The cheapest homeowners insurance providers depend on various factors. Overall, Chubb offers the most affordable premium. The sections below show the best rates by coverage level, location and credit history.
Home Insurance
Cheapest Home Insurance Companies
Updated: May 15, 2025
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Key Takeaways
Although Chubb is the cheapest overall, American Family is the most affordable option for $250K, $500K, $750K and $1M dwelling coverage.
Your home's value and location impact your insurance cost. The cheapest companies vary by state and city.
Bundling policies, installing safety devices, increasing your deductible, maintaining a good credit score and comparing quotes from different providers annually can reduce premiums.
What Are the Cheapest Home Insurance Companies?
Cheapest Home Insurance Overall
Chubb has the lowest rate at $991 per year or around $83 per month for $100K in dwelling coverage, the lowest coverage offered.
Cheapest Homeowners Insurance ProviderChubb
MoneyGeek Score:
99/ of 100
Annual Premium$991
Overview
Save more on Chubb home insurance by bundling with other Chubb policies. You can also get discounts if you have protective devices in your home or renovated within the last six years.
Cheapest Home Insurance by Coverage Level
The cheapest home insurance for you depends on the dwelling coverage. While Chubb has the lowest average cost for $100K dwelling coverage, American Family is the cheapest insurer for $250K, $500K, $750K and $1M dwelling coverage. The table below compares the best rates based on your desired dwelling coverage limits.
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Coverage:$100K Dwelling Coverage
| Chubb | $991 |
| State Farm | $1,074 |
| American Family | $1,196 |
| Nationwide | $1,246 |
| Farmers | $1,258 |
| Auto-Owners Insurance | $1,309 |
| Allstate | $1,528 |
| Travelers | $3,997 |
Cheapest Home Insurance by Location
The cheapest home insurance rates vary widely by location due to local natural disaster risks, weather patterns, crime rates, building codes, distance from emergency services, regional construction costs and state insurance regulations. Below, we rank the cheapest insurers by state and city.
Cheapest Home Insurance by State
Home insurance providers consider location when calculating premiums. The table below shows each state's cheapest company for different coverage levels.
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State:Alabama
| $100K Dwelling Coverage | State Farm | $1,810 |
| $1MM Dwelling Coverage | State Farm | $8,973 |
| $250K Dwelling Coverage | Farmers | $3,211 |
| $500K Dwelling Coverage | State Farm | $5,096 |
| $750K Dwelling Coverage | Auto-Owners Insurance | $6,959 |
Cheapest Home Insurance by City
The most affordable home insurance providers vary widely even within the same state. Filter the table below to see city rates in your state based on our data.
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State:Alabama
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Coverage:$100K Dwelling Coverage
| Montgomery | State Farm | $ 1,460 |
| Birmingham | Allstate | $ 1,552 |
| Mobile | COUNTRY Financial | $ 1,812 |
| Huntsville | Farmers | $ 1,519 |
Cheapest Home Insurance for Bad Credit
Credit scores affect your home insurance premiums because they predict claim likelihood, with lower scores often leading to higher rates due to perceived risk. Nationwide is the cheapest home insurance provider if you have a poor credit score.
Cheapest Homeowners Insurance for Bad CreditNationwide
MoneyGeek Score:
83/ of 100
Annual Premium$2,054
Overview
For $100K in dwelling coverage, Nationwide offers home insurance at $2,054 per year — $2,148 less than the national average cost for those with poor credit ($4,202).
Nationwide offers several discounts that can help homeowners with poor credit offset higher premiums associated with a lower credit score. These include home renovation, roofing material, gated community, protective devices, home buyer, continuously insured, bundling and claims-free discounts.
Cheapest Home Insurance for Bad Credit by Coverage
Poor credit may result in higher premiums, but comparing offers from multiple insurance companies can help you find affordable policies. Filter the table below to compare the best rates for different dwelling coverage limits.
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Coverage:$100K Dwelling Coverage
| Nationwide | $ 2,054 |
| American Family | $ 2,101 |
| Chubb | $ 2,138 |
| State Farm | $ 2,568 |
| Allstate | $ 3,234 |
| Farmers | $ 4,764 |
| Travelers | $ 13,906 |
| Auto-Owners Insurance | $ 29,600 |
*Note: States like California, Massachusetts, Maryland and Hawaii ban insurers from using credit scores to determine premiums.
Cheap Home Insurance: Buying Guide
Choosing the right policy and provider can save you money while ensuring sufficient coverage. Your coverage needs and profile determine the cheapest home insurance options. Explore the sections below for guidance on finding the best rates and what home insurance covers.
How to Get Cheap Home Insurance
Lowering your home insurance premiums doesn't have to be complicated. By exploring strategies like comparing quotes, using discounts and maintaining a claims-free history, you can keep costs down while ensuring adequate protection. Here are practical ways to save money on your homeowners insurance.
- 1
Determine your dwelling coverage
Your dwelling coverage needs should reflect your home's replacement cost, not market value. Market value includes land and location factors, which aren't relevant for insurance purposes.
To accurately estimate your replacement cost:
- Calculate your home's square footage and multiply by local building costs (depending on your area and construction quality).
- Factor in special features like custom woodwork, high-end finishes or unique architectural elements that would be expensive to replace.
- Consider exterior structures attached to your home, such as garages, porches and decks.
- Account for landscaping damage coverage for trees, plants and other outdoor features that could be damaged in covered events. Insurance companies typically cap landscaping coverage at about 5% of your dwelling coverage.
- 2
Compare quotes
Comparing home insurance quotes from multiple companies is one of the easiest ways to ensure you get the lowest rate. Even a small difference in rates can lead to significant savings over time.
- 3
Increase your deductible
Opting for a higher deductible can lower your annual premium significantly. However, make sure you have enough savings to cover the deductible amount if you need to file a claim.
- 4
Improve your credit score
A higher credit score can reduce homeowners insurance rates because insurers view you as less of a risk. Paying bills on time and managing debt responsibly are key steps to boost your credit and insurance savings.
- 5
Choose your home wisely
Your home's location can greatly affect your insurance costs. Homes near fire hydrants or fire stations are cheaper to insure, while those in flood-prone areas may have higher premiums.
- 6
Review your policy each year
Reviewing your policy ensures you maintain the right coverage level for your needs. It's also a good time to compare quotes from other companies to ensure you're not overpaying. Reassess your coverage after renovations or when building costs increase in your area.
Home Insurance Discounts
Qualifying for common home insurance discounts can help lower your premium and make coverage more affordable. Understanding and leveraging these discounts allows you to maximize your insurance savings while ensuring enough coverage for your home.
Bundle
Save by bundling your home and auto insurance policies under the same provider. This reduces your overall premiums while keeping all your coverage organized in one place.
Newly constructed home
If your home is newly built, you could qualify for significant savings. Insurers often offer discounts on newer homes because they're less likely to have structural issues or require costly repairs.
Protective device
Installing safety features such as burglar alarms, fire alarms or sprinkler systems can earn you a discount. These devices lower the risk of damage or loss, making your home safer and more cost-effective to insure.
Claims free
Homeowners who have gone a certain number of years without filing an insurance claim may receive a discount. Maintaining a clean claims history signals to insurers that you are a lower risk, which can lead to lower premiums.
Auto pay and annual payment
You can save by paying your policy in full or setting up automatic payment.
Compare Home Insurance Quotes
Getting personalized quotes will help you accurately compare your options and determine the most affordable. Enter basic information in our home insurance calculator below to quickly receive quotes from multiple providers.
Home Insurance
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Rates updated:
May 23, 2025
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Understanding Home Insurance Coverage
Home insurance helps protect your home, belongings and finances if something goes wrong. However, coverage varies based on the policy and how insurers calculate reimbursement. Understanding what your home insurance covers and how it covers it can help you choose the right policy and avoid unexpected costs later.
Home Insurance: What Is and Isn't Covered
Home insurance typically covers:
- Dwelling structure - your house itself
- Landscaping - usually only up to 5% of the dwelling coverage
- Personal belongings - furniture, electronics, clothing, etc. (Note: Certain art and expensive jewelry aren't covered unless specified)
- Liability - if someone is injured on your property
- Additional living expenses - if you can't live in your home during repairs
However, standard policies don't cover:
- Floods
- Earthquakes
- Normal wear and tear
- Pest damage
- Certain valuable items (without special coverage)
Actual Cash Value (ACV) vs. Replacement Cost Value (RCV)
The ACV and RCV settlement methods matter greatly when shopping for home insurance.
- Actual cash value (ACV) policies pay only the depreciated value of your property. If your 10-year-old roof is damaged, you'll receive payment minus a decade of depreciation, leaving you to pay potentially thousands out of pocket for a new roof.
- Replacement cost value (RCV) policies pay the full cost to replace damaged items with new ones of similar quality. While typically 10% to 15% more expensive upfront, RCV coverage ensures you can restore your property without large additional expenses.
For most homeowners, the slightly higher premium for RCV coverage provides substantially better protection and proves more economical in the long term.
Cheapest Homeowners Insurance Companies: Bottom Line
The cheapest home insurance may vary depending on coverage, ZIP code and credit history. This guide analyzes major insurers to identify companies with the lowest rates for various homeowner profiles.
Chubb has the lowest average rate for $100K dwelling coverage, but American Family is the most affordable option for $250K, $500K, $750K and $1M dwelling coverages. The cheapest option for you may differ, so comparing quotes and researching deals can help avoid overpaying.
Cheap Homeowners Insurance: FAQ
Below, we've answered frequently asked questions about home insurance to help you find the best deals
What is the cheapest home insurance provider for $100K in dwelling coverage?
Chubb offers the lowest rate for $100K in dwelling coverage, averaging $991 per year or about $83 monthly. State Farm follows at $1,074 annually or $90 monthly.
How much more do homeowners with poor credit typically pay for insurance?
Homeowners with poor credit can see much higher premiums. For instance, Nationwide offers $2,054 per year for those with poor credit, which is $536 more than the national average cost for good credit ($1,518).
Why does increasing my deductible lower my premiums?
Raising your deductible reduces the risk for insurers, as you agree to pay more out of pocket if you make a claim. As a result, they reward you with lower premiums.
Can improving my credit score really make a difference in my insurance rates?
Insurance companies often use credit scores to assess risk, and a higher score can lead to lower premiums. Paying bills on time and managing debt can improve your credit and potentially reduce your insurance costs.
What is the 80% rule?
The 80% rule in home insurance means insuring your home for at least 80% of its total replacement value to receive full coverage for partial losses. If you're underinsured below this threshold, the insurer will pay only a proportional amount of your claim, calculated by dividing your actual coverage percentage by 80%.
Do you need to pay tax on a home insurance settlement?
Home insurance settlements for property damage are generally not taxable income, as the IRS considers them reimbursement for a loss rather than new income. However, portions of a settlement may be taxable if they exceed your property's adjusted basis, compensate for previously tax-deducted losses or include interest on delayed payments.
Can you change home insurance at any time?
You can switch home insurance companies anytime, but you might have to pay a fee if you cancel early. To avoid coverage gaps or paying twice, start your new policy on the same day your old one ends or is canceled.
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Best Home Insurance Rates: Our Review Methodology
Why Trust MoneyGeek?
MoneyGeek analyzed quotes from multiple insurance providers across the U.S. using a profile that reflects the average homeowner. By considering different locations and companies, we provide a reliable estimate of what homeowners can expect to pay — showing why comparing rates matter.
Methodology
MoneyGeek evaluated homeowners insurance carriers, incorporating insights and premiums from the official databases of Quadrant Information Services.
Homeowner Profile
For our analysis, we created a sample homeowner profile with the following characteristics:
- Good credit score (769 to 792)
- Home constructed in 2000
- Wood-frame construction
- Composite shingle roof
Homeowners Insurance Coverage Details
Unless otherwise specified, we used the following coverage limits to collect quotes for our comparison:
- $250K in dwelling coverage
- $125K in personal property coverage
- $200K in personal liability coverage
- $1,000 deductible
We also compiled data for policies with broader coverage to determine the best companies for insuring expensive homes, upping limits to $1M in dwelling coverage, $500K in personal property coverage and $1M in liability coverage.
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About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.