Madison, Wisconsin’s capital city, sits just west of Milwaukee and is home to more than 269,000 residents. With nearly 48% 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 $837 per year for $250,000 in dwelling coverage, according to Bankrate’s 2022 study of average quoted annual premiums, well below the national average of $1,383 per year for $250K in dwelling coverage. 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
Erie, Travelers and Allstate offer the cheapest 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.
Using customer satisfaction ratings based on the 2022 J.D. Power Home Insurance Study and each company’s average rates, Bankrate reviewed several of the most prominent carriers in Madison, Wisconsin, to determine the best cheap home insurance companies. We also used these third-party ratings, average rate data and other factors to assign a Bankrate Score to each carrier. Bankrate Scores are based on a 5-point scale, with a maximum score of 5.0, and are designed to help you make a quick comparison among carriers.
|Home insurance company||Bankrate Score||Average annual premium for $250K dwelling coverage||J.D. Power score|
|Wisconsin Mutual Insurance Co||N/A||$800||Not rated|
*Due to membership eligibility restrictions, USAA is considered rank-ineligible by J.D. Power.
For cheap home insurance in Madison, Erie offers one of the best homeowners insurance options for residents and offers the cheapest average rates in Madison, according to our analysis. Erie’s standard homeowners policy includes theft coverage, pet insurance, and guaranteed replacement cost protection. You could also add on earthquake insurance, flood insurance and water and sewer backup protection.
Learn more: Erie Insurance review
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
Allstate is one of the best and cheapest home insurance options in Madison. Not only is it 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. 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
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 make claims or manage your policy from your phone.
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. USAA also offers unique coverage options that are tailored specifically toward military members, such as coverage for uniforms if they’re damaged by a covered peril.
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.
- 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.
Frequently asked questions
Bankrate utilizes Quadrant Information Services to analyze 2022 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.