When building your insurance policy, companies will offer discounts on your premium if you take measures that make you a lower-risk investment. For example, many companies give you a break for taking certain safety measures, like installing deadbolts or a security system. Most will knock their prices even lower if you don’t have a long claims history or if you sign up for auto-pay. We took into account the number and type of discounts offered to help maximize your chance at an affordable policy.
Independent agencies including A.M. Best, Standard & Poor’s, and Moody’s provide ratings on the financial strength of insurance companies. These agencies asses the ability of an insurance company to remain solvent in time of major crisis or in difficult economic times. After all, insurance companies don’t have limitless funds; for example, American International Group (AIG) needed a government bailout during the 2008 recession. Around that time, Moody’s downgraded AIG’s rating to reflect a negative outlook. While many circumstances can influence the financial state of these corporations, their agency ratings are a valuable metric. A good rating is confirmation that an insurer can back your claim when it matters most.
J.D. Power’s annual U.S. Household Insurance Study and Consumer Reports’ customer experience survey measure communication, price satisfaction, claims process, and timely reimbursement. From J.D. Power, we required companies to have a score of 3/5 or better, and at least an 80/100 Reader Score from Consumer Reports. High scores reflect a company’s ability to handle claims and communication kindly, effectively, and without frustration.
We catalogued optional coverage additions that can fill gaps in your policy or cater to specific disaster-prone regions. Earthquakes, for example, aren’t covered in a standard policy. But for those living near fault lines, an endorsement that will cover resulting damage is wise, and it’s important to find a company that offers it.
The Best Cheap Homeowners Insurance
Best Customer Rating
Best for New Homeowners
Most Personalized Quote
Best Replacement Coverage
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Our Picks for the Best Cheap Homeowners Insurance
Amica: Best Customer Rating
Excellent customer service Limited online resources
Ample discounts High premiums
Unique dividends policy
Why we chose it
Excellent Customer Service
Amica is the only company to earn all five power circles from J.D. Power in each of the six survey categories: overall satisfaction, policy offerings, pricing, billing and payment, interaction, and claims. Amica is also the only company to receive such a high rating in price, which means you have the highest chance of being satisfied with the cost of your coverage plan. In addition, Amica received top marks in customer satisfaction from Consumer Reports, with a Reader Score of 94/100. That’s a fairly significant lift over State Farm (82) and Allstate (80) and will likely mean a more painless process during times of turmoil.
With 10 discounts in total, Amica is second to Allstate for most discounts. Notably unique are its paperless bill and loyalty discounts, which save you work and money (you won’t have to mail in your check or shop around for new providers). You don’t have to sweat missing out on standard discounts for security and safety, either — unlike Safeco, which fails to offer discounts for fire extinguishers, sprinklers, or fire alarms.
Unique Dividends Policy
On top of traditional price cuts, Amica offers a unique dividends policy. Because it’s a mutual company, the policyholders (rather than investors or stockholders) back the company. Amica policyholders could receive a dividend at the end of the term if the company does exceptionally well financially. This payback can be between 5 percent to 20 percent of your annual premium.
Points to consider
Limited Online Resources
You won’t find extensive information or resources on Amica’s website. The company’s site is pretty simple, with just a few pages of basic info about its products. Unlike Allstate, you won’t have access to tools and guides to help educate. You can get an online quote, but because of the bare-bones nature of the website, we’d recommend calling.
Premiums tend to be slightly higher for mutual companies, and that rings true for this provider. But between Amica’s discounts and the potential for dividends, it still might be your cheapest option.
Allstate: Best for New Homeowners
Expansive online tools Mediocre customer service
The most discounts
Why we chose it
Expansive Online Tools
Allstate stands out for its comprehensive educational tools and extensive resources. It’s a great place to start if you’re new to the game of homeownership, and it also earns its spot on our list of cheap homeowners insurance companies by having the most discounts. With a robust guide filled with information about homeowners insurance that’s not provider-specific, Allstate lets you arm yourself with everything you need to know. You can even get a personalized walkthrough of insurance-relevant stats for your specific address using Allstate’s GoodHome tool, which displays home details like market value, energy costs, and average repair costs of the most common hazards in the area (like fire or water damage). It also suggests tips for easing costs and choosing coverage.
The Most Discounts
Whether you want a price break for bundling, setting up automatic premium payments, or securing your home with burglar alarms and fire extinguishers, you can find a discount from Allstate. Unlike other providers, Allstate also has a “welcome” discount that lasts for your first two years, plus a discount for early shoppers who sign up before their current policy expires.
Points to consider
Mediocre Customer Satisfaction
You may get a cheaper quote from Allstate, but customers have mixed views as to whether they’re getting their money’s worth. The company’s 3/5 rating from J.D. Power and its score of 80 from Consumer Reports indicate that Allstate customers are less satisfied than Amica customers when it comes to policy price, interactions, and claims. If price truly is the most important factor to you, and Allstate offers you the cheapest quote, brace for potential frustration — but know that they’re dedicated to creating the best online resources for their customers.
State Farm: Most Personalized Online Quote
Excellent financial strength Few discounts
Detailed online quote
Why we chose it
Excellent Financial Strength
We required a strong financial outlook for all our top picks, but State Farm stood out for receiving the highest possible ratings from A.M. Best (A++), as well as top scores from S&P (AA) and Moody’s (Aa1). These high scores are an indication and assurance that the company is able to pay out its claims, even in disaster circumstances where many customers are filing claims.
Detailed Online Quote
With an 82/100 satisfaction score from Consumer Reports and 4/5 power circles across the board from J.D. Power, State Farm’s customer service trends better than Allstate. State Farm scored best in damage amounts and policy offering categories, likely because it has the most thorough online quote process. You’ll need a binder full of details about your home to get a quote — with information as specific as the number of corners in your home’s frame. The quote process includes a 360Value tool that helps you calculate the Estimated Replacement Cost of your home, complete with detailed pictures to help you determine whether your interior cabinets are “Custom” or “Standard.” All this works together to give you an online quote that you can feel confident in.
Points to consider
When it comes to saving on your investment, State Farm offers pretty standard and limited discounts. Home additions like sprinklers, fire extinguishers, and alarms will get you a price break. But if you’re a new homeowner or recently renovated, it might pay to shop elsewhere. You won’t have any luck with discounts for enrolling in autopay, being retired, or sticking with State Farm for the long term. If you want to maximize discount opportunities, we’d recommend Allstate.
Progressive: Extended Endorsements
Renowned customer service Assorted underwriters
Why we chose it
Renowned Customer Service
Ranked right alongside State Farm and Allstate, Progressive earned a 3/5 from J.D. Power. One of the most popular praises is Progressive’s reasonable prices, likely due to the fact that you’ll get several policies to choose from with Progressive. Its attentive online quote tool will pair you with several of its several underwriting partners and their policy options. Other companies who use underwriters (like Geico), will automatically pair you with an underwriter. But with Progressive, the customers have options to prioritize and choose their policy.
There are several unique endorsements that Progressive offers, so you can expand and customize your coverage. Its Inflation Guard option is pretty self-explanatory — your coverage amounts will adjust to match inflation rates. If you ever need to file a claim, you’ll know that rising market costs won’t leave you with too little coverage. If your home is decked out with fences, pools, and sheds, you can extend your home’s coverage to protect these items at no additional cost. You can also extend your personal liability and medical to cover any motor boats or small sailboats with its watercraft endorsement.
Points to consider
Before you grab a quote from Progressive, you should know that coverage and discount may vary depending on your state. This is because the company doesn’t back homeowners policies itself, but partners with other companies to offer it to Progressive Auto customers. As the company explains it, “Insurance through the Progressive Home Advantage® program is underwritten by select companies that are not affiliates of Progressive and are solely responsible for claims, including Homesite Group Incorporated, IDS Property Casualty Co., and ASI Lloyds, and their affiliates.” It’s definitely worth grabbing a quote, especially if you’re already a Progressive customer.
MetLife: Best Replacement Coverage
Rare replacement coverage Dated website
First-rate customer service
Why we chose it
Rare Replacement Coverage
Typically, your insurance policy will pay 25 to 50 percent more than the value of your home when it (and everything inside) has been destroyed. This is called extended replacement cost coverage. But the cost of rebuilding is sometimes greater than a home’s value, which can leave a customer short in the event of a loss. Building materials and labor will continue to rise, but market value of a home is always in flux thanks to factors like neighborhood and the housing market. That means a home valued at $250,000 could end up costing $500,000 to replace. Other providers may only pay up to $425,000 in that scenario, but with MetLife’s unique guaranteed replacement coverage, you’ll receive the full $500,000. This will extend to cover both your home’s structure and its contents, and can be a major life saver in the event of an emergency.
First-Rate Customer Service
Ranked just after Amica by Consumer Reports, MetLife scored a solid 89/100 for customer service. Customers enjoyed timely payouts and the claims-filing experience in particular, two essential metrics for when you’ll need your insurance provider the most. With Metlife, you can trust it’ll reimburse and support you during disasters.
Points to consider
When it comes to online resources, don’t expect much information or assistance from MetLife. Its website is barebones, with nothing more than a seven-question FAQ and landing page. Even more dismaying, only people in 10 states have the option to get a quote online. For those who like to do extensive research online before making a call to a sales person, MetLife won’t have the online presence to satisfy a purchasing decision.
A Guide to Cheaper Homeowners Insurance
If you’ve still got price on your mind, here are a few ways you can lower your costs without sacrificing your coverage.
Raise your deductible.
By raising the amount you’ll pay out of pocket before your insurance kicks in, you’ll lower your premiums (monthly/yearly payments). You can save as much as 25 percent by raising your deductible to $1,000. This can be a risky choice, though, and should be considered carefully — it’s important that you don’t raise your deductible so high that you can’t afford to pay it when something goes wrong. If you live in a disaster-prone area or have trouble saving, keeping a low deductible and investing in protection on a monthly basis is the safer choice.
Maximize discount opportunities and limit liabilities.
If you make any home improvements or security upgrades, you might be able to reduce your premium — but only if you tell your insurer. Before investing in any renovations on your home, double-check what discounts are available. Chances are you already have the basics down, such as deadbolts and smoke alarms. But your insurer may reduce your rate if you go the extra mile with carbon monoxide detectors and home security systems (provided they’re monitored). That also extends to improvements that help guard against natural disasters, like storm shutters and stronger windows. However, not every addition will help your premium. Trampolines, swimming pools, and “risky” dog breeds such as pit bulls will make your homeowners insurance company cringe. They’re all liability concerns, and liability concerns make rates go up.
Limit your claims.
Carefully consider the claims you file on your homeowners insurance, as it will raise the price you pay going forward. If you make several claims within a few years, you could be bumped into a “high risk” category with a potential 20 percent increase in premiums.
Consider bundling your insurance.
Companies universally offer a discount for holding multiple policies with them. By bundling auto, home, and life insurance, you can save money and maintain consistency in handling claims and communications.
Don’t ignore your credit score.
Most states allow insurers to factor in your credit score when deciding what you’ll pay. The logic? Customers with high credit scores are less likely to make claims, and the insurer will return some of those expected savings in the form of lower rates.
Homeowners Insurance FAQs
What are typical homeowners insurance rates?
When it comes to their prices, any of our favorites could be the cheapest for you. Most annual premiums for homeowners insurance range from $600 to $2,000 ($50 to $170 monthly). These rates vary because they’re influenced by highly personal circumstances. Is your home old or new? Is it framed with brick or wood? Is it in a busy city or a rural area? Is there a high risk of natural disasters such as hurricanes, floods, or tornadoes? Are you bundling your policy with other types of insurance, such as auto or life? Those are only a few of the circumstances that can affect your quote.
How much homeowners insurance should you have?
Of all the variables that affect your premium, the most important will be replacement cost value. This accounts for the amount of money to completely rebuild or replace your home in the face of catastrophe. And the higher the replacement cost, the higher your premium. This value is critical — don’t underestimate it, even if you’re trying to trim your policy costs. That number isn’t going to be the same as what you paid for your home (it should account for appreciation), nor the market value (which accounts for the plot of land and location). It’s best to hire an independent appraiser to get this number right and then confirm it with an appraiser from your insurance company.
Is it against the law to not have homeowners insurance?
Technically, no — you can legally own a home without homeowners insurance. But realistically, you will be required to have it by your lender, if you pay a mortgage. After you’ve paid off your mortgage, you won’t be legally required to maintain homeowners insurance. But because of the massive investment a home is, we would highly recommend it.
You have a choice — you can spend hours of your time calling and visiting your local insurance agencies, or you can spend a few minutes with us and get cheap homeowners quotes from top-rated local agencies, and national insurance companies in all 50 states. The quotes you’ll receive come from some of the best homeowners insurance companies all bidding for your business.Many of our customers have saved $525 or more on their homeowners insurance policies. Just click on the «Get Quotes Now» button above to see how much money you can save. It’s quick, it’s easy, and it’s free!Homeowners Insurance FAQsWhy do I need homeowners insurance?You need homeowners insurance to protect you from possible financial ruin. If your home were destroyed by a fire, flood, tornado, or a hurricane, you could lose everything you own. If, on the other hand, you had insurance, you would lose nothing because your house and possessions would all be replaced.Why buy homeowners insurance online?Buying insurance online is simple and easy, and getting your quotes won’t cost you a penny. You’ll get your quotes immediately, and you can compare those quotes in the comfort and privacy of your home. You won’t have to spend hours of your time calling local agencies to get quotes. With us you can get cheap homeowners insurance quotes from A-rated local and national companies in a matter of minutes.What does homeowners insurance cover?A homeowners insurance policy provides the following protection …•It will pay to repair or rebuild your home if it’s damaged or destroyed •It will pay to repair or replace your possessions if they are damaged or destroyed•It will pay your living expenses if you have to leave your home while it’s being repaired •It will pay your legal expenses if you’re sued by someone who is injured by you or any family member living in your home•It will pay the medical expenses for anyone who is hurt on you propertyHow can I get cheap homeowners insurance?Compare rate quotes – Click the “Get Quotes Now” button near the top of this page to get rate quotes from top rated homeowners insurance companies. Then review and compare those quotes to find the cheapest homeowners insurance rate and the best homeowners insurance coverage that fits your needs.Raise your deductible — When you fill in the online form to get your quotes, make sure you enter the highest deductible you can afford. Increasing your deductible from $500 to $1,000 can save 15% to 25% on your policy. Increasing it to $2,000 can save you up to 35%.Get discounts – In order to get the cheapest home insurance rate make sure you include all the discounts you’re eligible for. Some discounts include:•A security discount if you have security features such as deadbolt locks, window locks, and a burglar alarm in your home — this can save 5% to 10% on your insurance. Installing a burglar alarm that alerts the police can save up to 20%•A safety discount If you have safety features like smoke detectors and fire extinguishers in your home — this can save you 5% to 10% on your insurance•A multi-policy discount if you have your home and car insured with the same company — this can save you up to 15% on your insurance•A senior discount if you’re 55 or older and retired•A non-smokers discount if no one in your home smokes•A claim-free discount if you haven’t filed a claim within a certain number of years•A payment discount if you pay your premiums quarterly or yearly instead of monthly
How can I tell if a homeowners insurance company is reputable?You can visit you state’s department of insurance website to find out if a company is licensed in your state. You can also find out if there are any complaints lodged against them. To visit your state’s insurance website, click this link: http://www.naic.org/state_web_map.htm, then click on your particular state.To find the financial rating of a particular insurance company and their ability to pay claims, go to Standard & Poor’s website: http://www.standardandpoors.com.What coverages are included in a homeowners insurance policy?•Dwelling coverage – This pays for any damage to your home caused by fire, storms, plumbing leaks, lightning, theft, or vandalism.•Other structure coverage – This pays for damages to the landscaping or the structures on your property that are not attached to your home such as sheds, guest houses, and fences.•Personal property coverage — This pays to replace or repair any of your personal possessions such as furniture, appliances, electronics, clothing, tools, etc., if they are damaged or destroyed, even if they aren’t on your property.•Loss of use coverage — pays most of your living expenses if you need to vacate your home while it’s being repaired or rebuilt. •Liability coverage – This pays for claims or lawsuits if someone is injured on your property, or if you or a family member living in your house unintentionally injure someone off your property.•Medical coverage – This pays the medical expenses of anyone who is injured on your property or hurt by your pets.How much is homeowners insurance?The average cost of homeowners insurance in the U.S. is $952 a year. This varies from state to state, with Idaho having the cheapest average rate of $534 a year, and Florida having the most expensive rate of $1,991 a year.What are the best insurance companies?Contrary to popular belief, the best companies aren’t necessarily the big-name companies you see on TV. The best companies are the ones that have the highest ratings with rating services like Standard & Poors, and A.M Best, and have the fewest complaints lodged against them with your state’s insurance commission. Many smaller, lesser known companies have better overall ratings than the big companies. Plus they have more affordable rates because they don’t spend millions of dollars on advertising and can afford to give you a better rate. If you’re looking for the best companies to buy insurance from then you need to check their ratings and check their complaints record.How can I get a homeowners insurance estimate?The only way to get a reliable insurance estimate is to go online to an insurance comparison site and get rate quotes. That way you’ll know exactly what you need to spend for your home insurance. Just click the «Get Quotes Now» button above to get your quotes.Where can I get insurance if my home is considered «high risk»High risk insurance is an insurance classification for homes that present a high risk to insurance companies, such as homes that are in a flood zone, homes that are in hurricane or tornado zones, homes that were built with substandard materials, and homes in high crime areas, Your home can also be classified as high risk if you’ve filed two or more claims within the last two years, if you’ve filed for bankruptcy, if your insurance has been cancelled, or if you have a bad credit ratingIf your home has been classified as high risk it doesn’t mean you can’t get insurance, it just means your insurance rate will be higher than the normal rate. However, you can lessen your rate by comparing quotes from various companies and using the money-saving tips on this page. If you’re turned down by insurance companies because your home is too much of a risk, you can still get insurance through state run programs known as Fair Plans. These program provide insurance to people whose homes are considered uninsurable by insurance companies. To see if your state offers these plans, visit your state’s department of insurance website.What the difference between homeowners insurance and condo insurance?With homeowners insurance you are responsible for insuring your entire home. With condo insurance you’re only responsible for insuring the inside of your condo from the interior walls inward. The condo building itself and the condo’s common areas are insured by the condo owner’s association.Homeowners liability coverage protects you in the event someone is injured in your home or on your property, while condo liability coverage protects you when someone is injured inside your home, and the association’s policy covers injuries that happen in the common areas.Both homeowners and condo insurance cover your personal property such as furniture, clothing, electronics, appliances, household items, tools, and jewelry.Where can I get landlord insurance quotes?Landlord insurance protects rental properties from such perils as burglary, tenant damages, fire, acts of nature, theft, and malicious damage. This type of insurance is available from most insurance carriers. Where can I get vacant house insurance?Unoccupied home insurance, also known as vacant house insurance, covers homes that are unoccupied. They represent what is known as an “attractive nuisance” by insurance companies, because these homes appeal to vandals and thieves, and are therefore classified as high risk. To insure a vacant home you have two options: you can purchase an endorsement to your existing homeowners policy, or you can purchase a separate vacant house insurance policy. Where can I get low cost mobile home insurance coverage?There are two types of mobile homes: modular homes which are prefabricated, transported in pieces to a building site, then constructed on a foundation, and manufactured homes which are constructed entirely in a factory then towed to a building site.If you own a modular home you can get a standard homeowners policy. If you own a manufactured home you will need to get a manufactured homeowners policy. Both types of policies are available through most insurance companies, and both provide protection from fire, storms, burglary, vandalism, loss of personal property, and liability lawsuits.To get the best rate for mobile home insurance, click the “Get Quotes Now” link above to get quotes to compare, then choose the least expensive quote that gives you the coverage you need