Cheapest home insurance companies

Our top 5 picks for cheap home insurance

When selecting our top choices for cheap home insurance, we focused on more than the monthly premium. Our picks offer discounts, are widely available and have a strong financial rating. No company is perfect, but these insurers have much to offer at reasonable prices.

• Lemonade
• Pacific Specialty Insurance
• Liberty Mutual Insurance
• The Hartford Homeowners Insurance
• Farmers Homeowners Insurance

How much is homeowners insurance?

The cost of homeowners insurance can vary widely depending on the value of the home and where you live. For instance, a quote from Farmers shows a $500,000 home in Chicago, Illinois, would cost about $1,400 per year to insure, while a $200,000 home in Springfield, Illinois, would cost about $1,100.

Each state has different policies and laws, which can greatly affect the cost. Check several quotes to find the best rates available for your home’s value and location.

» COMPARE: Best homeowners insurance companies

Factors that impact home insurance costs

There are many factors that can affect the cost of home insurance. These are some of the key factors that affect the cost:

• Location: Different locations can vary in construction costs and extreme weather risks, affecting insurance premiums.
• Age of home and replacement cost: Older homes and those with a higher replacement cost are more expensive to insure.
• Credit score: Your premium may be lower if you have a good credit score.
• Safety features and discounts: Homes with safety features like security systems and smoke alarms are often cheaper to insure. Many insurers offer several other discounts, like bundling and new homeowner discounts.

Understanding home insurance and how it is calculated can be tricky. While giving rough estimates of home insurance costs is possible, each quote will vary depending on the insurer and how it calculates rates.

How to save on homeowners insurance

Homeowners insurance is a significant expense, but there are numerous ways to save money on your premiums. Ways to save include:

• Multipolicy discounts: Bundling home insurance with auto insurance or other policies typically means you’ll pay less than you’d pay for each policy separately.
• Home security: Increase your home safety with security systems, fire prevention and other measures for a discount.
• Increase your deductible: Some insurers will let you increase your deductible, meaning you’ll pay more out of pocket before your policy kicks in. This can be cheaper in some cases, like if you have a newer home in a safe area.
• Improve your credit: While improving your credit isn’t an overnight fix, it can lower your monthly premium.

Even if you think your policy is inexpensive, you might still be able to find a cheaper policy elsewhere. It might be worth shopping around and comparing rates to see which insurers are the most affordable.

» LEARN: How to save on homeowners insurance

What does homeowners insurance cover?

Homeowners insurance covers many things, such as damage to the home from a fire, storms, or vandalism. However, it’s important to note that flooding isn’t covered unless you have a separate flood policy. Other common coverages include personal belongings, liability and detached structures like sheds and garages.

Bottom line

Homeowners insurance is a significant expense, but several companies offer competitive rates and great value. Our top pick for cheap homeowners insurance is Lemonade, thanks to its affordable premiums and streamlined quotes.

When choosing a homeowners insurance policy, consider rates, strong financial rates, broad availability and available discounts. To find the best choice for your home, you’ll need to consider your location, home value and specific needs.