Cheap Homeowners Insurance (2021 Guide)

Adobe Stock

Homeowners insurance can be a lifesaver after an unexpected house-related accident or disaster. It protects policyholders from associated financial burdens and allows them to restore their homes and replace belongings.

While it may not be legally required, a good homeowners policy is a sound investment when you purchase a home, and there are many companies that offer comprehensive policies at affordable rates. If you’re ready to start comparing quotes in your area, enter your ZIP code into this free tool or call 855-948-5219.

To give you a general idea of what pricing from these insurers might look like, we requested some sample quotes for a single-family house in Kempton, Pennsylvania. Of course, your homeowners insurance quote will vary based on your location, the size and age of your home, and other personal details, so we recommend comparing quotes using your own zip code.

7 Top-Rated and Cheap Homeowners Insurance Companies

After reviewing dozens of providers in the industry and their individual costs, we identified the following providers as the top insurers with cheap policies:

• Amica: Most Trusted

• Travelers: Best Deductible Options

• State Farm: Best for New Homeowners

• Lemonade: Most Accessible

• Nationwide: Best Coverage Options

• AAA: Best for Club Members

• USAA: Best for U.S. Military Families

1. Amica: Most Trusted

Amica is the cheapest home insurance provider on this list based on our quotes, and we labeled it most trusted due to its customer satisfaction ratings and 113 years of service. Because of its low price points, available discounts, and extensive coverage options, Amica is a great choice for homeowners looking to save a little money.

Amica Home Insurance Policy Details

• Cost: $76 per month

• Available discounts: Bundling, electronic billing and auto pay, alarm systems, renovated home discount, and claim-free rates

• Additional coverage options: Credit card theft, extra electronics coverage, flood and earthquake, and replacement cash value (RCV) coverage

• Available states: 47 (not available in Alaska, Florida, or Hawaii)

• Better Business Bureau (BBB) rating: A+

2. Travelers: Best Deductible Options

Story continues

In addition to providing nine deductible options ranging from $1,000 to $50,000, Travelers offers a decreasing deductible add-on that lowers your premium by $100 every year that you have an active policy. If you plan to keep your policy for a while, this allows you to take advantage of even more savings.

Travelers Home Insurance Policy Details

• Cost: $90 per month

• Available discounts: Green home (LEED certified), new homebuyer discount for recent purchase, bundling, and alarm system discounts

• Additional coverage options: Extra replacement cost options, identity theft protection up to $25,000, and water backup add-ons

• Available states: 49 (not available in Florida)

• BBB rating: A+

3. State Farm: Best for New Homeowners

State Farm is an authoritative brand in the insurance industry with almost 100 years of experience. We recommend the provider to new homeowners who need a reputable company to walk them through the process. State Farm offers educational resources on its website, a smartphone app, and helpful customer service. With sample rates coming in at just under $100 per month, it’s also one of the cheapest options available.

State Farm Home Insurance Policy Details

• Cost: $96.50 per month

• Available discounts: Multi-policy bundling, impact-resistant roofing materials, higher deductible discount, alarm systems, and claim-free discounts

• Additional coverage options: Personal injury liability add-on, thorough identity theft coverage, home systems replacement, and service line repairs

• Available states: 50

• BBB rating: NR

4. Lemonade: Most Accessible

Lemonade is one of the newest companies in the industry, but it’s quickly become a reliable choice. The provider has embraced some of the most readily accessible technology for policyholders and it developed an impressive online presence. With a user-friendly app and quick quote and sign-up process, Lemonade is building a healthy community of customers. Additionally, it has a charitable “Giveback” program that donates unclaimed premiums to a nonprofit of your choosing.

Lemonade Home Insurance Policy Details

• Cost: $105 per month

• Available discounts: Theft protection, frame type (discount for masonry), gated community discount, and proximity to fire station and hydrants

• Additional coverage options: Add-ons for jewelry, fine art, bikes, cameras, musical instruments, swimming pools, and significant others

• Available states: 23 and Washington, D.C.

• BBB rating: B+

• Get a quote: Visit lemonade.com

5. Nationwide: Best Coverage Options

Nationwide is one of the cheapest homeowners insurance providers available, but it also has extensive additional coverage options that are worth highlighting. In most cases, Nationwide will have the endorsements that you’re looking to add to your policy, from flood insurance to a roof replacement add-on. These additional coverage options will make your policy more expensive, but they’re worth it in the long run if they give you peace of mind.

Nationwide Home Insurance Policy Details

• Cost: $106.82 per month

• Available discounts: Protective systems, roofing age and type, recent purchase, gated community, and multi-policy bundling discounts and benefits

• Additional coverage options: Flood and earthquake, water backup, identity theft, high-value personal property, and roof replacement

• Available states: 50

• BBB rating: A+

6. AAA: Best for Club Members

AAA offers some of the cheapest policies to its members, though discounts tend to vary by area. If you’re a AAA automotive member, you can take advantage of additional benefits when purchasing homeowners insurance, such as rebuilding cost coverage. To request a quote or speak to an agent, contact your local AAA club.

AAA Home Insurance Policy Details

• Cost: Varies depending on the club

• Available discounts: Auto insurance bundling and membership discounts

• Additional coverage options: Flood insurance, jewelry, collectibles (as well as other high-value property items), and a 100% home rebuilding add-on

• Available states: 50

• BBB rating: A+

7. USAA: Best for U.S. Military Families

To be eligible for a membership with USAA, you must be an active or retired member of the U.S. military or an eligible family member. USAA is one of the cheapest insurance providers for homeowners in that category, but the company requires you to provide more personal details in order to confirm your eligibility and give an accurate quote.

USAA Home Insurance Policy Details

• Cost: Varies for each USAA member depending on their personal details

• Available discounts: Recent construction/renovation, payment history, roofing type and age, protective alert systems, and bundling discounts

• Additional coverage options: Replacement cash value (RCV) add-on, identity theft, military uniform replacement, and earthquake and flood coverage

• Available states: 50

• BBB rating: A-

Verdict & Recommendation

Fortunately for homeowners, there are many inexpensive yet excellent home insurance policies to choose from. We suggest reviewing what each company has to offer, comparing them to your needs, and using this free quote tool or calling 855-948-5219 to get quotes from providers in your area.

Just because these home insurance companies are cheap doesn’t mean they can’t keep your home protected. Compare your list to ours to determine which provider works best for you.

Frequently Asked Questions

What is homeowners insurance?

Homeowners insurance is a type of protection policy you can purchase for your home and belongings. It can save you thousands of dollars in out-of-pocket expenses if an unexpected incident occurs. The standard package typically covers the structure of the home, your personal belongings, liability if someone is injured in your home, and additional living expenses incurred by loss of use.

Does homeowners insurance cover floods?

No, homeowners insurance policies typically don’t include flood or earthquake insurance. However, some companies offer it as an add-on in certain packages. Check the details of your quote to see what the company will cover.

Is homeowners insurance required?

No, homeowners insurance is not legally required in any state. However, if you have a mortgage on your home, your lender may require at least some level of coverage. Check the details of your loan to make sure you get the necessary coverage on your policy.