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Home insurance rates tend to rise each year, and as a result many homeowners are living on a financial tightrope or cutting coverage to save money. But having adequate home insurance is crucial, especially if you live in a disaster-prone area like California with its wildfires.
We've rounded up the best affordable home insurance coverage to help you maintain the homeowners insurance coverage you need with affordable premiums.
Best Cheap Home Insurance of 2023
- Amica Homeowners Insurance: Best for Customer Satisfaction
- State Farm Homeowners Insurance: Best for Nationwide Coverage
- DB Homeowners Insurance: Best Homeowners Insurance in Hawaii
- Lemonade Homeowners Insurance: Best for Online Quotes
- USAA Homeowners Insurance: Best for Military Members
- Progressive Homeowners Insurance: Best for Affordable Pricing
- Allstate Homeowners Insurance: Best for Discount
Compare the Best Cheap Home Insurance Companies
Why You Should Trust Our Recommendations
The most important thing consumers should know about Insider is that our reviews and top recommendations are not for sale. We go off the facts from verified coverage and exclusions to real customer reviews around the quoting, claims, and other vital processes. While the homeowners insurance industry constantly changes, we update product information, pricing, etc., only when it can be objectively confirmed.
Our job is to provide expert advice while making insurance shopping more manageable. We do the heavy lifting for you. Then you can get quotes from your insurance providers of choice to compare costs and coverage.
Cheap Homeowners Insurance Frequently Asked Questions
Your home insurance costs are generally determined by your home's replacement cost, your location, and the unique safety or weather risks your home might face. Insurers may require a formal inspection for older homes to check roofing and plumbing before issuing a policy. Keeping your home up-to-date on routine maintenance can save you hundreds of dollars per renewal period and keep your options open.
Homeowners insurance premiums vary widely and depend on location, age, cost of building materials, and more. The national average in 2021 was $1,398 annually, according to Insurance Information Institute (III). However, we recommend checking your state average and working with an insurance agent to compare quotes. Some states offer average insurance premiums far below the national average.
The most important part of homeowners insurance is coverage. Having the appropriate coverage limits and riders to supplement things like water backup insurance for a flooded basement will ensure your homeowners insurance performs as expected.
Best Cheap Home Insurance Reviews
Amica Mutual
Amica Homeowners Insurance stands out with its high customer satisfaction rankings. The company outperformed competitors in the latest JD Power homeowners insurance study, receiving 849 out of 1,000 points.
As buyers might expect, Amica Mutual demonstrates superior financial stability, according to AM Best. Its A+ rating indicates Amica may be around for another 100 years giving it many more opportunities to protect US homeowners.
The Amica Mutual Standard Choice HO-3 homeowners policy covers the physical structure of your home, your personal belongings, supplemental living expenses if you need to relocate after a qualified event, and more. HO-3s cover single-family residences. So this would not be available for condos, some townhouses, mobile homes, etc.
An optional add-on is its dwelling replacement coverage, which allows you to exceed your policy limits as necessary. In an era of unexpected shipping delays and fluctuating material costs, a little flexibility in rebuilding your home goes a long way. Amica Mutual also offers water backup, special computer coverage, personal property replacement coverage, and other riders to ensure the right coverage for future claims.
If you want higher levels of coverage, you can choose the Platinum Choice®Home Coverage, HO-5 policy. An HO-5 offers everything an HO-3 offers for single-family residences, with extended coverage limits and other upgraded benefits.
Amica Mutual homeowners policyholders can bundle homeowners coverage with auto policies to save up to 20%. The company also offers discounts for loyalty, being claim-free, setting up auto-pay, and when you sign up for email communications. If quoting with Amica, we recommend discussing safety discounts with your insurance agent.
Amica Homeowners Insurance Review
State Farm
State Farm Homeowners Insurance has captive insurance agents nationwide. State Farm agents undergo extensive training to ensure they can quote insurance policies and answer questions about homeowners, life, auto, and other insurance policies. But, most notably for many consumers, State Farm agents apply all discounts to ensure you're getting the most competitive pricing on its products.
Most homeowners insurance companies are regional, sometimes offering coverage in as little as one to two states. State Farm can be found in all 50 states and Washington, DC. Many coverages that would be riders (at an additional cost) with other providers are automatically wrapped into State Farm's standard homeowners policies.
From the sample quotes we got, both single-family HO-3 policies and condo policies offered competitive pricing. Our condo quote was just $22 monthly. Our State Farm HO-3 quote was bundled with two cars and an umbrella policy, and the homeowners portion was just $60.08 monthly. But, of course, pricing will vary based on many factors.
State Farm homeowners insurance is only available for one to four-unit residential structures and individual condos, townhouses, etc. It may also require proof of a recent roof and plumbing inspection on older homes. However, both these things are standard for the industry.
State Farm Homeowners Insurance Review
DB Insurance
DB Homeowners Insurance offers reasonable home insurance rates in Hawaii and serves over 37,000 Hawaii homeowners. It is available in some other states. However, DB Insurance is among the most knowledgeable companies in Hawaii. It covers the many challenges of island life, including the risks associated with hurricanes and other weather events.
Local brokers quoting for DB Insurance may also partner with Hawaiian Hurricane Group and other specialty insurance providers to fill in gaps. Based on recent averages, DB Insurance remains the most affordable option for the average Hawaii homeowner. When bundled with auto policies, homeowners can save even more.
This said, one downside is its lack of a mobile app or a modern website to handle claims. Currently, you need to call, email, or fax the company. However, if you work with a broker homeowners insurance agent, you can contact your agent directly to start or manage a claim.
Property and casualty agent and homeowners insurance panel member Jeremy Yang says of DB Insurance, "While DB insurance can be more flexible with competitive rates, the underwriting process is longer than most competitors. So Hawaii buyers taking out a new mortgage may want to buy with carriers like Island Insurance, Progressive, or First Insurance Company of Hawaii to avoid delays in the loan process."
Lemonade
Lemonade Homeowners Insurance is a great option if you want to get online quotes quickly. It offers a seamless digital experience prompted by the AI assistant Maya. Using Lemonade, you can get online quotes and quickly file a claim with the Lemonade app.
Lemonade also has high customer reviews, and it's licensed in over 20 states with plans to expand. The company offers different types of insurance, including auto, pet, and term life insurance, for easy bundling options. You can bundle policies such as home and auto for the best possible deal. The Lemonade website states homeowners insurance can be as low as $25, though your exact rate will depend on your home, location, materials, and more.
Lemonade is best for tech-savvy buyers who can navigate its website and app. Its human-based services are limited compared to industry giants like Allstate and State Farm. In our trial run, we found customers would have to research their homes to get a quote. If you're working with an insurance agent, they will find all the information needed for you.
If you prefer to handle it from the comfort of your home with no phone calls, Lemonade offers a well-built site with affordable pricing.
Lemonade Home Insurance Review
USAA
USAA Homeowners Insurance provides better rates, lower costs, and better terms for US military members, from life, auto, and home insurance to bank accounts and loans. While we always recommend comparing quotes, it's hard to beat USAA's coverage and prices for US military members and their families. This does not change for homeowners and drivers with spotty histories, including large claims.
USAA homeowners insurance is available in all 50 states and Washington, DC. But some programs are only available in select states, according to its website. In addition, for surviving spouses and other dependents, the primary military member has to be signed up with USAA before they can use its services.
Of course, the obvious downside is its restrictive coverage. USAA homeowners insurance is only available to a limited number of homeowners. Non-military families should consider other cheap home insurance companies.
USAA Homeowners Insurance Review
Progressive
Progressive Homeowners Insurance is a large insurance provider with cheap home insurance rates in all 50 states. Depending on the state, you may be insured by different parts of the Progressive network. In addition, it offers various insurance products ranging from segway insurance to boat insurance and more traditional coverage options like auto and home insurance.
For homeowners, bundling policies to manage your insurance in one place is easy. More importantly for some, homeowners may be eligible for bundling discounts on all their insurance policies.
Progressive states monthly home insurance premiums could range from $83 to $138. Of course, rates may be lower than the average depending on your location, claims history, home size, and other factors. Progressive is sold through independent broker agents. However, you can obtain quotes online for easy comparisons.
Bundled policies may qualify for a 5% discount. Progressive offers additional discounts for new homes, proper alarms, and other safety measures, receiving documents electronically, paying upfront, and purchasing ten days or more before you start your policy. This means you can get standard coverage at a lower price.
Progressive Homeowners Insurance Review
Allstate
Allstate Homeowners Insurance is an insurance provider available in all US states and Washington, DC. It ranks high with organizations like JD Power and AM Best, and customers can buy homeowners, auto, life, and many other insurance products with bundling discounts.
Allstate has a reputation for great discounts, which can offer up to 25% in savings when you bundle its home and auto insurance coverage. Also, if you haven't filed a recent claim when you switch to Allstate, you may get up to 20% off your insurance premiums.
Other discounts are available if you pay upfront or on time, including a 5% discount for setting up automatic payments. You can score additional savings of up to 10% when confirming renewal a week or more before your policy expires. Check with an Allstate agent to see if you qualify for extra safety-related discounts.
If you're buying a home in most areas, Allstate's standard policies will cover common hazards. However, in areas like Hawai'i or Florida, you might also need hurricane coverage (and flood coverage if you live in certain flood zones). Make sure to talk to your local agent about your homeowners insurance options.
Standard coverage includes dwelling, liability, personal property, and medical costs. In addition, you can get optional coverage riders, including HostAdvantage®, which protects you if you do any home-sharing, and a personal umbrella policy to boost liability limits.
Allstate Homeowners Insurance Review
Why You Should Trust Us: How We Chose The Best Cheap Homeowners Insurance
When comparing countless homeowners insurance companies, narrowing down options can take work. We look at many factors, including affordability, customer satisfaction, accessibility, coverage options, etc. You can read more about our insurance rating methodology.
Alone, each of these factors could tell a misleading story. For example, not every company with high customer JD Power rankings has the type of homeowners insurance policy you need. Conservative companies may only issue low-risk policies on newer homes. We bring together relevant factors to get a bigger picture. Then we break down the pros and cons to help consumers make the right decision for their needs.
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
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