Hi guyz how are you, I hope you’re well and doing good in your life. Homeowners insurance is important for protecting your home, which is likely your biggest investment.
But finding the right coverage at a low price can be challenging. If you are asking, Who is the cheapest homeowners insurance? it depends on things like where you live, the size of your home and the coverage you need.
In this article, we’ll look at some of the best companies for affordable homeowners insurance and share tips on getting the best price without losing good coverage.
- Best Rated Homeowners Insurance Companies in 2025
- Cheapest Insurance for Most Homeowners: State Farm
- Best for Comprehensive Coverage: Allstate
- Best for Customer Service: Erie
- Summary
- 4 Best Budget-Friendly Home Insurance Companies
- Best Home Insurance for Poor Credit: Secura
- Top Picks for Affordable Home Insurance in Every State of USA
- FAQs
Best Rated Homeowners Insurance Companies in 2025
When it comes to affordable homeowners insurance, Erie and State Farm stand out as the most budget-friendly options. Both have average annual rates under $2,500. However, Erie is only available in 12 states and Washington, D.C.
Average Annual and Monthly Rates by Company
| Company | Annual Rate | Monthly Rate |
|---|---|---|
| Erie | $2,055 | $171 |
| State Farm | $2,427 | $202 |
| USAA* | $2,507 | $209 |
| Allstate | $2,560 | $213 |
| Country | $2,827 | $236 |
| Nationwide | $3,055 | $255 |
| American Family | $3,072 | $256 |
| Chubb | $3,664 | $305 |
| Farmers | $4,479 | $373 |
| Travelers | $4,586 | $382 |
| Progressive | $4,727 | $394 |
| Farm Bureau | $5,364 | $447 |
*USAA is exclusively available to military members, veterans, and their families.
Read more: How Much Does Home Insurance Cost? 2025
Cheapest Insurance for Most Homeowners: State Farm
State Farm offers the lowest average rate among nationwide insurers at $2,427 per year. Additionally, State Farm provides a multipolicy discount, allowing you to save up to $1,073 annually when bundling home and auto insurance.
Why Choose State Farm?
- Affordable Rates: Competitive pricing makes State Farm a great choice for most homeowners.
- Great Customer Service: Scored 829/1,000 in J.D. Power’s Home Insurance Study, above the industry average.
- Financial Stability: Received an A++ rating (superior) from AM Best.
Drawbacks:
- Limited discounts compared to competitors.
Best for Comprehensive Coverage: Allstate
Allstate stands out for its robust coverage options and flexibility. It offers all the standard policies you’d expect, plus customizable add-ons, such as:
- Scheduled Personal Property: Covers valuable items like antiques and jewelry.
- Business Property: Higher limits for business-related items in your home.
- Water Backup Coverage: Protects against water damage from sump pump failures or drain backups.
- Identity Theft Protection: Covers legal fees and lost wages due to identity theft.
Why Choose Allstate?
- Affordable Rates: The average annual cost is $2,560, with savings up to 25% when bundling home and auto insurance.
- Customization: Offers unique options for tailored protection.
Drawbacks:
- Below-average customer satisfaction score of 809/1,000 (J.D. Power, 2023).
Best for Customer Service: Erie
Erie offers the lowest average rate at $2,055 per year. It also provides a multipolicy discount of 16%-25% for bundling home and auto insurance.
Erie’s customer satisfaction is exceptional:
- Few Complaints: According to the NAIC, Erie has significantly fewer complaints than expected for its size.
- Top Ratings: Scored 856/1,000 in J.D. Power’s Home Insurance Study—second only to USAA.
Why Choose Erie?
- Lowest Rates: The most affordable option in this comparison.
- High Customer Satisfaction: Strong reputation for keeping customers happy.
Drawbacks:
- Limited Availability: Only offered in 12 states and Washington, D.C.
- Few discounts compared to competitors.
Summary
| Feature | Erie | State Farm | Allstate |
|---|---|---|---|
| Average Annual Rate | $2,055 | $2,427 | $2,560 |
| Best For | Cheapest rates | National affordability | Customizable coverage |
| Key Strength | High customer satisfaction | Great discounts and service | Comprehensive coverage options |
| Drawback | Limited availability | Fewer discounts | Below-average satisfaction score |
No matter your priorities—affordability, coverage, or customer service—these three insurers offer something for everyone. Compare your options to find the best fit for your needs!
4 Best Budget-Friendly Home Insurance Companies
1. Allstate
Allstate lets you customize your insurance and offers discounts. You can save money if you are a new customer, combine policies, or have no claims on record. They also have tools to help you choose the right coverage.
Why Consider Allstate for Home Insurance?
Allstate makes managing your home insurance simple and convenient. Whether you prefer talking to someone in person or handling things online, Allstate has options for you. The company has:
- Local Offices Nationwide: Visit a nearby agency for in-person help.
- 24/7 Support: Call their contact center anytime for assistance.
- Mobile App: Manage your policy, pay bills, and file claims on the go.
Allstate also offers strong coverage options for homeowners, including:
- Home-Sharing Protection: Extra coverage if you rent out your home.
- Special Item Coverage: Protection for musical instruments and sports equipment.
Allstate is financially stable, earning an A+ (Superior) rating from AM Best, which means it can handle claims reliably. However, its premiums are higher compared to other budget-friendly insurers, so it may not suit homeowners on a tight budget. Still, for those seeking excellent coverage options and flexible management tools, Allstate is worth considering.
Also read more about: The Best First Time Car Buyer Program With Bad Credit
Pros and Cons of Allstate
| Category | Details |
|---|---|
| ✅ Pros | |
| 24/7 Customer Support | Offers round-the-clock service through an online portal, mobile app, and contact center. |
| Wide Network of Local Agents | Provides access to many local agents for personalized service. |
| Coverage Add-Ons | Includes options like coverage for landscaping, eco-friendly home improvements, musical instruments, and more. |
| ❌ Cons | |
| High Premium | Has the highest average premium compared to other companies on the list. |
| Customer Satisfaction | Slightly below the industry average in the J.D. Power 2024 U.S. Property Claims Satisfaction Study. |
Discounts Allstate Offers
- Responsible Payment: Save for paying on time.
- Early Signing: Get a discount for signing up before your current policy expires.
- Easy Pay Plan: Enjoy savings when you set up automatic payments.
Compare Allstate Rates to the National Average
| Coverage Level | Allstate | National Average |
|---|---|---|
| $150,000 | $1,532 | $1,406 |
| $350,000 | $2,554 | $2,571 |
| $450,000 | $3,074 | $3,117 |
| $750,000 | $3,817 | $4,549 |
Although Allstate costs slightly more than the national average at lower coverage levels, it becomes a more affordable choice for higher coverage needs.
2. Nationwide
Nationwide offers a variety of insurance options, not just for homes but also for condos, apartments, farms, pets, and vehicles.
It even provides financial products like retirement plans, mutual funds, and annuities. This makes Nationwide a great choice for homeowners who want to combine all their insurance and financial needs under one company.
Why Choose Nationwide for Home Insurance?
While Nationwide isn’t the cheapest option, its average home insurance rates are still lower than the national average. Plus, it offers discounts that can help you save even more. Nationwide is financially strong, holding an A+ (Superior) rating from AM Best, so you can trust it to handle claims reliably.
Pros and Cons of Nationwide Home Insurance
| Pros | Cons |
|---|---|
| ✅ Offers various insurance types and financial products, including banking and retirement options | ❌ Below-average customer satisfaction scores in J.D. Power’s survey |
| ✅ Provides several discounts to lower premiums | ❌ Mobile app offers limited features for homeowners |
Discounts Nationwide Offers
- Gated Community Discount: Save if your home is in a gated community.
- Home Renovation Discount: Lower rates if you’ve recently renovated your home.
- Smart Home Discount: Save by using smart home devices like security systems or water leak detectors.
Compare Nationwide Rates to the National Average
| Coverage Level | Nationwide | National Average |
|---|---|---|
| $150,000 | $1,043 | $1,406 |
| $350,000 | $1,993 | $2,571 |
| $450,000 | $2,379 | $3,117 |
| $750,000 | $3,850 | $4,549 |
Nationwide offers significantly lower rates than the national average across all coverage levels, making it a solid option for homeowners who want quality coverage and savings.
3. American Family Insurance
American Family offers a variety of options to add extra protection to your home insurance policy. They cover standard add-ons like:
- Equipment Breakdown: Covers repair or replacement costs for appliances and systems.
- Sewer Backup: Protects against damage from backed-up drains or sewers.
- Identity Protection: Helps recover from identity theft.
- Scheduled Personal Property: Covers high-value items like jewelry or antiques.
- Service Line Coverage: Pays for damages to utility lines on your property.
Why Consider American Family for Home Insurance?
- Flash Flood Coverage: Protects against sudden flood damage.
- Hidden Water Damage: Covers water damage you might not notice immediately.
- Matching Siding Coverage: Ensures repairs blend with your home’s existing appearance.
- Senior Living Protection: Protects belongings in assisted living facilities and adds liability coverage.
Although American Family’s financial strength rating is slightly lower than some competitors (an A rating from AM Best), it is still considered excellent and trustworthy.
Pros and Cons of American Family Home Insurance
| Category | Details |
|---|---|
| ✅ Pros | |
| Customer Satisfaction | Scored above average in the J.D. Power 2024 U.S. Property Claims Satisfaction Study. |
| Local Agents | Offers in-person support through a network of local agencies. |
| ❌ Cons | |
| Limited Availability | Policies are only available in 19 states. |
| Home Insurance Rating | Scored below average in the J.D. Power 2024 U.S. Home Insurance Study. |
Discounts Offered by American Family
- Generational Discount: Save money if your parents are also American Family customers.
- Renovated Home Discount: Lower premiums if your home has been recently updated.
- Safe, Secure, Smart Home Discount: Discounts for using smart devices like security systems or water leak detectors.
How American Family Rates Compare to the National Average
| Coverage Level | American Family | National Average |
|---|---|---|
| $150,000 | $1,144 | $1,406 |
| $350,000 | $1,869 | $2,571 |
| $450,000 | $2,204 | $3,117 |
| $750,000 | $2,971 | $4,549 |
American Family’s rates are significantly lower than the national average, making it an excellent choice for homeowners looking for affordable and flexible insurance options.
4. AUto Owners Insurance:
Auto-Owners provides home insurance in 26 states through a large network of independent agents. Their policies are flexible, allowing you to add coverage options based on your needs. Some notable coverage options include:
- Guaranteed Home Replacement: Ensures your home is fully rebuilt, even if costs exceed your policy limit.
- Equipment Breakdown: Covers repairs or replacements for appliances and systems.
- Identity Theft Coverage: Helps recover losses if your identity is stolen.
Pros and Cons of Auto-Owners Home Insurance
| Category | Details |
|---|---|
| ✅ Pros | |
| Coverage Options | Offers many optional coverage choices to tailor your policy to your needs. |
| Financial Strength | Holds a Superior financial strength rating (A++) from AM Best, indicating stability and reliability. |
| ❌ Cons | |
| Availability | Only available in 26 states, limiting access for some homeowners. |
| Digital Tools | Provides fewer digital tools compared to some other home insurance companies. |
Discounts You Can Get with Auto-Owners
- Life Multi-Policy Discount: Save by bundling life insurance with your home policy.
- Paid-in-Full Discount: Get a lower rate if you pay your premium upfront.
- Water Shut-Off System Discount: Save by installing a system that prevents water leaks.
Comparing Auto-Owners Rates to the National Average
| Coverage Level | Auto-Owners | National Average |
|---|---|---|
| $150,000 | $1,172 | $1,406 |
| $350,000 | $1,891 | $2,571 |
| $450,000 | $2,288 | $3,117 |
| $750,000 | $3,357 | $4,549 |
Auto-Owners offers competitive rates that are well below the national average, making it a great option for homeowners who want affordable and flexible insurance. With their wide range of coverage options and discounts, they cater to a variety of needs while helping you save.
Best Home Insurance for Poor Credit: Secura
Your credit score can affect your home insurance cost in most states (except California, Maryland, and Massachusetts). Insurance companies use your credit-based insurance score to assess risk. Homeowners with poor credit are seen as more likely to file claims, so they typically pay higher premiums.
Here’s how credit affects average premiums:
- Good Credit: $2,304/year (national average for $300,000 dwelling coverage).
- Poor Credit: $3,887/year (significantly higher).
- Average Credit: $2,484/year.
Based on a study by Bankrate using data from Quadrant Information Services, Secura stands out as the cheapest option for homeowners with poor credit, offering competitive rates across all credit tiers.
Home Insurance Rates by Credit Tier
| Insurance Company | Poor Credit | Average Credit | Good Credit | Excellent Credit |
|---|---|---|---|---|
| Secura | $2,022 | $1,251 | $1,126 | $980 |
| Pekin | $2,381 | $1,609 | $1,533 | $1,370 |
| Cincinnati | $2,103 | $1,647 | $1,613 | $1,503 |
| USAA | $2,411 | $1,536 | $1,451 | $1,308 |
| Hastings Mutual | $2,355 | $1,335 | $1,223 | $951 |
| AAA | $4,283 | $2,052 | $1,845 | $1,567 |
Why Choose Secura?
| Category | Details |
|---|---|
| ✅ Pros | |
| Affordable Rates | Offers the lowest average premium for homeowners with poor credit. |
| Competitive Across Tiers | Provides great rates for all credit tiers, including excellent credit. |
| ❌ Cons | |
| Limited Availability | Secura may not be available in all states, so check its coverage area. |
Top Picks for Affordable Home Insurance in Every State of USA
| State | Cheapest Home Insurance Company | Average Annual Premium for $300,000 Dwelling Coverage |
|---|---|---|
| Alabama | Cincinnati | $2,817 |
| Alaska | Umialik | $986 |
| Arizona | Armed Forces | $2,229 |
| Arkansas | USAA | $2,972 |
| California | Progressive | $1,480 |
| Colorado | Grange Insurance Association | $3,222 |
| Connecticut | Vermont Mutual | $1,605 |
| Delaware | Cumberland Mutual Fire | $966 |
| Florida | State Farm | $5,527 |
| Georgia | Georgia Farm Bureau | $2,014 |
| Hawaii | UPC | $1,203 |
| Idaho | Mutual of Enumclaw | $1,282 |
| Illinois | USAA | $2,407 |
| Indiana | Buckeye State Mutual | $1,717 |
| Iowa | Nationwide | $2,284 |
| Kansas | Allstate | $4,241 |
| Kentucky | AAA | $3,277 |
| Louisiana | Armed Forces | $4,296 |
| Maine | Vermont Mutual | $1,227 |
| Maryland | Brethren Mutual | $1,561 |
| Massachusetts | Narragansett Bay | $1,671 |
| Michigan | Auto-Owners | $2,040 |
| Minnesota | Auto-Owners | $2,578 |
| Mississippi | USAA | $3,285 |
| Missouri | USAA | $2,117 |
| Montana | Chubb | $2,531 |
| Nebraska | American Family | $5,544 |
| Nevada | Capital | $958 |
| New Hampshire | Vermont Mutual | $980 |
| New Jersey | Selective | $1,162 |
| New Mexico | State Farm | $2,071 |
| New York | NYCM | $1,745 |
| North Carolina | Lititz Mutual | $2,459 |
| North Dakota | American Family | $2,880 |
| Ohio | Buckeye State Mutual | $1,312 |
| Oklahoma | American National | $5,049 |
| Oregon | Mutual of Enumclaw | $1,015 |
| Pennsylvania | Cumberland Mutual Fire | $1,233 |
| Rhode Island | State Farm | $2,094 |
| South Carolina | Progressive | $2,420 |
| South Dakota | USAA | $2,857 |
| Tennessee | USAA | $2,321 |
| Texas | Armed Forces | $3,884 |
| Utah | Mutual of Enumclaw | $1,200 |
| Vermont | Vermont Mutual | $806 |
| Virginia | Donegal | $1,520 |
| Washington | PEMCO | $1,434 |
| West Virginia | USAA | $995 |
| Wisconsin | American Family | $1,198 |
| Wyoming | Allied | $1,352 |
| District of Columbia | USAA | $1,405 |
FAQs
Q1. Who is the cheapest homeowners insurance in texas?
The cheapest homeowners insurance company in Texas is Armed Forces Insurance, with an average annual premium of $3,884 for $300,000 in dwelling coverage. This makes it a great option for affordable rates in the state.
Q2. How to save on homeowners insurance?
Saving on homeowners insurance starts with finding an affordable company, but there’s more you can do to lower your premium. Consider bundling your home and auto insurance for discounts, improving home safety with features like security systems, and raising your deductible to lower your premium. It’s also smart to compare quotes from different companies to find the best rate.