The Cheapest Home Insurance for 2022

State Farm has the cheapest annual home insurance on average at $1,529, according to NerdWallet's analysis.

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You don’t need to choose between good coverage and an affordable rate when buying insurance for your home. Cheap homeowners insurance can include great coverage, too.

NerdWallet analyzed pricing data from 150 insurers to find the cheapest home insurance companies in the country. Our sample policy was for a 40-year-old homeowner with $300,000 in dwelling coverage, $300,000 in liability coverage and a $1,000 deductible. Your own rates will differ.

Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our writing and data analyses. You can trust the prices we show you because our data analysts take rigorous measures to eliminate inaccuracies in pricing data, and may update rates for accuracy as new information becomes available.

We include rates from every locale in the country where coverage is offered and data is available. When comparing rates for different coverage amounts and backgrounds, we change only one variable at a time, so you can easily see how each factor affects pricing. Read our methodology.

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. Click on the company name to learn more about each insurer.

Company

Average annual rate

NerdWallet star rating

$1,529

4.0

NerdWallet rating 

$1,632

4.0

NerdWallet rating 

$1,724

5.0

NerdWallet rating 

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

More about the cheapest homeowners insurance companies

State Farm

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.

Read our State Farm homeowners insurance review for more information.

Allstate

This large insurer offers a wide range of additional coverage options beyond the basics. For example, you can add home-sharing coverage if you rent out your space on services such as Airbnb, or coverage to pay for energy-efficient improvements after a claim. Its website offers lots of information and useful features.

There's one downside to choosing an Allstate policy: The company draws more complaints than expected for an insurer of its size, according to the NAIC.

Check out our Allstate homeowners insurance review for more details.

USAA

This company sells homeowners insurance only to active military, veterans and their families. In most states, USAA 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 offers discounts for having multiple policies with the company, going at least five years without a claim and installing certain smart-home devices.

See our USAA homeowners insurance review to learn more.

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

State

Cheapest company

Average annual rate

Alabama

$1,191

Alaska

$900

Arizona

American Family

$1,066

Arkansas

Shelter

$1,857

California

Oregon Mutual

$760

Colorado

$1,193

Connecticut

Vermont Mutual

$673

Delaware

$519

Florida

$1,472

Georgia

$1,295

Hawaii

DB Insurance

$257

Idaho

American National

$457

Illinois

$1,198

Indiana

Buckeye

$705

Iowa

West Bend

$1,077

Kansas

$2,058

Kentucky

Cincinnati Insurance

$1,506

Louisiana

$715

Maine

Vermont Mutual

$553

Maryland

Brethren Mutual

$683

Massachusetts

Preferred Mutual

$712

Michigan

Westfield

$977

Minnesota

North Star

$1,262

Mississippi

$1,095

Missouri

Auto Club of SoCal

$1,391

Montana

$1,344

Nebraska

American Family

$1,976

Nevada

$642

New Hampshire

Main Street America

$574

New Jersey

Selective

$519

New Mexico

$1,237

New York

NYCM

$590

North Carolina

$790

North Dakota

Farmers Union

$1,306

Ohio

Ohio Mutual

$759

Oklahoma

American National

$2,409

Oregon

Mutual of Enumclaw

$505

Pennsylvania

Cumberland Mutual

$446

Rhode Island

Narragansett Bay

$815

South Carolina

American National

$750

South Dakota

North Star

$1,755

Tennessee

Westfield

$1,196

Texas

$2,082

Utah

Mutual of Enumclaw

$662

Vermont

Vermont Mutual

$478

Virginia

Main Street America

$599

Washington

Mutual of Enumclaw

$538

Washington, D.C.

$780

West Virginia

Westfield

$947

Wisconsin

Rockford Mutual

$608

Wyoming

$940

Note: USAA offered the cheapest homeowners insurance in West Virginia, Wyoming and Washington, D.C., and Armed Forces Insurance had the lowest rates in Arizona and Kansas, on average. We didn’t include either of these companies in the table above because they serve mainly the military community and don’t offer policies for everyone. Learn more about homeowners insurance for veterans and military.

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

Austin

$1,287

Charlotte

$325

Chicago

$1,201

Columbus

Ohio Mutual

$819

Dallas

$1,737

Denver

$1,274

El Paso

$808

Fort Worth

$1,940

Houston

$1,212

Indianapolis

Buckeye

$802

Jacksonville

$1,398

Las Vegas

$694

Los Angeles

$782

New York

Kemper

$875

Philadelphia

$860

Phoenix

American Family

$1,164

San Antonio

$1,442

San Diego

Oregon Mutual

$651

San Francisco

$726

San Jose

$575

Note: Armed Forces Insurance was the cheapest option in Jacksonville, Phoenix and San Antonio, but we didn’t include it because its policies aren’t available to everyone.

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 insurers 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 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

Encompass

$2,787

$232

American Strategic*

$2,894

$241

American Family

$3,120

$260

Armed Forces Insurance**

$2,519

$210

$2,998

$250

*American Strategic is a subsidiary of Progressive.

**Armed Forces Insurance and USAA generally serve the military community. Their policies are not available to all homeowners.

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

Cheapest home insurance for those with a recent water 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 water damage.

Company

Average annual rate

Average monthly rate

$1,659

$138

American Family

$2,174

$181

$2,185

$182

Armed Forces Insurance*

$1,953

$163

$2,069

$172

*Armed Forces Insurance and USAA generally serve the military community. Their policies are not available to all homeowners.

Cheapest home insurance for those with a recent wind claim

The list of cheapest options is slightly different for those who’ve recently filed a claim for wind damage.

Company

Average annual rate

Average monthly rate

$1,683

$140

$1,841

$153

American Family

$1,940

$162

$1,835

$153

Armed Forces Insurance*

$1,953

$163

*Armed Forces Insurance and USAA generally serve the military community. Their policies are not available to all homeowners.

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

$811

$68

American Strategic*

$861

$72

$879

$73

$938

$78

$882

$74

*American Strategic is a subsidiary of Progressive.

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

Cheapest homeowners insurance for those with a high deductible

If you’re willing to raise your deductible, you’ll generally pay less for your homeowners insurance. A deductible is the amount of a claim you cover yourself before the insurance company pays out.

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

Company

Average annual rate

Average monthly rate

$1,352

$113

$1,411

$118

Encompass

$1,582

$132

$1,535

$128

Armed Forces Insurance*

$1,577

$131

*Armed Forces Insurance and USAA generally serve the military community. Their policies are not available to all homeowners.

How to get cheap homeowners insurance

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

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.

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.

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.

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

Avoid risky purchases. Anything considered high risk for a liability claim, including trampolines and certain dog breeds such as pit bulls, could raise the cost of your homeowners insurance. So think twice about adding a swimming pool if you want cheap coverage.

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. Certain smart-home technology can also net you a discount.

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.

Find the best homeowners insurance in your state

Don't see your state below? Check back soon — we’re adding more home insurance stories all the time.

Frequently asked questions

USAA offers rates below the national average and is on NerdWallet's list of The Best Homeowners Insurance Companies. However, its policies are available only to active military, veterans and their families. Other well-rated companies that offer cheap homeowners insurance include State Farm and Allstate.

Yes, filing a claim on your homeowners insurance will generally lead 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.

Methodology

NerdWallet averaged rates for 40-year-old homeowners from a variety of insurance companies in every ZIP code across all 50 states and Washington, D.C. Sample homeowners were nonsmokers with good credit living in a single-family, two-story home built in 1997. 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 used the same assumptions for all other homeowner profiles, with the following exceptions:

  • For homeowners with a claims history, we added a single wind or water 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 2021.

  • 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.

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

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