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
- State Farm: Best Endorsements
- Liberty Mutual: Best Discounts
- Allstate: Best Coverage Options
- Travelers: Most Experience
- Progressive: Best Online Quote Tool
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.
Get your Free Home Insurance Quote: Lemonade Quote
Learn More: Lemonade Homeowners Insurance Review
*A.M. Best ratings accurate as of April 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.
Learn More: State Farm Homeowners Insurance Review
Liberty Mutual: Best Discounts
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.
Get Your Free Home Insurance Quote: Liberty Mutual Quote
Learn More: Liberty Mutual Homeowners Insurance Review
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.
Get Your Free Home Insurance Quote: Allstate Quote
Learn More: Allstate Homeowners Insurance Review
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.
Get Your Free Home Insurance Quote: Travelers Quote
Learn More: Travelers Homeowners Insurance Review
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.
Get Your Free Home Insurance Quote: Progressive Quote
Learn More: Progressive Homeowners Insurance Review
Compare the Cheapest Homeowners Insurance Companies
Provider |
Monthly Rate |
Our Rating |
JD Power |
AM Best |
Learn More |
---|---|---|---|---|---|
~$61 |
4.2 |
N/A |
N/A |
||
~$122 |
4.8 |
829/1000 |
A++ |
||
~$118 |
4.7 |
805/1000 |
A |
||
~$116 |
4.9 |
815/1000 |
A+ |
||
~$90 |
4.6 |
794/1000 |
A++ |
||
~$88 |
4.5 |
801/1000 |
A+ |
What Affordable Homeowners Insurance Should Cover
Expect the following 16 events to be covered by even the cheapest homeowners insurance:
- Accidental discharge or overflow of water or steam
- Frozen plumbing
- Sudden and accidental tearing apart, cracking, burning, or bulging
- Volcanic eruption
- Sudden and accidental damage from an artificially generated electrical current
- Fire and lightning
- Windstorm and hail
- Explosion
- Riot or civil commotion
- Vehicles
- Aircrafts
- Smoke
- Theft
- Vandalism
- Falling objects
- Weight of snow, sleet, or ice
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.
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.