The Cheapest Home Insurance for 2023
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Table of Contents
- Cheapest homeowners insurance from large companies
- More about the cheapest homeowners insurance companies
- Cheapest home insurance rates in each state
- Cheapest homeowners insurance in 20 major cities
- Cheapest home insurance for different situations
- How to get cheap homeowners insurance
- Find the best homeowners insurance in your state
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 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.
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. Select the company name to learn more about each insurer.
Company | Average annual rate | NerdWallet star rating |
|---|---|---|
$1,500 | ||
$1,660 | ||
USAA* | $1,775 | |
*USAA homeowners policies are available only to active military, veterans and their families. | ||
» MORE: The best home insurance
More about the cheapest homeowners insurance companies
Get more details about the cheapest large companies to find out if they're right for you.
Coverage options
Discounts
NAIC complaints
State Farm
Coverage options
Discounts
NAIC complaints
Company overview: 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 to ask about: 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 is the part of your policy that covers the structure of your home.)
Dwelling coverage amount | Average annual rate |
|---|---|
$200,000 | $1,160 |
$300,000 | $1,500 |
$400,000 | $1,840 |
$500,000 | $2,235 |
Read our State Farm homeowners insurance review for more information.
Allstate
Coverage options
Discounts
NAIC complaints
Allstate
Coverage options
Discounts
NAIC complaints
Company overview: 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.
Discounts to ask about: Recent homebuyer, claims-free, autopay.
Sample rates: Below are average Allstate rates for four different dwelling coverage amounts.
Dwelling coverage amount | Average annual rate |
|---|---|
$200,000 | $1,345 |
$300,000 | $1,660 |
$400,000 | $2,010 |
$500,000 | $2,370 |
Check out our Allstate homeowners insurance review for more details.
Coverage options
Discounts
NAIC complaints
USAA
Coverage options
Discounts
NAIC complaints
Company overview: 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 to ask about: 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 | $1,370 |
$300,000 | $1,775 |
$400,000 | $2,130 |
$500,000 | $2,470 |
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 |
|---|---|---|
$1,270 | ||
$870 | ||
$915 | ||
$1,650 | ||
$775 | ||
$1,285 | ||
Vermont Mutual | $745 | |
$575 | ||
People's Trust | $1,300 | |
$1,200 | ||
DB Insurance | $280 | |
Grange Insurance | $725 | |
$1,085 | ||
Wolverine Mutual | $780 | |
West Bend | $1,275 | |
$2,195 | ||
$1,560 | ||
Centauri | $1,085 | |
Vermont Mutual | $555 | |
Brethren Mutual | $685 | |
Narragansett Bay | $700 | |
Meemic | $740 | |
Secura* | $955 | |
$1,060 | ||
Auto Club of SoCal (AAA) | $1,415 | |
Foremost | $1,320 | |
$2,800 | ||
$705 | ||
Vermont Mutual | $575 | |
Selective | $515 | |
$1,270 | ||
NYCM | $620 | |
$1,335 | ||
Farmers Union | $1,335 | |
Buckeye | $475 | |
American Farmers & Ranchers | $2,895 | |
California Casualty | $725 | |
Cumberland Mutual | $445 | |
NLC Insurance | $830 | |
$1,195 | ||
$1,420 | ||
Westfield | $1,190 | |
$2,250 | ||
$650 | ||
Vermont Mutual | $480 | |
$620 | ||
Pemco | $585 | |
$895 | ||
Westfield | $1,035 | |
$725 | ||
$1,095 | ||
*Secura sells homeowners insurance as a package with auto insurance. | ||
Note: USAA offered the cheapest homeowners insurance in 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.
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 | $1,335 | |
Charlotte | North Carolina Farm Bureau | $1,115 |
Chicago | $1,050 | |
Columbus | Buckeye | $465 |
Dallas | $1,890 | |
Denver | $1,365 | |
El Paso | $900 | |
Fort Worth | $2,045 | |
Houston | $1,330 | |
Indianapolis | Wolverine Mutual | $985 |
Jacksonville | People's Trust | $1,360 |
Las Vegas | $720 | |
Los Angeles | $920 | |
New York | NYCM | $980 |
Philadelphia | $755 | |
Phoenix | $930 | |
San Antonio | $1,530 | |
San Diego | $670 | |
San Francisco | $700 | |
San Jose | $555 |
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 |
|---|---|---|
$3,220 | $268 | |
$3,485 | $290 | |
$3,520 | $293 | |
$3,595 | $300 | |
USAA* | $3,370 | $281 |
*USAA homeowners policies are available only to active military, veterans and their families. | ||
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 those 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 |
|---|---|---|
$1,640 | $137 | |
$1,725 | $144 | |
$1,860 | $155 | |
$2,170 | $181 | |
USAA* | $1,870 | $156 |
*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 |
|---|---|---|
$865 | $72 | |
$895 | $75 | |
$900 | $75 | |
$1,060 | $88 | |
USAA* | $880 | $73 |
*USAA homeowners insurance 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 homeowners insurance 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 |
|---|---|---|
$1,325 | $110 | |
$1,430 | $119 | |
$1,565 | $130 | |
$1,715 | $143 | |
USAA* | $1,590 | $133 |
*USAA homeowners insurance policies are available only to active military, veterans and their families. | ||
Cheapest homeowners insurance for different amounts of of dwelling coverage
If your house costs more or less to rebuild than our sample home, you might need a different amount of dwelling coverage.
$200,000 of dwelling coverage
Company | Average annual rate | Average monthly rate |
|---|---|---|
$1,160 | $97 | |
$1,345 | $112 | |
$1,355 | $113 | |
$1,375 | $115 | |
USAA* | $1,370 | $114 |
*USAA homeowners insurance policies are available only to active military, veterans and their families. | ||
$400,000 of dwelling coverage
Company | Average annual rate | Average monthly rate |
|---|---|---|
$1,840 | $153 | |
$2,010 | $168 | |
$2,115 | $176 | |
$2,370 | $198 | |
USAA* | $2,130 | $178 |
*USAA homeowners insurance policies are available only to active military, veterans and their families. | ||
$500,000 of dwelling coverage
Company | Average annual rate | Average monthly rate |
|---|---|---|
$2,235 | $186 | |
$2,370 | $198 | |
$2,515 | $210 | |
$2,740 | $228 | |
USAA* | $2,470 | $206 |
*USAA homeowners insurance policies are available only to active military, veterans and their families. | ||
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.
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. Here’s how to get home insurance quotes.
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.
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 such as water leak detectors can also net you a home insurance 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
NerdWallet averaged 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 2022.
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.
