Top 5 Cheapest Home Insurance Companies
The five best cheap home insurance companies are well under the national average. Nationwide, the average annual premium for homeowners insurance is $1,099. But some of the most affordable policies cost less than half that amount.
According to the National Association of Mutual Insurance Companies, nationwide paid out $2 billion in claims in 2018. And while it pays out less than one-third of those claims, it still had the highest claim ratio among major carriers. In 2017, Nationwide paid out $3.7 billion in claims, which covered about 32% of losses.
Compare rates from participating insurers in the ZIP code where you live via PolicyGenius.
You will save money if you compare multiple quotes from different providers. Start with a basic policy if you don’t know how much coverage you need. Then, once you’ve narrowed your options, add additional coverages such as theft protection, flood damage, and more.
Progressive Home Insurance
Progressive Home Insurance offers homeowners insurance coverage that includes home improvements such as a new roof, siding, windows, doors, garage door, landscaping, driveway, foundation repair, basement waterproofing, attic insulation, heating system replacement, plumbing repairs, electrical work, fire sprinkler installation, water heater installation, chimney cleaning, and much more.
Lemonade Home Insurance
Lemonade offers cheap home insurance. It’s one of the cheapest in the industry. But there are some caveats. First, you must live in California. Second, you must purchase coverage within 30 days of moving into your house. And third, you must bundle auto insurance with your homeowner policy. If you don’t do those three things, you won’t qualify for the discount.
But if you do, you could save $1,500 per year on average. For example, if you bought a $250,000 property, you could save about $50 per month on your premium.
Auto-Owners Home Insurance
Auto owners is a great choice for homeowners who want affordable insurance without sacrificing coverage. They offer various discount options, including bundling and prepaying your premiums. Their guarantee of replacement cost coverage protects against unexpected increases in repairs. And paperless billing allows you to save even more money. An automatic backup generator ensures that your home is protected during power outages.
USAA Home Insurance
The USAA insurance company is now available nationwide. This includes coverage for auto, homeowners, renters, life, health, disability, flood, earthquake, theft, marine, motorcycle, recreational vehicle, umbrella liability, commercial property, personal property, and pet insurance.
In addition to offering discounts for bundling policies, USAA offers discounts if customers install an ADT home alarm system.
Erie Home Insurance
In most states, Erie offers Guaranteed Replacement Cost Coverage. This policy protects building damage caused by wind, hail, lightning, smoke, vandalism, earthquake, flood, explosion, riot, civil commotion, aircraft accident, vehicle accident, terrorism, war, nuclear radiation, volcanic eruption, landslide, snowstorm, ice storm, hurricane, tornado, hailstorm, wildfire, mudslide, drought, heat wave, blizzard, dust storm, sandstorm, fog, sleet, freezing rain, snowfall, or snowdrift.
If you are purchasing Erie Home Insurance online, you will receive a discount off your current rates. You can also bundle your Erie Home Insurance with other policies such as auto, life, health, renters, homeowners, umbrella, pet, farm, commercial, boat, motorcycle, recreational vehicle, and/or personal liability insurance.
You can obtain a home insurance quote within minutes by completing our quick application form. We offer quotes 7 to 60 days before your renewal date. If you decide to purchase Erie Home Insurance, we will send you a copy of your policy within 24 hours.
What Does Home Insurance Cover?
Homeowners’ insurance covers damage caused by fires, storms, burglaries, and even animals. But what does it cover? Here are some common types of coverage you might want to consider adding to your policy.
If your home catches fire, your homeowner’s insurance will pay for repairs to damaged items like furniture, clothing, electronics, and appliances. If your house burns down, your insurer will likely offer to replace lost personal belongings.
Your homeowner’s insurance will help repair or rebuild your home if it gets hit by a storm. This includes things like broken windows, water damage, and structural issues. You could also receive reimbursement for additional expenses related to repairing or rebuilding your home.
This type of coverage pays out if someone sues you because of an injury on your property. For example, if a visitor slips and falls on your staircase, your insurer will pay for medical bills and legal fees associated with the lawsuit.
How much should my homeowner’s insurance cost?
Homeowners’ insurance costs vary greatly based on location. You might find yourself paying less in one area than in another. For example, some areas are prone to wildfires, while others experience hurricanes. Some places are earthquake zones, while others aren’t. And some regions are plagued by tornadoes, while others don’t see many storms.
Your home insurance policy covers damage caused by fires, floods, lightning strikes, earthquakes, vandalism, theft, and other events. If something happens to your house, it could affect your homeowner’s insurance coverage. In addition to property damage, other factors influence your premium. These include whether you’ve filed claims in the past, what type of building you own, and whether you’re located near a hazardous material site.
The best way to determine how much you’ll pay for your homeowner’s insurance is to compare quotes from several companies. This will give you a good idea of what you can expect to spend. However, keep in mind that rates frequently change, so shop around every few months.
Cheapest home insurance rates in each state
Homeowners insurance is one of those things that most people don’t think about until it’s too late. But there are some ways to save money on your policy without shopping around.
The best way to find a cheap homeowners insurance is to compare quotes from several providers. You’ll want to make sure you’re comparing apples to apples, though. Here’s where to start:
1. Get multiple quotes. Insurers use different methods to calculate premiums, so you’ll want to get three estimates. Start with online brokers like Insure.com and Quotes.com. Then call up local agents and ask for price comparisons. Finally, check out comparison sites like ComparetheMarket.com and InsuranceQuotes.com.
2. Shop around. Don’t just settle for the lowest quote. Make sure you understand why the prices vary. For example, do they differ because of the type of coverage you choose? Do they reflect the riskiness of your neighborhood? Are they based on your credit score? If you know the answer to any of these questions, you can take action to lower your premium.
3. Know your options. Most homeowners insurance plans cover damage caused by wind, hail, fire, lightning, smoke, vandalism, theft, earthquakes, floods, snowstorms, tornadoes, hurricanes, and wildfires. They usually include liability protection, too. However, some plans exclude specific types of losses, such as flood damage, while others require additional coverage.
4. Consider deductibles. Deductibles are amounts you must pay upfront before your insurer pays anything toward covered damages. A deductible might seem high, but it could help keep your monthly bill down. Make sure you understand your plan’s terms before choosing a deductible. Many plans allow you to increase your deductible over time, so consider whether you’d rather pay a smaller amount now or a larger amount later.
5. Check your credit rating. Credit scores affect your insurance rates. Higher scores mean better financial standing, and insurers generally reward good behavior. Lower scores indicate greater risk, and insurers charge accordingly. To see yours, sign up for free annualcreditreport.com.
Do I Need Homeowners Insurance?
Homeowners insurance is one of those things that everyone needs, but few understand what it covers. And many people are surprised to learn that they do need it. In fact, according to the National Association of Realtors®, nearly half of Americans don’t know whether they have enough coverage.
That’s why we put together this guide to help explain what homeowners insurance is and what it does. We hope you find it useful.