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 the cheapest 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.


 

6 Cheapest Homeowners Insurance Companies

The cheapest homeowners insurance include the following nationwide companies:


 

 Lemonade: Easiest Sign-Up

  • JD Power Rating: N/A
  • AM Best Rating: N/A

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.

Lemonade Easiest Sign-Up
4.2
Pros and Cons
Pros Monthly cost well below the industry average Quick claims payout Easy-to-use app Cons No option to bundle with auto insurance Only available in 23 states
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
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

Get your Free Home Insurance Quote: Lemonade Quote

Learn More: Lemonade Homeowners Insurance Review

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*A.M. Best ratings accurate as of January 2023


 

State Farm: Best Endorsements

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.

State Farm Best Endorsements
4.8
Pros and Cons
Pros Offers a unique endorsement for replacing an item with a more energy-efficient one Available in all 50 states Liability coverage for dogs is determined by the history of aggression, not the breed Cons Doesn’t offer 24/7 customer service Has fewer homeowner discounts than Allstate and Liberty Mutual
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
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.
Call +1 (360) 262-2561 To Get Your Free State Farm Home Insurance Quote Today!

Learn More: State Farm Homeowners Insurance Review

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Liberty Mutual: Best Discounts

  • JD Power Rating: 805/1000
  • AM Best Rating: A

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.

Liberty Mutual Best Discounts
4.8
Pros and Cons
Pros Claims center is open 24/7 Customers can get a quote without talking to an insurance agent Offers customizable coverage limits Cons Only offers six endorsement options Doesn’t provide liability coverage for certain dog breeds
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
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.

Here are some examples of discounts Liberty Mutual commonly offers:

  • 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.

Get Your Free Home Insurance Quote: Liberty Mutual Quote

Learn More: Liberty Mutual Homeowners Insurance Review

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Allstate: Best Coverage Options

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.

Allstate Best Coverage Options
4.9
Pros and Cons
Pros Provides multiple discounts for home insurance policyholders Offers unique endorsements for your yard and garden, musical instruments, and sports equipment Provides 24/7 customer service Cons Customers have to call to get a quote from an insurance agent in some states High deductibles starting at $2,500
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
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.

Get Your Free Home Insurance Quote: Allstate Quote

Learn More: Allstate Homeowners Insurance Review

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Travelers: Most Experience

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.

Travelers Most Experience
4.7
Pros and Cons
Pros More than 160 years of industry experience Unique discount for green homes High deductible options Cons Fewer discounts than competitors Not available in Florida
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
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, which you may qualify for if you’ve hired a solar company to install solar panels on your home.

Get Your Free Home Insurance Quote: Travelers Quote

Learn More: Travelers Homeowners Insurance Review

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Progressive: Best Online Quote Tool

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.

Progressive Best Online Quote Tool
4.5
Pros and Cons
Pros Easy-to-use online quote tool Large company with strong financial backing Available nationwide Cons Getting a quote requires providing your Social Security number Policies are written by third-party insurance partners
Coverage & Unique Features

Despite not underwriting their own policies, Progressive offers the following basic coverage and endorsement options through their participating brokers.

Progressive includes standard coverage for the following categories:

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

Progressive also includes coverage for the following items:

  • Water backup
  • Personal injury
Discounts

One of the main advantages to insuring your home with Progressive is the opportunity to bundle with auto among other discount options.

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

  • Multi-policy: Discount for bundling your home insurance with any other Progressive insurance (auto, boat, etc.)
  • New home: Savings for newly constructed homes
  • New purchase: Pay less for a recently purchased home, even if it isn’t brand new
  • Protective devices: Discount for safety features like fire alarms, automatic sprinklers, and burglar alarms
  • Paperless: Savings for opting into paperless billing
  • Quote in advance: Discount for getting a quote 10 or more days before the start date of your policy
  • Pay in full: Savings for paying in bulk in advance

Get Your Free Home Insurance Quote: Progressive Quote

Learn More: Progressive Homeowners Insurance Review

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Compare the Cheapest Homeowners Insurance Companies

Provider

Monthly Rate

Our Rating

JD Power

AM Best

Learn More

Lemonade

~$61

4.2

N/A

N/A

Read Review

State Farm

~$122

4.8

829/1000

A++

Read Review

Liberty Mutual

~$118

4.7

805/1000

A

Read Review

Allstate

~$116

4.9

815/1000

A+

Read Review

Travelers

~$90

4.6

794/1000

A++

Read Review

Progressive

~$88

4.5

801/1000

A+

Read Review


 

What Affordable Homeowners Insurance Should Cover

Expect the following 16 events to be covered by even the cheapest 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

 

Factors That Affect the Cost of Homeowners Insurance Here are some factors that are used to determine home insurance rates
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Number and kind of pets
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Credit score
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Claims history
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Roof condition
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Size of home

 

How to Save Money on Home 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.

 

Our Conclusion

If you’re on a budget and looking for the best home insurance, consider a policy with Lemonade. We recommend getting homeowners insurance quotes from all of our recommended 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:
Compare Homeowners Insurance Policies
Answer a few simple questions and we'll take care of the rest.

 

Frequently Asked Questions


 

Our Methodology

The This Old House Reviews team is committed to providing comprehensive and unbiased reviews to our readers. This means earning your trust through transparency and having the data to back up our ratings and recommendations.

With that in mind, we created an objective rating system to score each home insurance company. Our rating system is a weighted, 100-point scale based on the following factors:

  • Coverage (30): We rated home insurance companies higher if they offered the six main types of homeowner protection—dwelling, other structures, personal property, loss of use, liability, and medical payments to others coverage.
  • State availability (7.5): Companies scored higher if they covered more states than their competitors.
  • Customer service (15): This factor is based on our communications with the company representatives, as well as the companies’ claims and quotes processes, availability throughout the week, and customer service information found on their websites.
  • Technology (12.5): Technology can increase the efficiency of filing and tracking home insurance claims. Companies scored higher if they had technology options like mobile apps and online chat functions.
  • Reputation (20): We gauged trustworthiness based on years of experience and Better Business Bureau (BBB) ratings.
  • Additional benefits (15): Companies that offered optional features, like discounts and endorsements, scored higher than competitors that didn’t.

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

Ratings listed in this article are accurate as of February 2023.

A.M. Best Disclaimer