10 Cheapest Homeowners Insurance Companies in 2024 (All the Details)

The cheapest homeowners insurance companies are Auto-Owners, USAA, and Progressive. Auto-Owners offers 25% off when bundling home and auto. 

Auto-Owners is the best home insurance company for cheap rates, averaging $117/mo. USAA is also one of the cheapest home insurance companies, but it’s only available to military members.

 

The U.S. homeowners insurance average cost is $200-$250/month, but the best homeowners insurance companies on this list cost less than that, saving policyholders over $100 monthly. You can lower your rates further by raising deductibles and maintaining a good credit score.

Keep reading for full homeowners insurance company reviews and ratings. Enter your ZIP code to find the best provider in your area.

#1 – Auto-Owners: Top Pick Overall

Pros:

• Lowest Rates: Auto-Owners is the cheapest monthly home insurance company for a $300,000 policy at $117/month.
• Superior Financial Strength: Highest A++ rating from A.M. Best. Get full home insurance company ratings in our Auto-Owners insurance review.
• Biggest Bundle Discount: Homeowners save 25% per year when they bundle home and auto insurance, bigger savings than any other home insurance company on this list.

Cons:

• Regional Coverage: This homeowners insurance company is only available in 26 states.
• No Online Quotes: You have to get in touch with an agent near you to get local home insurance quotes.

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#2 – USAA: Cheapest for Homeowners in the Military

Pros:

• Competitive Rates: Homeowners insurance premiums are only $126/month for military members.
• Identity Theft Protection: Standard home insurance policies include $5,000 in identity theft coverage.
• Superior Financial Strength: Earned an “A++” rating from A.M. Best, making it one of the most reliable homeowners insurance companies. Explore more in our USAA insurance review.

Cons:

• Exclusive Coverage: Only military members and their families can buy USAA homeowners insurance.
• Smaller Discounts: Other cheap homeowners insurance companies provide two or three times the discount amount for common things like bundling policies and getting quotes early.

#3 – Progressive: Cheapest on a Budget

Pros:

• Low Rates: Progressive is one of the cheapest home insurance companies, costing $151/month for a $300,000 policy.
• Name Your Price Tool: Tell Progressive how much you can afford, and it will find the cheapest homeowners insurance policy possible.
• Superior Financial Strength: Earned an A+ rating from A.M. Best. as one of the most reliable home insurance providers. Learn more in our Progressive review.

Cons:

• Fewer Endorsements: Progressive only offers two homeowners insurance endorsements: personal injury and water backup/overflow.
• Smaller Bundle Discount: Drivers only save an average of 5% on homeowners insurance when bundling with auto policies.

#4 – State Farm: Cheapest Roof Coverage Options

Pros:

• Low Rates: State Farm is a cheap home insurance company averaging $172/month.
• Free ADT Security: State Farm partners with ADT to offer free equipment and installation with an additional discount on homeowners insurance coverage.
• Roof Replacement Cost: State Farm replaces your roof at cost if it’s declared a total loss without increasing your homeowners insurance deductible.

Cons:

• Regional Discounts: Despite having national coverage, State Farm homeowners insurance discounts aren’t available everywhere.
• A.M. Best Downgrade: State Farm’s financial rating dropped from “A” to “B”. Find out how this impacts home insurance company reviews in our State Farm review.

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#5 – Erie: Best Customer Service

Pros:

• Great Customer Service: Ranks #1 in home insurance company customer satisfaction according to J.D. Power
• Cheaper Than Average: Erie insurance costs $172/month for a $300,000 policy, making it an affordable home insurance company in most states.
• Competitive Bundles: Save 20% with this home insurance company when you bundle home and auto coverage.

Cons:

• Regional Coverage: You can only buy Erie homeowners insurance in 12 states and Washington, D.C. 
• No Online Quotes: You have to speak with an agent to get home insurance company quotes and compare coverage. 

#6 – Allstate: Cheapest With Multi-Policy Discount

Pros:

• Great Rates: Allstate is a competitive home insurance company at $175/month.
• Biggest Multi-Policy Discount: Homeowners save 25% off annual rates when bundling home and auto insurance, more than at any other cheap home insurance company. 
• Home Security Savings: Certain safety devices and security systems earn up to 20% off annual rates. Get more details about home insurance company discounts in our Allstate review.

Cons:

• Poor Customer Service: Allstate homeowners insurance ranks below average and performs worse than its competitors in annual J.D. Power satisfaction surveys.
• No Coverage in High-Risk States: Allstate announced in 2023 that it’s no longer writing home insurance policies in California.

#7 – Travelers: Cheapest for Eco-Friendly Homes

Pros:

• Great Rates: Travelers is a competitively-priced home insurance provider at $176/month.
• Superior Financial Strength: It received the highest A++ rating from A.M. Best. as one of the most reliable home insurance companies.
• “Green” Home Perks: Homes certified by Leadership Energy and Environmental Design (LEED) earn discounts and add-ons to cover eco-friendly items with this homeowners insurance company.

Cons:

• Worst Customer Service: Home insurance customer service ranks in the bottom three overall for customer satisfaction. Get a full review of Travelers Insurance.
• No Coverage in High-Risk States: Travelers is no longer writing home insurance policies in Florida or California.

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#8 – Nationwide: Cheapest Endorsements

Pros:

• Competitive Prices: Nationwide homeowners insurance costs $177/month on average.
• Big Bundle Discount: Bundle home and auto insurance to save 20% on annual home insurance premiums. Learn more in our Nationwide review.
• Variety of Endorsements: This home insurance company offers earthquake and water backup riders, or choose to add identity theft or appliance breakdown coverage.

Cons:

• Poor Customer Service: Nationwide ranks below average for customer and claims satisfaction by J.D. Power. when compared to other home insurance providers.
• Regional Coverage: Nationwide homeowners insurance isn’t available in Oklahoma, Louisiana, Hawaii, or Alaska.

#9 – Liberty Mutual: Cheapest for Homeowners Without Claims

Pros:

• Affordable Rates: Liberty Mutual home insurance costs $10-$20 less than average at $192/month.
• Biggest Multi-Policy Discount: Save 25% with this home insurance company when you buy home and auto insurance.
• Safe Homeowner Discount: Homeowners only need to be claim-free for three years to earn a discount. Get more home insurance company reviews in our Liberty Mutual insurance review.

Cons:

• Increasing Rates: Homeowners insurance company reviews on Reddit collectively complain about increased rates in certain regions even with good credit and claims history.
• Worst Customer Service: Liberty Mutual home insurance is in the bottom two for customer satisfaction. Only Homesite Insurance is lower. 

#10 – Farmers: Cheapest for First-Time Home Buyers

Pros:

• Renters Perk: Home buyers get a rent-to-own discount if they had renters insurance through Farmers before buying a homeowners policy.
• Smoke-Free Discount: Unique homeowners insurance discounts for those who don’t smoke for at least two consecutive years. Find more discounts in our Farmers Insurance review.
• HOA and Retirement Community Discounts: Residents who live in HOA, gated, or retirement communities get additional discounts.

Cons:

• Average Premiums: Policy rates are $266/month, around the national average but more expensive than the cheapest home insurance companies on this list.
• Regional Discounts: Some Farmers homeowners insurance discounts are only available in select states.

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Breaking Down the Average Cost of Homeowners Insurance

Buying a home in the U.S. is expensive. The average price is between $350,000 and $450,000, and your insurance premiums will be higher to reflect inflation. 

Auto-Owners is the cheapest home insurance company overall. However, Progressive is cheaper than USAA when it comes to high-value homes.

The 80% rule in home insurance requires you to cover at least 80% of your home’s value. More expensive homes need higher levels of coverage, and you may choose to increase limits with endorsements. Find out how much homeowners insurance you need.

You might see higher rates if you own an older home or live in a high-risk state. Alternatively, rates drop for policyholders with higher deductibles and good credit scores. Other common factors that affect homeowners insurance near you are:

• Fire Rating: The risk of wildfires and how close you live to a fire hydrant or fire station impact rates.
• Claims History: Filing a claim will increase rates while homeowners who remain claim-free earn a discount.
• Construction and Roof Materials: The kinds of materials used to build your home, its foundation, and roof all affect monthly premiums.

Policy coverage and home location have the biggest effect on homeowners insurance quotes. Policy limits and whether you want replacement cost or actual cash value coverage could raise or lower rates. 

Home Insurance Rates by State

Where you live impacts home insurance rates, discount availability, and coverage. Find your state on the map to compare local insurance quotes.

Why is home insurance getting so expensive in the U.S.? Inflation and the increased cost of repairs and materials are a big reason why home prices and insurance premiums keep climbing.

Other neighborhood variables like crime rates, weather risks, and increased claims also impact rates. For example, high levels of property crime in your neighborhood or living in areas with wildfires, earthquakes, floods, hurricanes, or tornadoes will raise homeowners insurance costs.

Trends of home insurance companies dropping customers are more common in coastal states like Florida and California, which are at risk for weather-related claims. You’ll see more expensive rates in states like these, too. 

Learn More: The 7 Most Dangerous Threats Facing American Homeowners

What Homeowners Insurance Covers

Your home insurance policy covers more than just your house — insurance coverage extends to personal belongings and other structures on your property. Take a look at what home insurance covers:

There are different types of homeowners insurance policies depending on the kind of property you live in and the risks you want to cover. Explore the table below to see what type of home insurance coverage you might need.

HO-3 policies are the most popular type of home insurance. Most insurance companies won’t sell HO-1 or HO-2 policies anymore. If you’re looking for a simple policy with basic coverage, Progressive will have the cheapest homeowners insurance. Auto-Owner’s has great rates if you want more comprehensive coverage.

How to Save Money With Cheap Homeowners Insurance Companies

Still wondering how to get cheap homeowners insurance? The cheapest homeowners insurance companies are Auto-Owners, USAA, and Progressive for those without claims and who have good credit scores. 

Your quotes will be higher if you recently filed a claim. If you have a less-than-perfect insurance history, follow these tips to get better rates no matter which company you choose:

• Bundle Policies: Combine home insurance with auto or other policies to get a multi-policy discount. Auto-Owners, Allstate, and Liberty Mutual have the biggest discount of 25%.
• Increase Your Deductible: Opt for a higher deductible to lower your premium, but ensure you can afford the out-of-pocket cost if you need to file a claim.
• Improve Home Security: Install security systems, smoke detectors, and deadbolts to qualify for discounts. Allstate and Erie have the biggest discounts from 15-20%.

Home insurance costs vary based on where you live, so regularly compare quotes from different insurers in your city to find a cheap homeowners insurance company near you.

Enter your ZIP code and we’ll help you compare multiple providers to find the cheapest home insurance policy rates.

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