Best cheap homeowners insurance in Madison

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Madison, Wisconsin’s capital city, sits just west of Milwaukee and is home to more than 259,000 residents. With approximately 47% of the population being homeowners, finding the best cheap homeowners insurance in Madison is likely an important endeavor for residents. The average cost of homeowners insurance is $851 per year for $250,000 in dwelling coverage according to Bankrate’s 2021 study of average quoted annual premiums, well below the national average of $1,312 per year. Our research found that Erie offers one of the cheapest home insurance policies in the city.

With the property crime rate in Madison being higher than the state average and the chance of severe storms, tornadoes and snow, it may be worthwhile to shop around for the best homeowners insurance options in Madison. Bankrate’s insurance editorial team gathered the companies offering the best home insurance in Madison by market share to evaluate each one for its average premiums and policies.

Best cheap home insurance companies in Madison

Madison residents have numerous options for homeowners insurance. Using customer satisfaction ratings based on the 2020 J.D. Power Home Insurance Study and each company’s average 2021 rates, Bankrate reviewed several of the most prominent carriers in Madison, Wisconsin, to determine the best cheap home insurance companies.

Home insurance company Average annual premium for $250K dwelling J.D. Power score
Erie $515 839/1,000
Travelers $718 803/1,000
Nationwide $743 808/1,000
Allstate $759 829/1,000
USAA $788 *889/1,000

*Due to membership eligibility restrictions, USAA is considered rank-ineligible by J.D. Power.

Erie

For cheap home insurance in Madison, Erie offers one of the best homeowners insurance options for residents. Erie’s standard homeowners policy includes theft coverage, pet insurance, and guaranteed replacement cost protection. You could also add on earthquake insurance, flood insurance, water and sewer backup protection.

Learn more: Erie Insurance review

Travelers

When you have a homeowners insurance policy with Travelers, there are many coverage options such as contents replacement cost, water backup and additional replacement cost protection. These coverages may be added to your policy as needed. Even though Madison is below the national average in terms of the cost of homeowners insurance, there are still plenty of discounts available through the insurer, including multi-policy, green home and loss-free discounts.

Learn more: Travelers Insurance review

Nationwide

Nationwide’s standard homeowners insurance coverage includes the typical coverage as well as ordinance insurance for rebuilding your home to code in the event of a covered loss. Extras can be purchased if needed, such as water backup and flood insurance. Discounts for customers include multi-policy, loss-free, living in a gated community and protective devices, such as security systems.

Learn more: Nationwide Insurance review

Allstate

Allstate is one of the best and cheapest home insurance options in Madison. Not only is it highly rated amongst customer satisfaction, but it offers useful discounts for homeowners too. Allstate is known to reward homeowners with no claims with its claim-free rewards program, which offers a discount for each year you do not file a claim. However, claims are sometimes out of your control. Allstate also has a claim rate guard system that helps keep your rate from increasing even if you do file a claim.

Learn more: Allstate Insurance review

USAA

USAA is not available for every homeowner, as it is specifically for active members of the military, veterans and immediate family members. However, if you do qualify for USAA insurance, it is one of the best cheap homeowners insurance options in Madison. A USAA policy includes the standard coverage and covers your personal belongings at their current replacement cost with no depreciation.

Learn more: USAA Insurance review

Home insurance coverage options in Madison

Homeowners insurance is not a legal requirement, but may be necessary if you have a mortgage on your home. Home insurance policies are also useful if your home sustains damage. Your policy could help you rebuild and repair, and offer protection against serious financial hardships in those circumstances.

The following additional coverages may be beneficial for Madison residents.

  • Water backup: Water backup is an available add-on from some insurance carriers. This covers plumbing damage and flooding due to burst pipes. This may be particularly helpful for Madison residents during the winter months.
  • Personal property floater: The property crime rate in Madison is higher than the state average for Wisconsin, so it may not be a bad idea to consider adding on additional coverage for the items in your home.
  • Flood insurance: The most common natural disasters in Wisconsin include severe storms, floods and tornadoes. Therefore, it is often worth considering purchasing flood insurance in addition to your standard policy.
  • Additional living expenses: If it becomes necessary for you to temporarily move into a hotel or apartment due to a covered peril to your home, this add-on will help cover these costs. However, some policies include it as standard.

Home insurance discounts in Madison

While average home insurance costs in Madison are significantly less than other parts of Wisconsin or the rest of the country, most homeowners welcome additional savings. There are several common discounts available to Madison residents. These include:

  • Multi-policy: One of the easiest ways to obtain discounts is by using the same insurance carrier for your homeowners insurance as you do for your auto insurance or any other insurance policies you may have.
  • Safety measures: Installing a security device or other protective measures in your home could earn you discounts from your insurance carrier.
  • New home: New build homes often qualify for additional discounts from insurance providers.
  • Fire-safe materials: Some homeowners insurance providers offer discounts if fire-safe building materials are used in the construction of your home.
  • Loss-free: If you have previously had homeowners insurance and have a claims-free record, this could work to your benefit. If you do not have a history of home insurance, consider looking for a carrier that rewards you for not making any claims in recent years.

Frequently asked questions

What is the best home insurance company?

The best home insurance company depends on several factors. Determining which carrier to go with is determined by your circumstances, such as location, home size and budget.

How much does home insurance in Madison cost?

The average homeowners insurance rate in Madison is $851 per year for $250,000 in dwelling coverage. The cost for homeowners insurance will vary depending on personal factors such as your previous claims, ZIP code and the total value of personal belongings.

How much home insurance do I need in Madison?

The amount of home insurance you need in Madison is largely based on what it would take to rebuild your home in the event of a total loss. It is generally always a good idea to speak with an insurance agent to determine exactly how much coverage you will need to protect your home and assets.

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: $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).

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

Written by
Ashley Hubbard
Personal Finance Contributor
Ashley Hubbard has two years of experience in writing for insurance domains such as Bankrate.com, including auto and homeowners insurance. She has also worked in the industry as a collision estimator and in several auto body shops.
Edited by
Insurance Editor