Cheapest homeowners insurance in October 2023

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 isa 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.

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

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. Just like with the states, we left USAA off the list since coverage is restricted to the military community.

How to get cheap homeowners insurance

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 swimming 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 a variety of 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. This type of policy typically costs more and provides less coverage than a standard home policy.
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.

What factors impact home insurance premiums?

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 or have your policy nonrenewed.
• 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.
• Rebuild costs: It is possible that your home insurance policy will foot the bill for a home rebuild. Generally speaking, the more your home costs to replace, the more expensive your insurance policy will likely be.
• Age of home: Due to aging building materials, older homes are more likely to have problems with heating, plumbing, electricity and other important systems. Additionally, if your home needs a complete rebuild due to a covered claim, it may cost more to bring the building up to current building codes. 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 break out. 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: Homes built with expensive, hard-to-source materials can drive up estimated rebuild costs, which in turn may drive up home insurance premiums.
• 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 or police stations and fire hydrants might enjoy a less expensive premium.

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.

Frequently asked questions