CEveryone wants reliable home coverage—but who has the cheapest homeowners insurance in USA? Costs vary widely based on your location, coverage needs, and risk factors. In this comprehensive 2025 guide, we’ll compare companies known for affordability, outline what drives prices, and share proven tips to find the cheapest homeowners insurance without sacrificing coverage.
📊 National Cost Landscape
The average homeowners insurance premium in the U.S. sits around $1,300–$1,500 annually, or $100–$125 per month . But affordability depends heavily on where you live.
- Cheapest states include Vermont (~$954), Hawaii, Alaska, New Hampshire, and Delaware Insurify+1TIME+1.
- Most expensive states like Florida (~$10,675), Louisiana, Oklahoma, Texas, and Colorado see premiums above $4,000 Insurify.
Ultimately, who has the cheapest homeowners insurance in USA depends on regional factors and provider networks.
🏆 Top Companies With Low Premiums
1. Auto‑Owners Insurance
- Average policy: $117/month for $300K dwelling Business Insider+13Quote.com+13Forbes+13.
- Known for A++ financial strength and multi-policy bundling.
- State-limited coverage (26 states).
2. USAA
- Cheapest overall for eligible customers—military and families—around $126/month Insurify+4Quote.com+4Wikipedia+4.
- Top-tier claims service and identity theft protection.
3. Chubb
- Extremely competitive for well-qualified homeowners—approx. $991/year for $100K dwelling Quote.comMoneyGeek.com.
- Strong financial backing, exceptional customer service.
4. State Farm
- Holds the title for cheapest major brand with average $1,514/year ($126/month) Investopedia+15ValuePenguin+15Quote.com+15.
- Offers robust discounts when you bundle home and auto.
5. Lemonade
- Average monthly cost as low as $25 (varies by region) TIME+11Business Insider+11ValuePenguin+11.
- Best for digital-first homeowners who prefer fast online quotes.
6. Progressive
- Monthly rates range from $83–$138 depending on location The Wall Street Journal+15Business Insider+15Quote.com+15.
- Offers bundling and digital service flexibility.
7. The Zebra/AIG/National General
- The Zebra’s survey found National General at $117/month, AIG at $146, and State Farm at $189 Business Insider+3Investopedia+3Quote.com+3The Zebra.
8. Erie Insurance
- Average $1,244/year, highly rated for customer satisfaction Insurance GURU.
- Regional availability (limited states).
🌍 Cheapest Providers by State
Based on Forbes Advisor data:
- Alabama: Farmers (~$670/year)
- Arizona: Progressive (~$629)
- California: Allstate (~$416!) Quote.com+1Insurance GURU+1Wikipedia+12Forbes+12Insurify+12
- Florida: Security First (~$348) despite state average of ~$2,164 The Zebra+5Forbes+5Credit+5
- Texas: Mercury (~$701) vs. state average ~$2,293 Forbes
These statewide comparisons show the importance of regional pricing. The Wall Street Journal+9Forbes+9MoneyGeek.com+9
🔍 What Drives Premiums?
⚠️ 1. Location & Natural Risks
Premiums reflect the risk of natural disasters—storms, wildfires, floods. For instance, California’s Palisades had low rates until recent fires prompted hikes Reuters.
🏡 2. Home Value & Replacement Cost
Insurers base rates on rebuilding costs, not just market value.
🛠️ 3. Home Features & Safety
Upgrades like Fortified roofs, storm shutters or smoke detectors yield discounts. In Texas, some insurers offer 24% off for Fortified homes TIMEHouston Chronicle.
👤 4. Credit & Claims History
Good credit and fewer claims lead to lower premiums. Nationwide is often cheapest for homeowners with poor credit Quote.com+5MoneyGeek.com+5MoneyGeek.com+5.
🧾 5. Discounts & Bundles
Major discounts apply for bundling auto and home, paying online, or installing security systems .
💡 Tips to Secure The Cheapest Homeowners Insurance
✅ Compare Multiple Quotes
Shop at least three providers annually. Use tools like Policygenius, The Zebra, and Insure.com.
✅ Bundle Policies
Many insurers (Allstate, State Farm, Erie) offer 20–25% off for home and auto coverage The Zebra+1Investopedia+1Quote.com.
✅ Boost Home Resilience
Install storm-resistant features to earn Fortified or mitigation discounts .
✅ Raise Deductibles
A higher deductible lowers premiums—if you can cover claims out of pocket.
✅ Pay Attention at Renewal
Renewal periods are ideal for re-shopping—this tactic alone can save hundreds Quote.comQuote.com+2Investopedia+2Kiplinger+2.
✅ Keep Credit Strong
Even small credit improvements can pay dividends, especially in states that allow credit-based pricing .
🛡️ When Low-Cost Providers May Not Fit
Cheapest isn’t everything. Consider:
- Coverage limits: Some low-cost options cap dwelling or liability coverage.
- Availability: Regional providers like Erie or Auto-Owners aren’t available everywhere.
- Service quality: Chubb and USAA may cost more, but provide top-tier claim support.
- Insurtech trade-offs: Lemonade offers speed but may lack personalized agent support.
📝 Final Take: Who Has The Cheapest Homeowners Insurance?
- USAA: Best for military members (~$126/month)
- Auto-Owners: Exceptional balance of cost ($117/month) and service Kiplinger+3Houston Chronicle+3Reuters+3Wikipedia+3Quote.com+3Insurance GURU+3Business Insider
- State Farm: Cheapest major brand (~$1,514/year) Insurance GURU+2ValuePenguin+2Forbes+2
- Lemonade & Progressive: Great for online-first consumers (~$25–$138/month) Business Insider+1Quote.com+1
- Erie: Cheapest in its regions (~$1,244/year) MoneyGeek.com+2Insurance GURU+2Reddit+2
✅ How to Choose the Right Provider
- Know your regional cost – Use state averages as benchmarks TIME.
- Compare quotes across providers – Include both national and local.
- Evaluate discounts & bundling – Optimize these for the best rate.
- Balance cost vs. coverage – Cheapest isn’t always enough.
- Review annually – Re-shop and adjust to keep premiums low.
🔗 Useful Links & References
- National Flood Insurance Program (NFIP)
- Policygenius homeowners comparison
- The Zebra rate tool
- Insurance Information Institute
- Fortified Home Standards
- California FAIR Plan – for high-risk homes
💬 Conclusion
Finding the cheapest homeowners insurance in USA depends not only on provider rates but on your location, home characteristics, and how actively you shop. With smart strategies—bundling, resilience upgrades, credit improvement—you can secure top-tier coverage at minimal cost. Want help comparing quotes in your area or customizing coverage? I’m here to assist!
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