Cheapest Homeowners Insurance Companies 2021

By | August 29, 2021
Cheapest Homeowners Insurance Companies

Your home isn’t just the place where you live, it’s also likely one of your biggest investments. Homeowners insurance is a good way to protect yourself against losing your home and its contents to a fire or other unexpected disaster.

If you have a mortgage, it’s also often required by your lender to protect that company’s investment, as the Consumer Financial Protection Bureauexplains. But premiums can vary from insurer to insurer, as can the details of out-of-pocket expenses if you do file a claim. That’s why we put together our rating of the Cheapest Homeowners Insurance Companies of 2021.

Our Cheapest Homeowners Insurance Companies of 2021

#1 Erie Insurance
#2 Liberty Mutual
#3 Amica
#4 Nationwide
#5 American Family

Compare the Cheapest Homeowners Insurance Companies of 2021

Most Affordable Homeowners Insurance Companies of 2021

COMPANYSAMPLE MONTHLY COSTA.M BEST RATINGLEARN MORE
Erie Insurance » 3.6 out of 5 $98.00A+
Liberty Mutual » 3.5 out of 5 $112.75A
Amica » 4.2 out of 5 $123.63A+
Nationwide »3.7 out of 5 $126.69A+
American Family »3.7 out of 5 $151.55A

Cheapest Homeowners Insurance Companies In Detail

Erie Insurance

Erie Insurance: Erie Insurance is the cheapest company in our rating, charging just $98 per month for the sample suburban Chicago area home and level of insurance we looked at. One catch is that the Pennsylvania-based insurer doesn’t offer coverage in every state. Erie does offer policies that guarantee to pay the full replacement cost of your home, as well as add-on policies for things like personal liability, water backflow issues, and personal valuables insurance. Erie also gives discounts to save even more by installing an alarm system, getting a quote earlier than you need the policy, or bundling home and auto insurance.

Liberty Mutual 

Liberty Mutual: Liberty Mutual comes in second in our rating of the Cheapest Homeowners Insurance Companies of 2021, charging $112.75 for the sample policy we looked at. The insurer offers policies in every state except Wyoming, with a quote tool available online. You can also save money on your Liberty Mutual policy by going without claims for three years, having a new or recently renovated home, bundling multiple policies, or agreeing to digital document delivery. You can add coverage for valuables like jewelry and for events like hurricanes or sewer backups that can damage your home and the things in it.

Amica

Amica: Amica is third in our rating of the cheapest homeowners insurance companies of 2021 for the sample policy we looked at, charging $123.63. The company offers homeowners policies in every state except Hawaii and Arkansas. Amica also offers discounts if you insure your car or life with it. Other discounts include signing up for digital document delivery or automatic payments. Alarm systems and systems that automatically detect water leaks can also help you save with Amica, as can going at least three years without filing a claim with the company.

Nationwide

Nationwide: Nationwide comes in fourth in our rating of the cheapest homeowners insurance companies of 2021. It charges $126.69 for the sample policy we examined. As the insurer’s name implies, it’s available in most of the country, there are only four states where Nationwide doesn’t offer homeowners policies. If you’re looking for a discount, Nationwide offers quite a few: a newly purchased home, going without claims, bundling your homeowners and auto insurance, renovating your home, or having a relatively new roof. You can also save money by living in a gated community or in a home with an alarm system

American Family

American Family: American Family ranks fifth in our rating of the cheapest homeowners insurance companies of 2021. The company charges $151.55 for the sample policy we looked at. It’s worth noting its policies aren’t available in every state, and it emphasizes working with its local agents to customize a policy for your needs. Discounts are available for bundling your home policy with auto insurance and for sticking with American Family for at least a year. Younger customers can also get a discount if their parents also have an American Family policy. Owners of new and newly renovated homes also pay less.

How to Find the Best Homeowners Insurance Company for You

The ideal home insurance policy depends on your specific needs. Some things that will factor into your final decision are the cost of your premiums, as well as your deductible, which is the amount deducted from your claim before the insurer reimburses you for any damage to your home or personal property.

You’ll also want to consider what you need to cover, which may mean thinking about add-ons for anything from floods and earthquakes to identity theft. Not all insurers offer these, and they will add to the cost of your premium. The Insurance Information Institute suggests you think about the full replacement cost of your home, as well as any valuable items like jewelry and collectibles that might require some extra insurance.

Customer service is something else to consider. Would you prefer to go with an insurer you’ll mostly reach through telephone hotlines, through calls to your local agent, or simply through a menu in a smartphone app? 

Once you have an idea of what you want, you can look online or talk to agents to see what different insurers charge for these policies, and then select and buy the insurance policy that’s best for you.

  1. Think about the insurance you need: Decide what you’re looking for in terms of reimbursements for replacing your home and property, as well as optional coverage for things like hurricanes and personal liability.
  2. Shop around for quotes: Visit the websites of the insurers you’re considering and use their automated quote tools, or reach out to their agents to see what premium you’d pay.
  3. Make the purchase: Work with the best insurer to buy a policy. Consider bundling your auto policy to save and any discounts for paying in advance or enabling autopay.

How Much Is Homeowners Insurance?

Different carriers charge different insurance rates, but how cheap home insurance can be also depends on factors about your home itself. Your ZIP code is a predictor of the average cost you’ll pay. Companies know the value of homes there, how many claims are placed in your area, and if you have a professional fire department nearby, as the Insurance Information Institute points out. Older houses usually cost more to insure because they can be more disaster-prone, and you can often get discounts by having a new or newly renovated home. Larger, more expensive houses are usually costlier to insure, since they cost more to replace.

You may not want to pick your address based on potential insurance costs, but you can take other factors into consideration to lower your premiums. Higher deductibles, if you can afford them in the event you file a claim, can help you save on premiums. So can bundling your homeowners insurance with other insurance policies, such as an automotive policy. On the other hand, add-ons to your policy covering additional risks like earthquake damage, water backup, or personal liability will raise your premium. Shop to find the insurance you need at a price you like.

Homeowners and Auto Insurance Bundling

In the insurance world, bundling usually refers to combining multiple policies from the same carrier. For instance, you might get your homeowners insurance and auto insurance from the same company, or put together other multi-policy bundles. Some insurers let you bundle homeowners insurance with life insurance or other types of policies such as pet insurance. 

Combining these policies can often net you a discount on the total amount you pay for insurance. It also may simplify things by giving you one company to pay and one company or local agent to contact in the event that you need to file a claim. 

Bundling is only worth it if the insurer you’re considering offers the types of insurance you need at a good price after the discount. If the price for the insurance is high even after the discount, you may find a better deal by buying insurance from multiple carriers instead of just one. And since not all carriers offer every type of insurance and policy add-on — for instance, only some offer coverage for identity theft — you may find that you can’t get your ideal policy for multiple types of insurance from just one carrier.

FAQ

Does Homeowners Insurance Cover Damage From Flooding?

Homeowners insurance often doesn’t cover flooding, but you may want to add flood insurance and may be able to purchase it through your existing insurer. The National Flood Insurance Program provides flood insurance through various carriers at costs based on Federal Emergency Management Agency maps of high-risk flood areas. You can check these maps to see if you’re in a high-risk area.

Does Homeowners Insurance Cover Damage From Fire?

Homeowners insurance generally covers fire damage, whether it’s caused by a fire that starts within your home, your neighbor’s home, or by a wildfire. Homeowners insurance will often cover your house, its contents, and the cost of living somewhere else while your home is being repaired.

Does Homeowners Insurance Cover Earthquake Damage?

Homeowners insurance policies usually don’t cover earthquakes, though they usually cover earthquake-triggered fires. In an earthquake-prone area, such as much of the West Coast, you may want to add an earthquake policy. These can be available through standard insurance carriers and through third-party organizations that specialize in earthquake coverage.

Does Homeowners Insurance Cover Storm Damage?

Weather-related coverage can be complicated. Some policies require add-ons to cover hurricanes, for instance, while they may cover damage caused by thunderstorms, heavy snows, and wind-driven debris. Flooding also isn’t usually covered except through the National Flood Insurance Program. Some policies have separate deductibles for wind, hurricane, or hail damage.

Does Homeowners Insurance Cover Damage From Pests?

Homeowners insurance generally doesn’t cover damage from pests, including rodents, termites, bedbugs, and other insects. That’s because keeping pests out of your home is considered routine maintenance, which isn’t covered by insurance. Make sure to have your home inspected for pests before you buy and regularly after you move in.

Best Homeowners Insurance Companies of 2021

Find out more about your options for homeowners insurance by taking a look at our rating of the Best Homeowners Insurance Companies of 2021.

#1 Lemonade
#2 USAA
#3 Amica
#4 Allstate
#4 State Farm
#6 Nationwide
#6 American Family
#8 Erie Insurance
#9 Liberty Mutual
#10 Chubb
#10 Progressive
#10 Farmers Insurance

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