Best cheap homeowners insurance companies 2021
Fact-checked with HomeInsurance.com
Your home is not only one of the biggest investments you will make in your life, but also one of the most important. That’s why it is so critical that you protect it with the right homeowners insurance coverage so your home — and everything inside it — is protected from harm. However, not all home insurance companies offer the same coverage, and price can vary widely, making it important to compare to find the best affordable home insurance for your family.
Coverage reviewed the best home insurance companies in the country, looking for the most affordable premiums offered by providers who don’t sacrifice critical factors like coverage options, service area, customer service and financial stability. Based on these factors, these are Coverage’s top picks for the best cheap homeowners insurance companies for 2021.
The best cheap home insurance companies
- CSAA Insurance – Best for extra benefits
- Erie Insurance – Best for cheapest homeowners insurance
- Nationwide – Best for replacement coverage
- Progressive – Best for mobile tools
- Travelers – Best for additional coverage
Top home insurance company ratings
|Company||$200,000 Dwelling||$250,000 Dwelling||J.D. power overall satisfaction rating||AM Best||Standout quality|
|CSAA Insurance||$972||$1,127||825/1000||A (Excellent)||Best for extra benefits|
|Erie Insurance||$896||$1,088||839/1000||A+ (Superior)||Cheapest homeowners insurance|
|Nationwide||$1,145||$1,366||808/1000||A+ (Superior)||Best replacement coverage|
|Progressive||$977||$1,141||797/1000||A+ (Superior)||Best mobile tools|
|Travelers||$1,076||$1,277||803/1000||A++ (Superior)||Best additional coverage|
CSAA: Best for extra benefits
As the California State Automobile Association (CSAA), this branch of AAA focuses its services largely within the western part of the U.S., such as Northern California, Nevada, and Utah, but it is available in 23 states total, plus Washington, D.C. More importantly, it is the affordable homeowners insurance solution for more than 50 million American Automobile Association (AAA) members.
That means in addition to some of the best affordable home insurance, members also receive excellent benefits, such the famous roadside assistance with AAA car insurance, shopping discounts, and travel benefits. Be sure to make use of the extra home insurance discounts, too, which could save you up to 13% with a claim-free discount or up to 40% off when you have a newer home.
Erie: Best for cheapest homeowners insurance
Erie Insurance offers some of the best and cheapest home insurance in the U.S. Its coverage area is limited, offering service to just 12 states and Washington, D.C. If you live within its service area, Erie offers well-rounded home insurance with guaranteed replacement coverage for your property and theft and loss protection. Even pets are covered under your policy.
Erie offers additional protections, such as coverage for your high-value items, and even your passports. Your home insurance can even include identity theft recovery, protection for sewer lines, and water backup and sump overflow coverage. Discounts are plentiful, with savings for home safety features, early renewal and discounts for home and auto insurance bundles.
Nationwide: Best for replacement coverage
Nationwide makes sure that a loss doesn’t cost you your most cherished belongings. With extended replacement coverage, policyholders benefit from affordable home insurance coverage with extra protections, such as loss of use and credit card coverage. Brand new belongings replacement reimburses you based on today’s current value instead of the value when you originally bought it.
Its better roof replacement ensures that if a covered loss requires your roof to be rebuilt, Nationwide will cover the extra costs to ensure it is built stronger and safer than before. There are other types of protections, like ordinance or law insurance and protection for other structures on your property. Even with its low rates, there are also other ways to save, such as home safety, home renovation credit, roof rating and gated community discounts.
Progressive: Best for mobile tools
Progressive is not just an excellent option for its nationwide coverage and affordable home insurance, but it also offers fantastic tools to keep you plugged in on the go. You can manage your policy, track and file claims and benefit from a multitude of online resources also designed to make managing your homeowners insurance policy a breeze.
Progressive Home Advantage offers fantastic options for coverage for things like high-value items, sewer and water backup, and extended replacement cost protection. New homebuyers can benefit from special discounts, or discounts for things like early renewal and protective devices. Just be aware that when you experience a loss, Progressive will refer you to a partner to actually process the claim.
Travelers: Best for additional coverage
Another option for the best cheap home insurance, Travelers is a great pick for its additional coverage. Home insurance policies include extra protections through things like loss of use and expanded special person property protection. Contents replacement makes sure that your lost belongings are replaced with current models, while additional replacement cost protection coverage offers extended reimbursement value on covered claims. Travelers also has green home coverage that will rebuild your home with eco-friendly materials. For further peace of mind, consider Travelers’ protection for high-value items and identity fraud protection of up to $25,000 and with no deductible.
How to choose the best cheap home insurance company
The average cost of home insurance in the U.S. is $1,211 per year for $200,000 in dwelling coverage, but our tips for cheaper home insurance could save you hundreds of dollars each year on your insurance premium. Shopping multiple providers is crucial, because every company prices insurance differently. Home insurance companies will take into account several factors before calculating your home insurance quote, assessing details like where you live, the age of your home, its construction type and your credit score.
After receiving quotes from multiple companies, there are some other things to consider to help you find the best price home insurance for you.
The standard home insurance policy covers some basic protections, such as your home’s physical structure and the belongings inside of it. However, just because your home insurance replaces your home doesn’t mean that it is going to be replaced the way you want it. That’s why extra coverage like additional structures protection, green home coverage, and better roof replacement can be so critical.
There are other essential protections, such as liability protection for visiting friends and medical payments protection that compensate for medical bills from guest injuries. Be sure to consult your mortgage lender to find out the minimum amount of home insurance required under the terms of your mortgage.
Every home insurance company uses a different method to calculate your policy. To find the best home insurance policy, you should gather multiple home insurance quotes. Be sure to inquire about any exclusive coverage options or discounts you can use to save money, like discounts when you bundle home and auto insurance, as well as opportunities for special coverage not commonly seen elsewhere.
Consider financial strength
Before you choose the cheapest home insurance, check financial ratings to determine a company’s strength. When a company has a high rating from respected financial agencies like AM Best and Standard & Poor’s, it means that the company is financially stable and sound. That is very important when it comes time to process your claim, because the stronger the company’s financial ratings, the more reliable and faster you can expect the claims process to be.
Consider customer and claims satisfaction.
Other ratings to consider are an insurance provider’s customer and claims satisfaction scores. J.D. Power & Associates and the National Association of Insurance Commissioners (NAIC) regularly review and rate home insurance companies based on how well they serve customers’ needs. When checking reviews, look to see if customers frequently report delays or denials with claims, as well as its ability to deliver reliable customer service throughout the process.
Factors that affect homeowners insurance rates
Before you can find the most affordable homeowners insurance, you first must understand how the insurance companies price their coverage. Insurance policies are based on several factors, such as these.
Every insurance company will offer basic home insurance coverage, but some go above and beyond with additional protections that allow you to truly customize your policy. There are different types of coverage you can choose from to best suit your home, such as green home coverage or protection for valuables. High-value items like antiques and collectibles will cost more to insure than everyday items. How much you choose for your deductible and the limits of your coverage will also impact the total cost of your home insurance premium.
Where you live is another key factor that affects rates. Some insurance providers, such as CSAA and Erie Insurance, may be more limited in their services areas than other national providers, like Nationwide and Progressive. Your home address can impact how much you pay, too, because if you live in a high-risk area, you are likely to encounter higher rates. Certain areas are more susceptible to losses, such as Florida with its hurricanes and California with its earthquakes and wildfires.
The type of home
The kind of home you have impacts how much you pay for your home insurance premium. There are several factors that will help to determine how much you pay, such as these:
- The age of your home
- The personal belongings inside your home
- Any additional structures on your property
- The materials it’s built from
- Any remodels or renovations
- Security features and your home’s resistance to disasters
- The surrounding geography
Other home insurance companies to consider
|Provider||$200K Dwelling||$250K Dwelling|
|Allstate Ins Grp||$1,229||$1,451|
|American Family Ins Grp||$1,255||$1,458|
|American Intl Grp||$975||$1,130|
|Amica Mut Grp||$1,655||$1,996|
|Auto Club Enterprises Ins Grp||$1,239||$1,440|
|Auto Owners Grp||$1,283||$1,503|
|Automobile Club MI Grp||$1,151||$1,344|
|Chubb Ltd Grp||$1,163||$1,379|
|Country Ins & Fin Serv Grp||$1,276||$1,482|
|Farmers Ins Grp||$1,271||$1,502|
|Hartford Fire & Cas Grp||$1,444||$1,730|
|Heritage Ins Holdings Grp||$1,321||$1,650|
|State Farm Grp||$1,230||$1,457|
|United Ins Holdings Grp||$1,484||$1,796|
|United Serv Automobile Assn Grp||$1,228||$1,454|
|Universal Ins Holding Grp||$1,445||$1,736|
- Home insurance is an important type of protection that covers your home and your possessions inside of it.
- Consider what kind of additional protections you may need, such as high-value protection or eco-friendly materials.
- Inquire about discounts to lower the price of your home insurance policy, such as bundle discounts or home safety discounts.
- Be sure to compare quotes to find the most affordable option for your specific home.
The cheapest home insurance rates will vary based on where you live and the kind of home you own. Home insurance companies will also look at personal factors, such as your credit history and how many claims you have filed in the past. Before you decide on which is the cheapest homeowners insurance company for you, be sure to collect multiple quotes and compare them carefully to find the best fit for your family. With so much to save, you’ll be happy that you did.
Coverage utilizes Quadrant Information Services to analyze rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:
- Coverage A, Dwelling: $200,000
- Coverage B, Other Structures: $20,000
- Coverage C, Personal Property: $100,000
- Coverage D, Loss of Use: $40,000
- Coverage E, Liability: $300,000
- Coverage F, Medical Payments: $1,000
The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).
These are sample rates and should be used for comparative purposes only. Your quotes may be different.
Rates are determined based on 2020 Quadrant Information Services data.