13+ years writing insurance and personal finance content
Insurance, lending, and retirement expert
Jacqueline has contributed content, and her personal finance passion, to dozens of noteworthy financial brands, including Credit Karma, Bankrate, and MagnifyMoney.
As Insurify’s home and pet insurance editor, Danny also specializes in auto insurance. His goal is to help consumers navigate the complex world of insurance buying.
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When it comes time to insure your home, it’s important to compare home insurance quotes before buying a policy. The goal isn’t necessarily to find the cheapest possible policy but to find the right coverage for your home for the best price.[1] You may want to consider American Family, Nationwide, or Travelers, all of which offer lower-than-average premium prices, according to Insurify data.
Hawaii residents pay the least for insurance, as the average annual rate for homeowners insurance with Island Insurance is just $306. Remember this is just an average: Many factors, like location, home size, and type of coverage, affect how much you’ll spend.[1]
Quick Facts
American Family offers the lowest average annual home insurance rates.
The size of your home and the cost of local building materials can affect your premiums.
Maintaining a high credit score can help lower your insurance costs.
Top 10 cheapest homeowners insurance companies
Home insurance prices vary by company. The following table outlines the 10 cheapest insurers based on their average annual policy costs.
Table data sourced from real-time quotes from Insurify’s partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer’s unique profile.
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American Family
American Family is one of the largest insurers in the country, with a home insurance market share of 4.35%, according to the National Association of Insurance Commissioners (NAIC).[2] Its homeowners policies are very customizable and let you choose between various add-ons to ensure your policy meets your unique needs. The insurer earned an 842 customer satisfaction score out of 1,000 points in the J.D. Power 2022 U.S. Home Insurance Study.[3]
Home insurance coverage is only available in 19 states
Earned a below-average satisfaction score for “Service” in the 2022 J.D. Power U.S. Insurance Digital Experience Study[6]
Nationwide
Nationwide is a large insurer that offers home insurance coverage in most states. It’s widely regarded as one of the best insurers in the country, and it earned a 2022 J.D. Power customer satisfaction score of 816 out of 1,000.[3]
Pros
Offers many discounts, including home and auto bundling
Doesn’t offer identity theft coverage in base policy
Not available in every state
Travelers
Travelers is one of the largest insurance companies in the country, with a home insurance market share of 4.88%.[2] It earned a 794 out of 1,000 customer satisfaction rating in the J.D. Power 2022 U.S. Home Insurance Study.[3] The company offers home and auto insurance, as well as a variety of other insurance products.
Lower-than-average customer satisfaction rating from J.D. Power[3]
Not available in every state
Less pet-friendly than many other insurers
Keep in Mind
The best insurance company for you depends on a variety of factors, including your home’s location, age, and coverage needs. Take time to compare quotes from multiple companies before buying a policy.
Cheapest home insurance companies by state
Home insurance prices vary by state due to local weather issues, crime rates, and various other factors that affect how likely you are to file a home insurance claim.[7]
For example, in Oklahoma, the average annual cost of homeowners insurance with Mercury is $3,132, whereas in Alaska, the cheapest provider is Umialik Insurance Company, at $713 per year. Oklahoma is prone to tornado damage, which is likely one of the main reasons insurers charge higher premiums there.[8]
The following table highlights the cheapest insurer on average for each U.S. state so you can get an idea of the cheapest possible rate where you live.
State
Insurance Company
Average Annual Cost
Alabama
Travelers
$2,580
Alaska
Umialik Insurance
$713
Arizona
Commonwealth Casualty
$936
Arkansas
Travelers
$2,112
California
Travelers
$924
Colorado
Hippo
$1,896
Connecticut
State Auto
$1,248
Delaware
Stillwater
$828
Florida
Travelers
$2,083
Georgia
Grange
$1,716
Hawaii
Island Insurance Group
$306
Idaho
Stillwater
$612
Illinois
State Auto
$1,224
Indiana
Stillwater
$1,224
Iowa
Integrity
$1,152
Kansas
State Auto
$2,172
Kentucky
Grange
$1,716
Louisiana
ASI
$1,185
Maine
Stillwater
$816
Maryland
State Auto
$1,092
Massachusetts
Liberty Mutual
$1,488
Michigan
State Auto
$996
Minnesota
Integrity
$1,452
Mississippi
Travelers
$2,496
Missouri
State Auto
$1,944
Montana
Stillwater
$1,260
Nebraska
Stillwater
$2,364
Nevada
Travelers
$792
New Hampshire
Stillwater
$840
New Jersey
Stillwater
$1,080
New Mexico
Stillwater
$1,332
New York
Stillwater
$984
North Carolina
Stillwater
$1,320
North Dakota
State Auto
$1,284
Ohio
Grange
$876
Oklahoma
Mercury
$3,132
Oregon
Kemper Preferred
$624
Pennsylvania
Travelers
$1,008
Rhode Island
Nationwide
$2,172
South Carolina
Stillwater
$1,032
South Dakota
State Auto
$1,200
Tennessee
Stillwater
$1,464
Texas
Mercury
$1,872
Utah
Stillwater
$828
Vermont
Stillwater
$1,116
Virginia
State Auto
$912
Washington
Kemper Preferred
$816
Washington, D.C.
West Virginia
State Auto
$1,224
Wisconsin
Integrity
$780
Wyoming
Stillwater
$1,536
Table data sourced from real-time quotes from Insurify’s partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer’s unique profile.
Home insurance prices can also vary by city due to location-specific factors, like living close to a fire station or being at risk for flood damage. For example, homeowners in New York City pay an average annual rate of $919 with Kingstone Insurance Company, whereas in Detroit the cheapest option is Hippo, at $3,036 per year on average.
To give you an idea of how much home insurance costs can vary by city, check out the following table to see the least expensive insurer and its average annual cost for the 15 most populous cities in the United States.
City
Insurance Company
Average Annual Cost
New York
Kingstone Insurance Company
$919
Los Angeles
Hippo
$1,032
Chicago
State Auto
$1,140
Dallas
Mercury
$1,944
Houston
Mercury
$2,388
Washington, D.C.
Chubb
$1,002
Philadelphia
Kemper Preferred
$1,260
Atlanta
Mercury
$1,824
Phoenix
Travelers
$1,128
Miami
Tower Hill Group
$2,815
San Francisco
Stillwater
$924
Detroit
Hippo
$3,036
Seattle
Travelers
$696
Minneapolis
Integrity
$1,416
Denver
Hippo
$1,740
Table data sourced from real-time quotes from Insurify’s partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer’s unique profile.
The best cheap home insurance companies by home type
Additional home-specific and external factors can raise the costs of homeowners insurance, like the type of home you own, the type of home insurance policy you need, and the provider you choose.
Cheap home insurance for new homes: Allstate
Allstate is a good choice for new homeowners, as it offers a homebuyer discount. It also offers a claim-free discount, and, with a new home, you’re less likely to need to file claims. The insurer has affordable rates and earned a J.D. Power customer satisfaction score of 815 out of 1,000, so homeowners can expect a good customer experience.[3]
Nationwide is one of the largest insurers in the country, available in almost every state. It offers a wide variety of coverages, including HO-8 insurance, which is specifically for old homes. It has an 892 rating out of 1,000 in the J.D. Power 2022 U.S. Home Insurance Study and offers affordable rates.[3] Talk to a Nationwide agent about your home’s unique characteristics to learn how to save money.
Cheap home insurance for homes in hazardous areas: State Farm
State Farm is the largest insurance company in the country, offering all kinds of insurance products, including high-risk home insurance. It’s available nationwide, including in high-risk coastal areas. Due to its size, State Farm can take on high-risk homes across the country. It also earned an 829 rating out of 1,000 in the J.D. Power 2022 U.S. Home Insurance Study.[3]
Many different factors affect the cost of home insurance, such as:
The size of your home: The larger your home, the more it’ll cost to replace. Insurers consider this when setting your rate.[9]
Local building costs: Your premiums could increase if you live in an area where building supplies and labor are expensive, which drives up repair costs.[9]
Your credit score: Insurance providers consider your credit score when setting rates and usually offer lower rates to homeowners with higher credit scores.[1]
The age of your home: Older homes come with unique and often expensive repair needs. Having an older home can lead to increased premiums, as insurers will compensate for the increased cost of materials required to repair the home.[9]
Location: How likely you are to file a claim can be affected by location-specific factors, like severe weather frequency and crime rates. Insurers consider these factors when determining how likely you are to file a claim and how much those claims will cost.[7]
How to buy cheap homeowners insurance through Insurify
It’s important to compare home insurance quotes when looking for cheap homeowners insurance. An online virtual agent like Insurify is the best place to compare home insurance because you can research and compare companies all in one place.
From the Insurify home page, select home insurance, and provide your ZIP code to get started. From there, you’ll provide more detailed information about your policy needs and, finally, receive a personalized list of quotes.
When deciding on the right quote for you, consider not only the price but also whether it fully meets your coverage needs. For example, one insurer may offer lower rates than another but lack a unique add-on coverage that your house needs.
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How to reduce home insurance costs
Consider taking some of the following steps to reduce your home insurance costs:
Choose a higher deductible. The higher yourhome insurance deductible is, the lower your monthly payments will be. Be mindful when choosing a deductible, though. It shouldn’t be so high that you can’t afford to pay it if you need to file a claim.
Improve your credit score. Insurers consider your credit when setting your rates. Many correlate a high credit score with a lower likelihood of filing a claim and will charge policyholders with good credit less than those withbad credit.
Enhance your home’s security. Take steps to make your home more secure, like installing security cameras and alarms. Many insurance companies offer discounts for these risk-reduction measures.
Use disaster-resistant materials. Adding storm shutters, reinforcing your roof, or using stronger roofing materials can all help your home withstand damage from natural disasters. The stronger your home is, the less likely you are to file a claim, which can result in lower premiums.
Look for loyalty discounts. Some insurance companies offer loyalty discounts to long-term customers. Take time to research an insurer you could see yourself sticking with for the long haul to maximize your long-term savings.[1]
Here are answers to some commonly asked questions about cheap homeowners insurance.
Which company has the cheapest homeowners insurance rates?
American Family offers the cheapest average home insurance premiums, at $1,544 annually. Remember that this is just an average, though. Your rate may be higher or lower depending on your home’s location, credit score, coverage needs, and other factors. Additionally, American Family doesn’t offer home insurance in every state, so it may not even be an option.
Is home insurance worth it?
While homeowners insurance isn’t legally required, it’s generally not a good idea to skip this insurance coverage if you own a home.[10] Homeowners insurance can help you avoid very expensive home repairs if you need to file a claim. And if a natural disaster strikes, the cost of replacing your home will be immense.
Will homeowners insurance costs increase if you file a claim?
Whether a homeowners insurance claim leads to increased premiums depends on the type of claim you filed, according to Ron Wadley, principal agent and owner of Insurance for Texans Group. “If the claim filed is directly related to a catastrophic weather loss, like a tornado, major hail event, hurricane, or wildfire, there is typically not an effect on your rates,” Wadley explains. “If you have a water leak that is the result of an appliance exploding like a water heater and flooding the inside of your home, then you can generally expect a surcharge to be applied on your next renewal.”
Does a home’s age affect insurance rates?
Yes. “The age of the home will absolutely affect your rates,” Wadley says. “As the home ages, the probability of something breaking and creating a claim goes up.” Older homes inherently have more risk than newer homes since the materials used are often outdated and worn. Insurers know this and consider owners of older homes to be more likely to file a claim and thus charge higher premiums.
However, if you update the plumbing, wiring, and roof of an older home, you can reduce the premium for your home insurance. Wadley advises keeping great documentation to prove you’ve done work to update your home.
How high should your home insurance deductible be?
Wadley recommends budgeting accordingly when it comes to choosing a deductible. “Since the deductible is your financial responsibility to pay in the event of a claim, make sure that whatever your choice is can actually be paid if a loss occurs,” Wadley says. “Once that is determined, the homeowner needs to determine what repairs they would be comfortable paying for out of their pocket without help from the insurance company.”
During college, Jacqueline DeMarco interned at a retirement plan advisory firm and was tasked with creating a presentation on the importance of financial wellness. During her research into how money can affect our health, relationships and career, Jacqueline realized just how important financial education is. Jacqueline is a contributor for Insurify and has worked with more than a dozen financial brands, including LendingTree, Capital One, Credit Karma, Fundera, Chime, Bankrate, Student Loan Hero, ValuePenguin, SoFi, and Northwestern Mutual, providing thoughtful content to give readers insight into complex topics that they likely didn’t learn in school.
As Insurify’s home and pet insurance editor, Danny also specializes in auto insurance. His goal is to help consumers navigate the complex world of insurance buying.
