Best Cheap Homeowners Insurance Companies of 2021

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Almost 66% of Americans own a home. Homeowners who are paying off a mortgage are insured to meet the lender’s requirements, but there are still too many who don’t have home insurance or their coverage isn’t enough.

A quality home insurance policy that protects your most valuable asset — your home — doesn’t have to be expensive. While the average homeowners insurance cost is $2,285 per year for $300,000 in dwelling and $100,000 in liability, you can probably beat the national average if you choose the right home insurance company. Our Insure.com report on cheap homeowners insurance found that you can get coverage for as little as $514 per year for $300,000 in dwelling coverage with a $1,000 deductible.

However, answering “what is the cheapest homeowners insurance company” is tricky. The study looked at rates for a whopping 85 national and regional cheap homeowners insurance companies and found that the same level of coverage can range in cost between $514 and $4,543. That’s a big difference for the same product.

To simplify the process for you, we selected the 10 cheapest home insurance companies from the study that meet a few criteria:

Available in most parts of the country
Good customer reviews
Rated as financially sound, with strong financial stability
Provides a variety of coverage and discount options

Use the following shortlist of cheap home insurance companies to do your own research. Because rates can vary depending on how much home insurance you need, where you are located and personal factors such as claims history and credit score, your results may vary. However, collecting quotes from the cheapest homeowners insurance companies will be your best bet to find the lowest rate on a homeowners policy.

Best cheap home insurance companies

The following companies are the 10 best for cheap home insurance coverage. There are some names missing and you may be wondering why. We excluded cheapest homeowner insurance companies that are not widely available. Regional carriers and those that require membership, such as AAA or USAA didn’t make the cut. Geico isn’t on the list either — although it’s a major insurance company, it does not offer its own affordable homeowners insurance. You’ll be placed with a partner insurance company instead.

The following chart shows the top 10 cheap home insurance companies, starting with the cheapest homeowners insurance rates and including information about the average annual premium for $300,000 dwelling coverage. For customer reviews, we looked at the J.D. Power independent study on customer satisfaction and the number of complaints filed with the National Association of Insurance Commissioners (NAIC).

To make the list, the cheap homeowners insurance companies selected had to have an AM Best financial strength rating of B++ or higher, meaning the carrier is able to pay out mass claims in case of a widespread disaster such as a wildfire or storm. Online quote availability is included in the table to save you time when collecting quotes to compare. If a homeowners insurance company does not have an online quote tool available, you will need to call the carrier or visit a local agent.

Company	Best for	Average annual cheapest home insurance rate	J.D. Power rating	NAIC complaints	InsureScore for customer service (out of 5)	AM Best financial strength rating	Cheap home insurance quotes available online?Â
Travelers	Cheapest homeowners insurance	$1,064	803 / 1,000	0.01 (below average)	4	A++	Yes
Allstate	Mobile app	$1,156	829 / 1,000	0.28 (below average)	4	A+	Yes
State Farm	Local agents	$1,157	829 / 1,000	1.50 (above average)	4	A	Yes
Chubb	All-inclusive coverage	$1,357	778 / 1,000	0.71 (below average)	3.5	A++	No
Farmers	Green rebuilding	$1,439	814 / 1,000	1.89 (above average)	4	B++	No
Safeco	Bundling home and vehicle (shared deductible)	$1,504	802 / 1,000	2.68 (above average)	4	A	Yes
Auto-Owners	Discounts and specialty coverages; Guaranteed home replacement cost; homeowner plus, equipment breakdown	$1,552	843 / 1,000	0.86 (below average)	4	A++	No
Amica	Cash back	$1,638	853 / 1,000	1.96 (above average)	n/a	A+	Yes
Nationwide	Home and auto bundle; most savings, 29%	$1,768	808 / 1,000	1.316 (above average)	4	A+	Yes
Country Financial	Customer satisfaction	$2,037	855 / 1,000	0.00 (below average)	n/a	A+	No

Cheapest home insurance companies: Coverage options explained

Here is more on the top five cheap homeowners insurance companies and what makes them the best for low price homeowners insurance.

Travelers Insurance

Best for: The cheapest homeowners insurance rates

Average annual premium rate: $1,064

Why you should consider Travelers (pros):

Cheapest home insurance of all the carriers
Eight additional add-ons including green home coverage, replacement cost and personal articles floater
File a claim online or over the phone.
Low customer complaints

What to watch out for (cons):

Mobile app could use improvement
Not available in Hawaii, Florida, Louisiana, Alaska, West Virginia and Michigan

Read More: Travelers Insurance Reviews

Allstate Insurance

Best for: Mobile app

Average annual premium rate: $1,156

Why you should consider Allstate (pros):

Robust mobile app with a rating of 4.8 out of 5
Create and keep an inventory list of personal property in the app to make filing a claim easier.
Claim Rateguard doesn’t raise your premiums after filing one claim.
Get $100 off your deductible when you sign up, plus $100 off each year without a claim for up to $500 off.
Local agents and offices available in all states
Ten optional coverages available including home sharing if you rent a room in your house, yard and garden coverage for trees, landscaping and equipment, and more.

What to watch out for (cons):

Some coverages are capped at a percentage of your dwelling limit and can’t be customized.

Read More: Allstate Insurance Reviews

State Farm Insurance

Best for: Local agents

Average annual premium rate: $1,157

Why you should consider State Farm (pros):

Over 19,000 local agents available nationwide
Largest insurance carrier in the country
Mobile app allows you to file a claim and upload images straight through the app
Roof loss settlement included in a standard policy
Optional coverages include earthquake insurance and business coverage for work-related equipment and inventory kept at home

What to watch out for (cons):

Limited number of discounts and add-ons
Higher than average customer complaints

Read More: State Farm Insurance Reviews

Chubb Insurance

Best for: All-inclusive home insurance

Average annual premium rate: $1,357

Why you should consider Chubb (pros):

Strong financial stability
Locations in nearly 100 cities
Coverage available for higher-value homes and estates
Cash settlement option
Free home appraisal and risk consulting
Standard policies include free perks such as tree removal (after a storm), lock replacement, electronic data restoration and HomeScan that reveals leaks, faulty electrical wiring and missing insulation.

What to watch out for (cons):

No online quote tool available
Customer satisfaction lower than other cheap home insurance companies

Read More: Chubb Insurance Reviews

Farmers Insurance

Best for: Green rebuilding

Average annual premium rate: $1,439

Why you should consider Farmers (pros):

Eco-Rebuild coverage gives you up to $25,000 for the extra cost of rebuilding with green/eco-friendly appliances and building materials.
Wide network of local agents available
Three customizable home insurance bundles/packages available
Coverage for vacant homes available
Claims forgiveness and claims-free discounts help keep premiums low
Declining deductibles lower your deductible by $50 each year you are claims-free

What to watch out for (cons):

Higher than average customer complaints
No online quote tool

Read More: Farmers Insurance Reviews

Cheapest home insurance rates by ZIP code

Not all areas are eligible for the most affordable home insurance. If you live in a zone at risk for wildfires or hurricanes or with a higher than average rate of burglaries or other types of claims, cheap home insurance rates may be hard to come by. Homeowners who live in the following areas have the cheapest home insurance policies in the country.

ZIP code	State	City/town	Avg. Annual Premium
96859	Hawaii	Honolulu	$490
93445	California	Orcut	$881
5404	Vermont	Winsooki/Burlington	$1,107
20854	Maryland	Potomac	$1,144
77514	Texas	Freeport	$1,148
19808	Delaware	Pike Creek	$1,190
84075	Utah	Clearfield	$1,265
70357	Louisiana	Golden Meadow	$1,308
89428	Nevada	Silver City	$1,313
14445	New York	East Rochester	$1,319
1351	Massachusetts	Montague	$1,329
98337	Washington	Bremerton	$1,331
99821	Alaska	Juneau	$1,336
3062	New Hampshire	Nashua	$1,356
97062	Oregon	Tualatin	$1,371
17552	Pennsylvania	Mount Joy	$1,419
8865	New Jersey	Phillipsburg	$1,421
28701	North Carolina	Alexander	$1,432
53081	Wisconsin	Sheboygan	$1,460
20024	DC	Central DC	$1,479
85614	Arizona	Green Valley	$1,564
87547	New Mexico	White Rock	$1,572
22746	Virginia	Viewtown	$1,572
83704	Idaho	Boise	$1,603
82801	Wyoming	Sheridan	$1,608

How to get affordable homeowners insurance

Finding the most affordable homeowners insurance takes a little work, but the effort is worth it — you could end up saving hundreds of dollars per year. The following steps will help save you money on your insurance premiums:

Compare home insurance quotes

The best way to find cheap homeowners insurance companies is by comparing home insurance quotes from at least three insurance companies for identical coverage limits. Fortunately, most insurance companies offer an online quote tool which makes it possible to get a insurance quotes in just a few minutes. Each insurance company will use its own method for assessing risk and setting rates, so premiums can vary significantly among insurance companies. That’s why you save money by comparison shopping for insurance coverage.

Think about the deductible

A higher deductible means your premiums will be lower. If you don’t foresee having to file a claim very often and can afford paying a larger amount upfront, it may be worth bumping up your home insurance deductible to $1,000 or $2,000 to save.

Take advantage of carrier homeowners discounts

Insurance companies typically have a list of discounts available. Some companies have more than others. Some of the typical home insurance discounts that can lower your premiums include:

Protective device and safety features: A discount for home security systems, fire extinguishers, deadbolt locks and/or carbon monoxide and smoke detectors.
Claims-free: You may qualify for lower rates if you don’t have a history of home insurance claims.
Autopay: Earn a small discount for setting up automatic premium payments.
Home upgrades: If your home’s electrical, plumbing or HVAC systems were recently updated, you could earn a discount.
Structure of your home: Some of the biggest discounts companies offer are for having certain types of building materials, for instance non-combustible materials and/or fire resistive.

Multi-policy discount or bundle car insurance and home insurance

One of the largest discounts you could earn entails buying your home and auto insurance policy from the same carrier. You’ll typically earn a discount on both, saving you money (and paperwork) when it’s time to manage your insurance policies. You can save, on average, about 18% with a multipolicy discount, based on a rate analysis by Insure.com.

Frequently asked questions

What is the cheapest homeowners insurance company?

Our study on home insurance rates by carrier found that Travelers Insurance has the cheapest homeowners insurance rates at $1,064 per year on average.

Who provides cheapest home insurance with flood coverage?

Insurance companies do not typically include flood insurance in a standard home insurance policy. It’s best to buy the cheapest home insurance policy first and then buy flood coverage separately through the National Flood Insurance Program.

Who has the cheapest car and home insurance?

Many insurance companies provide both types of coverage and offer discounts that lower premiums for both. Safeco offers a bundling discount and even lets you share the same deductible for both policies. Other companies that may offer cheap car and home insurance include Travelers, Auto-Owners, Amica, Nationwide and Allstate.

How does a homeowners insurance policy work?

The basics of any homeowners insurance policy will protect you in the following ways, up to the coverage limits you choose:

Dwelling coverage: Insurance covers your home and property for “covered perils.” Coverage includes damage from fire, smoke, storms, lightning, hail, vandalism and damage from a car. Dwelling coverage is meant to repair your home or completely rebuild the structure if needed. You should get enough dwelling coverage to match your home’s full replacement cost. Replacement cost is not market value. Instead, it’s how much you would need to rebuild your current home.
Liability coverage: Liability protection covers you if you’re sued for bodily injury or property damage caused by you or a family member. Liability also covers legal costs and court damages if you are sued. The standard home insurance policy includes $100,000 of liability coverage but experts recommend at least $300,000.
Personal property coverage: Covers your possessions, such as clothing, furniture, electronics and appliances. Coverage for your belongings is usually between 50% and 70% of your dwelling’s coverage. You can also buy additional protection.
Medical payments: Guest medical covers the medical costs if a visitor to your property is hurt in a minor incident, regardless of liability. Typical limits run from $1,000 up to $5,000. This coverage helps avoid potential litigation or use of liability coverage.
Loss of use coverage: Additional living expenses protection helps you out if a fire, storm or other covered peril damages your home and it is unlivable. The coverage provides compensation to live elsewhere temporarily. That protection includes paying for hotel and restaurant bills and other living expenses. It’s typically 20% of your dwelling coverage amount.

Michelle Megna

Contributor

Michelle, the former editorial director, insurance, at QuinStreet, is a writer, editor and expert on car insurance and personal finance. Prior to joining QuinStreet, she reported and edited articles on technology, lifestyle, education and government for magazines, websites and major newspapers, including the New York Daily News.

The Best Cheap Homeowners Insurance of 2021: Guide

Best cheap home insurance companies