Cheapest homeowners insurance in January 2023

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. If you’re looking for cheap coverage, you could start with a quote from these carriers. 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 this carrier 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 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.

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.

Cheapest home insurance companies by credit tier

Cheapest home insurance companies for new homeowners

Cheapest home insurance companies for homeowners with a claim

How to get cheap homeowners insurance

Although home insurance isn’t required by law, your mortgage lender will probably require you to maintain a policy. Home insurance could be a smart purchase even if you own your home fully; a policy can protect you from financial devastation if your home is damaged or destroyed in a covered incident. While most insurance experts agree that purchasing home insurance is a good idea, you don’t have to overpay for coverage. 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 you begin 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, so you don’t waste time getting quotes from companies that aren’t going to work for you.
2. Determine your home’s replacement cost: Although each insurance company will have its own valuation tool, knowing how much homeowners insurance you need before you start shopping could be helpful. That way, you can focus on getting a quote for an appropriate amount of dwelling coverage. Just remember that your home’s replacement cost is not the same as its market value. Online tools are available to help you determine your home’s rebuilding cost. Your insurance professional can also help you with this process.
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 a higher liability coverage limit or even 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 to ensure you have an adequate level of protection from a catastrophic loss.
4. Shop around: Each home insurance company is unique. Each carrier has its own way of rating policies, as well as its own suite of coverage options and discounts. Shopping around and getting quotes from several companies allows you to compare rates, coverage choices and savings opportunities so you find the right policy for your needs and budget.
5. Review your quotes for accuracy: You may think one company is cheaper than another, only to discover that your dwelling coverage or liability limit is significantly lower. To accurately compare quotes, make sure the coverage types and limits are as close as possible among companies.
6. Utilize discounts: Discounts could help you get the cheapest home insurance policy possible. If you’re getting quotes online, you may have to manually select which discounts to include on your quote. Make sure you read the descriptions and qualify for the discounts you are selecting.
7. Make sure the quotes meet or exceed mortgage requirements: Your mortgage may require you to carry a certain level of dwelling coverage, likely enough to pay off the loan if the home is destroyed or enough to rebuild the home. If your quote is cheap because your dwelling coverage is low, your policy might not meet your lender’s requirements. Insurance experts recommend you have enough coverage to provide financial protection for the full replacement value of your home, not just the mortgage payoff.
8. Improve or maintain your credit score: Your credit can influence your home insurance premium. Most homeowners insurance companies use your credit-based insurance score as a rating factor, although a few states prohibit insurers from using credit information to determine rates. 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 or at least maintaining your credit score might help you keep your home premium lower.
9. Take advantage of home insurance discounts: Discounts might help you save on home insurance. Although every company offers a different selection of discounts, some common discounts include multi-policy, home safety features, loyalty, new homebuyer and claims-free.

Once you have found a carrier from which you would like to buy a policy, you’ll likely have to fill out and sign an application. You may need to make at least a first month’s payment to start the policy unless your premium is paid from your mortgage escrow account, which is common if you have a mortgage on the policy. In that case, your insurance company will bill your mortgage lender for the full annual premium.

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 will be able to find affordable home insurance for their situation. Because premiums vary based on so many factors, the cheapest homeowners insurance for you will depend on your individual circumstances. Understanding your needs 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 lower your rates 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