Penny GusnerInsurance Writer and Analyst
Penny Gusner is a senior insurance writer and analyst at Forbes Advisor. For more than 20 years, she has been helping consumers learn how insurance laws, data, trends, and coverages affect them. Penny enjoys translating the complexities of insurance into easy-to-understand advice and tips to help consumers make the best choices for their needs. Her work has been featured in numerous major media outlets, including The Washington Post and Kiplinger’s.
Penny GusnerInsurance Writer and Analyst
Penny Gusner is a senior insurance writer and analyst at Forbes Advisor. For more than 20 years, she has been helping consumers learn how insurance laws, data, trends, and coverages affect them. Penny enjoys translating the complexities of insurance into easy-to-understand advice and tips to help consumers make the best choices for their needs. Her work has been featured in numerous major media outlets, including The Washington Post and Kiplinger’s.
Insurance Writer and Analyst
Andrew BiscayHome Insurance Expert
Andrew Biscay is the president of South Lake Agency, an insurance brokerage based in the Minneapolis area that offers multiple types of policies, including home insurance.
With a background in both business management and technology, Andrew's career trajectory has been marked by a commitment to innovation. Early on, he recognized the transformative power of technology within the insurance industry, driving him to pioneer cutting-edge solutions that streamline processes and enhance client experiences.
Andrew serves on the board of directors for multiple community and business-focused organizations and has a special interest in small business development.
Expert Reviewed
Andrew BiscayHome Insurance Expert
Andrew Biscay is the president of South Lake Agency, an insurance brokerage based in the Minneapolis area that offers multiple types of policies, including home insurance.
With a background in both business management and technology, Andrew's career trajectory has been marked by a commitment to innovation. Early on, he recognized the transformative power of technology within the insurance industry, driving him to pioneer cutting-edge solutions that streamline processes and enhance client experiences.
Andrew serves on the board of directors for multiple community and business-focused organizations and has a special interest in small business development.
Home Insurance Expert
Expert Reviewed
Updated: Jun 1, 2024, 7:18am
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
Progressive and Erie are the cheapest homeowners insurance companies, according to our analysis. Home insurance cost is one factor when choosing home insurance, but make sure to take other factors into consideration like coverage. Here are our picks for June 2024:
Read more
Show Summary
- Summary: Cheapest Home Insurance Companies
- The Cheapest Home Insurance Companies In More Detail
- Progressive
- Erie
- USAA
- Westfield
- Nationwide
- State Farm
- Auto-Owners
- Cheapest Homeowners Insurance for Different Homeowners
- Cheapest Homeowners Insurance Companies by State
- Cheapest Homeowners Insurance by Credit History
- Cheapest Homeowners Insurance by Construction Type
- Cheapest Homeowners Insurance by Roof Type
- What Factors Impact Home Insurance Premiums?
- The Risks of Buying Cheap Home Insurance
- Methodology
- Other Home Insurance Companies We Rated
- Cheapest Homeowners Insurance Frequently Asked Questions (FAQs)
Summary: Cheapest Home Insurance Companies
| Company | Company - Logo | Average annual cost for $350,000 dwelling coverage | Editors’ take | Forbes Advisor Rating | Forbes Advisor Rating |
|---|---|---|---|---|---|
| Progressive |  | $729 | Best for cheap home insurance |  | 5.0 |
| Erie |  | $1,256 | Best for coverage perks | | 5.0 |
| USAA* |  | $1,270 | Best for military members and veterans |  | 4.9 |
| Westfield |  | $1,344 | Best for customer satisfaction |  | 4.8 |
| Nationwide |  | $1,157 | Best for high-value homes |  | 4.3 |
| State Farm |  | $1,298 | Best for bundling home and auto |  | 4.2 |
| Auto-Owners |  | $1,525 | Best for discounts | | 4.1 |
Rates source: Quadrant Information Services, based on dwelling coverage of $350,000 with a $1,000 deductible.
*USAA home insurance is only available to veterans, military members and their families.
How We Found The Cheapest Home Insurance Companies
The Cheapest Home Insurance Companies In More Detail
We found that Progressive offers the most affordable coverage for four different dwelling coverage amounts: $200,000, $350,000, $500,000 and $750,000. Though Erie has slightly higher rates, the company combines those excellent rates with low consumer complaints.
Best for cheap home insurance
Progressive
5.0
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.
Average annual cost for $350,000 dwelling coverage
$729
Three-year complaint trend to state insurance departments
Higher than average
Compare rates from participating partners via EverQuote's website.
$729
Higher than average
Editor's Take
We like Progressive because it offers the cheapest home insurance across multiple types of coverage, among companies we evaluated. We suggest getting quotes from Progressive if you’re looking to pay the least for home insurance and don’t care so much about policy add-ons like extended replacement coverage, which Progressive doesn’t offer.
- Lowest home insurance rates for multiple levels of dwelling coverage: $200,000, $350,000, $500,000 and $750,000.
- Available in every state.
Drawbacks
- Doesn’t offer some of the coverage founded by competitors, such as extended replacement coverage.
- Higher than average level of complaints to state insurance departments.
Discounts Available
- Accredited builder (for the house).
- Advance quote.
- Bundling home and auto or umbrella coverage.
- Claim-free.
- E-policy.
- Home update.
- New home and new policy.
- Paid-in full.
- Protective device.
- Secured subdivision/community.
- Smart technology.
States Available In
Progressive is available in all 50 states and Washington, D.C.
Best for coverage perks
Erie
5.0
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.
Average annual cost for $350,000 dwelling coverage
$1,256
Three-year complaint trend to state insurance departments
Very low
Compare rates from participating partners via EverQuote's website.
Editor's Take
We’re impressed by Erie because it offers cheaper-than-average home insurance rates and has had a very low complaint level to state departments of insurance over the past three years. That low complaint ratio can signify high customer satisfaction. We were also impressed by Erie’s great dwelling coverage options. These include extended and guaranteed replacement cost options, which pay above your dwelling limit if your home is destroyed and rebuild costs exceed your limit.
- Excellent home insurance rates, including the second lowest average rate for $350,000 dwelling coverage.
- Policies with $750,000 dwelling coverage cost $765 less than the average of companies we analyzed.
Drawbacks
- Sells home insurance in only 12 states.
- Company has a banned dog list.
Discounts Available
- Advance quote.
- Bundling home with auto, umbrella or commercial auto.
- Pay-on-time.
- Pay plan.
States Available In
Erie home insurance is available in 12 states and Washington, D.C.:
- Illinois.
- Indiana.
- Kentucky.
- Maryland.
- New York.
- North Carolina.
- Ohio.
- Pennsylvania.
- Tennessee.
- Virginia.
- West Virginia.
- Wisconsin.
Best for military members and veterans
USAA
4.9
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.
Average annual cost for $350,000 dwelling coverage
$1,270
Three-year complaint trend to state insurance departments
Very low
Compare rates from participating partners via EverQuote's website.
$1,270
Very low
Editor's Take
We like USAA’s low home insurance rates coupled with multiple types of discounts and very low state insurance department complaints. If you qualify for a USAA policy, we think it would be wise to request a quote from USAA to see how much you could save.
- Fourth cheapest average home insurance rates for $500,000 and third cheapest $750,000 dwelling coverage of the companies we reviewed.
- Available in all states but you must be a veteran, military member or a family member.
Drawbacks
- Eligibility limited to veterans, military members and their families.
- Doesn’t provide guaranteed replacement coverage, which pays to rebuild a home regardless of the amount if it’s destroyed by a problem covered by a policy, such as a fire.
Discounts Available
- Automatic sprinkler.
- Bundling home with auto, life, umbrella, renters and other types of insurance.
- Claims-free.
- Connected home.
- Early quote.
- Home age.
- Impact-resistant roof.
- Loyalty.
- Protective device.
- Roof age.
States Available In
USAA is available to veterans, military members and their families in all 50 states and Washington, D.C.
Best for customer satisfaction
Westfield
4.8
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.
Average annual cost for $350,000 dwelling coverage
$1,344
Three-year complaint trend to state insurance departments
Very low
Compare rates from participating partners via EverQuote's website.
$1,344
Very low
Editor's Take
We found that Westfield customers with $350,000 dwelling coverage save an average of nearly $335 each year compared to other major competitors. We suggest checking out Westfield if you live in one of 10 states where it sells home insurance and you’re looking to save. It also has a very low complaint level to state insurance departments.
- Second cheapest home insurance costs for $750,000 dwelling coverage of the companies we analyzed. Customers with $750,000 coverage save nearly $1,315 on average compared to the average.
- Low level of complaints may signify high customer satisfaction.
Drawbacks
- Only offered in 10 states.
- Has a banned dog list.
Discounts Available
- Advance quote.
- Alarm/protective devices.
- Bundling home and auto.
- Loss mitigation devices like a lightning protection system or water leak detection devices.
- Loyalty.
- Senior citizen.
- Spending at least three years with your prior insurer.
States Available In
Westfield home insurance is available in 10 states:
- Indiana
- Illinois
- Iowa
- Kentucky
- Ohio
- Michigan
- Minnesota
- Pennsylvania
- Tennessee
- West Virginia
Best for high-value homes
Nationwide
4.3
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.
Average annual cost for $350,000 dwelling coverage
$1,157
Three-year complaint trend to state insurance departments
Higher than average
Compare rates from participating partners via EverQuote's website.
$1,157
Higher than average
Editor's Take
Nationwide offers excellent rates for multiple levels of coverage. Though we love the low costs, Nationwide’s complaints to state insurance departments are higher than many competitors. Still, high-net-worth policyholders may appreciate Nationwide’s Private Client insurance that offers a cash-out option if you lose your home and decide not to rebuild. That program also covers accidental breakage for high-price items and equipment breakdown for home systems and appliances.
- Second cheapest home insurance rates for $200,000 and $350,000 dwelling coverage.
- Homeowners with $750,000 save $730 on average compared to other companies we analyzed.
Drawbacks
- Higher than average complaint level compared to the industry average.
- Coverage isn’t available in some states.
Discounts Available
- Bundling home and other types of insurance policies.
- Claims-free.
- Fortified home.
- Gated community.
- Home renovation.
- Protective devices like burglary or fire alarm or sprinkler system.
States Available In
Nationwide home insurance is available in 43 states and Washington D.C. It is not available in:
- Alaska
- Florida
- Hawaii
- Louisiana
- Massachusetts
- New Jersey
- New Mexico
Best for bundling home and auto
State Farm
4.2
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.
Average annual cost for $350,000 dwelling coverage
$1,298
Three-year complaint trend to state insurance departments
Average
Compare rates from participating partners via EverQuote's website.
$1,298
Average
Editor's Take
We like that State Farm policyholders save $380 on average each year for $350,000 dwelling coverage compared to top competitors in our analysis. We also picked State Farm because it has the largest bundling discount of the companies we analyzed. State Farm has better-than-average rates across several levels of coverage and is available in all states, which makes it worth considering.
- Customers save 23% on average when they bundle home and auto policies.
- Home insurance rates are better than average for multiple levels of dwelling coverage.
Drawbacks
- Doesn’t provide guaranteed replacement coverage, which increases your dwelling coverage so you can get your home rebuilt after a covered issue regardless of inflation and construction costs.
- Complaint level to state insurance departments is only about average.
Discounts Available
- Bundling home and auto.
- Homes under construction.
- Impact-resistant roofing.
- Loyalty.
- Updated plumbing, electrical, heating and cooling.
- Wind mitigation.
States Available In
State Farm offers home insurance in all 50 states and Washington, D.C.
Best for discounts
Auto-Owners
4.1
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.
Average annual cost for $350,000 dwelling coverage
$1,525
Three-year complaint trend to state insurance departments
Very low
Compare rates from participating partners via EverQuote's website.
$1,525
Very low
Editor's Take
We like Auto-Owners’ wide range of home insurance discounts and cheaper-than-average rates. The company also has a very low complaint trend, which can be a sign of high customer satisfaction. We suggest checking for all the discounts that match your homeowner profile when shopping for a policy.
- Slightly lower than average costs compared to competitors.
- Very low complaint level to state insurance departments.
Drawbacks
- Only offered in 26 states.
- Has a banned dog list.
Discounts Available
- Advance quote.
- Automatic backup generator.
- Bundling home and auto.
- Central station alarm connection.
- Claims-free.
- Mortgage-free.
- New home.
- Wind-resistive construction.
- Paid-in-full.
- Protective devices.
- Renovated home.
- Water shut-off system.
States Available In
Auto-Owners is available in 26 states:
- Alabama
- Arizona
- Arkansas
- Colorado
- Florida
- Georgia
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Michigan
- Minnesota
- Missouri
- Nebraska
- North Carolina
- North Dakota
- Ohio
- Pennsylvania
- South Carolina
- South Dakota
- Tennessee
- Utah
- Virginia
- Wisconsin
Cheapest Homeowners Insurance for Different Homeowners
A variety of situations can impact your home insurance costs—and affect whichhomeowners insurance companyis the cheapest for you.
Cheapest Homeowners Insurance for Those with a High Deductible
Progressive has the cheapest homeowners insurance if you’re choosing a high deductible for your policy.
You can save money by raising yourhomeowners insurance deductible. A deductible is the amount your insurer subtracts from your insurance check after a claim. Common deductibles for home insurance are $500 and $1,000, but you can save by increasing your deductible.
These companies are all cheaper than the national average of $1,586 per year for a policy with a $2,000 deductible, based on the companies in our analysis.
| Home insurance company | Average home insurance cost per year with a $2,000 deductible |
|---|---|
$760 | |
$1,183 | |
USAA* | $1,233 |
$1,236 | |
$1,239 | |
$1,315 | |
$1,385 | |
$1,508 | |
$1,536 | |
National Average | $1,586 |
Based on dwelling coverage of $350,000.
*USAA home insurance is available only to the military, veterans and their families.
Cheapest Homeowners Insurance Based on Dwelling Coverage
Progressive tops the list for cheapest home insurance with Nationwide, Erie, USAA and Westfield as companies with averages well below the national average.
$200,000 Dwelling Coverage Limit
| Home insurance company | Average annual cost for $200,000 dwelling coverage | Average monthly cost for $200,000 dwelling coverage |
|---|---|---|
$514 | $43 | |
$752 | $63 | |
$773 | $64 | |
USAA* | $869 | $72 |
$896 | $75 | |
$1,055 | $88 | |
$1,062 | $89 | |
$1,101 | $92 | |
$1,113 | $93 | |
Farmers | $1,286 | $107 |
Country | $1,358 | $113 |
American Family | $1,440 | $120 |
Shelter | $1,478 | $123 |
Travelers | $2,404 | $200 |
National average | $1,150 | $96 |
*USAA home insurance is available only to the military, veterans and their families.
Coverage for $350,000 Dwelling Coverage Limit
| Company name | Annual average for $350,000 dwelling coverage | Monthly average for $350,000 dwelling coverage |
|---|---|---|
$729 | $61 | |
$1,157 | $96 | |
$1,256 | $105 | |
$1,270 | $106 | |
$1,298 | $108 | |
$1,344 | $112 | |
$1,395 | $116 | |
$1,525 | $127 | |
$1,810 | $151 | |
$2,020 | $168 | |
$2,035 | $170 | |
$2,065 | $172 | |
Shelter | $2,363 | $197 |
$3,220 | $268 | |
National average | $1,678 | $140 |
*USAA is only available to veterans, military members and their families.
Coverage for $500,000 Dwelling Coverage Limit
| Company name | Annual average for $500,000 dwelling coverage | Monthly average for $500,000 dwelling coverage |
|---|---|---|
$975 | $81 | |
$1,513 | $126 | |
$1,591 | $133 | |
$1,652 | $138 | |
$1,663 | $139 | |
$1,708 | $142 | |
$1,784 | $149 | |
$1,987 | $166 | |
$2,519 | $210 | |
$2,559 | $213 | |
$2,774 | $321 | |
$2,831 | $236 | |
Shelter | $3,292 | $274 |
$4,124 | $344 | |
National average | $2,212 | $184 |
*USAA is only available to veterans, military members and their families.
Cheapest Homeowners Insurance Companies by State
Here’s a look at the cheapest home insurance in each state, based on the companies we analyzed.
| State | Cheapest company | Average annual cost | Average monthly cost |
|---|---|---|---|
Farmers | $543 | $45 | |
Alaska | Country Financial | $646 | $54 |
Progressive | $430 | $36 | |
Farmers | $1,766 | $147 | |
National General | $520 | $43 | |
Auto-Owners | $1,152 | $96 | |
Century National | $497 | $41 | |
State Farm | $600 | $50 | |
Security First | $356 | $30 | |
Progressive | $622 | $52 | |
Hawaii | Dongbu | $219 | $18 |
Idaho | American National | $242 | $30 |
Erie | $802 | $67 | |
Buckeye | $435 | $36 | |
Iowa | Nationwide | $938 | $78 |
Kansas | Auto-Owners | $1,537 | $128 |
Progressive | $659 | $55 | |
Centauri | $638 | $53 | |
Vermont Mutual | $486 | $41 | |
Erie | $729 | $61 | |
Norfolk and Dedham | $452 | $38 | |
Auto-Owners | $338 | $28 | |
Secura | $1,011 | $84 | |
Allstate | $1,014 | $85 | |
Missouri | Nationwide | $1,038 | $87 |
Montana | Nationwide | $833 | $69 |
Nebraska | Nationwide | $1,505 | $125 |
Nevada | CSAA | $583 | $49 |
Amica | $563 | $47 | |
United P&C | $405 | $34 | |
New Mexico | State Farm | $1,138 | $95 |
Ocean Harbor Casualty | $395 | $33 | |
Nationwide | $411 | $34 | |
North Dakota | EMC Insurance | $1,201 | $100 |
Buckeye | $363 | $30 | |
American National and State Farm (tie) | $2,411 | $201 | |
Mutual of Enumclaw | $449 | $37 | |
Cumberland | $506 | $42 | |
State Farm | $636 | $53 | |
Bankers | $715 | $60 | |
South Dakota | Nationwide | $1,026 | $86 |
American National | $697 | $58 | |
Bankers | $619 | $52 | |
Utah | Unigard | $425 | $35 |
Vermont Mutual | $453 | $38 | |
Virginia | Progressive | $542 | $45 |
Nationwide | $387 | $32 | |
West Virginia | Progressive | $858 | $72 |
Rockford Mutual | $575 | $48 | |
Wyoming | Nationwide | $812 | $68 |
Source: Quadrant Information Services, based on dwelling coverage of $350,000. Not all 50 states are shown due to data availability.
In some cases, Armed Forces Insurance or USAA have the cheapest rate but they are open only to those who qualify with a military affiliation.
Cheapest Home Insurance by City
Location is one factor that goes into home insurance costs. Our research found the cheapest company often varies by where you live.
| State | City | Company | Average annual rate for company in the city | Overall average annual rate by city |
|---|---|---|---|---|
Arizona | Mesa | State Farm | $1,148 | $1,744 |
Phoenix | State Farm | $1,159 | $1,850 | |
Tucson | Nationwide | $911 | $1,547 | |
California | Bakersfield | Allstate | $351 | $1,241 |
Fresno | Allstate | $338 | $1,245 | |
Long Beach | Allstate | $297 | $1,484 | |
Los Angeles | Allstate | $316 | $1,733 | |
Oakland | Allstate | $404 | $1,172 | |
San Diego | Allstate | $415 | $1,159 | |
San Francisco | Allstate | $394 | $1,300 | |
San Jose | Allstate | $370 | $1,049 | |
Colorado | Colorado Springs | Nationwide | $1,752 | $3,666 |
Denver | Grange | $1,719 | $3,480 | |
Florida | Jacksonville | Travelers | $769 | $1,617 |
Miami | Travelers | $1,216 | $2,223 | |
Tampa | Travelers | $881 | $1,626 | |
Georgia | Atlanta | PURE | $1,293 | $2,006 |
Illinois | Chicago | State Farm | $1,058 | $1,719 |
Indiana | Indianapolis | Buckeye | $746 | $1,948 |
Kansas | Wichita | Auto-Owners | $2,417 | $3,565 |
Kentucky | Louisville | Auto Club Group | $1,429 | $2,246 |
Maryland | Baltimore | State Farm | $1,215 | $1,778 |
Massachusetts | Boston | State Farm | $452 | $1,729 |
Michigan | Detroit | Auto-Owners | $581 | $3,689 |
Minnesota | Minneapolis | Secura | $1,363 | $2,240 |
Missouri | Kansas City | Nationwide | $1,432 | $3,004 |
Nebraska | Omaha | State Farm | $2,236 | $3,888 |
Nevada | Las Vegas | CSAA | $806 | $1,160 |
New Mexico | Albuquerque | State Farm | $1,030 | $2,245 |
New York | New York City | Kemper | $809 | $2,131 |
North Carolina | Charlotte | State Farm | $345 | $1,256 |
Raleigh | State Farm | $423 | $1,405 | |
Ohio | Columbus | Buckeye | $609 | $1,398 |
Oklahoma | Oklahoma City | American National | $1,921 | $5,619 |
Tulsa | American National | $1,062 | $3,729 | |
Oregon | Portland | Capital Insurance | $325 | $938 |
Pennsylvania | Philadelphia | American National | $840 | $1,691 |
Tennessee | Memphis | American National | $854 | $3,125 |
Nashville | American National | $662 | $2,188 | |
Texas | Austin | Mercury | $682 | $1,467 |
Dallas | Mercury | $795 | $2,291 | |
El Paso | Mercury | $740 | $1,302 | |
Fort Worth | Mercury | $723 | $2,393 | |
Houston | Mercury | $817 | $2,255 | |
San Antonio | Mercury | $602 | $1,521 | |
Virginia | Virginia Beach | State Farm | $792 | $2,401 |
Washington | Seattle | Nationwide | $446 | $1,229 |
Wisconsin | Milwaukee | IMT | $699 | $1,233 |
Source: Quadrant Information Services. Averages are for a 40-year-old woman with good credit with a home insurance policy with $350,000 dwelling coverage and $100,000 liability insurance.
Cheapest Homeowners Insurance by Credit History
Most states allow insurance companies to use a homeowner’s credit as a factor when setting home insurance rates. We found that Progressive offers the cheapest home insurance for many homeowners, especially those with poor credit.
Cheapest Homeowners Insurance for Poor Credit
| Company | Average annual cost for homeowners with poor credit | Annual $ difference compared to national average of $4,131 a year |
|---|---|---|
$1,312 | -$2,819 | |
$2,262 | -$1,869 | |
$2,473 | -$1,658 | |
$2,591 | -$1,540 | |
$2,822 | -$1,309 | |
$3,266 | -$865 | |
$3,307 | -$824 | |
$3,465 | -$666 | |
$4,473 | $342 | |
$4,584 | $453 | |
Shelter | $4,916 | $785 |
$8,018 | $3,887 | |
$10,211 | $6,080 |
Based on dwelling coverage of $350,000.
*USAA home insurance is only available to veterans, military members and their families.
Cheapest Homeowners Insurance for Excellent Credit
| Company | Average annual cost for homeowners with excellent credit | Annual $ difference compared to national average of $1,352 a year |
|---|---|---|
$794 | -$558 | |
$897 | -$455 | |
$961 | -$391 | |
$1,036 | -$316 | |
$1,078 | -$274 | |
$1,087 | -$265 | |
$1,182 | -$170 | |
$1,262 | -$90 | |
$1,376 | $24 | |
$1,600 | $248 | |
$1,642 | $290 | |
$1,675 | $323 | |
$1,699 | $347 | |
Shelter | $2,644 | $1,292 |
Based on dwelling coverage of $350,000.
*USAA home insurance is only available to veterans, military members and their families.
A credit-based insurance score is not the same as your personal credit score. For example, your regular FICO credit score looks at several factors of your credit history to determine how likely you are to repay a loan or credit card, while a credit-based insurance score looks at the factors to determine how likely you are to file an insurance claim.
You can improve your insurance score the same way you would improve your credit score: Make credit card and loan payments on time, and keep your balances on credit cards as low as possible.
Cheapest Homeowners Insurance for New & Old Homes
The age of your house generally plays a part in how much you pay for homeowners insurance. Insurers often charge lower rates for new homes.
Our analysis found that insurance for new homes costs an average of 41% less when compared to a 50-year-old home. The average difference varies between 29% and 62% depending on the company.
| Company | Average annual cost for new home rate (2023 construction) | Average annual cost for 50-year home | Annual $ difference between new vs. old home |
|---|---|---|---|
$1,298 | $2,681 | $1,383 | |
$1,667 | $2,375 | $708 | |
$2,036 | $2,870 | $834 | |
Mercury | $684 | $1,424 | $740 |
$1,239 | $3,233 | $1,994 | |
$1,158 | $1,943 | $785 | |
$2,416 | $5,926 | $3,510 | |
$1,213 | $2,679 | $1,466 | |
$1,252 | $1,888 | $636 | |
Average premium | $1,176 | $2,003 | $827 |
Based on dwelling coverage of $350,000.
*USAA home insurance is only available to veterans, military members and their families.
Cheapest Homeowners Insurance by Construction Type
Construction materials will affect your home insurance costs. Fire-resistive construction usually leads to lower rates because insurance companies believe those structures are a lower risk than regular frame construction.
You could save over $200 annually on your home insurance depending on the construction type and the insurance company if you own a home built with fire-resistant materials. According to the Federal Emergency Management Agency, fire-resistive building construction includes:
- Using cement, plaster, stucco or concrete masonry like stone and brick on exterior walls.
- Adding Class A roofing materials.
- Avoiding wood roofing shingles.
- Not using chemically-treated roofing materials or coatings.
- Using non-combustible screening over attic vents.
- Avoiding vinyl materials.
- Capping a chimney.
- Using double-paned or tempered glass windows.
| Company | Average annual cost for frame construction | Average annual cost for fire-resistive construction |
|---|---|---|
$1,760 | $1,601 | |
$1,840 | $1,840 | |
$2,330 | $2,303 | |
Mercury | $896 | $860 |
$1,642 | $1,493 | |
$1,420 | $1,232 | |
$3,046 | $2,983 | |
$1,576 | $1,564 | |
$1,350 | $1,312 | |
Average premium | $1,446 | $1,264 |
Based on dwelling coverage of $350,000.
*USAA home insurance is only available to veterans, military members and their families.
Cheapest Homeowners Insurance by Roof Type
Your home’s roof can play a part in your homeowners insurance cost, though not as much of a cost driver as other factors. You may save about $100 a year if you have a metal roof compared to an asphalt roof, but this will depend on the insurer.
| Company | Average annual home insurance cost for asphalt roof | Average annual home insurance cost for metal roof | Average annual home insurance cost for slate roof | Average annual home insurance cost for wood roof |
|---|---|---|---|---|
$1,764 | $1,668 | $1,680 | $1,884 | |
$1,836 | $1,860 | $1,836 | $2,196 | |
$2,340 | $2,124 | $2,472 | $2,472 | |
Mercury | $888 | $900 | $888 | $948 |
$1,668 | $1,632 | $1,560 | $1,788 | |
$1,416 | $1,416 | $1,416 | $1,452 | |
$3,060 | $2,904 | $2,880 | $3,300 | |
$1,680 | $1,656 | $1,584 | $1,740 | |
$1,344 | $1,344 | $1,344 | $1,356 | |
Average rate | $1,452 | $1,440 | $1,440 | $1,488 |
Based on dwelling coverage of $350,000.
*USAA home insurance is only available to veterans, military members and their families.
EXPERT TIPS
How to Find Cheap Homeowners Insurance
Andrew Biscay
Home Insurance Expert
Les Masterson
Insurance Editor
Amy Danise
Insurance Managing Editor
Michelle Megna
Insurance Lead Editor
Jason Metz
Insurance Lead Editor
Penny Gusner
Insurance Senior Writer
Talk With Your Agent About Savings
Many insurers are now offering specific wind/hail deductibles and it is worth exploring a higher deductible in exchange for a lower premium. Ask the carrier to reorder your credit report if you feel it has improved since the policy was set up. Make sure you’re bundling home/auto when possible, and shop around with a broker or adjust lines of coverage that might have inflated over the years such as personal property. Call your current agent. They will usually have multiple suggestions to help overall premium reductions.
Home Insurance Expert
Shop Around
I recommend comparison shopping, which includes getting quotes from at least three different companies. Request quotes for the same coverage levels from each insurer so that you can compare apples to apples.
Insurance Editor
Cut Unneeded Coverage
If you’re looking to save, I recommend checking to make sure you’re not paying for unneeded coverage. Assess your coverage to be sure limits and deductibles are correct for your current situation. Think about whether you have changed anything that could have lowered the “risk” you pose to your insurance company. For instance, if you got rid of a trampoline or no longer own a dog that was affecting your home insurance rates, tell your company and see if it can reduce your rates.
Insurance Managing Editor
Maximize Discounts
I recommend making sure you’re getting all the home insurance discounts you’re eligible for. One way is by bundling insurance for your house and vehicles with the same company, which is usually one of the best discounts, often between 5% to 25%. Other common discounts include loyalty discounts, new home discounts and retired discounts.
Insurance Lead Editor
Increase Your Deductible
I suggest asking your insurance agent how much you can save if you increase your home insurance deductible. The deductible is the amount deducted from an insurance claim check. By lowering potential payouts, you should get cheaper home insurance.
Insurance Lead Editor
Install Storm-Resistant Roof, Shutters
Depending on where you live, you may save on insurance by updating your roof and shutters. Certain types of roofing materials can result in lower home insurance premiums. I’ve also seen that some homeowners insurance companies offer discounts for houses with storm shutters and impact-resistant glass on exterior windows.
Insurance Senior Writer
What Factors Impact Home Insurance Premiums?
There a several factors that impact home insurance costs, such as:
| Cost to RebuildThe dwelling insurance portion of a homeowners policy covers your house if it’s damaged or destroyed in a worst-case scenario (such as a fire). Your dwelling coverage limit should match the amount it will cost to rebuild your house. The higher your rebuilding costs, the more you’ll pay for home insurance. |
| Building Materials and AgeYour home’s building materials, such as brick, stone, stucco or wood, will influence insurance costs. Some materials are more weather- and fire-resistant. Older homes typically cost more to insure. New homes have updated systems, such as electrical and plumbing, that are less likely to cause issues. |
 | Fire RatingA home’s fire rating includes the distance to the closest fire station and water source. A house that’s farther away from hydrants and fire stations can be considered a higher risk by insurance companies. |
| Property’s Claims HistoryHome insurance companies look at the area’s crime rates and natural disasters, including hurricanes and tornadoes. In fact, you may pay more if the previous homeowner filed multiple claims before selling to you. |
 | Your Claims HistoryHomeowners who don’t have a history of filing insurance claims generally get cheaper home insurance. That’s one reason why you should be careful to file home insurance claims only when it’s absolutely necessary. For instance, if your home is damaged and the cost to repair is only slightly more than your deductible, you likely want to handle the cost of repairs yourself. |
 | Coverage and Policy LimitsHigher liability limits and other coverage—such as extended or guaranteed replacement cost coverage—will mean higher home insurance costs. Figure out what you could lose if someone is injured and sues you. That may include the value of your house and property. Buy enough liability coverage to properly cover you. |
The Risks of Buying Cheap Home Insurance
While paying less for home insurance may be your goal, don’t sacrifice coverage for a cheaper policy that leaves you underinsured.
That includes purchasing enough dwelling coverage to pay to repair or replace your home if it’s damaged. Your insurance company or agent should help you figure out the right amount of dwelling coverage.
You also want to get enough personal liability home insurance. Liability coverage pays for accidental injury or damage that you and your household members do to others. It also pays for your legal defense if you’re sued because of an injury or damage covered by your home insurance.
Instead, consider other ways to decrease costs, such as choosing a higher deductible and shopping around for a policy with lower rates by comparing home insurance quotes.
Methodology
To find the cheapest home insurance companies we analyzed costs around the country and complaints about home insurance made to state departments of insurance. We scored companies based on these factors:
- Home insurance rates for $200,000 dwelling coverage (20% of score): Based on average rates for each insurance company for homes with that dwelling limit. Source: Quadrant Information Services.
- Home insurance rates for $350,000 dwelling coverage (20% of score): Based on average rates for each insurance company for homes with that dwelling coverage. Source: Quadrant Information Services.
- Home insurance rates for $500,000 dwelling coverage (20% of score): Based on average rates for each insurance company for homes with that dwelling coverage. Source: Quadrant Information Services.
- Home insurance rates for $750,000 dwelling coverage (20% of score): Based on average rates for each insurance company for homes with that dwelling coverage. Source: Quadrant Information Services.
- Complaints (20% of score): Based on complaints about home insurance that were upheld by state insurance departments. Source: National Association of Insurance Commissioners.
Read more: How Forbes Advisor rates home insurance companies
Other Home Insurance Companies We Rated
Here are other home insurance companies we analyzed as part of our analysis.
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Cheapest Homeowners Insurance Frequently Asked Questions (FAQs)
Why does my home insurance premium keep going up?
Home insurance companies base their rates on risk, so you may see your home insurance costs increase if you file claims or if there have been multiple claims in your area. An insurance company could also increase rates based on other factors, including inflation and higher building costs.
What is the cheapest state for home insurance?
Hawaii is the cheapest state for home insurance. Homeowners pay $380 annually, on average, for a home policy with $350,000 dwelling coverage.
Other states with an average of less than $1,000 yearly for that coverage include Nevada ($883), New Jersey ($968), New Hampshire ($970) and Delaware ($983).
Is home insurance more expensive if I have a pool?
Home insurance companies may charge you more if you have a pool since insurers may deem your property a higher risk.
Our analysis found that Mercury charges 13% more to homeowners with a pool for $350,000 dwelling coverage. Westfield charges an extra 11% and Farmers charges another 5%. Other insurance companies we reviewed, including Allstate, Nationwide, State Farm and USAA, don’t charge more for pools.
Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circ*mstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.
Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.
