The best Midwest cities for affordable homeowners insurance

If you want cheap homeowners insurance in the Midwest, Wisconsin is where to look. The cheapest city in the region is Appleton, where homeowners pay an average of $1,600 a year — about 37% less than what the typical American pays. And Appleton isn’t alone. The next four cheapest cities in the Midwest are all in Wisconsin, too, each running well under $1,700 a year.

At an average of $2,940 a year, homeowners here pay 16% more than the national average of $2,543 — more than people in the Northeast at $1,572 or the West at $2,101, and trailing only the South at $3,566. Much of that comes down to tornadoes, hail and winter storms. But averages hide a lot. Drill down to the city level, and the picture changes completely, with dozens of communities across Wisconsin, Ohio and Illinois landing well below the national average.

The reason some cities cost so much less comes down to a few things working together: milder weather risk, strong regional insurers competing for your business, and lower rebuilding costs. Wisconsin checks all three boxes. The bigger lesson, though, is that where you live matters more than which state you’re in — so your ZIP Code, not your state line, is what really shapes your premium.

The 5 cheapest Midwest cities for home insurance at a glance

Wisconsin is home to all the cities with the cheapest home insurance rates in the Midwest. The five cheapest are clustered on the east side of the state. Appleton leads the way at $1,600 a year, followed by Oshkosh at $1,623, Green Bay at $1,672, Madison at $1,697, and Janesville at $1,710. Each one carries an average annual premium that runs more than 30% below the U.S. national average of $2,543.

Why are some Midwest cities so much cheaper than others?

Home insurance premiums come down to risk — how likely an insurer is to pay out a claim, and how expensive that claim will be. Five main factors determine how much you’ll pay:

• Weather: Areas prone to tornadoes, hail and flooding may have higher premiums.
• Rebuilding costs: Insurers consider the cost to repair or replace your home if it is damaged.
• State regulations: If state laws increase the cost of doing business, then you can be sure that expense is passed on to consumers in the form of higher premiums.
• Claims history: Insurance companies may consider the overall claims history of a ZIP Code as well as your personal claims history when setting rates.
• Competition: In states with more insurers competing for business, premiums will be lower.

“We don’t have exposure to some of the more catastrophic weather events,” explains Andy DeLauder, owner of I-800 Water Damage of Columbus Northeast, a company that provides restoration services to homeowners who have suffered flooding, fire or other loss.

Hurricanes, earthquakes and wildfires aren’t a concern for Midwest residents like they are for those living in the West or South. However, frozen pipes and winter hailstorms can cause significant damage. There are also tornadoes to contend with in the Midwest.

“That might close the gap in premiums a little bit,” DeLauder says.

The 25 cheapest Midwest cities for homeowners insurance 

If you want the cheapest homeowners insurance in the Midwest, you’ll need to live in Wisconsin, Ohio or Illinois. No other state is represented on the list of the 25 Midwest cities with the lowest home insurance premiums.

The order within the list tells its own story. Wisconsin owns the entire top 10, with each city at least 25% below the national average. Ohio dominates the middle of the ranking, and Illinois fills the back end, with its five cities landing 6% to 13% below average.

Average rates in 2025 ranged from $1,600 in Appleton, Wisconsin, to $2,385 in Naperville, Illinois. Every city on the list has an average premium that falls below the national average of $2,543.

Which Midwest states have the cheapest home insurance?

Just three states account for every city on the list of the 25 cheapest in the Midwest: Wisconsin, Ohio and Illinois. They don’t compete on even footing, though. Wisconsin leads with the lowest rates in the region, Ohio sits in the middle with greater variation from city to city, and Illinois brings up the rear — though even its priciest cities are below the national average. Here’s how each state stacks up.

Wisconsin — the cheapest state in the Midwest for home insurance

Wisconsin takes the crown as the cheapest state in the Midwest for homeowners insurance in 2025. Appleton, Oshkosh and Green Bay are the cities with the lowest annual premiums, but even its most expensive city – Eau Claire – has premiums that are 25% lower than the national average.

The state has relatively moderate climate risks, according to Realtor.com. Hurricane and wildfire exposure isn’t a risk here, although winter storms and hail are. There is also a concern about tornadoes, thunderstorms and flooding along some lakes and rivers. However, the risk isn’t enough to raise rates statewide.

Who sells the cheapest home insurance in Wisconsin?

Secura Insurance is often the most affordable, with average rates as low as $1,315 in some cities.

Ohio — solid savings if you shop around

Ohio is the runner-up when it comes to the cheapest homeowners insurance rates in the Midwest. Canton has the state’s lowest average rate at $1,905 a year, followed by Akron at $1,999. Dayton and Hamilton also make the top 25 list, at $2,327 and $2,225, respectively, but they sit toward the higher end of the price range among ranked communities.

Like Wisconsin, Ohio faces climate risks that include tornadoes, hail and thunderstorms. What helps keep premiums down is the cost of the homes themselves. Median home prices in the state run a relatively low $216,883, according to 2026 Zillow data, and lower home values often translate into lower insurance premiums, since there’s less to rebuild.

Competition can help keep prices affordable, but it also highlights the need to shop around. Grange and Erie have prices that can run high in Ohio, while Allstate, USAA and State Farm tend to have lower premiums. Keep in mind that these are averages — the carrier that’s cheapest for your neighbor may not be the cheapest for you, since your home, location and personal history all shape the final price. That’s why it pays to get quotes from several insurers before deciding.

Who sells the cheapest home insurance in Ohio?

In many cities, Allstate is the cheapest, followed closely by USAA and State Farm.

Illinois has the Midwest’s most expensive cities, but they’re still below the national average

Illinois is a state of contrasts, with urban Chicagoland to the north and rural counties elsewhere.

Cities in both regions are represented on this list, with Champaign in central Illinois having the lowest average homeowners insurance premiums at $2,204 per year. Naperville, near Chicago, is the most expensive on the list with an average rate of $2,385. Still, both cities come in 6% to 13% below the U.S. national average of $2,543.

Insurance prices also swing dramatically across the state. In some cities, the most expensive insurer, Country Financial, charges more than four times what the cheapest carrier does for comparable coverage — a gap wide enough to make shopping around well worth the effort.

Who sells the cheapest home insurance in Illinois?

Auto-Owners is the standout choice for cheap insurance in Illinois, with average rates less than $950 per year in several cities.

Does more coverage mean a higher home insurance premium?

More coverage means a higher premium, but the increase is not proportional. In the Midwest, doubling your dwelling coverage from $300,000 to $600,000 raises your premium by only 60% to 80%, according to Insure.com data. Because your premium rises more slowly than your coverage, your cost per dollar of protection actually drops the more you buy. 

Property value is a major factor. 

“That’s going to impact how much it is to insure your home,” DeLauder says

Appleton, Wisconsin, shows how this plays out. A policy with $300,000 in coverage costs an average of $1,600 a year, while the same policy at $1 million in coverage runs $3,855. That’s a 141% premium increase for more than triple the coverage. Here’s how costs scale with coverage level in a few Midwest cities.

Here’s a look at how costs vary across select cities by coverage level.

How homeowners insurance premiums in the Midwest compare to the rest of the country

The Midwest is the second-most expensive region in the country for home insurance, with average annual rates of $2,940. That’s more than homeowners pay in the Northeast ($1,572) and the West ($2,101), but less than in the South, where premiums average $3,566.

The reason the region isn’t cheaper comes down to the weather. The Midwest may not face hurricanes or earthquakes, but it deals with tornadoes, river flooding and winter storms instead. 

“A severe hailstorm can really clog up carriers with claims,” DeLauder notes.

Still, the regional average only tells part of the story. If you live in one of the cheapest Midwest cities for home insurance, you’ll likely pay well below the national average of $2,543 — proof that your city matters more than your region.

To put the regional gap in perspective, here’s how the Midwest average compares directly to the national figure.

And here’s how all four regions stack up, along with the weather risks driving each one’s rates.

Which insurance companies offer the cheapest rates in the Midwest?

The cheapest home insurance company in the Midwest depends on your state. Secura tends to offer the lowest rates in Wisconsin, Allstate leads in Ohio, and Auto-Owners is the standout in Illinois, with policies under $1,000 a year in some cities. Here are the lowest-cost carriers in each state, based on our data:

• Wisconsin: Secura, West Bend, Allstate
• Ohio: Allstate, USAA, State Farm
• Illinois: Auto-Owners

Tips to lower the cost of your home insurance in the Midwest

If you feel like you’re paying too much for coverage, you could try the following tips to save money:

• Raise your deductible. Increasing your deductible could save 10% to 15% off your premium, but be sure you have enough in savings to cover the deductible if you have to file a claim.
• Bundle your coverage. Use the same insurer for both your auto and homeowners policies to save on both.
• Don’t overlook regional carriers. It can be easy to stick with the big national brands, but using a regional carrier could save you money. For instance, Secura Insurance is one of the cheapest options in Wisconsin.
• Boost your credit. Your credit score can impact your insurance rates, so pay your bills on time and pay down debt balances if you can.
• Add weather-resistant upgrades. A sump pump with a battery backup and a new roof are two updates that can reduce insurance premiums in the Midwest.
• Re-shop regularly. Compare quotes at least every two years to ensure your rates are competitive.

How to find the best home insurance rates in the Midwest

The Midwest isn’t the cheapest region in the country for homeowners insurance, but where you live within it makes a real difference. Cities across Wisconsin, Ohio and Illinois post the lowest average rates in the region, and every top-ranked community comes in below the national average — so your ZIP Code carries more weight than your state line.

The best way to land a competitive rate is to shop around. Compare quotes from at least three companies, and revisit them every couple of years, since rates shift over time. And don’t overlook the regional carriers — names like Secura in Wisconsin and Auto-Owners in Illinois often beat the big national brands, so include at least one in every comparison. 

Frequently asked questions

What is the cheapest city in the Midwest for homeowners insurance? 

Appleton, Wisconsin, is the cheapest city in the Midwest for homeowners insurance. Average rates are only $1,600 per year for $300,000 of coverage. That’s 37% lower than the U.S. national average.

Why is home insurance so cheap in Wisconsin? 

Wisconsin has a relatively low climate risk and a stable regulatory environment. It also has a strong network of regional carriers that help keep rates competitive.

Is homeowners insurance cheaper in the Midwest than the rest of the U.S.? 

No. With an average annual rate of $2,940, the Midwest as a whole is more expensive than the Northeast and the West. Homeowners insurance is also more expensive than the national average of $2,543. However, the cheapest cities in the Midwest all beat the national average.

How much is homeowners insurance in Ohio? 

Among the cities ranked cheapest in Ohio, average homeowners insurance premiums range from $1,905 in Canton to $2,327 in Dayton. Those prices assume $300,000 in coverage.

What’s the cheapest home insurance company in the Midwest? 

The cheapest home insurance company depends on your state. In Wisconsin, Secura Insurance has the lowest prices in many cities, while Allstate and USAA are the lowest cost carriers in Ohio. If you live in Illinois, you may find rock-bottom prices at Auto-Owners.

Does raising my coverage to $500,000 or $1 million dramatically increase my premium? 

Raising your coverage level will increase your premium, but not proportionally. For example, if you raise your policy limits from $300,000 to $1 million, you may pay double the premium for more than triple the coverage.

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