Cheap homeowners companies of November 2023

The best cheap homeowners insurance company is Progressive, based on our analysis of home insurance cost and coverage.

Cheapest homeowners insurance companies of 2023

• Progressive
• Westfield
• USAA
• Allstate
• American Family
• Erie
• Nationwide

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Cheapest home insurance companies 2023

Progressive

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Average annual cost:

$901

Complaint level:

Low

AM Best rating:

A+ (Superior)

Pros and cons

Pros

• Cheapest rates in our analysis.
• Easy online tools available.

Cons

• Certain dog breeds are banned from coverage in specific states.
• No extended or guaranteed replacement cost coverage available.
• Higher customer complaints than other insurers in our analysis, but the level is still below the national median.

Average rates

The average annual rate of home insurance through Progressive is $901 per year, which is around 53% cheaper than the national annual average.

Here’s what you can expect to pay by coverage amount with Progressive.

	$200,000	$350,000	$500,000	$750,000
Progressive annual premium	$561	$746	$945	$1,351
National average annual premium	$1,117	$1,582	$2,090	$2,950

Read our full Progressive home insurance review

Westfield

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Annual average cost:

$1,244

Complaint level:

Very low

AM Best rating:

A (Excellent)

Pros and cons

Pros

• Cheap homeowners insurance rates.
• Bundling discounts are available.
• Offers both extended replacement cost and guaranteed replacement cost coverage.
• Some Westfield home insurance policies offer valuable add ons like equipment breakdown coverage.

Cons

• Offers homeowners insurance in only 10 states: Illinois, Indiana, Iowa, Kentucky, Michigan, Minnesota, Ohio, Pennsylvania, Tennessee and West Virginia.
• Customers may encounter a banned dog list.

Average rates

Across all dwelling coverage amounts, the average Westfield homeowners insurance policy costs $1,244 per year. That’s about 36% or $691 less than the national average rate, which is the second cheapest of all the insurance companies we researched.

Here’s what you can expect to pay on average by coverage level.

	$200,000	$350,000	$500,000	$750,000
Westfield annual premium	$1,031	$1,164	$1,294	$1,485
National average annual premium	$1,117	$1,582	$2,090	$2,950

USAA

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Average annual cost:

$1,478

Complaint level:

Very low

AM Best rating:

A++ (Superior)

Pros and cons

Pros

• Cheap homeowners insurance rates for military members and their families who qualify for membership.
• Homeowners can take advantage of multiple discounts for added savings, including bundling discounts, discounts for home protection systems and discounts for connected home devices.
• Offers extended replacement cost coverage.
• USAA may reduce your rates by 15% if you go five years without a claim.

Cons

• Available only to active military personnel, veterans and their families.

Average rates

USAA ranks as the third cheapest home insurance option on our list. Overall, rates are highly affordable if you’re able to qualify for USAA membership. You’ll pay $1,478 on average, which is about 24% cheaper than the national average, or a difference of $457.

Here’s what you can expect to pay on average by coverage level.

	$200,000	$350,000	$500,000	$750,000
USAA annual premium	$869	$1,243	$1,603	$2,197
National average annual premium	$1,117	$1,582	$2,090	$2,950

Read our full USAA home insurance review

Allstate

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Average annual cost:

$1,526

Complaint level:

Very low

AM Best rating:

A+ (Superior)

Pros and cons

Pros

• Low-cost homeowners insurance.
• Several discounts are available, including up to 25% multi-policy discount when you bundle home and auto coverage, on-time payment discounts and claim-free discounts.
• Homeowners can save up to 10% when signing up for a new policy at least seven days before their existing one expires.
• Offers additional coverages, like basement coverage and flood insurance.

Cons

• Higher customer complaints compared to competitors.
• No guaranteed or extended replacement cost coverage available.
• No longer offering new home insurance policies in California.

Average rates

On average, a homeowners policy with Allstate costs $1,526 per year or around $127 per month. Rates are about 21% cheaper than the national average, or a difference of $409 per year.

Here’s what you can expect to pay on average by coverage level.

	$200,000	$350,000	$500,000	$750,000
Allstate annual premium	$1,003	$1,313	$1,637	$2,149
National average annual premium	$1,117	$1,582	$2,090	$2,950

Read our full Allstate home insurance review

American Family

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Average annual cost:

$1,590

Complaint level:

Very low

AM Best rating:

A (Excellent)

Pros and cons

Pros

• Low average home insurance rates, even at higher coverage levels.
• Offers multiple opportunities to get cheap homeowners insurance via discounts for bundling, home security systems, automatic payments and customer loyalty.
• Offers coverage add ons like extended or guaranteed replacement cost coverage, credit theft protection and monitoring and water backup coverage.
• Low level of consumer complaints suggest higher levels of customer satisfaction.

Cons

• May not cover certain dogs, depending on breed and behavior history.

Average rates

American Family’s average homeowners insurance rate is $1,590 per year, which puts it among the cheapest home insurance options whether you need a little coverage or a lot. On average, you may save $345 per year or pay about 18% less than the national average.

Here’s what you can expect to pay on average by coverage level.

	$200,000	$350,000	$500,000	$750,000
American Family annual premium	$1,045	$1,251	$1,608	$2,456
National average annual premium	$1,117	$1,582	$2,090	$2,950

Erie

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Average annual cost:

$1,657

Complaint level:

Very low

AM Best rating:

A+ (Superior)

Pros and cons

Pros

• Home insurance rates are cheaper than the national average.
• Low customer complaint levels.
• Offers both extended replacement cost and guaranteed replacement cost coverage.
• Up to a 20% discount when you bundle home and auto insurance.
• Offers extended water damage coverage.
• Unique gift card and gift certificate coverage included that reimburses you if a local business closes. You can get reimbursement of up to $250 per gift card purchased at businesses within 100 miles of your home if the business permanently closes within a year after the purchase of the gift card.

Cons

• Only available in 12 states and Washington D.C.
• Banned dogs list in select states.

Average rates

Erie offers budget-friendly coverage that’s about 14% cheaper than the national average. You’ll pay $1,657 annually for a policy on average, a potential savings of $278 per year.

Here’s what you can expect to pay on average by coverage level.

	$200,000	$350,000	$500,000	$750,000
Erie annual premium	$854	$1,378	$1,835	$2,560
National average annual premium	$1,117	$1,582	$2,090	$2,950

Nationwide

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Average annual cost:

$1,664

Complaint level:

Very low

AM Best rating:

A+ (Superior)

Pros and cons

Pros

• Home insurance rates are below the national average.
• Discounts are available for bundling, smart homes, home security devices, fire alarms and renovations made to improve your home’s electrical, heating and cooling systems.
• “Dwelling replacement cost plus” options provide extended coverage.
• No banned dog list and good customer service ratings overall.

Cons

• Nationwide homeowners insurance is not available in Alaska, Florida, Hawaii, Louisiana, New Jersey, New Mexico and Massachusetts.

Average rates

Nationwide’s average homeowners insurance rates are about 14% lower than the national average, with a typical rate of $1,664 per year across all dwelling coverage amounts. You could potentially save $271 on average when you purchase homeowners insurance through Nationwide.

Here’s what you can expect to pay on average by coverage level.

	$200,000	$350,000	$500,000	$750,000
Nationwide annual premium	$828	$1,309	$1,807	$2,710
National average annual premium	$1,117	$1,582	$2,090	$2,950

Read our full Nationwide home insurance review

Comparing the cheapest homeowners insurance companies

Here is how the cheapest homeowners insurance companies chalk up to one another. 

Cheapest homeowners insurance in your state

Home insurance rates vary by location. For example, if you live in a state that’s prone to hurricanes you might pay higher rates compared to someone who lives in the Pacific Northwest where tropical storms are less of a threat. 

Here are the cheapest home insurance company options by state, based on the rates we analyzed. Keep in mind that some of these insurance companies may only be available in each state or only in select states. 

Cheapest home insurance company by dwelling coverage limit

The cost of your home insurance will be greatly impacted by how much dwelling coverage you need. Here are the five best cheapest home insurance companies for different dwelling coverage limits. 

Cheapest home insurance for $200,000 in dwelling coverage

Cheapest home insurance for $350,000 in dwelling coverage

Cheapest home insurance for $500,000 in dwelling coverage

Cheapest home insurance for $750,000 in dwelling coverage

How to get the cheapest home insurance

The cheapest home insurance policy available may not be the best option for you. Your goal should be to get the home insurance coverage you need at a price you can afford. 

Here are some tips for saving on your homeowners insurance.

Shop around and get multiple quotes

It’s easy to get homeowners insurance quotes, either online or over the phone, and it’s worth your time if you’re hoping to get the best rates possible. Requesting quotes from at least three insurance agencies is a good place to start. If you have a copy of your current policy, you can use that as a guide for determining the type and amount of coverage you need. 

Install security systems or smart home devices

Getting cheaper homeowners insurance hinges largely on risk management. Taking a look at your home through the eyes of an insurer can help you pinpoint areas where you may be able to reduce risk.

“Home security and monitoring systems provide added peace of mind that your home is protected. It’s also a sign to your home insurance provider that you’re a safe and responsible homeowner, which may help you earn discounts on your annual premium for having these systems set up,” said Steve Wilson, director of technical underwriting at Hippo, a home insurance company.

Your insurance company may offer a discount if you install a burglary alarm, smart home monitoring system and fire alarms and sprinkler systems. 

Update your household systems and storm-proof your house

Updating your household systems if they’re old or weather-proofing your house can help mitigate your risk. For example, upgrading your HVAC system or replacing your roof could help lower your rates if you’re able to qualify for a discount. Likewise, installing storm-proof windows and doors can lower your risk and may lower your home insurance costs.

Consider raising your deductible

A higher deductible means lower rates, but it also means you’ll be paid out less in the event of a claim. Bumping your deductible from $1,000 to $2,500, for instance, could require you to set aside more cash in emergency savings. 

“If your savings give you some cushion and you’re generally a safe and proactive homeowner, consider increasing your deductible to cut down on your annual premium. Higher deductibles can establish the amount of risk you plan to retain, while also saving on your premium,” said Wilson.

Ask about pets

Certain insurance companies may refuse to insure certain dog breeds for liability coverage. If you own pets, it’s important to know what restrictions might apply to your policy, if any and how that could affect your rates. 

Maintain good credit

You may know that your FICO credit scores affect your ability to qualify for loans. But you may not be aware that you also have an insurance-based credit score that can affect what you pay for coverage. 

California, Maryland and Massachusetts don’t allow insurance companies to consider your insurance-based scores for homeowners quotes but other states do. If you live in a state that relies on credit scores as a determining factor for insurance premiums, it’s to your advantage to work on maintaining good credit. 

You can do that by paying bills on time, keeping debt balances low and limiting how often you apply for new lines of credit. 

How to save on homeowners insurance

One of the incentives insurance companies offer to attract new customers is discounts. There are numerous discounts you may qualify for that could result in cheaper home insurance, including:

• Multi-policy discounts if you’re bundling home and auto insurance.
• New customer discounts if you’re transferring a policy from another home insurance company.
• Loyalty discounts for maintaining your home insurance policy for a certain number of years.
• Claim-free discounts if you go a certain period of time without a home insurance claim.
• Discounts for home improvements or renovations.
• Home security system discounts.
• Family discounts if you have other family members who have coverage through the same home insurance company.

The more discounts you’re able to qualify for, the more money you could save on homeowners insurance.

How to bundle home and auto insurance 

You can bundle your home and auto insurance by buying both policies through one insurance company — and it could yield substantial savings. Here are the home insurance companies with the best bundling discounts.

In addition to saving money on homeowners insurance, bundling can simplify your financial life. Rather than paying one bill for homeowners coverage and another for auto insurance, you’ll have just one bill to pay.

Keep in mind, however, that removing your auto insurance from the bundle could cause you to lose the discount. 

How much is home insurance? 

Home insurance costs $1,935 per year on average nationwide, according to our analysis. But the amount you pay for homeowners insurance can depend on several factors, including:

• Your house’s replacement cost. How much dwelling coverage you need will depend on your house’s replacement cost, or rebuild value, which is the amount it would cost to build your house back to its original state if it’s destroyed.
• The age of the house. Sometimes older houses can be more expensive to insure if they have outdated wiring or plumbing. Many insurers give a new house or new build discount if your house is under a certain age. 
• The fire rating of your house. This includes its proximity to fire hydrants or a fire station.
• The construction materials and makeup of your house. This includes factors like what your house is made of and whether it sits on a slab or crawlspace or has a basement.
• Location and the claims history for the area. Insurers look at what ZIP code you live in to help assess risks, this includes looking at the area in terms of natural disasters and vandalism and home break-in reports. If you live in a high-risk area that experiences theft and frequent severe weather, you may see higher home insurance rates. 
• Claims history. This includes your personal claims history (even in your previous residence) as well as claims made by previous owners.
• Coverage limits and deductibles. The higher your deductible the lower your rates will be. If your policy includes more coverage you’ll pay higher rates.

The cheapest home insurance for you may look very different from what constitutes a cheap policy for someone else. That’s why it’s important to shop around and get personalized quotes so you can make the most informed decision possible. 

What does home insurance cover?

Home insurance pays to rebuild, repair and replace your house and belongings in the event they are damaged or destroyed by a covered type of damage in your policy, like a house fire or home break-in. Here’s how all the coverages in a homeowners insurance policy work. 

• Dwelling coverage: Pays to repair or rebuild the structure and attached structures of your house if damaged by a covered cause of damage, like weather-related damage.
• Other structures coverage: Pays to repair or rebuild other structures on your property, like a shed or gazebo. 
• Personal property coverage: Pays to repair or replace your personal belongings, like clothing, furniture and electronics.
• Loss of use coverage: Pays for additional living expenses, like restaurant bills or hotel stays, if your home becomes uninhabitable after a covered loss in your policy.
• Liability coverage: Pays for someone else’s medical expenses or property damage bills if you’re responsible. Also pays for your legal fees and any settlements or judgments if you’re taken to court over the matter, like if your dog bites someone and they sue you. 
• Medical payments to others coverage: Pays a guest’s medical expenses if they’re injured on your property, regardless of who was at fault. 

What doesn't home insurance cover?

Home insurance typically doesn’t cover floods, earthquakes or any of the following: 

• Pest or animal infestations.
• Mold.
• Water damage from drain or sump pump backups.
• Nuclear hazards.
• Maintenance issues or damage caused by neglect.
• Smog, dry rot, dust and corrosion.
• Damage caused by your own pets.
• Shrinking, settling or expansion of footings, foundations, floors, roofs, ceilings or walkways.

Insurance coverage for disasters: Is tornado damage covered?