The Cheapest Home Insurance for 2023
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You don’t need to choose between good coverage and an affordable rate when buying insurance for your home. Cheap homeowners insurance can include great coverage, too.
NerdWallet analyzed pricing data from 150 insurers to find the cheapest home insurance companies in the country. Our sample policy was for a 40-year-old homeowner with $300,000 in dwelling coverage, $300,000 in liability coverage and a $1,000 deductible. Your own rates will differ.
Cheapest homeowners insurance from large companies
NerdWallet looked at average rates from some of the largest companies across the U.S. to find out which ones have the most affordable home insurance premiums.
Use the table below to see average annual rates for the three cheapest large companies, along with NerdWallet’s star rating. Click on the company name to learn more about each insurer.
Company | Average annual rate | NerdWallet star rating |
|---|---|---|
$1,529 | ||
$1,632 | ||
USAA* | $1,724 | |
*USAA homeowners policies are available only to active military, veterans and their families. | ||
» MORE: The best home insurance
More about the cheapest homeowners insurance companies
State Farm
The country’s largest home insurer, State Farm stands out for its financial strength and many coverage options. The company also draws fewer complaints than expected to state regulators for an insurer of its size, according to the National Association of Insurance Commissioners.
With local agents across the country, State Farm can offer customers personalized help over the phone or even in person. But if you'd rather do everything online, you can use the company's website to pay bills, file claims and get quotes.
Read our State Farm homeowners insurance review for more information.
Allstate
This large insurer offers a wide range of additional coverage options beyond the basics. For example, you can add home-sharing coverage if you rent out your space on services such as Airbnb, or coverage to pay for energy-efficient improvements after a claim. Its website offers lots of information and useful features.
There's one downside to choosing an Allstate policy: The company draws more complaints than expected for an insurer of its size, according to the NAIC.
Check out our Allstate homeowners insurance review for more details.
USAA
This company sells homeowners insurance only to active military, veterans and their families. In most states, USAA covers your belongings on a “replacement cost” basis. That means if your items are stolen or destroyed, the company will pay enough for you to buy brand-new replacements, without deducting for depreciation. Some companies charge extra for this type of coverage.
USAA offers discounts for having multiple policies with the company, going at least five years without a claim and installing certain smart-home devices.
See our USAA homeowners insurance review to learn more.
Cheapest home insurance rates in each state
Where you live typically has a big impact on the cost of insurance for your house and possessions. How close you live to the coast, crime rates in your area, population density and more can all influence your rate. The table below shows the most affordable home insurance company in each state and its average annual rate.
State | Cheapest company | Average annual rate |
|---|---|---|
Alabama | $1,191 | |
Alaska | $900 | |
Arizona | $1,066 | |
Arkansas | Shelter | $1,857 |
California | Oregon Mutual | $760 |
Colorado | $1,193 | |
Connecticut | Vermont Mutual | $673 |
Delaware | $519 | |
Florida | $1,472 | |
Georgia | $1,295 | |
Hawaii | DB Insurance | $257 |
Idaho | American National | $457 |
Illinois | $1,198 | |
Indiana | Buckeye | $705 |
Iowa | West Bend | $1,077 |
Kansas | $2,058 | |
Kentucky | Cincinnati Insurance | $1,506 |
Louisiana | $715 | |
Maine | Vermont Mutual | $553 |
Maryland | Brethren Mutual | $683 |
Massachusetts | Preferred Mutual | $712 |
Michigan | Westfield | $977 |
Minnesota | North Star | $1,262 |
Mississippi | $1,095 | |
Missouri | Auto Club of SoCal (AAA) | $1,391 |
Montana | $1,344 | |
Nebraska | $1,976 | |
Nevada | $642 | |
New Hampshire | Main Street America | $574 |
New Jersey | Selective | $519 |
New Mexico | $1,237 | |
New York | NYCM | $590 |
North Carolina | $790 | |
North Dakota | Farmers Union | $1,306 |
Ohio | Ohio Mutual | $759 |
Oklahoma | American National | $2,409 |
Oregon | Mutual of Enumclaw | $505 |
Pennsylvania | Cumberland Mutual | $446 |
Rhode Island | Narragansett Bay | $815 |
South Carolina | American National | $750 |
South Dakota | North Star | $1,755 |
Tennessee | Westfield | $1,196 |
Texas | $2,082 | |
Utah | Mutual of Enumclaw | $662 |
Vermont | Vermont Mutual | $478 |
Virginia | Main Street America | $599 |
Washington | Mutual of Enumclaw | $538 |
Washington, D.C. | $780 | |
West Virginia | Westfield | $947 |
Wisconsin | Rockford Mutual | $608 |
Wyoming | $940 |
Note: USAA offered the cheapest homeowners insurance in West Virginia, Wyoming and Washington, D.C., and Armed Forces Insurance had the lowest rates in Arizona and Kansas, on average. We didn’t include either of these companies in the table above because they serve mainly the military community and don’t offer policies for everyone. Learn more about homeowners insurance for veterans and military.
Cheapest homeowners insurance in 20 major cities
Below are the companies offering the most affordable homeowners insurance, on average, in 20 of the largest U.S. cities.
City | Cheapest company | Average annual rate |
|---|---|---|
Austin | $1,287 | |
Charlotte | $325 | |
Chicago | $1,201 | |
Columbus | Ohio Mutual | $819 |
Dallas | $1,737 | |
Denver | $1,274 | |
El Paso | $808 | |
Fort Worth | $1,940 | |
Houston | $1,212 | |
Indianapolis | Buckeye | $802 |
Jacksonville | $1,398 | |
Las Vegas | $694 | |
Los Angeles | $782 | |
New York | Kemper | $875 |
Philadelphia | $860 | |
Phoenix | $1,164 | |
San Antonio | $1,442 | |
San Diego | Oregon Mutual | $651 |
San Francisco | $726 | |
San Jose | $575 |
Note: Armed Forces Insurance was the cheapest option in Jacksonville, Phoenix and San Antonio, but we didn’t include it because its policies aren’t available to everyone.
Cheapest home insurance for different situations
Just because an insurer is affordable for one set of circumstances doesn’t mean that company will always be the best option. NerdWallet looked at how different factors have an impact on the cheapest home insurance rates available.
To determine the top insurers for each category, NerdWallet compared rates among companies for which we had data in at least 15 states. We chose the five cheapest options in each category.
Encompass: Cheapest for homeowners with poor credit
State Farm: Cheapest for a recent water claim
State Farm: Cheapest for a recent wind claim
Nationwide: Cheapest for new homes
State Farm: Cheapest for homeowners with a high deductible
Cheapest home insurance for homeowners with poor credit
In most states, homeowners with poor credit can expect to pay significantly more for insurance. Below are the companies that charge the least, on average, for those with poor credit.
Company | Average annual rate | Average monthly rate |
|---|---|---|
Encompass | $2,787 | $232 |
American Strategic* | $2,894 | $241 |
$3,120 | $260 | |
Armed Forces Insurance** | $2,519 | $210 |
USAA** | $2,998 | $250 |
*American Strategic is a subsidiary of Progressive. | ||
**Armed Forces Insurance and USAA generally serve the military community. Their policies are not available to all homeowners. | ||
Cheapest home insurance for those with a recent water claim
Many insurers raise your rates after you file a home insurance claim. Below, you can see the cheapest companies for homeowners who’ve filed a claim for water damage.
Company | Average annual rate | Average monthly rate |
|---|---|---|
$1,659 | $138 | |
$2,174 | $181 | |
$2,185 | $182 | |
Armed Forces Insurance* | $1,953 | $163 |
USAA* | $2,069 | $172 |
*Armed Forces Insurance and USAA generally serve the military community. Their policies are not available to all homeowners. | ||
Cheapest home insurance for those with a recent wind claim
The list of cheapest options is slightly different for those who’ve recently filed a claim for wind damage.
Company | Average annual rate | Average monthly rate |
|---|---|---|
$1,683 | $140 | |
$1,841 | $153 | |
$1,940 | $162 | |
USAA* | $1,835 | $153 |
Armed Forces Insurance* | $1,953 | $163 |
*Armed Forces Insurance and USAA generally serve the military community. Their policies are not available to all homeowners. | ||
Cheapest homeowners insurance for new homes
It’s generally cheaper to insure new homes than older ones. They meet the latest building safety codes, which could make them more resistant to natural disasters. And new plumbing, electrical and other systems have less wear and tear than older ones, making them less likely to fail and cause damage.
Below are the most affordable homeowners companies for those with new homes.
Company | Average annual rate | Average monthly rate |
|---|---|---|
$811 | $68 | |
American Strategic* | $861 | $72 |
$879 | $73 | |
$938 | $78 | |
USAA** | $882 | $74 |
*American Strategic is a subsidiary of Progressive. | ||
**USAA homeowners policies are available only to active military, veterans and their families. | ||
Cheapest homeowners insurance for those with a high deductible
If you’re willing to raise your deductible, you’ll generally pay less for your homeowners insurance. A homeowners insurance deductible is the amount of a claim you cover yourself before the insurance company pays out.
Below are the cheapest companies for homeowners with a $2,500 deductible.
Company | Average annual rate | Average monthly rate |
|---|---|---|
$1,352 | $113 | |
$1,411 | $118 | |
Encompass | $1,582 | $132 |
USAA* | $1,535 | $128 |
Armed Forces Insurance* | $1,577 | $131 |
*Armed Forces Insurance and USAA generally serve the military community. Their policies are not available to all homeowners. | ||
How to get cheap homeowners insurance
Some take a little more effort than others, but there are a variety of ways to get cheap home insurance for your property. Below are some of the most common ways to lower your homeowners insurance cost.
Shop around. Don’t buy the first policy you get a quote for. We recommend comparing rates from at least three companies to find the most affordable option.
Insure your home for the proper amount. You shouldn't necessarily insure your home for its current market value (that is, how much the home could sell for). Instead, insure it for the amount it would cost to rebuild. Have your home insurance agent or company estimate your home’s replacement cost so you can insure your house for the correct amount.
Increase your deductible. You can lower your premium by choosing a higher deductible. Just make sure you have enough cash to cover it should you need to file a claim.
Avoid filing small claims. Most home insurance companies offer a discount for customers who haven’t filed a claim in the past three to five years. If you can, avoid rate hikes by paying cash for home repairs and filing a claim only when absolutely necessary.
Bundle your policies. Many carriers offer a discount if you bundle home and auto insurance to make both policies more affordable.
Avoid risky purchases. Anything considered high risk for a liability claim, including trampolines and certain dog breeds such as pit bulls, could raise the cost of your homeowners insurance. So think twice about adding a swimming pool if you want cheap coverage.
Add safety features to your home. Making your home safer now may save you money on home insurance in the long run. Many insurance companies offer discounts for features that protect your home against fire and theft. Fire extinguishers, deadbolts, security systems and more could all help keep costs low. Certain smart-home technology can also net you a discount.
Improve your credit. In most states, poor credit generally translates to higher insurance costs, including for homeowners insurance. While not an overnight fix, you can restore credit by making payments on time and using less than 10% of your total credit card limits.
Find the best homeowners insurance in your state
Don't see your state below? Check back soon — we’re adding more home insurance stories all the time.
NerdWallet averaged rates for 40-year-old homeowners from a variety of insurance companies in every ZIP code across all 50 states and Washington, D.C. Sample homeowners were nonsmokers with good credit living in a single-family, two-story home built in 1997. They had a $1,000 deductible and the following coverage limits:
$300,000 in dwelling coverage.
$30,000 in other structures coverage.
$150,000 in personal property coverage.
$60,000 in loss of use coverage.
$300,000 in liability coverage.
$1,000 in medical payments coverage.
We used the same assumptions for all other homeowner profiles, with the following exceptions:
For homeowners with a claims history, we added a single wind or water damage claim.
To see the effect of changing your deductible, we raised the deductible from $1,000 to $2,500.
For homeowners with newer homes, we changed the year the house was built to 2021.
We changed the credit tier from “good” to “poor” as reported to the insurer to see rates for homeowners with poor credit. In states where credit isn’t taken into account, we only used rates for “good” credit.
These are sample rates generated through Quadrant Information Services. Your own rates will be different.
