annual premium

$ 969 for $250k dwelling
USAA Review Get a personalized quote

USAA, the fourth-largest home insurer in the U.S. by market share, according to the Insurance Information Institute (Triple-I), is widely considered one of the best insurance companies for exceptional customer service, but coverage is only available to members of the military community and their families. If you qualify for coverage, USAA offers some of the best cheap homeowners insurance on the market, with top-notch service, a wide range of coverage options and consistently low premiums. The company carries an A++ (Superior) financial strength rating from AM Best, the highest level available.

Standout discounts:

  • Connected home
  • Protective device
  • Loyalty savings
Not officially ranked by J.D. Power due to eligibility restrictions

Auto-Owners

A good option for flexible coverage

Rating: 3.2 stars out of 5
3.2 Bankrate Score
JD Power: 825 AM Best: A++

Average annual premium

$ 1,049 for $250k dwelling
Auto-Owners Review Get a personalized quote

Auto-Owners offers property coverage in 26 states through a broad network of independent agents. Its home insurance policies are highly flexible, with coverage options like guaranteed home replacement, equipment breakdown and identity theft coverage. Although Auto-Owners’ average premium isn’t the cheapest of the companies Bankrate reviewed, the carrier does offer several discounts, including multi-policy, water shut-off system and mortgage-free. The company carries an A++ (Superior) financial strength rating from AM Best.

Standout discounts:

  • Life multi-policy
  • Paid-in-full
  • Water shut-off system

Nationwide

A good choice for consolidating insurance and banking products

Rating: 3.2 stars out of 5
3.2 Bankrate Score
JD Power: 816 AM Best: A+

Average annual premium

$ 1,153 for $250k dwelling
Nationwide Review Get a personalized quote

Nationwide offers diverse coverage options for homes, condos and apartments, farms, pets, vehicles, investment products and much more. For homeowners looking to consolidate their insurance and financial products with one company, Nationwide might be a good choice. Nationwide is not the cheapest homeowners insurance company on our list, but its average premium is still well below the national average. Additionally, the insurer offers several discounts that could help you lower your rate. Nationwide holds an A+ (Superior) financial strength rating from AM Best.

Standout discounts:

  • Gated community
  • Home renovation
  • Smart home

Travelers

A good choice for customizable coverage

Rating: 3.3 stars out of 5
3.3 Bankrate Score
JD Power: 794 AM Best: A++

Average annual premium

$ 1,249 for $250k dwelling
Travelers Review Get a personalized quote

Travelers’ average premium is only slightly below the national average, but its wide array of coverage choices might make up for its average home insurance rate. Travelers offers a wide range of coverage options, including jewelry and other valuables, identity fraud and green homes. The company also offers several discounts, including savings for bundling home and auto policies, having an environmentally-friendly home certification and being loss-free. Travelers holds an A++ (Superior) financial strength rating from AM Best. However, the company received a below-average customer satisfaction score from J.D. Power.

Standout discounts:

  • Green home
  • Home buyer
  • Multi-policy

Allstate

A good choice for policy management options

Rating: 3.5 stars out of 5
3.5 Bankrate Score
JD Power: 815 AM Best: A+

Average annual premium

$ 1,340 for $250k dwelling
Allstate Review Get a personalized quote

Whatever your preference, Allstate offers options that could make it easy to manage your policy. The company has a nationwide network of brick-and-mortar agencies, a 24/7 contact center and a mobile app. Additionally, Allstate offers robust homeowners coverage options, including extra protection options for those participating in home-sharing and endorsements for musical instruments and sports equipment. Allstate holds an A+ (Superior) financial strength rating from AM Best. Since Allstate is one of the most expensive of our cheapest home insurance companies, it may not be ideal for homeowners on a strict budget. Still, those looking for robust coverage options and multiple ways to handle their policy may want to consider requesting a quote. These factors and more helped Allstate earn the 2023 Bankrate Award for Best Home Insurance Company.

Standout discounts:

  • Responsible payment
  • Early signing
  • Easy pay plan
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This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.
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Quick Facts
Moneybag
$382/year
average savings through Bankrate
Two Thirds
2 out of 3 homes
are underinsured
Insurance Home
1 out of every 20
insured homes makes a claim each year
Circle Check
100% of homes
need insurance before getting a mortgage
See more providers in
Choose from insurers in
Mortgage

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Cheapest homeowners insurance companies for different homeowners

Not all homeowners have the same rating metrics, and home insurance rates vary widely based on your individual circumstances. To help you understand what your average rate might be, we’ve isolated the cheapest companies based on several underlying rating factors.

The cheapest home insurance company for poor credit: Secura

In most states, your credit-based insurance score is among the rating factors used to determine your home insurance premium. Homeowners with poor credit score histories may be more likely to file claims.

To compensate for the increased risk, companies usually charge more for homeowners with lower insurance scores. For homeowners with good credit, the national average cost of home insurance is $1,428 per year for $250,000 in dwelling coverage.

Based on our research, these eight companies offer competitive premiums for homeowners with average credit, based on 2023 rates pulled from Quadrant Information Services.

Home insurance company*
Poor credit
Average credit
Good credit
Excellent credit
Secura $1,133 $756 $725 $656
Kemper $1,222 $930 $873 $888
Pekin $1,384 $977 $927 $825
Cincinnati $1,482 $1,019 $987 $873
USAA $1,668 $1,028 $969 $872
National General $2,391 $1,242 $1,242 $1,088
Hasting Mutual $1,763 $1,164 $1,059 $853
AAA $2,605 $1,297 $1,046 $1,137
*Not all of these home insurance companies are available in all areas.
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Bankrate’s take: A low credit score can impact your financial stability in many surprising ways and having to pay more for home insurance is just one of them. Homeowners whose insurance score falls into the poor category pay an average of 52 percent more per year for $250,000 in dwelling coverage than homeowners with average credit. Making changes to improve your credit from poor to average can potentially put an additional $1,703 back into your pocket every year.

The cheapest home insurance company for new homeowners: Nationwide

If you are a first-time homebuyer, you may be happy to know that several companies offer new purchase or first-time buyer discounts. 

These five companies are among the cheapest homeowners insurance carriers with these discount options, which could help your budget amid the expenses of homeownership.

Home insurance company*
Average annual premium
Nationwide $1,153
Grange $1,212
Travelers $1,249
Allstate $1,340
ASI Progressive $1,358
*Not all of these home insurance companies are available in all areas.
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Bankrate’s take: One benefit of being a first-time homeowner is that you are in the market for a new homeowners insurance policy. Aside from first-time buyer discounts, many providers offer savings geared towards new customers, such as early shopping discounts. Inquiring about discounts tailored to your situation may save you a significant amount of money now and in the future.

The cheapest home insurance company for claims history: Selective

While experiencing home damage is never a pleasant experience, it is why we carry homeowners insurance. Rates do typically increase after a home insurance claim, though, so being prepared for the increase and knowing what companies might be cheaper could help you shop once your claim is closed.

The rates below are average annual premiums for $250,000 in dwelling coverage for homeowners with one wind claim on their profile.

Home insurance company*
Average annual premium
Selective $411
PEMCO $566
Mercury $726
Secura $809
Erie $983
USAA $1,015
Auto-Owners $1,138
Cincinnati Insurance $1,146
*Not all of these home insurance companies are available in all areas.
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Bankrate’s take: Policyholders with little to no claims are viewed as a lower risk than homeowners with an active claims history. Limiting the number of claims submitted to your insurance provider could help keep your premium lower. Consider only filing claims where the cost of repairs is more than what you can reasonably afford to pay independently. You may want to try to avoid filing claims that cost only a little more than your deductible.

Cheapest home insurance companies by state

State-specific factors, such as the likelihood of natural disasters and the rising cost of building materials, can affect your home insurance premiums. For example, in states like Florida and Louisiana, where widespread wind damage from hurricanes is more likely, home insurance rates are likely to be higher than they would be in lower-risk areas. 

Through our research, we determined the provider that has the cheapest home insurance rates in each state. According to our research, USAA was the cheapest homeowners insurance company in many states, but because the company is only available to a certain segment of the marketplace, we chose not to include it in the cheapest home insurers by state table. If you qualify for coverage with USAA, you may find cheap coverage after getting a quote.

Cheapest companies for homeowners insurance in each state

State
Cheapest home insurance company
Average annual premium for $250,000 dwelling coverage
Alabama Cincinnati Insurance $768
Alaska Umialik Insurance Company $920
Arizona Armed Forces Insurance $511
Arkansas Travelers $1,755
California Armed Forces Insurance $526
Colorado ASI $641
Connecticut Narragansett Bay Insurance Co $558
Delaware Cumberland Mutual Fire Insurance Co $421
Florida Security First $284
Georgia ASI $865
Hawaii Universal P&C Insurance Co $254
Idaho Mutual of Enumclaw Insurance $599
Illinois Allstate $961
Indiana Buckeye State Mutual Insurance Co $490
Iowa West Bend $715
Kansas Auto-Owners $1,565
Kentucky Cincinnati Insurance $1,036
Louisiana Armed Forces Insurance $677
Maine Vermont Mutual Insurance Co $394
Maryland Brethren Mutual Insurance Co $586
Massachusetts Northern Security Insurance Co $726
Michigan Auto-Owners $241
Minnesota Auto-Owners $1,003
Mississippi Nationwide $874
Missouri Auto Club Insurance Co $1,426
Montana EMC $1,108
Nebraska American Family $1,568
Nevada Universal P&C Insurance Co $526
New Hampshire American Family $473
New Jersey Selective Auto Insurance Co of NJ $370
New Mexico State Farm $1,382
New York NY Central Mutual Fire Insurance Co (NYCM) $586
North Carolina Universal P&C Insurance Co $711
North Dakota Farmers Union Insurance $1,123
Ohio Buckeye State Mutual Insurance Co $374
Oklahoma Allstate $2,179
Oregon Mutual of Enumclaw Insurance $323
Pennsylvania Cumberland Mutual Fire Insurance Co $385
Rhode Island Narragansett Bay Insurance Co $608
South Carolina Lighthouse Property Insurance Co $599
South Dakota North Star Mutual Insurance Co $1,404
Tennessee Erie $1,043
Texas Bankers Insurance Group $609
Utah Mutual of Enumclaw Insurance $455
Vermont Vermont Mutual Insurance Co $392
Virginia Cincinnati Insurance $414
Washington Pemco Mutual Insurance Co $443
Washington, D.C. Chubb $892
[West Virginia](https://www.bankrate.com/insurance/homeowners-insurance/west -virginia/) American Select Insurance Company $611
Wisconsin West Bend $531
Wyoming Amco Insurance $689
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This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.
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Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

Quick Facts
Moneybag
$382/year
average savings through Bankrate
Two Thirds
2 out of 3 homes
are underinsured
Insurance Home
1 out of every 20
insured homes makes a claim each year
Circle Check
100% of homes
need insurance before getting a mortgage
See more providers in
Choose from insurers in
Mortgage

Leaving so soon? Your custom quotes are just minutes away.

Cheapest homeowners insurance in 20 major cities

While your state plays a big role in your premium, so does your city. Coverage tends to be more expensive in larger metropolitan areas, where the cost of living is higher, but some cities are still cheaper than others. Check out the cheapest home insurance company in some of the largest 20 cities in the country by population, below. Just like with the states, we left USAA off the list since not all homeowners will qualify.

City
Cheapest home insurance company
Average annual premium for $250,000 dwelling coverage
Los Angeles, CA ASI $484
Chicago, IL Travelers $969
Houston, TX Bankers Insurance Group $691
Phoenix, AZ Armed Forces Insurance $513
Dallas, TX Bankers Insurance Group $516
Austin, TX Bankers Insurance Group $406
Fort Worth, TX Bankers Insurance Group $540
Columbus, OH Buckeye State Mutual Insurance Co $367
Indianapolis, IN Buckeye State Mutual Insurance Co $556
Charlotte, NC Universal P&C Insurance Co $678
Seattle, WA PEMCO $424
Denver, CO State Auto Insurance $621
Nashville, TN Allstate $897
Oklahoma City, OK Armed Forces InsuranceAllstate $2,303
Portland, OR Mutual of Enumclaw $306
Las Vegas, NV Travelers $503
Memphis, TN Allstate $886
Detroit, MI Auto-Owners $230
Baltimore, MD Brethren Mutual Insurance Co $854
Milwaukee, WI West Bend $573

How to get cheap homeowners insurance

Although home insurance isn't legally required, your mortgage lender will probably require you to maintain a policy. Purchasing home insurance is considered wise even when you own your home free and clear — it can offer financial protection if your home is damaged or destroyed in a covered incident. You can take steps to find the most affordable home insurance policy that fits your needs and provides you with financial peace of mind.
  1. Evaluate your needs: Before getting quotes, take some time to understand what you are looking for. Are you looking for the lowest price possible? Do you value exceptional customer service? Do you need a certain optional coverage? Understanding your needs could help you choose carriers that better fit your situation.
  2. Determine your home’s replacement cost: Your dwelling's replacement cost or RCV differs from its market value — the RCV can be much higher or lower depending on the cost of building materials and other factors. Online replacement cost estimators can give you an early indication of the appropriate level of dwelling coverage. Your insurance professional will have their own estimator and the values may vary slightly.
  3. Consider your liability exposure: Most standard home insurance policies come with an average of $300,000 in liability coverage. However, if you have a pool, trampoline, playset or host guests frequently, you may want to consider higher liability coverage limits or an umbrella policy. A higher limit will increase your rates a bit, but it provides valuable financial protection against lawsuits if someone is injured on your property.
  4. Shop around: Every insurance company weighs risks differently and some companies offer more coverage options and discounts than others. Requesting quotes from multiple companies with the same coverage level can help keep your home insurance costs down.
  5. Utilize discounts: Every company offers different home insurance discounts to help you save. Typical discounts include multi-policy, home safety features, loyalty, new homebuyer and claims-free.
  6. Meet or exceed your mortgage requirements: Most mortgage companies require policyholders to carry enough dwelling coverage to either rebuild the home after a loss or pay off the loan in full. Homeowners who can not or will not carry the required limits may have a lender-placed policy forced onto their mortgage payments or have their homes put in foreclosure.
  7. Improve or maintain your credit score: Aside from a few states where it is prohibited, most home insurers use your credit-based insurance score as a rating factor. According to the Triple-I, homeowners with lower credit are statistically more likely to file claims, so insurance companies charge higher premiums to compensate for this increased risk. Improving a low score or maintaining a good  credit score might help you keep your home premium lower.

Once you have selected your insurance carrier, you must complete and sign an application. You must also make at least a first month’s payment to start the policy unless your mortgage is escrowed.  With an escrow mortgage account, your insurance company will bill your mortgage lender for the full annual premium each year.

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Factors to consider when buying cheap home insurance
Finding the cheapest house insurance can be a boon for your budget, but you should first ensure that your coverage meets your needs. Lower limits usually mean lower rates but also that you have less financial protection. If you skimp on coverage to get a cheaper premium, you may regret it if you have to file a claim and find yourself facing high out-of-pocket costs. Working with an agent can help you feel at peace with your coverage decisions. In addition to looking for cheap home insurance rates, you may also want to consider a company’s customer service and financial strength ratings to help ensure that a company will be there for you when you need it most.

Eligibility requirements for cheap homeowners insurance

Many homeowners will qualify for cheap homeowners insurance, but the cheapest homeowners insurance policies are likely going to have a few things in common:

  • Clean claims record: Insurance claims generally increase your premium, so the fewer claims you’ve filed over the years, the less likely you are to see rate surcharges.
  • Proper home maintenance: Insurance companies are less likely to want to insure poorly maintained homes, as these homes could pose a higher risk of claims or significant damage. Many home insurers are focusing on the age and condition of roofs to determine the cost of coverage due to an increased level of storm claims across the U.S.
  • Low risk level: Homes with the lowest risk of damage — whether that’s from a fire, hurricane, tornado or other insurance peril — are likely to have the lowest premiums. Insurance companies charge more if there is a greater likelihood of a claim being filed due to natural catastrophe or other hazard.
That being said, most homeowners should be able to find affordable home insurance for their situation, but this isn’t always the case. Finding coverage at all, let alone cheap homeowners coverage, can be difficult in some states. Florida, for instance, is experiencing a homeowners insurance crisis. Many insurance companies have gone insolvent or have left the state due to widespread fraudulent roofing claims and massive payouts resulting from an increasing severity of hurricanes. Floridians having trouble finding coverage may need to rely on the state-backed company Citizens, the insurer of last resort. The Louisiana homeowners insurance market is also struggling, forcing homeowners to scramble for coverage. 
 
While these situations may be outliers, it's important to know that your local insurance market can dictate whether or not you qualify for cheap homeowners insurance. Still, the cheapest homeowners insurance for you will depend on your individual circumstances. Understanding your needs, what insurance options are available to you and comparing rates may help you find affordable insurance.

How to save on homeowners insurance 

Finding the lowest home insurance premium takes some research, but how can you save on your homeowners insurance once you’ve found a cheap company? Here’s a few steps you can take to lower your existing rates and get cheaper home insurance.

Common home insurance discounts

You might already get home insurance discounts on your policy, but you could also be missing some options. Talk to your provider to see if there are other ways to save. Sometimes the perks go beyond saving money; there are numerous benefits of bundling your home and auto insurance, for example.

Homeowners and auto insurance bundling

Bundling your auto and home insurance often results in cheaper rates for both policies. Bundling just means buying both policies from the same insurance provider, and the discount — called a bundling, multi-policy or multi-line discount — is often one of the most significant savings opportunities a company offers. Bundling might also make it easier to manage your policies, since they’re with the same carrier. Insuring both your auto and home with the same company isn’t always the best option, though, so be sure to talk with your company or agent about your situation.

Frequently asked questions

Written by
Carol Pope
Insurance Writer

Carol Pope is an insurance writer for Bankrate and prior to joining the team, she spent 12 years as an auto insurance agent. During this time, she sold, serviced and underwrote auto insurance for people across the country. She also has experience selling supplement coverage such as umbrella insurance.

Edited by Insurance Editor
Reviewed by Senior wealth manager, LourdMurray