Cheapest homeowners insurance in November 2021

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Bankrate’s cheap homeowners insurance companies of November 2021

Based on our research, Erie and USAA offer the cheapest average home insurance rates in the U.S. However, Erie is only available in 12 states, and USAA only serves active-duty military, veterans and their family members. If neither company is an option for you, you might want to get homeowners insurance quotes from Progressive, Nationwide, Auto-Owners or Travelers.

Although finding low-cost homeowners insurance rates may be a priority, you should look for a home insurance policy that provides the coverage you need. After all, your home may be your most significant investment; you want to make sure you and your family are financially protected from a loss.

Based on Bankrate’s research, if you are looking for the most affordable homeowners insurance options, you may want to start your search by getting quotes from one of these six companies:

Home insurance company Average annual premium for $250,000 dwelling coverage J.D. Power customer satisfaction score AM Best financial strength rating
Erie $897 835/1,000 A+
USAA* $992 882/1,000 A++
Progressive $1,026 821/1,000 A+
Nationwide $1,042 812/1,000 A+
Auto-Owners $1,165 831/1,000 A++
Travelers $1,269 800/1,000 A++

*Not officially ranked by J.D. Power due to eligibility restrictions

Erie

Erie may be a good choice for first-time homebuyers on a strict budget.

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 water backup coverage, to help you tailor your policy to your needs. Over 13,000 local independent agents across its markets can help you get a quote and buy a policy. The 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 A.M. Best.

Learn more: Erie Insurance review

USAA

USAA might be best for active-duty military service members, veterans and eligible family members.

USAA is widely considered one of the best insurance companies for exceptional customer service, but coverage is only available to military members, veterans and immediate family members. 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.

Learn more: USAA Insurance review

Progressive

A good choice for comparing rates and saving time.

Progressive is the third-largest property insurer by market share in the U.S. and might be appealing if you like handling your insurance needs online or via a mobile app. The company maintains robust online and mobile tools that generate quick and easy homeowners insurance quotes that tech-savvy customers may appreciate. However, Progressive’s homeowners underwriting company, American Strategic Insurance (ASI), typically receives below-average customer satisfaction scores from J.D. Power. Progressive maintains an A+ (Superior) financial strength rating from AM Best.

Learn more: Progressive Insurance review

Nationwide

A good choice for consolidating insurance and banking products.

Nationwide offers diverse coverage options for homes, 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’s average premium is not the cheapest on our list but it is still well below the national average. Additionally, the company offers several discounts that could help you lower your rate. Nationwide holds an A+ (Superior) financial strength rating from AM Best.

Learn more: Nationwide Insurance review

Auto-Owners

A good option for flexible coverage.

Auto-Owners is a super-regional carrier that 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.

Learn more: Auto-Owners Insurance review

Travelers

A good choice for customizable coverage.

Travelers’ average premium is slightly below the national average, but its wide array of coverage choices might make up for the average 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.

Learn more: Travelers Insurance review

The cheapest home insurance companies by state

State-specific factors, such as the likelihood of natural disasters and the cost of building materials, can affect your home insurance premiums. Through our research, we determined the cheapest home insurance carrier in each state. If you’re looking for cheap coverage, you could start with a quote from these carriers.

We found that USAA was the cheapest carrier in many states during our analysis of cheap homeowners insurance companies. However, because USAA is only available to active-duty military veterans and their immediate families, we chose not to include this carrier in the cheapest home insurers by state table. However, if you qualify for coverage with USAA and are looking for cheap home insurance with exceptional customer service, getting a quote from them may be beneficial.

State Cheapest home insurance company Average annual premium for $250,000 dwelling coverage
Alabama Cincinnati $740
Alaska Western National $892
Arizona Progressive $674
Arkansas Travelers $1,511
California Mercury $542
Colorado State Auto $589
Connecticut NBIC Holdings Group $502
Delaware Cumberland Group $456
Florida Southern Farm Bureau $645
Georgia Progressive $692
Hawaii Universal Insurance Co. Group $252
Idaho Grange $564
Illinois Travelers $946
Indiana Buckeye Insurance Group $467
Iowa West Bend $676
Kansas Auto-Owners $1,560
Kentucky Cincinnati Insurance $965
Louisiana United Insurance Holdings Group $597
Maine Vermont Mutual $455
Maryland Brethren Mutual $554
Massachusetts Quincy Mutual $731
Michigan Auto-Owners $204
Minnesota Auto-Owners $982
Mississippi Nationwide $659
Missouri AAA $1,359
Montana Chubb $959
Nebraska Nationwide $1,699
Nevada Universal Insurance Co. Group $456
New Hampshire Main Street America $398
New Jersey NJM $355
New Mexico Allstate $1,456
New York NYCM $394
North Carolina Universal Insurance Co. Group $785
North Dakota Farmers Union Mutual $1,070
Ohio Buckeye Insurance Group $371
Oklahoma Farmers $1,844
Oregon Mutual of Enumclaw $317
Pennsylvania Westfield $283
Rhode Island NBIC Holdings Group $551
South Carolina Lighthouse Property Insurance Corp. $565
South Dakota North Star Mutual $1,345
Tennessee Erie $910
Texas Bankers Insurance Group $563
Utah Mutual of Enumclaw $446
Vermont Vermont Mutual $399
Virginia Cincinnati Insurance $443
Washington PEMCO $325
Washington, D.C. Chubb $769
West Virginia Westfield $618
Wisconsin West Bend $512
Wyoming Nationwide $673

How to find cheap home insurance

Although home insurance isn’t legally mandated, your mortgage lender will probably require you to maintain a policy. Home insurance is a smart purchase even if you own your home without a loan; 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. There are steps you can take to find the most affordable home insurance policy that fits your needs.

  1. Evaluate your needs
    Before you start shopping for coverage, determine what matters to you most. Are you just looking for cheap home insurance? Do you need access to specialty coverage, digital tools or outstanding customer service? Once you know what you need from a homeowners insurance policy, you might be able to narrow down your choices.
  2. Determine your home’s replacement cost
    Although each insurance company will have its own valuation tool, knowing how much home 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 protection against lawsuits if someone is injured on your property.
  4. Shop around
    Getting insurance quotes from several property insurers allows you to compare rates, coverage, discounts and additional features of each company to find high-quality and cheap homeowners insurance. The Insurance Information Institute (Triple-I) recommends getting a minimum of three quotes when shopping for coverage to help you determine if a company fits your budget and coverage needs.
  5. Improve or maintain your credit score
    Most homeowners insurance companies use your credit-based insurance score as a rating factor, although a few states ban this practice. Statistically, homeowners with lower credit are more likely to file claims, according to the Triple-I, 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.
  6. Take advantage of home insurance discounts
    Home insurance discounts might help you lower your premium. Although every company offers a different selection of discounts, some common discounts include multi-policy, home safety features, loyalty, new homebuyer and claims-free.

The best way to see if you are taking advantage of your company’s discount programs is to talk to an agent. Discount availability varies, and an insurance agent should be able to help you identify the discounts you qualify for.

Learn more: How to find the right, cheap home insurance for your budget

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all 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/Additional Living Expenses: $50,000
  • Coverage E, Liability: $300,000
  • Coverage F, Medical Payments to Others: $1,000

The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).

These are sample rates and should be used for comparative purposes only. Your quotes will differ.