Your home is typically your biggest investment, and it’s filled with other significant assets—all your belongings. A homeowners insurance policy safeguards these items and provides important liability insurance.
We analyzed home insurance rates to find the cheapest homeowners insurance companies.
Top 5 Cheapest Home Insurance Companies
We analyzed rates for top homeowner insurance companies and found the national average to be $1,854 (for dwelling coverage of $300,000). The top five cheapest companies are well below the national average.
| Cheapest home insurance companies | Average annual premium | % difference from the national average |
|---|---|---|
| Progressive | $1,236 | 33% cheaper |
| Lemonade | $1,461 | 21% cheaper |
| Auto-Owners | $1,518 | 18% cheaper |
| USAA | $1,667 | 10% cheaper |
| Erie | $1,668 | 10% cheaper |
| Source: Quadrant Information Services, based on dwelling coverage of $300,000 |
Progressive Home Insurance
Progressive came in as the cheapest homeowners insurance company nationwide with an average rate of $1,236. Progressive offers its own home insurance but also places customers with other companies it has arrangements with. The rates we show are through American Strategic Insurance (ASI)—which is part of Progressive—but you could be quoted a rate from a partner company.
Make sure to check Progressive’s potential home insurance discounts:
Related: Progressive Home Insurance Review
Lemonade Home Insurance
Lemonade takes second place for cheapest home insurance company with an average rate of $1,461. Lemonade is available in 23 states and Washington, D.C. It sells its home insurance policies predominantly online or through its mobile app.
You don’t need to be a tech wizard to use Lemonade, but you do have to be a little tech smart. Customers must download the app to manage a Lemonade home insurance policy and file claims.Lemonade home insurance discounts include:
Related: Lemonade Home Insurance Review
Auto-Owners Home Insurance
Auto-Owners captured third place with an annual average premium of $1,518. Auto-Owners offers home insurance policies in 26 states. You may see your home insurance policy written under some of their other group names, including Concord, Home-Owners or Property-Owners.
Additional home-related coverage from Auto-Owners includes equipment breakdown, identity theft expense coverage, and water backup of sewers or drain insurance. You also can choose coverage for service line damage or increase limits for food spoilage from power outages.
Guaranteed replacement cost coverage is an optional coverage that provides full replacement of your home if your coverage limit is too low. There are many reasons your coverage may not be sufficient after a disaster, such as unforeseen expenses due to high labor or material costs. For example, if a tornado strikes your area and causes a spike in construction costs, your dwelling coverage amount could be insufficient.
Auto-Owners also offers a host of home insurance discounts, such as bundling and paying in full. Other discounts include:
Related: Auto-owners Home Insurance Review
USAA Home Insurance
USAA came in fourth with a national average rate of $1,667. USAA is available nationwide. To obtain a homeowners insurance policy with USAA, you must be a current military member, spouse or child of a military member or veteran.
If you qualify for USAA home insurance, look for these extra coverage options:
Discounts offered by USAA include:
Related: USAA home insurance review
Erie Home Insurance
In a tight race, Erie came in as the fifth cheapest home insurance company, with an annual average rate of $1,668. That’s only $1 behind fourth place. Erie is available in 12 states and Washington, D.C.
Erie has some perks for its customers, such as guaranteed replacement cost coverage. This pays for the total cost of rebuilding your home after a disaster, even if that amount is above your dwelling coverage limit. Guaranteed replacement cost is not available from Erie in all states where it operates.
In states where guaranteed replacement cost is not available, you may have the option of extended replacement cost coverage, which gives you a 25% cushion above the dwelling amount listed on your policy if rebuilding costs are higher. If you live in North Carolina, ask your agent about enhanced replacement cost.
Discounts that can lower Erie home insurance costs include:
Related: Erie Home Insurance Review
Cheapest Homeowners Insurance Companies by State
Here’s a look at the cheapest home insurance in each state, based on the companies we analyzed.
| State | Cheapest home insurance company | Average annual premium |
|---|---|---|
| Alabama | Farmers | $607 |
| Alaska | Country Financial | $1,035 |
| Arizona | Progressive | $723 |
| Arkansas | State Auto | $1,254 |
| California | Allstate | $718 |
| Colorado | Auto-Owners | $1,251 |
| Connecticut | Progressive | $546 |
| Delaware | Nationwide | $798 |
| District of Columbia | Allstate | $901 |
| Florida | Security First | $500 |
| Georgia | Progressive | $833 |
| Hawaii | DB Insurance | $223 |
| Idaho | Farm Bureau | $607 |
| Illinois | Allstate | $1,133 |
| Indiana | Indiana Farmers Mutual | $975 |
| Iowa | West Bend Mutual | $980 |
| Kansas | Auto-Owners | $1,722 |
| Kentucky | Progressive | $1,218 |
| Louisiana | UPC Insurance | $661 |
| Maine | Vermont Mutual | $465 |
| Maryland | Brethren Mutual | $822 |
| Massachusetts | Quincy Mutual | $890 |
| Michigan | Frankenmuth | $994 |
| Minnesota | Auto-Owners | $1,231 |
| Mississippi | Allstate | $1,079 |
| Missouri | Nationwide | $1,646 |
| Montana | Chubb | $1,350 |
| Nebraska | USAA | $2,298 |
| Nevada | Farmers | $766 |
| New Hampshire | American Family | $547 |
| New Jersey | NJM | $504 |
| New Mexico | Farmers | $1,247 |
| New York | UPC Insurance | $663 |
| North Carolina | North Carolina Farm Bureau | $1,747 |
| North Dakota | Agraria | $1,446 |
| Ohio | Ohio Mutual | $769 |
| Oklahoma | American Farmers & Ranchers | $2,967 |
| Oregon | Mutual of Enumclaw | $469 |
| Pennsylvania | Penn National | $756 |
| Rhode Island | Narragansett Bay Ins. | $644 |
| South Carolina | Chubb | $1,207 |
| South Dakota | Nationwide | $1,676 |
| Tennessee | Progressive | $1,085 |
| Texas | IAT Insurance | $2,257 |
| Utah | Farmers | $435 |
| Vermont | Vermont Mutual | $442 |
| Virginia | Farmers | $715 |
| Washington | PEMCO | $595 |
| West Virginia | Westfield | $994 |
| Wisconsin | West Bend | $673 |
| Wyoming | USAA | $777 |
| Source: Quadrant Information Services, based on dwelling coverage of $300,000 |
What Does Home Insurance Cover?
Homeowners insurance is critical to carry if you own a home. Not only will your mortgage company require it, but you want your most significant assets (home and belongings) protected.
A standard home insurance policy includes these main coverage types.
Dwelling coverage
Pays to repair or replace your home if it’s damaged by an event not excluded in your policy. It also covers attached structures like your garage. Common exclusions include earthquakes, sinkholes, flooding, wear and tear, and intentional loss. Your policy will have a complete list.
Other structures coverage
Pays to repair or replace structures not attached to your house, like a fence or shed.
Personal property coverage
Pays to repair or replace your belongings after an issue covered by your policy, such as a fire. Belongings include items such as your furniture, appliances, clothing and electronics.
Additional living expenses coverage
Pays for extra costs you incur if you can’t live at your residence due to a problem covered by your policy, such as a fire. Additional living expenses coverage can pay for things like hotel expenses, restaurant meals, and other necessary costs like a laundry service. It’s also referred to as “loss of use” coverage.
Liability insurance
Pays for injuries or property damage you (or your household members) accidentally do to others—or example, if your child accidentally throws a football through a neighbor’s window. It also covers legal fees and court judgments or settlements if you’re sued over to an accidental incident.
Medical payments to others
Pays for medical bills for minor injuries to guests. For instance, if a guest sprains their ankle from tripping on a loose step. Sometimes it’s called “guest medical” coverage.
Factors in Home Insurance Costs
Insurance companies weigh risk factors differently, which is one reason they offer different rates. But they generally look at these common factors when determining home insurance quotes:
How to Get the Cheapest Homeowners Insurance
Comparison shop
The easiest and best way to save is shopping around. We recommend comparison shopping with at least three different companies. Shopping with multiple companies will give you a sense of what a good deal is.
Check for unneeded coverage
A good starting point to look for cheap home insurance is to review your policy. Make certain the coverage, limits and deductibles are correct for your current situation.
Look around your home to see if you have changed anything that could have lowered the risk you pose to your insurance company. For instance, if you got rid of a trampoline that was affecting your home insurance rates, tell your company it’s gone and see if it can reduce your rates.
Perhaps you’ve added items that have reduced risks. For example, you have added an automatic sprinkler system or installed a monitored security system. Or, if you invested in smart home technology, like gas or water shutoff sensors, you should let your insurance company know. Items such as these often help lower rates with discounts.
Ask for a review of home insurance discounts
Asking about discounts is another way to save. Check with your insurance company that you are getting all the discounts you’re eligible for at this time.
Find out savings for raising your home insurance deductible
If you have money saved and can pay for minor issues that arise, look into raising your deductible to reduce rates. If you move up your deductible from $500 to $1,000, your rates should decrease. The deductible is the amount deducted from an insurance claim check. By lowering potential payouts a little, you should get a lower premium.
Related: 10 ways to get cheap homeowners insurance
Find the Best Homeowners Insurance Companies Of 2022
Learn MoreMethodology
Average home insurance rates were calculated using data from Quadrant Information Services. Rates are based on a policy with dwelling coverage of $300,000 and liability coverage of $100,000.nin
About the Author
