We understand our responsibility to protect your personal data. We've always tried to use your data only for purposes that we believe will benefit you. Please help us verify ways we may use your data to help you invest … better.
You can see your data or change your preferences at any time from the My Settings page. You can also unsubscribe from future emails by selecting the “unsubscribe” link in any future emails you receive.
To find out more about how we collect, store and handle your personal data, read our privacy statement.
Many or all of the products here are from our partners. We may earn a commission from offers on this page. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.
When it comes to finding the best cheap home insurance, it can take a little digging. The perfect home insurance provides a level of coverage that protects the homeowner's financial interests and offers a level of service that makes doing business easy. And if the insurance company also offers cheap homeowners insurance, they've hit the trifecta. We've combed through homeowners' policies and rates to come up with options for the best cheap home insurance of the year.
Travelers Homeowners Insurance
Best for: green home discountsTravelers Homeowners Insurance
Get A Quote
Abraham Lincoln was in office when Travelers sold their first policy. In the 157 years since that time, the company has become one of the most trusted names in insurance. Better yet, Travelers has changed with the times, expanding its insurance offerings and coming up with innovative ways to offer home insurance discounts. For example, its green home discount offers 5% off the policies of homes that are LEED-certified "green."
Pros
- Full range of coverage options
- Innovative discounts (including green home coverage)
- Financial security
- Competitive homeowners insurance rates in most states
Cons
- Less-than-satisfactory customer service
- Discounts vary by state
- Multi-policy discount
- Home buyer discount
- Loss-free discount
- Green home discount
Nationwide Homeowners Insurance
Best for: policy upgrades at no additional costNationwide Homeowners Insurance
Get A Quote
Nationwide offers benefits that would typically be add-ons -- like credit card coverage -- as part of its standard homeowners policy. The best cheap home insurance is not always the one with the rock-bottom price. It's sometimes the policy with the most coverage at the lowest price. Free add-ons are an excellent place to start.
Pros
- Offers ordinance coverage that allows for rebuilding to current building codes
- Credit card coverage that pays for unauthorized transactions
- Ample discount opportunities
- Huge network of more than 26,000 agents
Cons
- Below-average customer satisfaction ratings
- Limited customer service hours for sales and service
- Multi-policy discounts
- Protective device discounts
- Claims-free discount
- Home renovation discount
- Roof discount
- Home purchase discount
- Gated community discount
Erie Homeowners Insurance
Best for: low, low ratesErie Homeowners Insurance
Get A Quote
When it comes to low rates, Erie is tough to beat. Small but mighty, Erie works solely with independent agents -- more than 13,000 of them. The only fly in the ointment is that Erie is only available in 12 states on the East Coast.
Pros
- AM Best rating of A+
- J.D. Power customer satisfaction rating of 839 out of 1,000 -- one of the highest ratings in the industry
- Customizable policies
- Upgraded basic insurance policy
- Price bundling
- Easy to achieve discounts
- Some of the lowest homeowners insurance rates in the industry
Cons
- Not available in most states
- Not as tech-savvy as some insurers
- Multi-policy discount
- Advanced quote discount
Allstate Homeowners Insurance
Best for: generous discountsAllstate Homeowners Insurance
Get A Quote
Allstate not only offers some of the most generous discounts in the industry, but it features an extensive network of agents and a strong J.D. Power customer satisfaction rating.
Pros
- Customizable coverage options
- Many discounts available
- High customer satisfaction
- Large Allstate agent network
Cons
- Premiums can be costlier than some competitors
- Multi-policy discount
- Responsible pay discount
- Claims-free discount
- Welcome/loyalty discount of 10%
- New home buyer discount
- Automatic payment discount
- Protective device discount
- Early signing discount
Lemonade Homeowners Insurance
Best for: online shoppersLemonade Homeowners Insurance
Get A Quote
Lemonade is a top destination for customers looking for cheap home insurance, with premiums starting as low as $25 per month. The company makes shopping for insurance easy by offering an all-online application process and instant answers.
Pros
- Unused premiums are donated to charity
- Many claims are paid instantly
- Easy online application process
Cons
- Coverage isn't available in all states
- There are limited options for bundling coverage
- No in-person support
- Protective device discount
- Bundling discount
- Annual-pay discount
Read Lemonade Homeowners Insurance review
Farmers Homeowners Insurance
Best for: free perksFarmers Homeowners Insurance
Get A Quote
Most insurance companies offer a policy perk or two. For example, free claims forgiveness is available to Farmers customers who have not filed a homeowners insurance claim in five years. While free claims forgiveness is somewhat common among auto insurance carriers, it rarely applies to a homeowners policy.
Pros
- Unique money-saving opportunities
- Eco-rebuild coverage
- Wide variety of home insurance discounts
Cons
- Average customer satisfaction ratings
- Can't buy your policy online
- Multiline discount
- ePolicy discount
- UL-approved roofing materials discount
- New home discount
- Protective devices discount
- Home safety discount
- Green certifications discount
- Claims free discount
- Connected home discount
- Rent-to-own discount
- Preferred payment discount
- Good payer discount
Progressive Homeowners Insurance
Best for: bundlingProgressive Homeowners Insurance
Get A Quote
While Progressive does not underwrite homeowners coverage, it does offer it through affiliated third parties. Progressive customers with auto insurance in place can save on home insurance premiums by bundling their services when they purchase a homeowners policy through one of Progressive's affiliates.
Pros
- Multi-policy discounts for Progressive customers
- Multiple affiliate partners can result in lower premiums
- Large network of more than 35,000 agents
Cons
- Progressive does not underwrite policies
- Inconsistent reputation for claims handling
- Bundled home and car insurance discounts
- Safety and alarm discounts
- Quote in advance discount
- New purchase discount
- Email documents discount
- New home construction discount
- Pay-in-full discount
Liberty Mutual Homeowners Insurance
Best for: optional coveragesLiberty Mutual Homeowners Insurance
Get A Quote
Liberty Mutual has been in business for 109 years and is one of the most respected names in the industry. As the fourth-largest homeowners insurer in the U.S., the company is known for two things: an AM Best rating of A, indicating substantial financial resources, and its strong philanthropic efforts, including helping the homeless, promoting accessibility for people with disabilities, and supporting education in underserved communities.
Pros
- One of the least expensive providers in our ratings
- Multiple discounts, including 10% of purchasing online (in most states)
- Optional coverage for water back-up
Cons
- An above-average number of customer complaints
- Dog breed restrictions
- Multi-policy discount
- Claims-free discount
- Protective devices discount
- Newly purchased home discount
- Safe homeowner program discount
- Early shopper discount
- Insured-to-Value discount
- New/renovated home discount
- Preferred payment discount
- Military discount
- New roof discount
- Paperless policy discount
How is the cost of home insurance determined?
On average, U.S. homeowners pay around $1,200 annually for coverage. Full coverage rates can increase at renewal time, although it's not a given. If it does happen, it's likely due to an increase in the price of rebuilding.
Let's say a home is covered for full replacement. That means if it's destroyed, the insurance company will pay to rebuild it, regardless of how much it cost (minus the homeowner's deductible). If the price of materials and labor increase, that increase will be reflected in a more expensive premium.
If a homeowner remodels their home or makes improvements, the house instantly becomes more expensive to rebuild. That is also likely to result in an increased premium.
Here are some of the other factors that go into determining annual premiums:
- Location
- Cost to have home rebuilt (replacement cost)
- Value of personal property
- Level of coverage
- Coverage limit chosen
- Home insurance deductibles
- Age of home
- Style of home
- Materials used in construction
- Custom features
One thing to keep in mind about homeowners insurance is that it can be customized to fit a homeowner's needs and budget. For example, a homeowner looking to save money may decide to skip add-ons like flood insurance or earthquake coverage (depending on where they live and the wisdom of the decision). Another may opt for a higher-than-average deductible to keep premium costs down.
How can I keep the cost down of my homeowners insurance policy?
- Shop around. Request an insurance quote from a minimum of three companies. While every insurance provider may look alike at first glance, they each possess unique characteristics. For example, one may cost less simply because it spends less on advertising.
- Opt for a higher deductible. The deductible -- the amount the homeowner must pay toward a loss -- plays a role in the overall cost of a home insurance policy. In a nutshell, the higher the deductible, the lower the premium cost. Anyone who chooses a high deductible should make sure they have enough put away in an emergency savings account to cover their full deductible if they need to make a claim.
- Bundle policies. It can pay to have insurance policies from the same company. For example, a homeowner can save by bundling auto, home, and life insurance.
- Install security devices. Anything security-related -- from smoke detectors to dead-bolt locks -- can impact the cost of homeowners insurance.
- Add safety features. For example, if a homeowner lives in an area prone to hurricanes, installing shatterproof glass or reinforcing their roof can bring down the cost of their insurance premiums.
What are typical home insurance discounts to look for?
Each company offers its own list of discounts. Here are some of the most common:
- Multi-policy discount
- Safety feature discount
- New home discount
- Autopay discount
- Loss-free discount
- Pay-in-full discount
- Protective device discount
- Green Home discount
- Paperless policy discount
- Affiliation discount (tied to specific trades, professional organizations, and universities)
What other factors should I consider besides price when selecting home insurance?
- Look for a company that provides the type of service preferred. What's essential to one homeowner may not be at all important to another. For example, some may prefer to purchase and manage their homeowners policy online without dealing with a real person. Another may want human contact and enjoy the option of being able to pop into their insurance agent's office.
- Check customer service ratings. We include customer service information in our insurance reviews because customer service is vital in the event of a loss. Say one homeowner purchased a policy online in the middle of the night without ever speaking to a company representative. Another sat across a desk from an insurance agent to buy a policy. In either case, it's important to know what kind of service they can expect to receive if their home burns to the ground or the roof blows off during a severe thunderstorm.
- Don't just look at the price. It's possible to purchase cheap homeowners insurance while still securing the level of protection desired. The sweet spot is when a policy provides plenty of coverage at a competitive insurance rate. Let's say Company A offers an annual policy for $900 but includes only bare-bones coverage. Company B comes in with a quote of $1,200 but offers more comprehensive coverage. Following a loss, the homeowner will almost always come out ahead financially by having a greater level of coverage, even if it costs a bit more upfront.
One of the easiest ways to compare prices while shopping for a homeowners insurance rate is to decide what's important before requesting the first home insurance quote. For example, a homeowner might want an insurance product that provides basic homeowners insurance coverage, including dwelling coverage, personal property coverage, and personal liability. Or, they may want to find the cheapest home insurance for a house with extras, like a swimming pool or trampoline.
The trick is to request a quote from each home insurance company for precisely the same level of coverage. That way, homeowners can compare apples to apples.
About the Author
Dana has been writing about personal finance for more than 20 years, specializing in loans, debt management, investments, and business. Her work has appeared on San Jose Mercury News, The Detroit News, Oakland Tribune, and Dun Bradstreet. After moving around the globe, she's thrilled to be living in her hometown of Kansas City.