Homeowners insurance rates can vary greatly based on a number of factors, including where you live, when your house was built, the coverages you choose and your insurer. The most affordable home insurance company that we found, Nationwide, is $1,833 cheaper per year than the most expensive, Auto-Owners. We recommend that you compare quotes from multiple companies when shopping for a homeowners insurance policy to get the best rate.
When everything is going well, it can be difficult to see the value of homeowners insurance — but in the event of an accident or disaster, you'll want reliable service and sufficient coverage to recover your losses. We compared quotes from a selection of companies to help you find home insurance that's not only affordable but also effective.
Best homeowners insurance rates
Erie offers the cheapest home insurance rates — a policy costs $883 per year or $76 per month, which is 53% less expensive than the national average. However, Erie isn't available to most homeowners, because the company only operates in 12 states.
Nationwide and State Farm offer affordable homeowners insurance policies nationally. Their rates are 35% and 20% cheaper than average, respectively.
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Cheapest insurer for most homeowners: Nationwide
In most cases, Nationwide delivers cheaper homeowners insurance rates than any of its major competitors. A policy from Nationwide costs $1,227 per year or $102 per month. It also offers policyholders a number of discounts to help keep the cost of insurance affordable:
- Multipolicy discount
- Home purchase discount
- Claims-free discount
- Protective device discount
- Home renovation credit
- Roof rating discount
- Gated community discount
- Prior insurance discount
- AM Best Financial Strength Rating: A+ (superior)
- J.D. Power rank: No. 15 out of 22 home insurers
- Unique value: Cheapest home insurance rates overall
Nationwide also offers homeowners a range of optional coverage add-ons like identity theft protection, extended replacement cost coverage, water backup, earthquake and flood insurance.
However, shoppers may be able to find better customer service elsewhere. Nationwide scored 812 out of 1,000 points on J.D. Power's customer satisfaction survey, placing it in the bottom half of ranked insurers. However, it received a good score on the National Association of Insurance Commissioners (NAIC) complaint index, indicating that Nationwide receives fewer complaints than its competitors.
Ultimately, we found that Nationwide home insurance is the best place to start comparing rates for your policy, but it shouldn't be the only insurer you check. Other large insurers — or even local companies — might offer both a decent rate and solid service.
Alternate cheapest home insurance company: Erie
If your home is located in one of the 12 states where Erie insurance is available, you may be able to take advantage of even better rates. A policy with Erie costs $883 per year or $74 per month, which is 47% cheaper than the national average.
Erie is known for its excellent customer service. Our editors awarded it 4.5 out of 5 stars, and it ranked fourth in J.D. Power's customer satisfaction survey.
Best home and auto bundle: State Farm
- AM Best Financial Strength Rating: A++ (superior)
- J.D. Power rank: No. 5 out of 22 home insurers Unique value: Best bundle discount we found
If you're shopping for lower rates for both home and auto insurance, then State Farm is probably the best insurer to start with. When we calculated the discount that each insurer offers customers who bundle auto and home coverage, the quotes from State Farm showed the greatest potential savings.
Homeowners insurance from State Farm costs $1,510 per year or $126 per month, on average. According to our research, the home insurance rates calculated from State Farm went down by an additional 22% to 30% when we added an auto insurance policy. In most cases, the discount for bundling with State Farm is greater than with any other insurer we analyzed.
In addition to a solid bundling discount, State Farm offers the following discounts to policyholders:
- Home security discount, for customers who have added fire, smoke or burglar alarms, or any other kind of home monitoring system.
- Roofing discounts, for customers who use certain impact-resistant products on roof renovations.
Choosing State Farm for your homeowners insurance offers other advantages besides competitive discounts. Not only is it the largest insurer for American homeowners, but it also received a score of 835 out of 1,000 from J.D. Power — above the national average of 825. This means that State Farm is also one of the top choices for anyone who values excellent customer service from their home insurance company.
Best for veterans: USAA
- AM Best Financial Strength Rating: A++ (superior)
- J.D. Power rank: No. 1 out of 22 home insurers
- Unique value: Low pricing and great service for military and veterans
USAA is the best low-cost homeowners insurance option for veterans and active service members and their families. Although its membership is limited to people who can prove a personal connection to the armed services, USAA combines an excellent reputation for customer service with rates that often beat other home insurers.
In our search for the cheapest home insurance rates, we found estimates from USAA to be very affordable at $1,789 per year or $149 per month. Keep in mind that this number may be far from what you see in your own quote if your location, property and coverage limits are significantly different from the profile we used. You may be able to get your rates down by asking about USAA's home insurance discounts:
- Bundling discount, with 10% savings for customers who also take out a car insurance policy.
- Protective device credit for policyholders who have installed an ADT home security system.
- Claims-free discount, with 10% savings for customers who make no claims for five or more years.
Even in states where USAA wasn't the absolute cheapest option for homeowners, we felt that the company's superior customer service reputation more than made up for that fact. Its affordable rates for auto insurance, combined with its solid bundling discount, could help shoppers significantly reduce their premiums.
In addition, USAA offers a wealth of consumer-friendly options in other areas like deposit accounts and loans that make it a great place for qualifying members to consolidate all their finances.
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Cheapest home insurance rates by state
We found the cheapest insurance company in each state, along with its average monthly premium in that state. Allstate has the cheapest rates in 15 states — the most of any insurer in our study. Travelers has the best rates in eight states, while Nationwide offers the most affordable premiums in seven.
Homeowners in Michigan can take advantage of the lowest rate in the country from Auto-Owners — $417 per year. On the other hand, those living in Colorado pay the highest premiums. State Farm offers the cheapest insurance in the state for $2,362 per year.
The location of your home is one of the most important factors in determining the price you pay for homeowners insurance due to weather, population density and crime rates. Each insurer rates these hazards differently, meaning they don't all increase premiums by the same amount. For that reason, the cheapest insurer nationally may not be the most affordable option where you live.
How to compare homeowners insurance quotes
Homeowners insurance rates may vary depending on a number of factors, including where you live, the value of your house and the amount of coverage you purchase. We recommend the following steps as you compare quotes from insurers near you:
- Assemble all relevant personal information. This includes details about your house, your personal property and your insurance history. Tracking down information about your home and taking inventory of your personal property can take time, so give yourself sufficient lead time.
- Identify how much coverage you need. Your coverage needs can change from year to year, particularly if you've done home renovations or acquired expensive personal items like jewelry or fine art. We recommend purchasing dwelling coverage limits that match the replacement cost value (RCV) of your house and personal property rather than its actual cash value (ACV). Your premiums will be more expensive, but you will be spared extensive out-of-pocket expenses if your home is destroyed in a covered incident.
- Compare quotes from multiple providers. We generally urge shoppers to get quotes from at least three companies, if not more, before purchasing a policy. Insurance policies can vary by thousands of dollars, so comparing rates is the best way to ensure you're getting a solid deal. Make sure you request quotes for the same coverage limits so your comparison is accurate. You don't want to pay for a policy that seems like a great deal, only to later discover that you don't have enough coverage when you file a claim.
How to lower your homeowners insurance rates
The average cost of homeowners insurance is $1,680 per year, but shoppers can use a number of strategies to reduce their premiums.
Comparing rates from multiple insurers and asking each one about discounts increases your chance of scoring a good deal. However, you can also raise your deductible to get a lower monthly premium. Just make sure that you choose an amount you could reasonably afford to pay should an unexpected event damage your home.
If you're willing to make a long-term investment in your home, consider updating your roof with impact-resistant materials or installing smart alarm technology that can help prevent a burglary or fire. Many insurers will offer you a discount if you make these improvements, as they increase your safety and decrease your likelihood of needing to make a claim.
Frequently asked questions
Who has the cheapest home insurance?
We found consistently affordable rates at Nationwide, State Farm and USAA, though every homeowner will find different rates based on where they live and how their home is made. The absolute lowest rates we found are with Erie
How much is homeowners insurance a month?
The average cost of homeowners insurance is $140 per month nationwide. However, rates vary significantly based on the state in which you live.
What determines home insurance prices?
The most important factors that determine your home insurance rate are the cost to rebuild your home, where it's located and how susceptible it is to damage, such as from a wildfire or hurricane.
Will my home insurance go up after a claim?
Most likely, yes. Past claims history is one of the factors insurers use to set home insurance rates. In order to keep your rates low, you should consider paying for minor claims out of pocket.
We collected thousands of quotes from the largest home insurance companies in every state across all 50 states and Washington, D.C., to find average homeowners insurance rates.
For each state average, we collected quotes based on the median home age and value for the state. For example, our sample home in Florida was built in 1986 and insured to a value of $215,300. Meanwhile, our sample New York home was built in 1957 and insured for $313,700. We used median home values to approximate the replacement cost in each state.
ValuePenguin's analysis used insurance rate data from Quadrant Information Services. The rates we discovered are best used for comparative purposes — your own quotes from these insurers may be different.