Bundling your homeowners policy with your car insurance and shopping around for the lowest rate are among the best ways to save money on home insurance. Make sure to ask about any discounts that may be available to you.
Shopping around for home insurance quotes helps you find the right coverage at the cheapest price. Comparing home insurance quotes could save you $700 a year.
Although comparing home insurance quotes adds a little time to the shopping process for homeowners insurance, the extra effort is usually worth it.
When shopping around for quotes, home insurance companies offer a wide range of rates. This is due to companies weighing factors differently when determining your rate. Insurance companies can also offer different types of discounts and savings that may drive down your rate.
| Company | Average Annual Rate | Average Monthly Rate |
|---|---|---|
| Erie | $2,055 | $171 |
| State Farm | $2,427 | $202 |
| USAA* | $2,507 | $209 |
| Allstate | $2,560 | $213 |
| Chubb | $2,606 | $217 |
| Progressive | $2,648 | $221 |
| Country | $2,827 | $236 |
| Nationwide | $3,055 | $255 |
| American Family | $3,072 | $256 |
| Travelers | $3,149 | $262 |
| Farm Bureau | $3,639 | $303 |
| Farmers | $3,801 | $317 |
*USAA is only available to military members and veterans, along with their families
Erie Insurance has the cheapest home insurance rates of $2,055 a year, on average. This is 36% cheaper than the national average rate ($2,801).
Erie Insurance is only available in 12 states and the D.C. area. Homeowners elsewhere may get the cheapest rates from State Farm, which charges an average of $2,427 a year.
You can get a home insurance quote by using an online quote comparison tool, talking to an insurance agent or directly visiting an insurance company’s website.
When getting multiple quotes, insurance companies may include different coverages and deductibles in their quotes. We recommend looking at more than just the rate in a quote to make the most accurate comparison.
You can simplify the process of comparing quotes by gathering basic information about your home and coverage needs before you start shopping. If you don’t know or remember some of these details about your home, you can view your county assessor’s website or your home’s inspection report.
You’ll need to know how much coverage you need and want when you get home insurance quotes. Coverage limits can have a big impact on your quote. These coverages are often included in a standard home insurance policy:
Your dwelling coverage pays to repair damage to your home from covered perils, like fires or fallen trees.
If you have a mortgage, your lender will likely require your policy’s dwelling limit to match your home’s replacement value (this is the estimated cost of rebuilding it).
Insurance companies usually calculate your dwelling limit for you based on details you provide about your home. Make sure the information they have about your home is accurate.
The other structures coverage in a homeowners insurance policy applies to sheds, detached garages and other structures that aren’t attached to your home. Most insurers offer this in default amounts ranging from 10% to 20% of your dwelling limit.
The personal property coverage in homeowners insurance covers your belongings. This includes your appliances, furniture, clothing, electronics, gadgets and other items.
Make note of the type of personal property coverage in each quote, and consider adding coverage for any valuables you may have.
| Questions | Standard options | Upgrades |
|---|---|---|
| What types of personal property coverage can I get? | Standard home insurance covers your belongings at actual cash value, or at depreciated prices. | A replacement cost upgrade pays to replace damaged or stolen items with new ones. |
| How does home insurance cover my valuables? | Most policies cap their coverage at $1,500 for jewelry and similar amounts for other valuables, unless you buy add-on protection. | Ask to see the price of add-ons you may need in your quotes. |
Your insurance company can reimburse a claim according to the actual cash value or replacement cost value of your property or belongings.
Replacement cost value coverage pays out claims based on the amount of money it would take to replace your property or belongings.
Actual cash value coverage factors in depreciation at the time of the loss when paying out.
If a covered peril leaves your home uninhabitable during repairs, your loss of use coverage pays for rent and other temporary living expenses until you move back home.
A common default amount is 20% of your dwelling limit, but many companies cut off your loss of use benefits after a set period of time, such as a year.
The personal liability coverage in homeowners insurance covers injuries or damage you cause to others, generally not while operating a vehicle.
Medical payments cover the medical costs of a guest who gets hurt while visiting your home, regardless of fault.
Both are offered in default amounts, but you can increase your limits.
Insurance companies usually offer endorsements (also called add-ons), for certain coverages that other companies automatically include in their base policies. Two important coverages that you may or may not have to pay extra for, depending on the company, are:
Insurance companies can also offer these optional coverages at a cost:
You should also account for any price differences that may result from having different deductibles in your home insurance quotes.
In most areas, raising your deductible from $1,000 to $2,000 can lower your premium (also known as your rate) by about 10%.
Since your deductible is the amount that comes out of your pocket for property damage or theft claims, you don’t want it to be too high. However, increasing it to the most you’d be able to afford after a disaster can help you save money.
In many parts of the U.S., insurance companies separate your deductible for wind, hail and/or hurricane damage from the deductible that applies to other covered perils.
While a low price is important, you also want the home insurance company you choose to provide great customer service.
Erie, Amica Mutual and Auto-Owners are the best home insurance companies for overall satisfaction, according to J.D. Power. However, although USAA has a higher rating than any other insurance company, only current and former members of the military and their families can get insurance from USAA.
AIG and Country Financial have the lowest Complaint Index score from the National Association of Insurance Commissioners (NAIC). The NAIC calculates complaint index scores using the number of complaints a company receives and the size of the company. If a company receives a score lower than 1.0, it receives fewer complaints than what’s expected from a company of its size.
| Company | J.D. Power overall satisfaction (higher is better) | NAIC complaint index (lower is better) |
|---|---|---|
| Erie | 856 | 0.50 |
| Amica Mutual | 844 | 0.33 |
| Auto-Owners | 834 | 0.40 |
| AIG | 831 | 0.10 |
| State Farm | 829 | 1.05 |
| Country Financial | 819 | 0.10 |
| Segment average | 819 | 1.0 |
| American Family | 813 | 0.49 |
| Nationwide | 812 | 0.95 |
| ASI Progressive | 791 | 1.43 |
| USAA* | 881 | 0.50 |
While it’s good to consider these ratings when shopping for home insurance, it’s also helpful to review each company’s pros and cons. As an example, we reviewed Erie Insurance, State Farm and Progressive.
The location of your home can affect how much you pay for home insurance. If your home insurance quote is higher than your state average, we recommend looking at other companies.
| State | Average rate | Cheapest company | Cheapest premium |
|---|---|---|---|
| Alabama | $3,217 | Allstate | $2,228 |
| Alaska | $1,475 | Western National | $1,235 |
| Arizona | $2,623 | State Farm | $1,737 |
| Arkansas | $3,722 | MetLife | $2,519 |
| California | $1,260 | USAA | $799 |
| Colorado | $4,489 | Chubb | $2,614 |
| Connecticut | $2,618 | Allstate | $1,737 |
| Delaware | $1,701 | Nationwide | $840 |
| District of Columbia | $1,764 | Nationwide | $1,409 |
| Florida | $3,889 | Chubb | $2,294 |
| Georgia | $2,869 | Progressive | $2,061 |
| Hawaii | $632 | UPC Insurance | $370 |
| Idaho | $2,178 | Mutual of Enumclaw | $957 |
| Illinois | $2,743 | Nationwide | $1,545 |
| Indiana | $2,643 | Erie Insurance | $1,453 |
| Iowa | $2,697 | Pekin Insurance | $1,830 |
| Kansas | $5,412 | Shelter Insurance | $3,227 |
| Kentucky | $4,671 | Cincinnati Insurance Co. | $2,030 |
| Louisiana | $4,033 | State Farm | $1,274 |
| Maine | $1,863 | Vermont Mutual Insurance | $1,006 |
| Maryland | $1,810 | Travelers | $1,384 |
| Massachusetts | $1,906 | Norfolk & Dedham Group | $685 |
| Michigan | $2,467 | The Hanover Insurance Group | $1,004 |
| Minnesota | $3,642 | North Star Mutual Insurance Co. | $2,001 |
| Mississippi | $4,201 | Southern Farm Bureau Casualty | $3,249 |
| Missouri | $3,387 | Allstate | $2,356 |
| Montana | $3,068 | Farmers | $1,660 |
| Nebraska | $5,912 | American Family | $3,834 |
| Nevada | $1,626 | Nationwide | $1,065 |
| New Hampshire | $1,760 | Vermont Mutual Insurance | $1,048 |
| New Jersey | $1,744 | Allstate | $1,028 |
| New Mexico | $3,354 | State Farm | $2,183 |
| New York | $1,897 | NYCM Insurance | $529 |
| North Carolina | $3,378 | State Farm | $1,475 |
| North Dakota | $2,911 | North Star Mutual Insurance Co. | $1,947 |
| Ohio | $2,207 | Erie Insurance | $1,242 |
| Oklahoma | $6,133 | American Farmers & Ranchers | $4,466 |
| Oregon | $1,885 | Mutual of Enumclaw | $782 |
| Pennsylvania | $1,928 | Westfield Insurance | $1,017 |
| Rhode Island | $2,240 | State Farm | $1,027 |
| South Carolina | $3,335 | Allstate | $1,274 |
| South Dakota | $3,605 | North Star Mutual Insurance Co. | $2,530 |
| Tennessee | $2,857 | Erie Insurance | $2,332 |
| Texas | $5,180 | Texas Farm Bureau Insurance | $3,474 |
| Utah | $1,507 | Farm Bureau Financial Services | $1,230 |
| Vermont | $1,339 | Allstate | $768 |
| Virginia | $2,499 | State Farm | $1,483 |
| Washington | $1,600 | Mutual of Enumclaw | $907 |
| West Virginia | $2,511 | USAA | $1,197 |
| Wisconsin | $2,159 | Erie Insurance | $1,222 |
| Wyoming | $2,323 | Nationwide | $1,408 |
Your home insurance rate can also vary depending on the city you live in. If you live in a city with a high crime rate or you live by the coast, you might pay higher home insurance rates.
Since coverage types, limits and prices tend to vary by company, comparing home insurance quotes on an exact apples-to-apples basis may be difficult.
It’s usually up to you to decide what’s more important: a cheaper price or more coverage.
| Quote A | Quote B | Quote C |
|---|---|---|
| Dwelling coverage: $300,000 | Dwelling coverage: $300,000 | Dwelling coverage: $300,000 |
| Other structures: $30,000 | Other structures: $30,000 | Other structures: $30,000 |
| Personal property: $180,000, replacement cost | Personal property: $150,000, actual cash value | Personal property: $180,000, replacement cost |
| Loss of use: $60,000 | Loss of use: $60,000 | Loss of use: $60,000 |
| Personal liability: $100,000 | Personal liability: $100,000 | Personal liability: $100,000 |
| Medical payments: $5,000 | Medical payments: $5,000 | Medical payments: $5,000 |
| Endorsements: Extended replacement cost | Endorsements: None | Endorsements: Extended replacement cost |
| All-perils deductible: $1,000 | All-perils deductible: $1,000 | All-perils deductible: $2,000 |
| Price: $1,173 per year ($98 a month) | Price: $1,037 a year ($86 a month) | Price: $1,106 per year ($92 a month) |
We recommend reviewing your coverages, discounts, and policy information before buying a home insurance policy. You can buy home insurance through an agent or online. Insurance companies will require a start date for your policy.
If you have an escrow account, you may need to pay for your home insurance yearly or according to your lender’s requirements. Otherwise, you can decide whether to pay for your home insurance policy monthly or yearly.
If you already have homeowners insurance, you should compare quotes every few years to see if you can get a better deal. Since insurance companies adjust their rates regularly, a company that quoted you a high rate in the past may offer a lower rate the next time you shop.
You may also get a lower rate now than you did before if:
Events such as these may also lower your rate with your current insurer. However, comparing quotes as your circumstances change lets you see if a different company can give you a cheaper price.
Your existing home insurer may charge an early termination fee if you cancel midway through a policy term to switch. These cancellation fees tend to be small, but you can avoid one entirely if you switch when your current term expires.
Bundling your homeowners policy with your car insurance and shopping around for the lowest rate are among the best ways to save money on home insurance. Make sure to ask about any discounts that may be available to you.
Homeowners insurance isn’t required by law. For mortgages, lenders often require you to insure your home at its replacement value, which is the estimated cost of rebuilding it. You can insure it for a lower amount if you have a low loan balance or no mortgage. However, doing so is rarely advised.
If you’re buying a home, it’s best to begin shopping for homeowners insurance as soon as your offer is accepted. For mortgages, lenders require your insurance policy to take effect on your closing date.
The rates shown in this article are based on nonbinding quotes collected from Quadrant Information Services. Your rates may vary. Average rates were compiled from rates in all 50 states. The following coverages and deductible were used unless otherwise noted:
Customer satisfaction and claims satisfaction ratings were obtained from the J.D. Power 2023 U.S. Home Insurance Study.
Complaint ratings come from National Association of Insurance Commissioners (NAIC) records for 2023. A confirmed complaint is one that leads to a finding of fault. A company with a 2.0 complaint rating has twice as many confirmed complaints as expected for its size. A company with a 0.5 rating has half as many.
*USAA is only available to military members and veterans, along with their families