The Cheapest Home Insurance for 2024

Among large insurers, Progressive has the cheapest annual home insurance on average at $1,815, according to NerdWallet's analysis.

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Updated · 5 min read
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Written by Sarah Schlichter
Lead Writer
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Edited by Caitlin Constantine
Assistant Assigning Editor
 
Fact Checked
Nerdy takeaways
  • Progressive, State Farm and USAA are the cheapest large home insurance companies, according to our analysis.

  • Progressive and Travelers offer the cheapest home insurance for homeowners with poor credit.

  • Auto-Owners and Progressive have the cheapest home insurance rates for homeowners with a claims history.

  • Strict editorial guidelines to ensure fairness and accuracy in our coverage to help you choose the financial products that work best for you. See our criteria for evaluating homeowners insurance.

  • More than 270 million rates analyzed by our team of specialists.

  • More than 50 insurance companies analyzed in all 50 states and Washington D.C. (See our top picks.)

NerdWallet analyzed pricing data from more than 100 insurers to find the cheapest home insurance companies in the country. Our sample policy was for a 40-year-old homeowner with good credit, $300,000 in dwelling coverage, $300,000 in liability coverage and a $1,000 deductible. Your own rates will differ.

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Cheapest homeowners insurance from large companies

NerdWallet looked at average rates from some of the largest companies across the U.S. to find out which ones have the most affordable home insurance premiums.

Use the table below to see average annual rates for the three cheapest large companies, along with NerdWallet’s star rating.

Company

Average annual cost

NerdWallet star rating

$1,815

Not rated

$1,935

4.5

NerdWallet rating 

$1,875

5.0

NerdWallet rating 

*USAA homeowners policies are available only to active military, veterans and their families.

Get more details about the cheapest large companies to find out if they're right for you.

Multiple insurer options
insurance-product-card-logo

Progressive

Best for Progressive auto customers looking to bundle their policies.

Pros

  • Auto discount available for Progressive car insurance customers.
  • Can choose which insurance company you purchase from — uncommon for an insurer selling affiliate policies.

Cons

  • Doesn't underwrite all its own policies.
  • Must file a claim through the company that underwrites your policy.
Multiple insurer options

Progressive

Best for Progressive auto customers looking to bundle their policies.

Pros

  • Auto discount available for Progressive car insurance customers.
  • Can choose which insurance company you purchase from — uncommon for an insurer selling affiliate policies.

Cons

  • Doesn't underwrite all its own policies.
  • Must file a claim through the company that underwrites your policy.

Progressive sells both its own homeowners insurance policies and those from third-party insurers. When you go to Progressive’s website to get a home insurance quote, the company will look for offers from multiple providers to help you find the best combination of price and coverage.

The coverage options available to you will depend on which insurer you choose. You may be able to add coverage for water and sump pump backup, or for personal injury liability, which can defend you from charges like slander and libel.

Discounts: Bundling home and auto policies, receiving documents electronically, having a new home.

Sample rates: Below are average Progressive rates for four different dwelling coverage amounts. (Dwelling coverage is the part of your policy that covers the structure of your home.)

Dwelling coverage amount

Average annual rate

$200,000

$1,425

$300,000

$1,815

$400,000

$2,210

$500,000

$2,770

» READ FULL REVIEW: Progressive home insurance review


Many coverage options
insurance-product-card-logo

State Farm

4.5

NerdWallet rating 
Well-established insurer with a lengthy list of coverage options.

Coverage options

More than average

Discounts

Average set of discounts

NAIC complaints

Fewer than expected
Many coverage options

State Farm

4.5

NerdWallet rating 
Well-established insurer with a lengthy list of coverage options.

Coverage options

More than average

Discounts

Average set of discounts

NAIC complaints

Fewer than expected

The country’s largest home insurer, State Farm stands out for its financial strength and many coverage options. The company also draws fewer complaints than expected to state regulators for an insurer of its size, according to the National Association of Insurance Commissioners.

With local agents across the country, State Farm can offer customers personalized help over the phone or even in person. But if you'd rather do everything online, you can use the company's website to pay bills, file claims and get quotes.

Discounts: Bundling home and auto insurance, protective devices like fire or burglar alarms, impact-resistant roof shingles.

Sample rates: Below are average State Farm rates for four different dwelling coverage amounts.

Dwelling coverage amount

Average annual rate

$200,000

$1,515

$300,000

$1,935

$400,000

$2,270

$500,000

$2,720


Policies for veterans and active military
insurance-product-card-logo

USAA

5.0

NerdWallet rating 
Offers perks and affordable rates for the military community.

Coverage options

About average

Discounts

Average set of discounts

NAIC complaints

Far fewer than expected
Policies for veterans and active military

USAA

5.0

NerdWallet rating 
Offers perks and affordable rates for the military community.

Coverage options

About average

Discounts

Average set of discounts

NAIC complaints

Far fewer than expected

This company sells homeowners insurance only to active military, veterans and their families. USAA generally covers your belongings on a “replacement cost” basis. That means if your items are stolen or destroyed, the company will pay enough for you to buy brand-new replacements, without deducting for depreciation. Some companies charge extra for this type of coverage.

USAA covers military uniforms with no deductible. It also won't charge a deductible if your belongings are damaged or destroyed in a war.

Discounts: Smart-home devices, loyalty, bundling multiple USAA policies.

Sample rates: Below are average USAA rates for four different dwelling coverage amounts.

Dwelling coverage amount

Average annual rate

$200,000

$1,420

$300,000

$1,875

$400,000

$2,240

$500,000

$2,610

» READ FULL REVIEW: USAA homeowners insurance review


Cheapest home insurance for different situations

Just because an insurer is affordable for one set of circumstances doesn’t mean that company will always be the best option. NerdWallet looked at how different factors have an impact on the cheapest home insurance rates available.

To determine the top low-cost home insurance companies for each category, NerdWallet compared rates among companies for which we had data in at least 15 states. We chose the five cheapest options in each category.

Cheapest homeowners insurance by dwelling coverage amount

If your house costs more or less to rebuild than our sample home, you might need a different amount of dwelling coverage.

Company

Average annual rate

Average monthly rate

$1,425

$119

$1,465

$122

$1,470

$123

$1,515

$126

$1,420

$118

*USAA homeowners policies are available only to active military, veterans and their families.

Company

Average annual rate

Average monthly rate

$2,210

$184

$2,270

$189

$2,360

$197

$2,515

$210

$2,240

$187

*USAA homeowners insurance policies are available only to active military, veterans and their families.

Company

Average annual rate

Average monthly rate

$2,720

$227

$2,770

$231

$2,850

$238

$3,145

$262

$2,610

$218

*USAA homeowners insurance policies are available only to active military, veterans and their families.

Did you know...

Your dwelling coverage amount isn't necessarily the same as the market value of your home. Dwelling coverage is based on how much it would cost to rebuild your home if it were destroyed. The market value of your home includes the value of your land and reflects what someone would be willing to pay for the property. Learn how to determine home value.

Cheapest home insurance for homeowners with poor credit

In most states, homeowners with poor credit can expect to pay significantly more for insurance. Below are the companies that charge the least, on average, for those with poor credit.

Company

Average annual rate

Average monthly rate

$2,940

$245

$3,410

$284

$3,660

$305

$3,725

$310

Encompass

$3,835

$320

Using credit to set homeowners, renters, condo and mobile home insurance prices is not allowed in California, Maryland and Massachusetts.
Did you know...

Studies have shown a correlation between having poor credit and filing more insurance claims. That's why most insurance companies charge more if you don't have strong credit. Learn more about how your credit score affects homeowners insurance.

Cheapest home insurance for homeowners with a recent claim

Many insurers raise your rates after you file a home insurance claim. Below, you can see the cheapest companies for homeowners who’ve filed a claim for wind damage.

Company

Average annual rate

Average monthly rate

$1,890

$158

$1,940

$162

$2,090

$174

Encompass

$2,310

$193

$2,030

$169

*USAA homeowners insurance policies are available only to active military, veterans and their families.

Cheapest homeowners insurance for new homes

It’s generally cheaper to insure new homes than older ones. They meet the latest building safety codes, which could make them more resistant to natural disasters. And new plumbing, electrical and other systems have less wear and tear than older ones, making them less likely to fail and cause damage.

Below are the most affordable homeowners companies for those with new homes.

Company

Average annual rate

Average monthly rate

$635

$53

$1,010

$84

$1,040

$87

$1,255

$105

$845

$70

*USAA homeowners policies are available only to active military, veterans and their families.

Cheapest homeowners insurance for those with a $2,500 deductible

If you’re willing to raise your deductible, you’ll generally pay less for your homeowners insurance. A homeowners insurance deductible is the amount the insurance company subtracts from your claim payout.

Below are the cheapest companies for homeowners with a $2,500 deductible.

Company

Average annual rate

Average monthly rate

$1,555

$130

$1,690

$141

$1,725

$144

$1,745

$145

$1,605

$134

*USAA homeowners policies are available only to active military, veterans and their families.

Cheapest home insurance rates in each state

Where you live typically has a big impact on the cost of insurance for your house and possessions. How close you live to the coast, crime rates in your area, population density and more can all influence your rate. Hover over the map below to see the state's cheapest home insurance company, as well as the insurer's average annual rate in that state.

The table below also shows the most affordable home insurance company in each state and its average annual rate.

State

Cheapest company

Average annual rate

$2,085

$975

$1,510

$2,475

CSE

$895

Grange Insurance Association

$1,865

Vermont Mutual

$1,040

Cumberland Mutual

$755

$1,755

$1,470

RLI

$460

$1,080

$1,420

Buckeye

$695

$1,680

$1,910

$1,800

$1,005

Vermont Mutual

$605

$1,335

Narragansett Bay

$1,045

Hastings Mutual

$1,015

$1,775

$2,240

Auto Club of SoCal (AAA)

$2,040

$1,425

$3,560

$865

Vermont Mutual

$665

Selective

$695

$1,580

Ontario Insurance

$1,155

Lititz Mutual

$1,195

North Star

$1,705

Buckeye

$565

American Farmers & Ranchers

$3,595

CIG

$690

Cumberland Mutual

$615

NLC Insurance

$1,125

$1,495

$1,825

$1,835

Texas Farm Bureau

$2,835

$835

Vermont Mutual

$525

$740

Grange Insurance Association

$835

$1,155

$1,470

$865

$1,300

Note: USAA offered the cheapest homeowners insurance in Nebraska, West Virginia and Washington, D.C., on average. We didn’t include it in the table above because its policies are available only to active military, veterans and their families.

Cheapest homeowners insurance in 20 major cities

Below are the companies offering the most affordable homeowners insurance, on average, in 20 of the largest U.S. cities.

City

Cheapest company

Average annual rate

Atlanta

$1,535

Austin

Texas Farm Bureau

$1,735

Chicago

$1,480

Dallas

Texas Farm Bureau

$3,000

Denver

Grange Insurance Association

$1,710

Fort Worth, Texas

Texas Farm Bureau

$3,300

Houston

Texas Farm Bureau

$2,835

Indianapolis

Buckeye

$815

Las Vegas

$855

Los Angeles

CSAA (AAA)

$910

Miami

People's Trust

$2,245

Minneapolis

Auto Club Group (AAA)

$1,755

New York

$1,455

Orlando

$1,695

Philadelphia

Cumberland Mutual

$1,220

Phoenix

$1,535

San Antonio

Texas Farm Bureau

$1,875

San Diego

CSE

$825

San Jose, California

CSE

$725

Seattle

Grange Insurance Association

$630

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How to get low-cost homeowners insurance

Some take a little more effort than others, but there are a variety of ways to get affordable home insurance for your property. Below are some of the most common ways to lower your homeowners insurance cost.

Insure your home for the proper amount. You shouldn't necessarily insure your home for its current market value (that is, how much the home could sell for). Instead, insure it for the amount it would cost to rebuild. Have your home insurance agent or company estimate your home’s replacement cost so you can insure your house for the correct amount. Learn more about how much home insurance you need.

Shop around. Don’t buy the first policy you get a quote for. We recommend comparing rates from at least three companies to find the most affordable option. Here’s how to get home insurance quotes.

More Nerdy Perspective

Increase your deductible. You can lower your premium by choosing a higher deductible. Just make sure you have enough cash to cover it should you need to file a claim.

Avoid filing small claims. Most home insurance companies offer a discount for customers who haven’t filed a claim in the past three to five years. If you can, avoid rate hikes by paying cash for home repairs and filing a claim only when absolutely necessary.

Add safety features to your home. Making your home safer now may save you money on home insurance in the long run. Many insurance companies offer discounts for features that protect your home against fire and theft. Fire extinguishers, deadbolts, security systems and more could all help keep costs low.

🤓Nerdy Tip

Certain smart-home technology such as water leak detectors can also earn you a home insurance discount.

Bundle your policies. Many carriers offer a discount if you bundle home and auto insurance to make both policies more affordable.

Improve your credit. In most states, poor credit generally translates to higher insurance costs, including for homeowners insurance. While not an overnight fix, you can restore credit by making payments on time and using less than 10% of your total credit card limits.

Frequently asked questions

State Farm and USAA offer some of the lowest rates among big insurers and are on NerdWallet's list of The Best Homeowners Insurance Companies. However, USAA's policies are available only to active military, veterans and their families. Another major company that offers cheap homeowners insurance is Progressive.

Yes, filing a claim on your homeowners insurance often leads to a rate increase in the future. That's why it may not make financial sense to submit claims for minor damage that you can pay for yourself.

Even if you've never filed a claim, your insurance company may raise your rates for other reasons. Inflation and supply chain issues have made it more expensive to rebuild homes, which means it costs more for your insurance company to pay claims. Increasingly frequent disasters such as wildfires and hurricanes have also driven up the cost of insurance. Learn how climate change could make your home harder to insure.

Methodology

To find the cheapest homeowners insurance, NerdWallet calculated the median rates for 40-year-old homeowners from a variety of insurance companies in every ZIP code across the U.S. All rates are rounded to the nearest $5.

Sample homeowners were nonsmokers with good credit living in a single-family, two-story home built in 1984. They had a $1,000 deductible and the following coverage limits:

  • $300,000 in dwelling coverage.

  • $30,000 in other structures coverage.

  • $150,000 in personal property coverage.

  • $60,000 in loss of use coverage.

  • $300,000 in liability coverage.

  • $1,000 in medical payments coverage.

We made minor changes to the sample policy in cases where rates for the above coverage limits or deductibles weren’t available.

We used the same assumptions for all other homeowner profiles, with the following exceptions:

  • For homeowners with a claims history, we added a single wind damage claim.

  • To see the effect of changing your deductible, we raised the deductible from $1,000 to $2,500.

  • For homeowners with newer homes, we changed the year the house was built to 2023.

  • We changed the credit tier from “good” to “poor” as reported to the insurer to see rates for homeowners with poor credit. In states where credit isn’t taken into account, we only used rates for “good” credit.

  • To see the effect of changing your dwelling coverage amount, we changed the limit to $200,000, $400,000 or $500,000. This also changed some of the other coverage limits that were tied to the dwelling coverage amount. For example, the other structures coverage limit is typically 10% of the dwelling coverage amount, so our sample policy with $200,000 of dwelling coverage had $20,000 of other structures coverage.

These are sample rates generated through Quadrant Information Services. Your own rates will be different.

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