Home insurance is a type of property insurance that protects your houseand personal belongings from damage or loss caused by natural disasters, theft, vandalism, fire, and other perils. It also provides liability coverage if someone gets injured on your property or sues you for damages. Home insurance can vary in cost depending on many factors, such as the location, size, age, and condition of your property, the coverage limits and deductibles you choose, the discounts you qualify for, and the company you buy from. To help you find the best cheapest home insurance, we have analyzed the average premiums, customer ratings, and discounts of some of the largest home insurance companies in the U.S. Based on our research, here are the cheapest home insurance companies of 2025:
1- Erie: Cheapest home insurance in washington dc
Erie is the cheapest home insurance company in our analysis, with an average annual premium of $899 for $350,000 dwelling coverage. Based on Erie home insurance reviews, it is also one of the highest-rated companies, scoring 839 out of 1,000 points on J.D. Power’s customer satisfaction survey and having a low complaint ratio with the National Association of Insurance Commissioners (NAIC).
Erie offers homeowners a range of coverage options and discounts, such as:
- Guaranteed replacement cost: This covers the full cost of rebuilding your house after a covered loss, regardless of the policy limit or depreciation.
- Identity theft recovery: This covers the expenses related to restoring your identity if it is stolen or compromised.
- Service line protection: This covers the repair or replacement of damaged underground service lines, such as water, sewer, gas, or electric lines.
- Multi-policy discount: This applies if you bundle your home and auto insurance with Erie.
- Safety device discount: This applies if you have smoke detectors, fire alarms, sprinkler systems, or security systems in your house.
- Advance quote discount: This applies if you get a quote from Erie at least seven days before your policy effective date.
Erie homeowners insurance is available in 12 states and Washington, D.C.
2- Nationwide: Cheap home insurance company
Nationwide is the second-cheapest home insurance company in our analysis, with an average annual premium of $1,227 for $350,000 dwelling coverage. Nationwide also has a good reputation for customer service and claims handling, scoring 812 out of 1,000 points on J.D. Power’s customer satisfaction survey and having a low complaint ratio with the NAIC.
Nationwide offers homeowners a variety of coverage enhancements and discounts, such as:
- Brand New Belongings: This covers the replacement cost of your personal property after a covered loss, without deducting for depreciation.
- Better Roof Replacement: This covers replacing your roof with stronger and safer materials after a covered loss.
- Water backup: This covers the damage caused by water backing up from drains or sewers.
- Earthquake: This covers the damage caused by earthquakes or earth movements.
- Flood: This covers the damage caused by floods or surface water.
- Multi-policy discount: This applies if you bundle your home and auto insurance with Nationwide.
- Purchase discount: This applies if you buy a new house or switch to Nationwide from another insurer.
- Claims-free discount: This applies if you have no claims or few claims in the past.
- Protective device discount: This applies if you have smoke detectors, fire alarms, sprinkler systems, or security systems in your house.
Nationwide is available in all 50 states and Washington, D.C.
3- State Farm: Best inexpensive home insurance
State Farm is the third-cheapest home insurance company in our analysis, with an average annual premium of $1,500 for $350,000 dwelling coverage. State Farm also has a solid reputation for customer service. It claims to handle, scoring 814 out of 1,000 points on J.D. Power’s customer satisfaction survey and having a low complaint ratio with the NAIC.
State Farm offers homeowners a range of coverage options and discounts, such as:
- Personal articles policy: This covers the loss or damage of your valuable items, such as jewelry, art, or collectibles.
- Home alert protection: This covers the cost of repairing or replacing your smart devices, such as security cameras, thermostats, or smoke detectors.
- Identity restoration: This covers the expenses related to restoring your identity if it is stolen or compromised.
- Multi-policy discount: This applies if you bundle your property and auto insurance with State Farm.
- Home security discount: This applies if you have smoke detectors, fire alarms, sprinkler systems, or security systems in your house.
- Roofing discount: This applies if you have impact-resistant roofing materials that can withstand hail and wind damage.
State Farm is available in all 50 states and Washington, D.C.
4- Progressive: Cheapest home insurance companies
Progressive Home Insurance reviews are generally positive, with many customers praising its competitive rates, convenient online tools, and helpful customer service. However, as with any insurance provider, there are some negative reviews, primarily related to claim handling and customer service issues. Progressive Home Insurance offers comprehensive coverage for your house and belongings. With options like dwelling coverage, personal property protection, and liability, Progressive can help safeguard your assets from unforeseen events. Progressive offers various discounts, which can help you save money on your premiums. These discounts may vary depending on your specific situation and location. It’s always recommended to contact Progressive directly for the most accurate and up-to-date information.
Progressive is one of the best cheap home insurance providers. A standard policy with $350,000 in dwelling coverage’s average Progressive Homeowners Insurance cost is $750. But the average rates of the same policy is much higher at other competitors, such as $1,160 at Nationwide, $1,275 at Erie, $1,300 at State Farm, $1,800 at Chubb and $2,050 at Farmers.
Progressive offers homeowners a range of discounts, such as:
- Bundle Discount: Combine homeowner and auto insurance for a discount.
- Home Security Discount: Install a security system for a discount.
- Claims-Free Discount: Receive a discount for having no claims.
- Renewal Discount: Renew your policy for a discount.
- Automatic Payment Discount: Set up automatic payments for a discount.
- Senior Discount: For policyholders over a certain age.
5- Allstate: Best cheap mortgage insurance
Allstate is our analysis’s fifth-cheapest home insurance company, with an average annual premium of $1,800 for $350,000 dwelling coverage. Allstate also has a solid reputation for customer service. It claims to handle, scoring 814 out of 1,000 points on J.D. Power’s customer satisfaction survey and having a low complaint ratio with the NAIC.
Allstate offers homeowners a range of coverage options and discounts, such as:
- HostAdvantage: This covers the loss or damage of your personal property when renting out your home on platforms like Airbnb or VRBO.
- Green improvement reimbursement: This covers the extra cost of repairing or replacing your house with energy-efficient materials after a covered loss.
- Identity theft restoration: This covers the expenses related to restoring your identity if it is stolen or compromised.
- Multi-policy discount: This applies if you bundle your home and auto insurance with Allstate.
- Welcome and loyalty discount: This applies if you are a new customer or renew your policy with Allstate.
- Claims-free discount: This applies if you have no claims or few claims in the past.
- Home buyer discount: This applies if you buy a new or newly renovated house.
- Protective device discount: This applies if you have smoke detectors, fire alarms, sprinkler systems, or security systems in your house.
Allstate is available in all 50 states and Washington, D.C.
6-Citizens: Cheapest Homeowners Policy in Florida
Citizens Property Insurance Corporation is a crucial option for Florida homeowners who cannot find affordable coverage in the private market. While it offers essential and often more affordable coverage, it comes with limitations such as fewer coverage options, coverage caps, and potential difficulties in the claims process. Policyholders should weigh these pros and cons when considering Citizens as their insurance provider.
Citizens’ homeowners insurance rates are regulated. State law includes a “glide path” that limits how much rates can increase annually for existing primary residence policies, aiming to gradually bring rates closer to actuarial soundness without causing extreme shocks. For 2025 renewals, this cap is 14%. (Non-primary residences have a higher cap, up to 50%). Citizens policies, particularly older or more basic forms, may offer less comprehensive coverage or lower limits for certain items compared to policies available in the private market.
Customer reviews are generally mixed, often leaning towards negative, particularly concerning the claims process and customer service. Citizens receives a significantly higher number of complaints compared to the average company of its size, according to the National Association of Insurance Commissioners (NAIC) complaint index (reported indices include 4.28 and figures indicating 3 to 4 times more complaints than expected).
7- USAA: Best and Lowest cost for military members
USAA Home Insurance is an excellent choice for eligible military members and their families, offering comprehensive coverage, competitive rates, and exceptional customer service. However, its availability is limited to those with military affiliations, and there may be restrictions in high-risk areas. Eligibility is the most “special” and restrictive aspect of USAA. You generally must be one of the military personnel, Veterans, Pre-commissioned officers or cadets, Widowers of eligible military personnel or Children and Stepchildren of eligible members to qualify for USAA membership and its insurance products.
- Exceptional Customer Service: USAA is renowned for its member-focused service. Many reviews highlight positive and supportive interactions.
- Military-Specific Benefits: Coverage for military uniforms and equipment, and coverage for personal property lost due to war (up to certain limits, e.g., $10,000).
- Comprehensive Standard Coverage: USAA Home Insurance policies often include coverages as standard that other insurers might offer as add-ons or at an extra cost.
- Strong Claims Satisfaction: USAA generally scores very highly in claims satisfaction surveys
- Financial Stability: USAA consistently receives A++ (Superior) financial strength ratings from A.M. Best, indicating a very strong ability to meet its financial obligations and pay claims.
USAA is available in all 50 states and Washington, D.C., but only for members of the U.S. military and their families.
8- Costco: Best on Cheap
Costco Home Insurance through CONNECT offers potential savings via an exclusive member discount and some potentially useful perks. State regulators and Costco Home Insurance Reviews consistently report a high volume of customer complaints, particularly concerning claims handling and service. Members face significant issues, although some are satisfied. The program is designed for Costco members (Gold Star and Executive). While anyone can technically buy insurance from CONNECT directly, the special discounts and perks are tied to having a Costco membership.
- Exclusive Member Discount: The primary draw is a discount on premiums specifically for Costco members.
- Executive Member Perks: Executive members might receive additional benefits, which can sometimes include things like lifetime renewability or slightly larger discounts, depending on the state and policy.
- Potential Included Coverages: Policies often include benefits like identity theft protection, refrigerated property coverage (food spoilage), check/credit card fraud coverage, and home lockout assistance.
- Standard Coverage: Typical coverages like dwelling, other structures, personal property, loss of use, personal liability, and medical payments.
- Optional Coverage: You can usually add endorsements for things like high-value items, water/sewer backup, etc.
- Bundling: Discounts are often available for bundling home and auto insurance.
Costco is available in all 50 states and Washington, D.C., but only for members of Costco.
How to get cheapest home insurance
Getting the cheapest home insurance involves a combination of smart shopping, leveraging discounts, and making strategic choices about your policy and property. By systematically applying these strategies, you can significantly reduce your home insurance costs without compromising on essential coverage. Here’s a breakdown of how to approach it:
- Shop Around Aggressively:
- Compare Multiple Quotes: This is the absolute most important step. Don’t just go with the first quote you get or simply renew with your current provider.
- Don’t Auto-Renew: While some companies offer loyalty discounts, often the best deals are for new customers.
- Timing Matters: Some sources suggest that getting quotes around 7-25 days before your current policy expires can result in lower rates.
- Maximize Discounts:
- Bundle Policies: One of the easiest ways to save. If you have car insurance, life insurance, or other policies, see if you can get a discount by bundling your home insurance with the same company. This can save you 5-25% or more.
- Home Security Features: If you have Security Systems, Smoke and Carbon Monoxide Detectors, Deadbolt Locks, and Sprinkler Systems: Interior fire suppression systems in your property, your insurance costs may be reduced.
- Home Improvements & Maintenance: New Roof, Updated Systems, Disaster Resistance, Water Leak Detection
- Adjust Your Coverage Wisely:
- Don’t Over-Insure: Insure your home for its rebuilding cost, not its market value. The land value isn’t insurable. Use a reliable rebuild cost calculator.
- Review Your Policy Annually: Your home’s value, possessions, and personal situation change. Review your policy to ensure you’re not paying for coverage you no longer need.
- Only Pay for What You Need: While comprehensive coverage is important, don’t automatically add every optional extra.
Policy & Payment Discounts to get cheap policy:
- Higher Deductible: This is the amount you pay out-of-pocket before your insurance kicks in. A higher deductible (e.g., $1,000 or $2,500 instead of $500) will significantly lower your premium.
- Pay Annually: Paying your entire premium upfront, rather than monthly installments, often results in a discount
- Paperless Billing/Autopay: Many companies offer small discounts for going paperless or setting up automatic payments.
- No Claims History: If you haven’t filed recent claims, you may qualify for a discount. Try to handle small, inexpensive repairs yourself to avoid filing claims
- Good Credit Score: In many places, your credit score influences your insurance premiums.
- New Homebuyer/New Construction: Some insurers offer discounts for recently purchased homes or newly built properties.
- Loyalty Discount: While you should still shop around, some companies reward long-term policyholders.
- Non-Smoker Discount: If no one in the household smokes.
- Advance Quote Discount: Getting a quote well before your current policy expires.
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