clock menu more-arrow no yes

Cheap Homeowners Insurance of 2021

Home insurance coverage can protect you from paying expensive, out-of-pocket costs on damage to your house and personal belongings. Read our review to learn which companies offer the cheapest homeowners insurance policies.

Modern Living Room Home Interior Design with fireplace. iStock

Homeowners insurance offers coverage for your home’s structure, personal property, and liability claims. To help you find comprehensive coverage options at an affordable cost, the This Old House Reviews Team created this guide on cheap homeowners insurance.

Keep reading to learn about the most affordable insurance companies in the industry, tips for saving on a policy, and how to find the best homeowners insurance company for you and your home.

To get home insurance quotes in your area, call 855-948-5219 or enter your zip code in our free quote tool:

6 Cheapest Homeowners Insurance Companies of 2021

The cheapest homeowners insurance of 2021 include the following nationwide companies:

  1. Lemonade: Quickest Sign-Up
  2. Allstate: Best for Average-Sized Homes
  3. Liberty Mutual: Best Home Insurance Discounts
  4. State Farm: Cheapest for Homes with a High Rebuilding Cost
  5. Travelers: Most Experience
  6. Progressive: Best Home & Auto Bundle

We determined the cheapest home insurance companies by looking at sample policies from 10 of the biggest insurance names in the industry. Keep reading to learn about coverage options, prices, and discounts for four of those providers.

1. Lemonade Homeowners Insurance

If you live in Washington D.C. or one of the 23 states in which Lemonade home insurance is available, then we recommend getting a quote to compare prices with other companies in your area. Signing up for a plan is easy through the provider’s user-friendly mobile app, and you may find that the company can save you money as well. We obtained a quote from Lemonade for a single-family home in Eureka, Calif., that came out to $60.75 per month—easily on the lower end of what we found across the industry.

Pros & Cons of Lemonade

Pros Cons
Pros Cons
✔ Monthly cost well below the industry average ✘ No option to bundle with auto insurance
✔ Quick claims payout ✘ Only available in 23 states
✔ Easy-to-use app

Lemonade Coverage & Unique Features

Although Lemonade is one of the cheapest homeowners insurance companies available, it offers comprehensive coverage, unique add-ons, and worthwhile technological features with each policy.

Here are the coverage types you can find in a Lemonade home insurance policy:

  • Personal property
  • Liability
  • Dwelling
  • Loss of use coverage
  • Medical payments to others
  • Portable electronics coverage

Here are some additional coverage options you can add to your Lemonade policy:

  • Earthquake protection
  • Added personal property coverage for fine art, jewelry, bikes, cameras, and musical instruments
  • Water backup protection
  • Landlord property damage protection

Lemonade Discounts

If you want to save more money on your policy, you may be eligible for several discounts. After you receive your initial quote, review your discount opportunities before finalizing your policy.

Here are the discounts offered by Lemonade:

  • “Material” Discount: Pay less if your home is constructed from fire-resistant materials
  • “Fire Protection” Discount: Decrease the cost of your payment if you have safety measures like a sprinkler system or fire extinguisher
  • “Protection Equipment” Discount: Lower your premium if your home is equipped with protection like burglar alarms
  • “Gated Community” Discount: Pay less if you live in a gated community
  • “Bundling” Discount: Save money if you bundle your home insurance policy with a pet insurance policy

2. Allstate Homeowners Insurance

If you live in an average-sized home that’s about 2,300 square feet in size, Allstate has the some of the cheapest homeowners insurance for you. For a policy with $250,000 of dwelling coverage, $25,000 of other structures coverage, $125,000 of personal property coverage, and $50,000 of loss of use coverage, you’ll pay about $116 per month.

Pros & Cons of Allstate

Pros Cons
Pros Cons
✔ Provides multiple discounts for home insurance policyholders ✘ Customers have to call to get a quote from an insurance agent in some states
✔ Offers unique endorsements for your yard and garden, musical instruments, and sports equipment ✘ High deductibles starting at $2,500
✔ Provides 24/7 customer service

Allstate Coverage & Unique Features

Allstate has some of the most comprehensive policies available, offering personal property coverage up to 75% of your dwelling limit and a few additional features, such as fire department service fee and building ordinance coverage.

Here are the primary coverage types featured in an Allstate policy:

  • Dwelling and other structures
  • Personal liability
  • Personal property
  • Medical payments to others
  • Loss of use

Allstate offers the following unique add-ons and features:

  • Earthquake and flood protection
  • Sports equipment coverage
  • Yard and garden coverage
  • Green improvements reimbursement
  • Business property

Allstate Discounts

Along with its comprehensive policies, Allstate offers discounts to customers who meet certain eligibility requirements. Use the company’s online quote tool to find discounts based on your location and personal details.

Here are a few Allstate discounts to help bring down your premium:

  • Multi-Policy Discount: You can get a discount of up to 25% when you bundle home and car insurance policies.
  • Easy Pay Discount: You can save 5% for setting up automatic payments.
  • Claims-Free Discount: If you haven’t had to file a claim recently, you can get a 20% discount.
  • Protective Device Discount: You can get a discount for having safety devices in your home that protect against theft and fire.
  • Early Signing Discount: If you sign up for an Allstate policy at least seven days before your current one expires, you can save 10%.
  • Welcome and Loyalty Discount: New and long-standing Allstate customers are eligible for a 10% discount.
  • Homebuyer Discount: You get a discount for recently purchasing a home.
  • 55 and Retired Discount: If you’re 55 and retired, you can receive a discount on your home insurance policy.
  • Additional Discounts: Allstate has other discounts that are automatically applied to your insurance quote depending on where you live. These may include discounts for having storm shutters, being smoke-free, or having hail-resistant roofs.

3. Liberty Mutual Homeowners Insurance

Liberty Mutual offers the most discounts out of the providers in this review. You can get $250,000 of dwelling coverage, $25,000 of other structures coverage, $125,000 of personal property coverage, and $50,000 of loss of use coverage for about $118 per month.

Pros & Cons of Liberty Mutual

Pros Cons
Pros Cons
✔ Claims center is open 24/7 ✘ Only offers six endorsement options
✔ Customers can get a quote without talking to an insurance agent ✘ Doesn’t provide liability coverage for certain dog breeds
✔ Provides up to $1 million of liability coverage

Liberty Mutual Coverage & Unique Features

Liberty Mutual includes standard coverage in each policy, and it also offers an extensive list of unique add-ons to help you personalize your policy based on your coverage needs.

Liberty Mutual covers the following in each home insurance policy:

  • Dwelling and other structures
  • Loss of use
  • Medical payments to others
  • Personal liability
  • Personal property

Liberty Mutual offers the following benefits and add-ons:

  • Umbrella liability coverage
  • Scheduled personal property coverage
  • Flood insurance
  • Inflation protection
  • Identity fraud coverage

Liberty Mutual Discounts

Liberty Mutual is known for offering a variety of discounts to help homeowners save on their monthly insurance premiums. For example, anyone who uses the Liberty Mutual online tool to purchase a policy instantly receives 12% off their premium.

Liberty Mutual policies typically have the following discounts:

  • Claims-Free Discount: You’re eligible for this discount if you haven’t filed an insurance claim with a previous insurance provider in the last five years.
  • Safe Homeowner Discount: If you remain claims-free with Liberty Mutual for at least three years, you’ll receive this discount.
  • Early Shopper Discount: Getting a quote from Liberty Mutual before your current policy expires will save you money.
  • Newly Purchased Home Discount: If you just purchased a home, you get a discount.
  • New/Renovated Home Discount: If your home is new or substantially renovated, you get a discount.
  • New Roof Discount: A new roof not only protects your home, but it also protects your budget with this discount.
  • Multi-Policy Discount: If you have more than one insurance policy through Liberty Mutual, you’re eligible for this discount.
  • Insured to Value Discount: If you purchase dwelling coverage that’s 100% of the cost of rebuilding your home, you’ll get a discount.
  • Preferred Payment Discount: If you enroll in automatic payments, you get this discount.
  • Paperless Policy Discount: You’ll get a discount for enrolling in paperless billing.

4. State Farm Homeowners Insurance

State Farm is perfect for homeowners who need more than $250,000 worth of dwelling coverage. If you live in a home that’s larger than 2,000 to 2,500 square feet or live in an area with high property costs, like Los Angeles, California, a State Farm policy may be a good option.

A potential State Farm policy for a home with a high rebuilding cost may have $400,000 worth of dwelling coverage, $40,000 of other structures coverage, $200,000 of personal property coverage, and $80,000 of loss of use coverage for about $167 per month.

Pros & Cons of State Farm

Pros Cons
Pros Cons
✔ Offers a unique endorsement for replacing an item with a more energy-efficient one ✘ Doesn’t offer 24/7 customer service
✔ Available in all 50 states ✘ Has fewer homeowner discounts than Allstate and Liberty Mutual
✔ Liability coverage for dogs is determined by the history of aggression, not the breed

State Farm Coverage & Unique Features

Although State Farm has fewer discounts than Allstate and Liberty Mutual, it offers comprehensive coverage and includes a few unique items in each standard policy, such as specific property coverage for firearms or silverware. It also has a long list of endorsements.

State Farm includes standard coverage for the following categories:

  • Dwelling and extended dwelling
  • Personal property
  • Loss of use
  • Personal liability
  • Medical payments to others

State Farm also includes coverage for the following items:

  • Home systems
  • Water and sump pump backup
  • Loss assessment
  • Personal injury liability
  • Energy efficiency upgrades

State Farm Discounts

While State Farm doesn’t offer a long list of discount opportunities, it has a few that can help you save on your insurance premiums. Not to mention, you can save on your home insurance policy when you bundle with your auto insurance policy.

Here are a few discounts that State Farm offers:

  • Multiple Line Discount: Get a discount for bundling home insurance with auto insurance or another type of policy.
  • Home Alert Protection Discount: If you have a fire, smoke, or burglar alarm or another home protection device, you’ll be eligible for this discount.
  • Roofing Discount: You can get this discount for having a qualifying, impact-resistant roof.

5. Travelers

Travelers has the most experience compared to the other companies in this review. You can purchase a policy with $250,000 of dwelling coverage and $125,000 of personal property coverage for around $90 per month based on the sample quotes we received.

To get a free Travelers home insurance quote call: 844-204-3517

Pros & Cons of Travelers

Pros Cons
Pros Cons
✔ More than 160 years of industry experience ✘ Fewer discounts than competitors
✔ Unique discount for green homes ✘ Not available in Florida
✔ High deductible options

Travelers Coverage & Unique Features

In addition to standard coverage options, Travelers offers endorsements and a decreasing deductible benefit that sets it apart from the competition. Customers get their choice of nine different deductibles to help customize their premiums, and the decreasing deductible benefit helps lower the premiums by $100 each year that you keep your policy.

Here are the main coverage types offered in each Travelers policy:

  • Dwelling and other structures
  • Personal property
  • Liability coverage
  • Loss of use
  • Medical payments to others

Here are some add-ons you can purchase with your Travelers policy:

  • Jewelry and valuable items additional coverage
  • Green home equipment coverage
  • Water backup protection
  • Identity theft protection

Travelers Discounts

Although Travelers doesn’t offer as many discounts as other home insurance providers, it has a few discounts that can help you save money on your policy.

The following discounts are typically offered with Travelers home insurance quotes:

  • Multi-policy: Bundling discount with any other Travelers insurance product
  • Loss-free: Discount for anyone who hasn’t filed a claim recently
  • Homebuyer: Discount for people who have purchased a house within 12 months of the effective policy start date
  • Protective devices: Savings for homes with safety features, such as fire alarms or smoke detectors
  • Green home: Discount for owning a LEED-certified green property

6. Progressive

Instead of selling its own home insurance policies, Progressive brokers them for other underwriting companies through its online quote tool. For $250,000 of dwelling coverage and $125,000 for personal property coverage, expect to pay around $88 for a policy from one of Progressive’s home insurance partners.

Pros & Cons of Progressive

Pros Cons
Pros Cons
✔ Easy-to-use online quote tool ✘ Getting a quote requires providing your Social Security number
✔ Large company with strong financial backing ✘ Policies are written by third-party insurance partners
✔ Available nationwide

Progressive Coverage & Unique Features

Coverage for a Progressive home insurance policy will vary depending on the third-party provider that you choose. However, most quotes are from well-known companies, such as Homesite or Nationwide, and include standard coverage types.

Here’s the policy coverage you can expect to receive when selecting a provider from Progressive’s HomeQuote Explorer:

  • Dwelling and other structures
  • Loss of use
  • Medical payments to others
  • Personal liability coverage
  • Personal property (replacement or actual value)

Here are some examples of additional coverage options offered by Progressive:

  • Water backup
  • Personal injury
  • Identity theft protection

Progressive Discounts

One of the benefits of signing up for a Progressive policy is the multi-policy bundling discount and Single-Deductible Benefit that lets customers who purchase a home-and-auto bundle combine both policies’ deductibles into one, which saves money during a claim.

Here’s an overview of the discounts offered by Progressive:

  • Multi-policy: Can make both home and auto insurance policies considerably cheaper when bundled
  • New home: Savings for newly constructed or renovated homes
  • Protective devices: Designed to reward homes with extra safety features, such as monitored burglar or fire alarms
  • Quote in advance: Discounts for receiving a quote 10 or more days before the policy’s effective start date
  • Pay in full: Can save you money in the long run if you pay for the policy in advance, rather than monthly
  • New purchase: Discount for new homebuyers that recently purchased a home
  • Paperless: Discount for turning off mailed billing and paying online

Our Conclusion

If you’re on a budget and looking for the best home insurance, consider a policy with Lemonade, Allstate, Liberty Mutual, State Farm, Travelers, or Progressive. We recommend getting homeowners insurance quotes from all four companies so that you can see how information about you and your home will change the cost of the sample policies in the chart above.

To get free quotes from companies in your area, call 855-948-5219 or enter your zip code in the tool below:

If you’re still not sure which homeowners insurance policy is best for you, compare sample policies from three home insurance providers below.

Compare Cheap Home Insurance Companies

Metric Lemonade Allstate Liberty Mutual State Farm Travelers Progressive
Metric Lemonade Allstate Liberty Mutual State Farm Travelers Progressive
Get a Quote Visit Site Not available through This Old House Not available through This Old House Not available through This Old House Not available through This Old House Not available through This Old House
Monthly Price About $61 About $116 About $118 About $122 About $90 About $88
Discounts Available 5 discounts 9 discounts 10 discounts 3 discounts 5 7
Unique Add-ons Earthquake damage and Extra Coverage for items like fine art and musical instruments Musical instruments, yard, and garden Water backup and sump overflow, hurricane Energy efficiency upgrade, service line Valuable items additional coverage, green home equipment Water backup, Single-Deductible Benefit
Customer Service 24/7 24/7 24/7 for claims; limited for sales and service Hours vary by department 24/7 for claims; limited for sales and service Varies depending on third-party partner
BBB Rating B+ A+ A+ A+ A+ A+

How to Find Cheap Homeowners Insurance

If you’re on a budget and need a cheap home insurance policy, follow these tips:

  • Look for Discounts: All insurance companies offer a discount for bundling more than one insurance policy. Other popular discounts include being claims-free, enrolling in auto pay or paperless billing, having home safety features, and recently purchasing a home.
  • Maintain a Healthy Credit Score: If you have a healthy credit score of 700 or above, more companies will be willing to offer you an affordable insurance policy.
  • Pay for Your Premium Annually or Semi-Annually: Insurance premiums paid monthly cost more than ones paid annually or two to four times a year because insurance companies tack on interest to every payment. If you choose to pay a larger sum less frequently, you’ll pay less by the end of the year.
  • Choose a Higher Deductible: On average, insurance policies cost less when you choose a deductible higher than $1,000.
  • Maintain Your Home: When you get a quote for home insurance, the company will ask questions about the condition of your home. If your roof or another part of your home needs repairs, you’ll have to pay more. Perform seasonal maintenance tasks, like changing air filters or cleaning your gutters, so that you’re eligible for the cheapest premium possible.

Frequently Asked Questions About Homeowners Insurance

What factors affect the cost of homeowners insurance?

Here are some factors that are used to determine home insurance rates:

  • Number and type of pets
  • Credit score
  • Claims history
  • Roof condition
  • Square footage of your home

What does homeowners insurance cover?

Expect the following 16 events to be covered by homeowners insurance:

  1. Accidental discharge or overflow of water or steam
  2. Frozen plumbing
  3. Sudden and accidental tearing apart, cracking, burning, or bulging
  4. Volcanic eruption
  5. Sudden and accidental damage from an artificially generated electrical current
  6. Fire and lightning
  7. Windstorm and hail
  8. Explosion
  9. Riot or civil commotion
  10. Vehicles
  11. Aircrafts
  12. Smoke
  13. Theft
  14. Vandalism
  15. Falling objects
  16. Weight of snow, sleet, or ice

Do I need homeowners insurance?

Homeowners insurance is not required by law. However, the bank you get a loan from to purchase your home may have a home insurance requirement, so check with them before deciding on a policy.

How can I lower my homeowners insurance policy?

The best way to lower your home insurance policy is by taking advantage of discounts. Each of the companies in this review offers a variety of discounts that many homeowners are eligible for. You can also lower your premiums by changing your coverage limits or deductibles. For example, if you increase your deductible, you could lower your premium. However, keep in mind that this could raise the amount you owe during a claim and cost more in the long run.

Is home insurance worth the cost?

Purchasing a home insurance policy is a great way to provide peace of mind as a homeowner and ensure that your house will be rebuilt or repaired after a catastrophe, your personal belongings will be replaced if they’re destroyed during a peril, and you will be protected if someone tries to sue you for injuries on your property.

Can I purchase homeowners insurance online?

Buying a homeowners insurance policy online is easy, since many providers have helpful quote tools on their websites. Use this online tool to receive quotes from home insurance companies currently serving your ZIP code or call a representative at 855-948-5219 to sign up for a policy.

To share feedback or ask a question about this article, send a note to our Reviews Team at reviews@thisoldhousereviews.com.