When comparing homeowners insurance, you should consider price, coverage and customer service.
Although one company might have cheaper quotes, its coverage might not be right for you. Quotes are always free. Just share some information about you and your home, and insurance companies will give you rates you can compare.
How to compare home insurance
There are four steps that you should follow when shopping for homeowners insurance: compare coverage options, get home insurance quotes from multiple companies, compare customer service reviews, and buy a policy.
Compare home insurance quotes
State Farm has the best homeowners insurance rates, compared to other national companies.
Erie offers the cheapest home insurance quotes overall. But it's only available in 12 states and Washington, D.C.
Home insurance quote comparison
Company | Annual rate | ||
|---|---|---|---|
 | Erie | $1,244 | |
 | State Farm | $1,363 | |
 | Allstate | $1,369 | |
 | Nationwide | $1,390 | |
 | Farmers | $1,475 | |
/*USAA is only available to military members, veterans and their families.
If you have car insurance, make sure you compare quotes from your current insurance company, too. Most companies offer a discount for bundling auto and home insurance, which could save you up to 25%.
Companies use this info to decide how much you'll pay for insurance. That's because it affects the chance that you'll have to make a claim and how expensive that claim could be. For example, a 20-year-old roof is more likely to leak during a storm than a 2-year-old roof.
Compare quotes in your state
Where you live affects your home insurance rates. This is partially because climate and weather can cause a lot of damage to your home.
For example, homeowners in Florida pay some of the highest rates in the country, with an average price of $2,207 per year, in part because of regular hurricanes.
That's one reason why the cheapest home insurance company in your state may not be the same as the cheapest company overall. In fact, the most affordable company overall, Erie, only has the cheapest rates in one state — Wisconsin.
Compare the cheapest home insurance quotes by state
State | Cheapest company | Annual rate |
|---|---|---|
| Alabama | Farmers | $817 |
| Alaska | Country Financial | $948 |
| Arizona | State Farm | $916 |
| Arkansas | Shelter | $863 |
| California | Travelers | $1,116 |
Even within a state, rates can vary widely. Your home insurance could be more expensive than the state average if your ZIP code has more claims, higher crime rates or severe weather events.
Homeowners insurance rates by ZIP code
ZIP code | Annual rate |
|---|---|
| 02148 | $1,346 |
| 02155 | $1,385 |
| 02301 | $2,000 |
Rates are for the most populated ZIP codes in the U.S.
Compare service scores for home insurance companies
Good customer service plays an important role in helping you get your life back to normal quickly after a disaster.
USAA, Erie and State Farm have the best-rated customer service, based on J.D. Power customer satisfaction ratings, the National Association of Insurance Commissioners (NAIC) complaint index and ValuePenguin's own editor's ratings.
Compare home insurance companies
Company | J.D. Power ? | NAIC ? | |
|---|---|---|---|
| USAA* | 882 | 0.20 | |
| Erie | 835 | 0.09 | |
| State Farm | 835 | 0.32 | |
| Auto-Owners | 832 | 0.12 | |
| Nationwide | 812 | 0.16 | |
*USAA is only available to current and former military members and their families.
Customer service is an important part of what you're paying for with home insurance. A major storm or fire will already disrupt your day-to-day life. It could even require you to move out of your home for weeks or months. Great customer service will make the claims process stress-free and get you back in your home more quickly.
Compare reviews of home insurance companies
Every insurance company has positive and negative qualities. When comparing homeowners insurance companies, it's important to decide which features are the most important to you.
Compare coverage options
Before you compare homeowners insurance quotes, you'll need to figure out how much insurance you need.
Standard coverage included
DWELLING
OTHER STRUCTURES
PERSONAL PROPERTY
LOSS OF USE
PERSONAL LIABILITY
MEDICAL PAYMENTS
Optional add-on coverage
Many companies also offer coverage upgrades for an extra cost.
- Earthquake insurance
- Equipment breakdown
- Identity theft protection
- Flood insurance
- Valuables coverage
- Water backup coverage
How to compare the right home insurance coverage
Basic home insurance policies are fairly similar. However, there are a few options that you should understand so that you can make an informed decision.
DEDUCTIBLES
POLICY TYPES
ACTUAL CASH VALUE VS. REPLACEMENT COST
These factors can make a big difference when it comes to the cost of your home insurance.
It's important to understand what's included in your quote so you can make an apples-to-apples price comparison.
How to compare home insurance quotes
Home insurance quotes can look different from one company to the next. The coverage types and limits you choose affect your quote, so you'll need to make sure that each quote meets your needs.
For example, a home insurance quote from Allstate is $4,726 per year. It's much more expensive than the quotes from Liberty Mutual and AAA, but it also includes a lot more coverage.
Allstate home insurance quote: $4,726/year
Editor rating
Annual rate:
$4,726
- Policy type: HO-5
- Deductible: Varies by type of damage
- Dwelling: $571,489
- Personal liability: $500,000 per occurrence
Liberty Mutual home insurance quote: $881/year
Editor rating
Annual rate:
$881
- Policy type: HO-5
- Deductible: $1,000
- Dwelling: $92,000
- Personal liability: $300,000 per occurrence
AAA home insurance quote: $430/year
Editor rating
Annual rate:
$430
- Policy type: HO-5
- Deductible: $1,000
- Dwelling: $257,000
- Personal liability: $300,000 per occurrence
It's also very important to look at the deductible on your quote.
The AAA and Liberty Mutual quotes both have a $1,000 deductible. However, the Allstate deductible varies depending on the cause of damage to your home. Damage caused by wind or hail has a $5,715 deductible, and tropical cyclone damage comes with an $11,430 deductible. So if you choose the Allstate policy, you'll have to pay a lot more to repair your roof if your shingles blow off in a storm.
Buy a policy
The last step in comparing home insurance quotes is choosing the right company for you and getting a policy.
To decide on the right home insurance company for you:
- Start by getting rid of any companies that don't offer the coverage you need or want.
- Next, find a balance between cheap rates and positive customer service reviews.
Once you've chosen a company, pick a coverage start date. If you currently have insurance, the date you choose should be before your current policy's cancellation date. Otherwise, you'll have a lapse in coverage.
Most major insurance companies allow you to pay for your policy online using a credit card or bank transfer. Many times, insurance companies will offer you a discount for paying your balance in full or signing up for automatic payments too.
If you have a mortgage, you'll need to let your lender know the details of your new policy. If you have an escrow account, you'll also need to coordinate the payment details with your lender.
Frequently asked questions
How much does homeowners insurance cost?
The average cost of home insurance in the U.S. is $1,516 per year, or $126 per month.
Who has the best homeowners insurance?
State Farm offers a great balance of low rates and good customer service, and it's available to most homeowners across the country. But the best home insurance for you depends on what you need in a policy.
How can I get a good deal on my home insurance?
To find the best homeowners insurance rates, compare quotes from multiple companies. Homeowners should also make sure they're taking advantage of available discounts.
For example, consider bundling home and auto policies. And let your insurance company know if you have a security system, fire safety devices or an impact-resistant roof.
Which company has the cheapest price for home insurance?
Erie has the cheapest home insurance rates, with an average of $1,244 per year. Unfortunately, Erie is only available in 12 states, so many homeowners can't take advantage of its low prices. People who live outside of Erie's coverage area should consider State Farm.
Read our latest work on home insurance
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Methodology
To find the best cheap homeowners insurance, we compared quotes from top companies in every residential ZIP code across the country. Dwelling coverage is based on the median home age and value for each individual state. For example, our California sample home was built in 1975 and insured to a value of $505,000. Meanwhile, our sample West Virginia home was built in 1974 and insured for $119,500. We used median home values to approximate the rebuild cost in each state.
Quotes also include $100,000 of personal liability coverage, $5,000 of medical payments coverage and a $1,000 deductible.
To illustrate the difference in cost between actual cash value and replacement cost coverage, we gathered quotes from five top companies across every ZIP code in Texas. Quotes are based on $150,000 of dwelling coverage.
ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes may be different.
