Cheapest Homeowners Insurance Companies of 2023

You don’t need to compromise on coverage or customer service when shopping for affordable homeowners insurance. There are a number of companies that offer a variety of discounts and coverage options that can help you save.

In order to find the best cheap homeowners insurance company for you, you’ll want to get quotes from several insurers and compare them, focusing on not only the cost but also the amount of coverage available, the deductible and the company’s customer service ratings and financial strength.

CNBC Select analyzed data on dozens of homeowners insurance companies to find the cheapest policies to cover your home. Here’s what you need to know about the five best affordable homeowners insurance companies and their average rates.

Nationwide ranks as CNBC Select’s best overall pick for homeowners insurance, and also happens to be one of the more affordable companies we gathered cost data for. It’s a trusted household name and offers a number of opportunities to save on coverage.

Nationwide provides discounts for having protective devices like smoke detectors, fire alarms, and burglary alarms, as well as new home discounts and discounts for smart home technology. Additionally, it offers a number of other types of insurance, such as auto insurance, meaning that it could be a good candidate for bundling your policies for even more savings. See their savings page for more opportunities for discounts.

Average annual premium: $1,153

Erie Insurance‘s homeowners insurance is both affordable and highly rated for customer satisfaction according to J.D. Power’s U.S. Home Insurance Study. While it’s only available in 12 states, it offers some of the lowest homeowners insurance premiums of the companies we reviewed. Erie’s homeowners insurance also offers a number of coverage features standard in their base policies, including coverage for valuables, animals and gift card reimbursement.

Average annual premium: $957

Cincinnati Insurance is a smaller homeowners insurance company that offers competitive rates in most of the U.S., except for Alaska, Louisiana, Mississippi, Oklahoma and South Dakota. The insurance company also offers a number of enhancements to tailor your policy to your needs, including identity theft protection, personal cyber protection and earthquake coverage.

Average annual premium: $987

While USAA homeowners insurance is only available to those with military affiliation, it’s consistently one of the most affordable options for those who are eligible. It’s also highly rated for customer satisfaction and offers a large number of discounts on top of an already low rate, such as for going at least five years without a claim and installing qualifying smart home devices.

Additionally, bundling could be a good idea with USAA insurance — this insurance company has also earned high rankings on our lists of the best auto insurance for young adult drivers and auto insurance for high-risk drivers.

Average annual premium: $969

Auto-Owners offers affordable homeowners insurance coverage in 26 states. Auto-Owners Insurance offers a number of discounts, including a multi-policy discount that can help you save when you have another insurance policy, like auto insurance. It also offers discounts for paying in full, paying on time and a paperless policy discount.

Average annual premium: $1,049

• Raise your credit score. Your credit score plays a big role in how much you’ll pay for insurance coverage, including homeowners insurance. Raising your credit score by automating bill payments, disputing errors on your credit report and using a service like Experian Boost™ could help you raise your score, and potentially save money on your homeowners insurance.
• Shop around for coverage. The homeowners insurance coverage that’s cheapest for your neighbor might not be the cheapest for you. Since insurance companies all consider your information and information about your home differently, you could get a cheaper price by going with a different insurance company. Getting several insurance quotes and comparing the deductibles and coverage limits and types could help you find the cheapest insurance for you.
• Raise your deductible. The deductible, or the amount you’ll pay for coverage before your insurance kicks in, is one of the factors that determines how much you’ll pay for homeowners insurance. Increasing your deductible generally lowers premiums, which could make your coverage cheaper. However, you’ll need to make sure this amount is realistic — you’ll need to pay it if something happens to your home. Make sure you can afford the amount you choose.

• HO-1 insurance. This homeowners insurance is the most basic coverage and can cover your belongings and home at its actual cash value. It could include things like fire, explosions, hail, theft, and falling objects.
• HO-2 insurance. These policies cover the structure of your home at its replacement cost value and cover more things than an HO-1 policy, including things like power surges, overflow of water from a stream, and snow and ice damage.
• HO-3 insurance. This is the most common homeowners insurance and generally covers your home at its replacement value and personal property at actual cash value.
• HO-4 insurance. This is renters insurance and only covers personal property. It could also cover living expenses if your rented home is damaged.
• HO-5 insurance. An HO-5 policy will cover the dwelling and personal property in your home at replacement cost. It’s a good fit for people with expensive items in their homes, like electronics, furniture, or collections.
• HO-6 insurance. This is condo insurance and covers the contents and upgrades made to your condo.
• HO-7 insurance. This is insurance coverage for mobile homes, including trailers and fifth-wheel trailers.
• HO-8 insurance. HO-8 insurance can cover homes that wouldn’t be covered otherwise, like high-risk damage and systems.

To find the best cheap homeowners insurance, CNBC Select looked at dozens of homeowners insurance coverage and collected data on the average annual premiums.

When narrowing down the best cheap homeowners insurance, we considered data from Bankrate for a policy for two 40-year-old individuals, one male and one female without a claim history, good credit, and $250,000 in coverage. We also considered customer satisfaction ratings from J.D. Power’s Overall Customer Satisfaction Index Ranking.

From there, we sorted our recommendations by best overall, best for customer satisfaction, best for wide coverage, best for military members and best for bundling.

Note that the premiums and policy structures advertised for home insurance companies are subject to fluctuate in accordance with the company’s policies.

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*Results will vary. Not all payments are boost-eligible.  Some users may not receive an improved score or approval odds. Not all lenders use Experian credit files, and not all lenders use scores impacted by Experian Boost™. Learn more.