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Cheapest homeowners insurance in February 2024

According to Bankrate's premium analysis, Erie and USAA offer some of the cheapest average home insurance rates.

Updated Feb 20, 2024
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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.

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 a regional insurer available in 12 states and Washington, D.C., while USAA exclusively 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
Insurance Company Monthly premium* Annual premium* Savings vs national avg
$95
$1,138
- $621
Get a quote
$90
$1,076
- $683
Get a quote
$115
$1,384
- $375
Get a quote
$115
$1,375
- $384
Get a quote
$131
$1,573
- $186
Get a quote
$133
$1,600
- $159
Get a quote
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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.

Insurance Company Monthly premium* Annual premium*
$125
$1,503
Get a quote
$111
$1,336
Get a quote
$143
$1,713
Get a quote
$151
$1,813
Get a quote
$174
$2,084
Get a quote
$176
$2,107
Get a quote
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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.

Insurance Company Monthly premium* Annual premium*
$157
$1,885
Get a quote
$132
$1,585
Get a quote
$173
$2,071
Get a quote
$187
$2,245
Get a quote
$211
$2,535
Get a quote
$218
$2,610
Get a quote
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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.

How Bankrate picked the cheapest homeowners insurance companies

To find the cheapest home insurance companies, Bankrate’s insurance editorial team started by obtaining February, 2024 premium information for the largest homeowners insurance companies by market share from Quadrant Information Services. Because we know that many people want to find not just the cheapest, but 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 financial strength rating of A+ (Superior) or higher
  • Be ranked in the 2023 J.D. Power U.S. Home Insurance Study
Bankrate logo

Bankrate's trusted insurance industry expertise

Read our full methodology

46

years of industry expertise

122

carriers reviewed

20.7K

ZIP codes examined

1.2M

quotes analyzed

Top 5 most affordable home insurance companies

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

4.4

Rating: 4.4 stars out of 5

Avg. premium for $250K dwelling

$95/mo

Avg. premium for $250K dwelling

$1,138/yr

Customer satisfaction

856/1,000

A good option for military-focused coverage

4.7

Rating: 4.7 stars out of 5

Avg. premium for $250K dwelling

$90/mo

Avg. premium for $250K dwelling

$1,076/yr

Customer satisfaction

881/1,000

A good option for flexible coverage

4.6

Rating: 4.6 stars out of 5

Avg. premium for $250K dwelling

$115/mo

Avg. premium for $250K dwelling

$1,384/yr

Customer satisfaction

834/1,000

A good choice for consolidating insurance and banking products

4.3

Rating: 4.3 stars out of 5

Avg. premium for $250K dwelling

$115/mo

Avg. premium for $250K dwelling

$1,375/yr

Customer satisfaction

812/1,000

A good choice for customizable coverage

4.1

Rating: 4.1 stars out of 5

Avg. premium for $250K dwelling

$131/mo

Avg. premium for $250K dwelling

$1,573/yr

Customer satisfaction

790/1,000

A good choice for policy management options

4.2

Rating: 4.2 stars out of 5

Avg. premium for $250K dwelling

$133/mo

Avg. premium for $250K dwelling

$1,600/yr

Customer satisfaction

809/1,000

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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
Mortgage

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

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 every state except California, Maryland and Massachusetts, your credit-based insurance score is among the rating factors used to determine your home insurance premium. Homeowners with poor credit score histories are statistically 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 $1,759 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 2024 rates pulled from Quadrant Information Services.

Home insurance company Poor credit Average credit Good credit Excellent credit
$1,400
$934
$896
$811
Pekin
$1,688
$1,150
$1,097
$983
$1,701
$1,158
$1,119
$987
$1,901
$1,149
$1,076
$965
Hastings Mutual
$2,066
$1,158
$1,062
$826
AAA
$765
$765
$765
$765
Lightbulb

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. Insurance actuarial data shows that consumers with lower credit-based insurance scores tend to file more claims than those with higher insurance scores. Homeowners whose insurance score falls into the poor category pay an average of 115 percent more per year for $250,000 in dwelling coverage than homeowners with average credit. Unless you live in California, Maryland or Massachusetts, working to improve your credit from poor to average could 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 offer some of the cheapest homeowners insurance rates with these discount options, which could help your budget amid the expenses of homeownership.

Home insurance company*
Average annual premium
Nationwide $1,375
Grange $1,261
Travelers $1,573
Allstate $1,600
ASI Progressive $1,624
*Not all of these home insurance companies are available in all areas.
Lightbulb

Bankrate’s take: While shopping for an insurance policy after purchasing a home can feel stressful, being a first-time homeowner may actually work to your advantage. Aside from first-time buyer discounts, many providers offer savings geared toward 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 $395
PEMCO $648
Mercury $774
Secura $896
Erie $1,178
USAA $1,141
Auto-Owners $1,387
Cincinnati Insurance $1,198
*Not all of these home insurance companies are available in all areas.
Lightbulb

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. Filing multiple claims could lead to having your policy nonrenewed.

The cheapest for bundling home and auto insurance: Erie

Many home insurers incentivize customer loyalty with a bundling discount. If you purchase multiple policies from the same provider, like home and auto insurance, you may be rewarded with a discount. A bundling discount may be another added perk for homeowners that prefer the convenience of using one company for all of their insurance needs.

The premiums listed below represent annual averages for home insurance policies with $250,000 in dwelling coverage.

Home insurance company Average annual premium Typical bundle discount
Erie $1,138 Up to 25 percent
Nationwide $1,375 Up to 20 percent
State Farm $1,461 Up to $1,073
Allstate $1,600 Up to 25 percent
Travelers $1,573 Up to 10 percent* on auto insurance policy and up to 12 percent on home policy

*In Texas and Oklahoma, the Travelers bundling discount is capped at 7 percent for auto policies.

Lightbulb

Bankrate’s take: The exact amount you save with a bundling discount will likely vary based on where you live, and savings are generally applied to both policies. Bundles do not stop at just home and auto though; some insurers offer discounts for bundling RV coverage, boat insurance, umbrella coverage and more.

The cheapest for homeowners with a high deductible: Secura 

The deductible level you choose influences your premium. Opting for a high deductible generally leads to lower premiums, as you'll have a higher out-of-pocket cost in the event of a claim. 

Selecting a deductible is a balancing act between immediate out-of-pocket expenses and long-term premium savings. A higher deductible can be a cost-effective option for those who are financially prepared to pay more out of pocket in the event of a covered incident. This strategy may be particularly appealing for homeowners looking to reduce their insurance costs while still maintaining adequate coverage. Note that most insurance professionals recommend keeping your deductible low enough that you could comfortably pay it with little notice. 

Home insurance company Average premium for $5,000 deductible
Secura $735
Erie $780
USAA $824
Nationwide $1,008
Auto-Owners $1,204

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, average home insurance rates are often 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 note that it only writes policies for active and retired military members and their families, so not everyone will qualify for coverage. Fortunately, many other carriers also offer competitive average rates.

Cheapest companies for homeowners insurance in each state

Caret DownCaret Up
Cheapest home insurance company
United
Average annual premium for $250,000 dwelling coverage
$2,085
Cheapest home insurance company
Umialik
Average annual premium for $250,000 dwelling coverage
$1,019
Cheapest home insurance company
Armed Forces
Average annual premium for $250,000 dwelling coverage
$1,778
Cheapest home insurance company
United
Average annual premium for $250,000 dwelling coverage
$2,809
Cheapest home insurance company
Armed Forces
Average annual premium for $250,000 dwelling coverage
$1,266
Cheapest home insurance company
Grange
Average annual premium for $250,000 dwelling coverage
$3,212
Cheapest home insurance company
Century National
Average annual premium for $250,000 dwelling coverage
$1,623
Cheapest home insurance company
Cumberland Mutual Fire
Average annual premium for $250,000 dwelling coverage
$764
Cheapest home insurance company
Security First
Average annual premium for $250,000 dwelling coverage
$1,968
Cheapest home insurance company
Auto-Owners
Average annual premium for $250,000 dwelling coverage
$1,761
Cheapest home insurance company
UPC
Average annual premium for $250,000 dwelling coverage
$408
Cheapest home insurance company
Mutual of Enumclaw
Average annual premium for $250,000 dwelling coverage
$1,014
Cheapest home insurance company
United
Average annual premium for $250,000 dwelling coverage
$1,896
Cheapest home insurance company
Buckeye State Mutual
Average annual premium for $250,000 dwelling coverage
$1,523
Cheapest home insurance company
West Bend
Average annual premium for $250,000 dwelling coverage
$1,688
Cheapest home insurance company
Auto-Owners
Average annual premium for $250,000 dwelling coverage
$4,072
Cheapest home insurance company
Cincinnati
Average annual premium for $250,000 dwelling coverage
$2,282
Cheapest home insurance company
Armed Forces
Average annual premium for $250,000 dwelling coverage
$3,247
Cheapest home insurance company
Vermont Mutual
Average annual premium for $250,000 dwelling coverage
$1,147
Cheapest home insurance company
Brethren Mutual
Average annual premium for $250,000 dwelling coverage
$1,375
Cheapest home insurance company
Norfolk & Dedham
Average annual premium for $250,000 dwelling coverage
$1,262
Cheapest home insurance company
Auto-Owners
Average annual premium for $250,000 dwelling coverage
$1,757
Cheapest home insurance company
Auto-Owners
Average annual premium for $250,000 dwelling coverage
$2,174
Cheapest home insurance company
Nationwide
Average annual premium for $250,000 dwelling coverage
$2,028
Cheapest home insurance company
USAA
Average annual premium for $250,000 dwelling coverage
$1,854
Cheapest home insurance company
United
Average annual premium for $250,000 dwelling coverage
$2,172
Cheapest home insurance company
American Family
Average annual premium for $250,000 dwelling coverage
$4,745
Cheapest home insurance company
UPC
Average annual premium for $250,000 dwelling coverage
$1,165
Cheapest home insurance company
Vermont Mutual
Average annual premium for $250,000 dwelling coverage
$843
Cheapest home insurance company
Selective
Average annual premium for $250,000 dwelling coverage
$916
Cheapest home insurance company
State Farm
Average annual premium for $250,000 dwelling coverage
$2,168
Cheapest home insurance company
NYCM
Average annual premium for $250,000 dwelling coverage
$1,728
Cheapest home insurance company
State Farm
Average annual premium for $250,000 dwelling coverage
$1,429
Cheapest home insurance company
North Star Mutual
Average annual premium for $250,000 dwelling coverage
$2,519
Cheapest home insurance company
Buckeye State Mutual
Average annual premium for $250,000 dwelling coverage
$1,308
Cheapest home insurance company
Armed Forces
Average annual premium for $250,000 dwelling coverage
$4,565
Cheapest home insurance company
Mutual of Enumclaw
Average annual premium for $250,000 dwelling coverage
$954
Cheapest home insurance company
Cumberland Mutual Fire
Average annual premium for $250,000 dwelling coverage
$968
Cheapest home insurance company
State Farm
Average annual premium for $250,000 dwelling coverage
$1,476
Cheapest home insurance company
United
Average annual premium for $250,000 dwelling coverage
$1,209
Cheapest home insurance company
United
Average annual premium for $250,000 dwelling coverage
$2,455
Cheapest home insurance company
United
Average annual premium for $250,000 dwelling coverage
$2,177
Cheapest home insurance company
Texas Farm Bureau
Average annual premium for $250,000 dwelling coverage
$2,130
Cheapest home insurance company
Mutual of Enumclaw
Average annual premium for $250,000 dwelling coverage
$955
Cheapest home insurance company
Vermont Mutual
Average annual premium for $250,000 dwelling coverage
$694
Cheapest home insurance company
Cincinnati
Average annual premium for $250,000 dwelling coverage
$1,154
Cheapest home insurance company
Mutual of Enumclaw
Average annual premium for $250,000 dwelling coverage
$1,157
Cheapest home insurance company
United
Average annual premium for $250,000 dwelling coverage
$1,167
Cheapest home insurance company
Rockford Mutual
Average annual premium for $250,000 dwelling coverage
$1,026
Cheapest home insurance company
Allied
Average annual premium for $250,000 dwelling coverage
$1,044
Cheapest home insurance company
USAA
Average annual premium for $250,000 dwelling coverage
$1,190
Cheapest home insurance company
Auto-Owners
Average annual premium for $250,000 dwelling coverage
$1,761
Cheapest home insurance company
UPC
Average annual premium for $250,000 dwelling coverage
$408
Cheapest home insurance company
Mutual of Enumclaw
Average annual premium for $250,000 dwelling coverage
$1,014
Cheapest home insurance company
United
Average annual premium for $250,000 dwelling coverage
$1,896
Cheapest home insurance company
Buckeye State Mutual
Average annual premium for $250,000 dwelling coverage
$1,523
Cheapest home insurance company
West Bend
Average annual premium for $250,000 dwelling coverage
$1,688
Cheapest home insurance company
Auto-Owners
Average annual premium for $250,000 dwelling coverage
$4,072
Cheapest home insurance company
Cincinnati
Average annual premium for $250,000 dwelling coverage
$2,282
Cheapest home insurance company
Armed Forces
Average annual premium for $250,000 dwelling coverage
$3,247
Cheapest home insurance company
Vermont Mutual
Average annual premium for $250,000 dwelling coverage
$1,147
Cheapest home insurance company
Brethren Mutual
Average annual premium for $250,000 dwelling coverage
$1,375
Cheapest home insurance company
Norfolk & Dedham
Average annual premium for $250,000 dwelling coverage
$1,262
Cheapest home insurance company
Auto-Owners
Average annual premium for $250,000 dwelling coverage
$1,757
Cheapest home insurance company
Auto-Owners
Average annual premium for $250,000 dwelling coverage
$2,174
Cheapest home insurance company
Nationwide
Average annual premium for $250,000 dwelling coverage
$2,028
Cheapest home insurance company
USAA
Average annual premium for $250,000 dwelling coverage
$1,854
Cheapest home insurance company
United
Average annual premium for $250,000 dwelling coverage
$2,172
Cheapest home insurance company
American Family
Average annual premium for $250,000 dwelling coverage
$4,745
Cheapest home insurance company
UPC
Average annual premium for $250,000 dwelling coverage
$1,165
Cheapest home insurance company
Vermont Mutual
Average annual premium for $250,000 dwelling coverage
$843
Cheapest home insurance company
Selective
Average annual premium for $250,000 dwelling coverage
$916
Cheapest home insurance company
State Farm
Average annual premium for $250,000 dwelling coverage
$2,168
Cheapest home insurance company
NYCM
Average annual premium for $250,000 dwelling coverage
$1,728
Cheapest home insurance company
State Farm
Average annual premium for $250,000 dwelling coverage
$1,429
Cheapest home insurance company
North Star Mutual
Average annual premium for $250,000 dwelling coverage
$2,519
Cheapest home insurance company
Buckeye State Mutual
Average annual premium for $250,000 dwelling coverage
$1,308
Cheapest home insurance company
Armed Forces
Average annual premium for $250,000 dwelling coverage
$4,565
Cheapest home insurance company
Mutual of Enumclaw
Average annual premium for $250,000 dwelling coverage
$954
Cheapest home insurance company
Cumberland Mutual Fire
Average annual premium for $250,000 dwelling coverage
$968
Cheapest home insurance company
State Farm
Average annual premium for $250,000 dwelling coverage
$1,476
Cheapest home insurance company
United
Average annual premium for $250,000 dwelling coverage
$1,209
Cheapest home insurance company
United
Average annual premium for $250,000 dwelling coverage
$2,455
Cheapest home insurance company
United
Average annual premium for $250,000 dwelling coverage
$2,177
Cheapest home insurance company
Texas Farm Bureau
Average annual premium for $250,000 dwelling coverage
$2,130
Cheapest home insurance company
Mutual of Enumclaw
Average annual premium for $250,000 dwelling coverage
$955
Cheapest home insurance company
Vermont Mutual
Average annual premium for $250,000 dwelling coverage
$694
Cheapest home insurance company
Cincinnati
Average annual premium for $250,000 dwelling coverage
$1,154
Cheapest home insurance company
Mutual of Enumclaw
Average annual premium for $250,000 dwelling coverage
$1,157
Cheapest home insurance company
United
Average annual premium for $250,000 dwelling coverage
$1,167
Cheapest home insurance company
Rockford Mutual
Average annual premium for $250,000 dwelling coverage
$1,026
Cheapest home insurance company
Allied
Average annual premium for $250,000 dwelling coverage
$1,044
Cheapest home insurance company
USAA
Average annual premium for $250,000 dwelling coverage
$1,190
Advertising Disclosure
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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Compare home insurance rates

Answer a few questions to see personalized rates from top carriers.
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Insurance Disclosure

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
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 20 largest cities in the country by population, below.

City
Cheapest home insurance company
Average annual premium for $250,000 dwelling coverage
Los Angeles, CA ASI Progressive $574
Chicago, IL USAA $975
Houston, TX Texas Farm Bureau $732
Phoenix, AZ Armed Forces $619
Dallas, TX Texas Farm Bureau $609
Austin, TX Texas Farm Bureau $524
Fort Worth, TX Texas Farm Bureau $546
Columbus, OH Buckeye State Mutual $473
Indianapolis, IN Buckeye State Mutual $643
Charlotte, NC State Farm $649
Seattle, WA Mutual of Enumclaw $499
Denver, CO Grange $1,377
Nashville, TN Allstate $897 $1,091
Oklahoma City, OK Armed Forces $2,346
Portland, OR Mutual of Enumclaw $423
Las Vegas, NV Travelers $537
Memphis, TN Allstate $1,076
Detroit, MI Auto-Owners $346
Baltimore, MD USAA $785
Milwaukee, WI Erie $632

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: Every homeowner has unique insurance needs, and it’s important that you identify what’s important to you before you begin shopping. If you’re a tech-savvy homeowner, you might prefer to manage your policy online or through an app. Or, perhaps price is your primary consideration, and you need a company that offers low rates and a plethora of discounts. Narrowing down what you need from your insurance policy can help you shop more efficiently.
  2. Consider state-specific coverage types: Insurance needs vary greatly by state based on regional weather patterns and risk factors. If you live along a fault line, you might consider purchasing an earthquake insurance policy. Or, if your home is in a Federal Emergency Management Agency-designated flood zone, a flood insurance policy may be a wise purchase. While these add-ons will cost you more upfront, they may save you thousands in out-of-pocket expenses should you experience a covered disaster.
  3. Determine your home’s replacement cost: The cost to rebuild your home may not equal what you paid for it. Your home’s rebuild cost influences your dwelling coverage limit, which is often used to calculate limits for your other coverage types. Online replacement cost estimators can give you some insight, but an insurance professional can help you estimate your replacement cost with their insurance company's valuation tool.
  4. Consider your liability exposure: If you have $250,000 in dwelling coverage, your policy may have your liability coverage at $300,000. However, $300K may always not be enough. If you have an attractive nuisance on your property, like a trampoline or a swimming pool, you might want to raise your liability coverage or purchase a separate umbrella policy. This may also be the case if you frequently host guests in your home. While a higher liability limit will raise your overall premium, it may provide valuable financial protection if you’re hit with a lawsuit.
  5. Shop around: Every insurance company weighs risks differently, and some companies offer more coverage options and discounts than others. Requesting quotes for coverage types and limits that are as similar as possible can help show you where you might find the lowest rates. Another factor to be aware of when shopping is that insurance companies typically calculate their own dwelling coverage limit for your home, so this figure may vary between carriers.
  6. Utilize discounts: Most insurance companies offer a variety of home insurance discounts to help you save. Common discounts include multi-policy, home safety features, loyalty, new homebuyer and claims-free.
  7. 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 their loan in full. Homeowners who cannot 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. This type of policy typically costs more than owner-purchased coverage.
  8. 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

Insuring your house can be a boon for your budget, but it’s imperative 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 provide you with peace of mind about 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.

What factors impact home insurance premiums?

Your personal rating factors and your home's characteristics influence what you pay for home insurance. Below are some key factors that affect your cost of home coverage.

  • Claims history: 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 or have your policy nonrenewed.
  • Home maintenance: Although home insurance will not usually cover damage due to home neglect, 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.
  • Risk exposure: 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. Even factors like how far your home is from a fire station can determine your home insurance cost.
  • Age of home: Due to aging building materials, older homes are more likely to have problems with heating, plumbing, electricity and other important systems. Older homes may also have outdated systems, like knob and tube wiring, that increase risk. As such, it can be more difficult to get a cheap home insurance premium with an older home.
  • Fire rating: An ISO fire rating is a safety metric used by insurance companies that reflects how prepared a town or community to deal with a fire breakout. If your community has a strong ISO rating, it is likely well prepared for fire-related emergencies, which may help to lower your home insurance rate.
  • Materials and rebuild cost: Homes built with expensive, hard-to-source materials can drive up estimated rebuild costs, which in turn may drive up home insurance premiums. Large homes or homes with unique features may also be more costly to insure.
  • Policy specifics: The fine print of your home insurance policy can help determine how much you pay. Higher policy limits typically mean higher insurance premiums. On the contrary, opting for a higher deductible could help you save money (but doing so means that you agree to pay more out of pocket for a covered claim).
  • Home location: ZIP code plays a role in how many insurers determine the cost of your home insurance. Insurers consider your area’s perils history — whether they are crime-related, weather-related or otherwise — when calculating your rate. Location may also help lower your rate; homes situated near fire stations and fire hydrants might enjoy a less expensive premium.
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, legal system abuse and massive payouts resulting from an increasing severity of hurricanes. Similarly, major insurance providers State Farm and Allstate have both halted issuing new home insurance policies in California. Both insurers cited increased wildfire losses and higher home rebuild costs as factors in the decision. 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 

Securing a lower premium for homeowners insurance often begins with diligent research to identify affordable providers. However, beyond choosing a competitively priced insurer, there are actionable steps to potentially reduce your premiums further. One effective strategy is to reassess your policy for coverage that may no longer be necessary. Over time, changes in your home's value, possessions or personal circumstances can impact your insurance needs. By fine-tuning your coverage to align more closely with your current situation, you might find opportunities to save on your homeowners insurance costs without compromising on essential protection.

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.

If you buy your auto and home insurance from the same company, you might get a significant discount on both policies.
Installing smart home systems may qualify homeowners for insurance discounts. These usually apply to features that reduce the risk of claims, like smart home locks and property monitoring. If you've recently installed smart home features, you may want to notify your insurance company about these updates.
If you have a new roof, updated electric system, smart home technology, new HVAC unit or have done other home updates, you might qualify for savings.
If you haven’t filed a claim within a certain period of time — usually three to five years, although it varies by company — you could save money on home insurance.
Enrolling in automatic payments through your insurance provider typically earns you a discount on your home insurance, depending on your provider. Paperless billing options may also offer additional savings.
When changing home insurance companies, you may be eligible for an early bird discount if you secure and pay for your new policy a few days before the effective date. Typically, providers provide this discount if the policy is purchased seven to ten days ahead of time.

Frequently asked questions

Methodology 

Bankrate utilizes Quadrant Information Services to analyze latest rates from February, 2024 for ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:

  • Coverage A, Dwelling: $250,000
  • Coverage B, Other Structures: $25,000
  • Coverage C, Personal Property: $125,000
  • Coverage D, Loss of Use: $50,000
  • Coverage E, Liability: $300,000
  • Coverage F, Medical Payments: $1,000
The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required). Depending on your dwelling coverage limit, you may need to have a higher deductible.

These are sample rates and should be used for comparative purposes only. Your quotes will differ.
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Written by
Natalie Todoroff
Writer, Insurance

Natalie Todoroff is an insurance writer for Bankrate, prior to which she wrote for a popular insurance comparison shopping app. She has a Bachelor of Arts in English and has written over 800 articles about insurance throughout her career.

Edited by Editor, Insurance
Reviewed by Director of corporate communications, Insurance Information Institute