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 U.S. by compiling quotes from providers in all 50 states.

Cheap homeowners insurance companies

However, there is no single cheapest homeowners insurance company for everyone 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.

Cheapest homeowners insurance companies by state

Although Erie Insurance, Chubb and Allstate are among the cheapest home insurers in the U.S., other insurers might be cheaper in your state.

Cheapest homeowners insurance companies in biggest cities

Homeowners insurance premiums also vary by city due to risks like crime rate and the age of your home. We compiled rates for the cheapest home insurance companies in the biggest U.S. cities.

Cheapest home insurance rates by credit score

Your credit score can affect your home insurance rate, especially if you have a poor credit score. Homeowners with good credit scores pay less for home insurance, on average. However, some states don't allow home insurance companies to use credit scores when determining rates. If you live in a state that allows it and you have a poor credit score, you can compare rates from different companies to get cheaper rates.

Cheapest insurer for homeowners

Erie

Second-cheapest insurer for homeowners

Chubb

Best insurer for discount options

Allstate

Cheapest insurer for homeowners: Erie Insurance

QuoteWizard rating: 4.0 out of 5

Erie Insurance has the cheapest average home insurance premium at $1,471 a year. Erie Insurance also provides a great bundling discount. You can save around 20% if you bundle your home and auto insurance policies with Erie Insurance.

Erie Insurance provides great coverage, too, and offers a few coverages that many other insurers don't offer. In the event of a covered loss, Erie Insurance can cover the following:

• Guaranteed replacement cost: Covers the full cost of rebuilding your house
• Pets: Covered up to $500
• Cash and precious metals: Covered up to $500

Relative to its size, Erie Insurance also has few customer complaints reported for home insurance, based on data from the National Association of Insurance Commissioners (NAIC). The National Complaint Index from NAIC is a measurement of complaints made against an insurance company. Erie Insurance received a score of 0.30, which means that it received fewer than half as many complaints than a company of its size would expect to see. Erie Insurance also has a score of 827 out of 1,000 in J.D. Power's Home Insurance Study, which is above the average score of 819.

Second-cheapest insurer for homeowners: Chubb

QuoteWizard rating: 4.3 out of 5

Chubb has the second-cheapest average premium at $1,615 a year. Chubb also provides great coverage if you have a lot of assets. Chubb's Masterpiece program includes:

• Extended replacement cost coverage: This coverage will pay for the full rebuild of your home if your home is damaged by a covered loss, even if the damage repair cost is above your dwelling coverage limit.
• Cash payout option: If your home is completely destroyed due to a covered loss and you do not want to repair or rebuild your home, you can get a cash payout up to your policy limit instead.
• Replacement cost coverage: If your appliances are damaged due to a covered loss, Chubb will replace them based on the same or newest model available. Chubb will also replace your flooring, carpentry and other details in your home.

Along with cheap rates, Chubb has a low Complaint Index score of 0.21. It also has an AM Best financial strength rating of A++, which shows that the company is in very good financial health.

Best discount options: Allstate

QuoteWizard rating: 3.9 out of 5

While Allstate doesn't have the lowest average home insurance rate at $1,734 a year, it has a variety of great discounts that can make your policy more affordable. For example:

• You can save up to 25% off your home and auto insurance policies if you bundle them with Allstate.
• You can save up to 20% if you switch to Allstate and don't have a recent home insurance claim.
• You can save up to 10% if you switch to Allstate. You'll continue to save 10% every year as long as you're a customer.
• You can save up to 5% just by setting up automatic payments.

How can I make my home insurance rate 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 $363 a year. However, be careful about raising your deductible to an amount you're unable to pay.

Methodology

We collected quotes from thousands of ZIP codes across the country for a standard HO-3 homeowners insurance policy using the following coverages:

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

QuoteWizard rated insurance companies based on their cost, discounts, coverages, financial strength, J.D. Power score, NAIC Complaint Index, and website experience. We used a weighted rating for each of these categories and scored them out of five.

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