Best cheap homeowners insurance in Richmond

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Home insurance prices in Richmond, Virginia average $936 per year for a $250K dwelling. That is less than $80 per month for coverage. Nearly two-thirds of area residents own their homes, which means there are many homeowners insurance options available in Richmond.

If you find that $946 per year is more than you can comfortably afford for home insurance, keep in mind that Bankrate’s findings are an average consisting of higher and lower rates. You may be able to get lower prices, based on the insurance company you choose, the coverages you select and the discounts you take advantage of.

Best cheap home insurance companies in Richmond

The following companies are the most popular providers in the area and offer cheap home insurance premiums in Richmond, in conjunction with good customer service. To narrow the list down to five companies, we used J.D. Power’s results from their 2020 U.S. Home Insurance Study for Customer Satisfaction to determine which carriers had the best customer satisfaction ratings.

Home insurance company Average annual premium for $250K dwelling J.D. Power score
Mercury $632 NR
Travelers $634 803/1,000
Auto-Owners $796 839/1,000
Progressive $856 797/1,000
Erie $898 843/1,000

Mercury

Mercury’s homeowners insurance rates are the cheapest in Richmond of the carriers we surveyed. At $632 per year for a $250,000 dwelling, it is well below the city average of $936 for a standard HO-3. You could build on the standard coverage by adding optional coverages. Some of the options include service line insurance that pays for repairs to underground plumbing, electric and telecommunications lines, cyber protection for your computer equipment and home systems insurance that repairs or replaces appliances and home systems.

Travelers

Travelers almost tied with Mercury for cheapest home insurance in Richmond. Average rates between the two carriers are a mere $2 apart. If you would like to expand your coverage, Travelers has the most add-ons and options of all the carriers on the list.

Options include replacement cost coverage that pays for new versions of lost or damaged items, water/sump pump backup and green coverage that pays for green upgrades for a more sustainable home.

Auto-Owners

Do not let the name fool you — Auto-Owners does more than car insurance well. In fact, Auto-Owners insurance earned an impressive 839 points out of 1,000 from J.D. Power based on the responses from homeowners insurance policyholders.

The secret may be the personal service. While most companies reduce their local presence and turn to digital to save money, Auto-Owners still works the old-fashioned way. A local agent will work with you for quotes, help you select the best coverage from all the options Auto-Owners offers and ensure your claims are processed in a timely manner.

Progressive

Progressive Insurance’s rates for Richmond average $856 per year. But if you qualify for the carrier’s discounts, you could save more. You could get back an average of 5% when you bundle home and car insurance. Other discounts available include pay in full, paperless billing, new homeowner and safety/alarm discounts. You do not have to choose one — if you qualify for several discounts, you may be able to stack the savings to lower your home insurance bill.

Erie

Erie’s home insurance is not the cheapest of the five carriers, but it includes guaranteed replacement value, which may be worth the extra money. Most policies are structured as actual cash value. If your television is stolen, for example, your carrier will pay you what the TV is worth by deducting the age and condition of the item. Say you have a large flatscreen TV that would cost $600 new. An actual cash value policy may only pay you $150 because the TV is three years old. Finding a working flat-screen TV as a replacement for $150 may be difficult. With a guaranteed replacement cost policy, you would be able to go and buy a new version of the same model you claimed.

Other Richmond home insurance coverages to consider

Home insurance is not mandatory in Richmond, but may be a sensible decision. Richmond, VA (and most of the East Coast) is at risk for hurricanes. In addition, flood risk is growing for the area as sea levels rise. Damage from a tropical storm or a flood could cost tens of thousands of dollars to repair. That is why home insurance could be an effective way to protect what could be your most valuable investment — your home. Other coverages you may want to consider are:

  • Flood insurance: Home insurance does not include flooding as a peril. If you want to be protected from floods then you would need to purchase it as an add-on.
  • Scheduled personal property rider: A home insurance policy has limits on higher-value items such as jewelry, electronics, art and collectibles. You can insure more expensive items for a small fee using a scheduled personal property rider.
  • Service line protection: Internet cables, plumbing pipes and electrical wiring that run from your property to the municipal hookup are usually not covered by your utility company. Service line protection pays for repairs or replacement of these lines.

Home insurance discounts in Richmond

Most Insurance companies offer discounts for a variety of reasons, such as automatic payments, paperless billing, upgrading your roof or electrical systems and more. Some discounts you should look into include:

  • Bundling: Buying home and auto insurance from the same insurance company can help you save on your premiums.
  • Protective equipment: Installing smoke detectors, an alarm system or deadbolts could qualify you for a safety-related discount on your home insurance.
  • New homeowner: If you recently purchased a home, many insurance carriers may give you a small break on your home insurance premiums for the first 12 months.

Frequently asked questions

What is the best home insurance company?

The best home insurance companies in Richmond are Mercury, Travelers, Progressive, Erie and Auto-Owners. They have the cheapest rates and positive customer reviews. However, the best home insurance company for you may vary depending on personal factors like your home’s age, size and location, as well as the coverage you wish to purchase and available discounts. It is best to do your research and compare providers before deciding.

How much does home insurance in Richmond cost?

Home insurance Richmond rates average $936 per year for a $250K dwelling. However, you could find lower premiums by getting quotes from several carriers to compare.

How much home insurance do I need in Richmond?

Although home insurance is not mandatory, an HO-3 insurance policy should financially protect you if your home or contents are damaged or lost due to a covered peril, such as fire, burglary or windstorm.

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 may be different.

Written by
Cynthia Paez Bowman
Personal Finance Contributor
Cynthia Paez Bowman is a finance and business journalist who has been featured in Bankrate, Business Jet Traveler, MSN, CheatSheet.com, Freshome.com and TheSimpleDollar.com. She regularly travels to Africa and the Middle East to consult with women’s NGOs about small business development and works with select startups and women-owned businesses to provide growth and visibility.