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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 141 insurance companies to find the cheapest home insurance companies in the country. The rates are based on a homeowners insurance policy for a 40-year-old homeowner with a $1,000 deductible, $300,000 in dwelling coverage and $300,000 in liability coverage. Your own rates will differ.
Cheap homeowners insurance from top-rated companies
NerdWallet looked at average rates from some of our top-rated insurance companies to find out which ones have the most affordable homeowners insurance premiums.
Use the table below to see average annual rates, along with our star rating.
Average annual premium
*USAA homeowners insurance is available only to 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. Use the map below to see the lowest-cost home insurance company in each state and its average annual rate.
Cheapest home insurance for different situations
Just because an insurer is cheapest for one set of circumstances doesn’t mean that company will always be the cheapest 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 that offer homeowners insurance in at least 15 states. We looked at each of the following categories:
Cheapest home insurance for new homes: State Farm, $778 per year ($65 per month).
Cheapest home insurance for homeowners with poor credit*: Universal Property, $2,053 per year ($171 per month).
Cheapest home insurance with a lower liability limit: State Farm, $1,313 per year ($109 per month).
Cheapest home insurance for homeowners with a fire or water claim in the past six months: State Farm, $1,468 per year ($122 per month).
Cheapest home insurance for homes built with wood framing rather than masonry: State Farm, $1,500 per year ($125 per month).
*Certain states don't allow insurers to use credit as part of determining insurance rates. Check with your state’s department of insurance for specific rules.
How to get cheap homeowners insurance
Some take a little more effort than others, but there are a variety of ways to get cheap insurance for your house and possessions. Below are some of the most common ways to save on home insurance.
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. Don’t insure your home based on its current market value (that is, how much the home could sell for). Instead, you should insure it based on how much it would cost to rebuild your home in the event of a claim. Have your home insurance agent or company estimate your home’s replacement cost so you can insure your house for the correct amount.
Bundle your policies. Many carriers offer a discount if you bundle home and auto insurance to make both policies more affordable.
Increase your deductible. You can lower your premium by choosing a higher deductible, but 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.
Avoid risky purchases. Anything considered high risk for a liability claim, including trampolines and aggressive dog breeds, 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.
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 rebuild credit by making payments on time and using less than 10% of your total credit card limits.
Using credit to set homeowners, renters, condo and mobile home insurance prices is not allowed in California, Maryland and Massachusetts.
NerdWallet averaged rates for 40-year-old men and women 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 1971. 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.
These are sample rates generated through Quadrant Information Services. Your own rates will be different.