Cheapest Homeowners Insurance Companies of 2020

Fact-checked with HomeInsurance.com

3 min read
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Your home is probably the biggest investment you’ll make, and it’s important to have the right homeowners insurance to protect it. Finding the cheapest homeowners insurance depends on multiple factors, including where you live and the age of your home.

When looking for affordable home insurance, the lowest quote may tempt you, but there are other factors to consider, such as good customer service and fast claims payouts.

Fortunately, there are ways you can lower your premium without sacrificing your coverage. Our top choices all offer comprehensive coverage, financial stability and top-notch customer support.

Using resources such as J.D. Power and the Insurance Information Institute, these are our top picks for the best cheap home insurance companies of 2020.

Our top picks for cheap home insurance companies

Company Overall satisfaction: J.D. Power Home Insurance Study J.D. Power Property Claims Satisfaction Study AM Best financial rating
Amica 5 out of 5 5 out of 5 A+
Young Alfred Not rated Not rated A+
State Farm 4 out of 5 3 out of 5 A++
USAA 5 out of 5 5 out of 5 A++
Nationwide 2 out of 5 3 out of 5 A+

Amica

Amica offers competitive rates and is one of the highest-rated insurers for customer satisfaction, scoring in the number one place with both J.D. Power and Consumer Reports.

Amica offers a handful of discounts that will bring your premium even lower, including:

  • Loyalty
  • Claims-free
  • Paperless
  • Multi-line discount
  • Autopay
  • Safety discounts for alarm or monitoring systems
  • New/remodeled home credit

Since Amica is member-owned, it pays out an annual dividend to policyholders rather than stockholders. You can choose to receive the dividend as a check or apply it to your premium.

Young Alfred

This fairly new company is an insurance aggregator. When you plug in information on the Young Alfred website, it uses AI and algorithms to find the best policy for you from more than 40 insurance companies, including Progressive and Nationwide. By doing this, you get the lowest prices.

Young Alfred is available in every state except Alaska, Idaho, Massachusetts, Montana, Nebraska, North and South Dakota and Rhode Island — and it has plans to expand soon.

Young Alfred gets high marks for its customer service, including an A+ rating from the Better Business Bureau.

State Farm

State Farm has more than 19,000 agents across the country, so you should find one near you. As the largest insurer in the U.S., it’s able to offer competitive pricing and policy add-ons that let you customize your coverage.

State Farm has an excellent website with an educational blog and a detailed quote tool that can give you an initial price within minutes. It’s a good idea to follow up with a call to an agent, in case there are additional discounts available to you.

State Farm’s discounts include:

  • Multiple line discount
  • Home alert (fire, smoke, burglar alarms or monitors) discount
  • Roofing discount, for impact-resistant roofing products

USAA

USAA features top-of-the-line service and low-end pricing for current and former members of the military and their families. It consistently ranks at the top of J.D. Power surveys, and if you are eligible, it should be your first stop when looking for cheap home insurance.

USAA doesn’t have a ton of discounts, but it still may be the cheapest option. It does have discounts for bundling policies, claims-free and security systems.

Nationwide

Nationwide doesn’t have the greatest reputation for customer service, but its rates are among the lowest. It’s worth getting a quote to see what it can do for you.

Nationwide’s basic policy covers additional elements that many companies don’t, unless as a paid add-on. These include ordinance or law insurance, which helps pay to rebuild your home to current building codes, and credit card coverage, which protects against identity theft.

Nationwide also has a nice handful of discounts, including:

  • Multi-policy
  • Protective device (smoke detectors, fire alarms, burglar alarms)
  • Claims-free
  • Home renovation discount
  • Roofing discount
  • Home purchase (bought in the last 12 months)
  • Loyalty to previous company
  • Gated community

Home insurance discounts

Multi-policy Home safety Loyalty Auto pay Claims-free
Amica
Young Alfred
State Farm
USAA
Nationwide

Frequently asked questions

How can I save on homeowners insurance?

There are many things you can do to save on homeowners insurance. Here are some suggestions from the Insurance Information Institute:

  • Shop around and receive quotes from at least three companies.
  • Bundle your home and auto insurance.
  • Raise your deductible.
  • Add safety features such as a home security or fire protection system.
  • Maintain a good credit rating.
  • Review your policy often for additional discounts.

Does homeowners insurance cover me in a flood or earthquake?

Damage caused by floods and earthquakes is not covered by homeowners insurance. If you live in a flood zone or an earthquake-prone area, it may be worth it to add on this coverage to protect yourself in the future.

I have a lot of expensive electronics. Do I need a rider for them?

Your laptop, TV and computers are all covered under your homeowners insurance policy. However, if you are a professional photographer or musician with a lot of expensive equipment, you may want to insure it for its replacement value, especially if you use it to make a living.

What is the average premium for homeowners insurance?

The National Association of Insurance Commissioners (NAIC) reports the average premium for homeowners insurance is $1,192.

Who offers the best homeowners insurance?

We have several top picks for the best homeowners insurance companies, but the best company for you will depend on your needs. Where you live and the kind of coverage you need will help determine the total price of your homeowner insurance policy.