The average cost of home insurance in Madison, Wisconsin, is $912 per year for a policy with $250,000 in dwelling coverage. However, home insurance premiums are personalized based on factors like your claim history, ZIP code, credit score and the age of your home, meaning that they vary — sometimes significantly — from one homeowner to the next. In turn, you might pay more or less than average based on these factors and others.

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But while average premiums may vary, the good news is that homeowners in Madison, Wisconsin, have lots of options when it comes to homeowners insurance. However, not all insurance providers are created equal. To help you find the best and cheapest home insurance in Madison, Bankrate leveraged its expertise to analyze rate data and find the lowest premiums, while weighing companies on other factors, like financial strength and customer service. According to our research, some of the companies offering the best cheap homeowners insurance in Madison include Erie, Allstate and State Farm.

Best cheap home insurance companies in Madison

Erie, Allstate and State Farm offer some of the cheapest average rates on homeowners insurance in Madison, according to Bankrate’s analysis of rate data provided by Quadrant Information Services. However, Madison residents have numerous options when it comes to finding good homeowners insurance policies with affordable rates.

Bankrate’s insurance editorial team, which includes licensed agents, reviewed several of the most prominent carriers in Madison, Wisconsin, using customer satisfaction ratings based on the 2023 J.D. Power Property Claims Study and other third-party ratings and rankings to determine the best cheap home insurance companies. We also used these and other factors to assign a Bankrate Score to each carrier. Bankrate Scores are based on a five-point scale, and are designed to help you make a quick comparison among carriers. When comparing cheap home insurance companies, using Bankrate Scores can give you a good idea of how the company fares overall.

The table below summarizes our picks for some of the cheapest and best home insurance companies in Wisconsin.

Home insurance company Bankrate Score Average annual premium for $250K dwelling coverage J.D. Power score
Erie 4.4 $679 912/1,000
Allstate 4.2 $705 868/1,000
State Farm 4.2 $920 880/1,000
Travelers 4.1 $749 867/1,000
Wisconsin Mutual Insurance Co Not rated $912 N/A

Erie

If you’re looking for the best cheap homeowners insurance in Madison, Erie may be an insurance company to consider. Erie’s average rates come in low on our list of carriers. Its standard homeowners policy includes theft coverage, pet insurance and guaranteed replacement cost protection. Depending on your state, you may also have the option to add on earthquake insurance, flood insurance and water and sewer backup protection. However, Erie doesn’t offer as many discounts as some of the other Madison insurance companies we reviewed.

Learn more: Erie Insurance review

Allstate

Allstate offers cheap home insurance in Madison. It has one of the lowest average rates in the city, according to our analysis of average rate data from Quadrant. Not only is Allstate highly rated for 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. Allstate also has a claim rate guard system that helps keep your rate from increasing even if you do file a claim. However, the company is rated slightly below average for claims satisfaction by J.D. Power.

Learn more: Allstate Insurance review

State Farm

State Farm is one of the largest home insurance companies and employs several thousand agents throughout the nation. It scored above the industry average for customer claims satisfaction in the 2023 J.D. Power study, although it does land on the higher end of average premiums on our list. While State Farm may offer fewer discounts than others, the company provides standard coverage options and a free fire safety program for qualifying customers. State Farm also highlights its willingness to work with homeowners on policy customization to help fit the plan to their needs and budget.

Learn more: State Farm Insurance review

Travelers

When you have a homeowners insurance policy with Travelers, there are many coverage options available, such as contents replacement cost, water backup and additional replacement cost protection. These coverages may be added to your policy as needed. Even though Travelers’ average rates are below the citywide average rates for homeowners insurance, there are still plenty of discounts available through the insurer, including multi-policy, green home and loss-free discounts. However, one of the downsides of Travelers is that it’s rated below average for customer satisfaction.

Learn more: Travelers Insurance review

Wisconsin Mutual Insurance

Wisconsin Mutual Insurance offers an array of homeowners insurance coverage options for residents of Madison. This includes several levels of packages that allow you to choose the level of coverage you need based on both your budget and home type. The company also offers packages geared toward secondary homes, “hobby farms” and newer construction homes. In addition to these packages, Wisconsin Mutual also offers a blanket valuable protection option, increased liability, and cybersecurity coverage for a more robust policy. However, Wisconsin Mutual does not offer a mobile app for claims filing or policy management, so it may not be the best fit if you prefer to manage your policy from your phone.

Home insurance coverage options in Madison

Homeowners insurance is not a state requirement, but may be required 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.

When obtaining home insurance quotes or reviewing your existing policy, the following additional coverage types may be beneficial for those looking for cheap home insurance in Madison, Wisconsin:

  • Water backup: Water backup is an available add-on from some insurance carriers. This covers sewer backups, 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 the cost of home insurance in Madison is, on average, 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: Many insurance providers will offer a significant discount to policyholders who purchase multiple insurance policies. That can apply to home and auto, or multiple home, auto or other policies.
  • Safety measures: Protective features like smoke detectors and security alarms can net you a discount with many home insurance providers./li>
  • New home: Newly-built homes often qualify for additional discounts from insurance providers.
  • Home renovation: Many companies offer a home renovation discount to homeowners who are or have recently made certain types of updates to their homes. For example, if you have replaced major systems, such as electrical, plumbing or building materials, you may qualify for lower rates.
  • Green building materials: If your home was built using qualifying green building materials, such as those certified by the Leadership in Energy and Environmental Design (LEED), or other eco-friendly products, then you may be eligible for further discounts.

Of all of these discounts, the most impactful home insurance discount may be the multiple policy discount. Insurance companies like to reward customers who insure more than one policy with them. Having safety features in your home may also help you save on the cost of your policy. Plus, there may be other discounts, like insuring a new home, that you qualify for. If you bundle home and auto insurance together, it tends to result in a bundling discount, which may further cut down on the cost of insuring your home.

Frequently asked questions

    • 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.
    • The average cost of homeowners insurance in Madison, WI, is $912 per year for $250,000 in dwelling coverage. The cost of your homeowners insurance policy will likely vary, though, as homeowners insurance rates are based on numerous personal factors, like any prior homeowners claims, your ZIP code, the age of the property and total value of the home. Comparing rate quotes can help you find the cheapest policy for your situation.
    • If you used a mortgage loan to purchase your home, your lender will likely require you to obtain a homeowner insurance policy in order to protect their investment in your home. In most cases, your lender will require you to purchase at least enough dwelling coverage to rebuild your home, and you may also be required to obtain other types of coverage, like flood insurance, if you live in certain high-risk areas. You may also need to purchase certain amounts of liability insurance and personal property coverage as part of your home insurance policy. If you aren’t sure how much coverage you need, it may benefit you to work with a licensed insurance agent to determine the right amount of protection for your home.

Methodology

Bankrate utilizes Quadrant Information Services to analyze January 2024 current rates for 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.

Bankrate Score

Our 2024 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlight where they fall short.

  • Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, average quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best, Demotech and the NAIC, were analyzed.
  • Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
  • Tier 3 (Support): To encompass the many ways a home insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.

Tier scores are unweighted to show the company’s true score in each category out of a possible five points.