Cheapest Homeowners Insurance Companies

Owning a home can be expensive, and overpaying for homeowners insurance doesn't help. So we found the cheapest homeowners insurance companies in the country by compiling quotes from nine providers in all 50 states.

Cheap homeowners insurance companies

Allstate, USAA and Nationwide tend to be the cheapest homeowners insurance companies, according to QuoteWizard's analysis. Some of these companies offer average rates lower than $150 a month, making them highly affordable options.

However, there is no single cheapest homeowners insurance company because rates depend on many factors, such as your home, your insurance claims history and where you live. That means the most affordable home insurance company for you might be different than the most affordable option for your neighbor.

Although Allstate, USAA and Nationwide are among the cheapest home insurers in the country, homeowners insurance typically costs more in states that face more risk factors. To see the cheapest insurer where you live, check out our state homeowners insurance guide.

Customer satisfaction ratings of cheap home insurance companies

You should only buy a low-cost home insurance policy if you know you are getting the level of service and coverage you need. That's why we recommend considering a cheap company's satisfaction ratings, as well as their premiums.

QuoteWizard uses two primary ratings for customer satisfaction: J.D. Power's home insurance study and the NAIC Complaint Index. J.D. Power rates overall customer satisfaction on a scale of 1,000, and NAIC measures complaints relative to a company's size.

While Allstate has some of the cheapest home insurance rates, it underperforms in J.D. Power's home insurance survey and has a higher Complaint Index than its competitors. USAA, the second-cheapest company on our list, shows better customer service scores. That's why we recommend thinking about more than price. In the event you need to file a claim, good customer service may be worth the higher premium.

Homeowners insurance policies are standardized, meaning coverage does not vary much between providers. However, you should always review your policy and make sure you are aware of its exclusions. Homeowners insurance usually covers damage from fire, wind and other perils, but almost always excludes floods and earthquakes.

How to make your home insurance rates cheaper

You can take steps to lower your homeowners insurance premium. For example, you can see large savings by switching companies. However, if you want to remain with your current provider, you can save with discounts, home improvements and policy adjustments.

Take advantage of home insurance discounts

Insurance companies usually offer a handful of discounts to policyholders. Many companies have discounts for:

• Bundling multiple insurance policies.
• Having a claims-free history.
• Installing fire, burglar and smoke alarms.
• Adding storm shutters.

Additionally, home improvements that make your home less susceptible to damage, like an impact-resistant roof or storm shutters, can lower your premium, too.

Lower your coverage limits or raise your deductible

You can lower your home insurance rates by adjusting your policy limits and deductible. Your coverage limits are the maximum reimbursement amounts your insurance company will pay out after a claim, so higher limits lead to higher premiums. You may find that you're paying for more coverage than you need.

Raising your deductible can also lower your monthly premium. Our study of the average cost of homeowners insurance found that raising your deductible from $500 to $2,000 can save you $27 a month, or $324 a year. However, be careful about raising your deductible to an amount you're unable to pay.

Allstate

Allstate is not only one of the largest home insurance companies in the country, it's also the cheapest. Along with cheap rates, Allstate offers a multi-policy discount that could save you up to 25% if you bundle home and auto policies with the company. Besides a bundling discount, Allstate offers a discount of up to 20% if you switch to it without a recent home insurance claim.

Allstate also offers all the standard coverages you would expect to see in a home insurance policy, as well as several add-ons. It offers optional coverages that aren't typically offered by other insurers, too, such as home-sharing coverage and yard and garden coverage.

USAA

Although USAA offers some of the cheapest premiums, it's only available to current and former military members and their families. If you qualify, USAA offers exceptional customer service.

USAA also offers all the standard coverages you would expect to see in a homeowners insurance policy, plus additional coverages. For instance, USAA protects military uniforms and equipment against damages from a covered peril. Despite its affordable rates, however, USAA's discounts are minimal compared to other insurers.

Nationwide

Nationwide is the third-cheapest home insurer in our study. It also offers many discounts to help you save on your premium, including a claims-free discount, a home renovation credit, a prior home insurance discount and a gated community discount.

Nationwide offers all the standard coverages you would expect to find from most insurers, but it also includes other coverages such as credit card coverage, which pays for unauthorized transactions on credit and debit cards, up to your policy limits.

Cheapest home insurance companies by state

Homeowners insurance premiums vary by state due to risks like extreme weather and crime rate. We compiled rates for the cheapest home insurance companies in each state.

Methodology

We collected quotes from every ZIP code in all 50 states. The following coverages were used:

• $275,000 dwelling coverage
• $27,500 other structures
• $137,500 personal property
• $55,000 loss of use coverage
• $100,000 liability
• $5,000 medical payments
• $1,000 deductible

We used the largest companies in each respective state in order to reflect local homeowners insurance markets. Here are some of the best-known providers among the ones we used:

• State Farm
• Allstate
• USAA
• Farmers
• Travelers
• American Family
• Nationwide
• Chubb
• Progressive

QuoteWizard.com LLC has made every effort to ensure that the information on this site is correct, but we cannot guarantee that it is free of inaccuracies, errors, or omissions. All content and services provided on or through this site are provided "as is" and "as available" for use. QuoteWizard.com LLC makes no representations or warranties of any kind, express or implied, as to the operation of this site or to the information, content, materials, or products included on this site. You expressly agree that your use of this site is at your sole risk.