The Cheapest Home Insurance for 2024

Among large insurers, State Farm has the cheapest annual home insurance on average at $1,500, according to NerdWallet's analysis.
Sarah Schlichter
By Sarah Schlichter 
Updated
Edited by Caitlin Constantine

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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 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.

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.

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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. Select the company name to learn more about each insurer.

Company

Average annual rate

NerdWallet star rating

$1,500

4.5

NerdWallet rating 

$1,660

4.0

NerdWallet rating 

$1,775

5.0

NerdWallet rating 

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

More about the cheapest homeowners insurance companies

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

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
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

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.


Lots of discounts
insurance-product-card-logo

Allstate

4.0

NerdWallet rating 
Widely available across the U.S. with lots of ways to customize your policy, but receives more complaints than expected.

Coverage options

About average

Discounts

Great set of discounts

NAIC complaints

More than expected
Lots of discounts
insurance-product-card-logo

Allstate

4.0

NerdWallet rating 
Widely available across the U.S. with lots of ways to customize your policy, but receives more complaints than expected.

Coverage options

About average

Discounts

Great set of discounts

NAIC complaints

More than expected

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.


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
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

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.

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

$3,370

$281

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

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 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

$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

$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

$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

$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

$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

$2,470

$206

*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.

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Get home insurance quotes in minutes
Answer a few questions to see custom quotes and find the right policy for you.

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.

🤓Nerdy Tip

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

Frequently asked questions

State Farm and USAA offer rates below the national average 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 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 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.

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