Cheap Homeowners Insurance

The best home insurance companies offer more than just low rates

We publish unbiased product reviews; our opinions are our own and are not influenced by payment we receive from our advertising partners. Learn more about how we review products and read our advertiser disclosure for how we make money.

If you’re like most people, your home is the largest single investment you’ll ever make. To protect that investment, you need a good home insurance policy. Homeowners insurance protects against losses if your home or personal property is damaged or destroyed by fire, weather, theft, or other covered disasters. It also covers your personal liability for injuries to other people or their property while they’re on your property.

Before you buy a policy, think about the coverage limits and deductible you want, as well as any optional coverages you will need for things such as flood insurance, collectibles, expensive electronics, and the like. In general, you can save money if you opt for less coverage and a higher deductible. The most expensive policies will provide better coverage and a lower deductible. Shop around to find a balance that works for you and your budget.

We compared more than 25 home insurance companies to find the best options for shoppers on a budget. While cost was a consideration, we also looked at nationwide availability, customer satisfaction from J.D. Power, financial stability from A.M. Best, grades from Consumer Reports, and ratings from the Better Business Bureau (BBB). Based on our findings, here are the top six cheap homeowners insurance companies.

Cheap Homeowners Insurance of 2021

Best Overall : Amica

Amica Mutual Insurance

Amica earned Best Overall due to its competitive rates, discounts, and high ratings for customer satisfaction, stability, and reputation.

  • High ratings and low consumer complaints

  • Platinum Choice Home package

  • Option to earn dividends 

  • Confusing policy options (i.e., traditional vs. dividend policy)

  • Rates set using credit-based insurance scoring

  • Bugs in the mobile app

COVID-19 Relief: Amica customers experiencing financial difficulties due to COVID-19 can request a repayment plan. Options may vary by state.

Amica Discounts

You can save up to 30% when you combine home with your auto, condo, renter’s, life, or umbrella policies.

  • Loyalty discount (after two years)
  • Claims history discount (when you’ve had no claims in the past three years)
  • Autopay discount
  • E-Discount (when you sign up to receive bills and information electronically)
  • Alarm system discount (for burglar alarms, sprinkler systems, and fire alarms)
  • Automatic detection device discount
  • New/remodeled home credit

Amica Coverage Options

In addition to standard home insurance coverage options, you can add these coverage options to your policy:

  • Dwelling replacement
  • Valuable items
  • Identity fraud expenses
  • Personal property replacement
  • Catastrophic coverage
  • Home business
  • Platinum Choice Home Package (includes standard coverage plus business, computer, credit card, and water backup coverage)

Read the full review: Amica Homeowners Insurance

Best for Discounts : Allstate



Allstate offers an above-average variety of discounts and savings opportunities, all of which can help you save big on your premiums.

  • Excellent options for discounts

  • Customizable policies

  • Average customer satisfaction ratings

  • Discounts not available in all states

COVID-19 Relief: Allstate auto, home, and powersport insurance customers facing financial challenges due to COVID-19 can request a special payment plan to delay payments without penalty.

Allstate Discounts

  • Save up to 25% when you bundle home and auto policies
  • Save up to 20% when you switch to Allstate without a recent home insurance claim
  • Save up to 5% when you set up automatic payments
  • Save up to 10% for switching to Allstate, and save 10% every year after that
  • Homebuyer discount, if you buy a newly constructed home, or if you’re a recent homebuyer

Allstate Coverage Options

In addition to standard home insurance coverage options, Allstate offers coverage for:

  • Identity theft restoration
  • Water backup
  • Scheduled personal property
  • Business property
  • Green improvement reimbursement
  • Yard and garden
  • Electronic data recovery
  • Musical instruments
  • Sports equipment

Read the full review: Allstate Homeowners Insurance

Best for Mobile Homes : Farmers

Farmers Insurance

Founded in 1928, Farmers is the fifth-largest home insurance company in the U.S. It offers home insurance policies for traditional and specialty homes, including mobile homes.

  • Claim forgiveness

  • Declining deductible

  • Eco-rebuild option

  • Below average customer service ratings

Farmers Discounts

Depending on where you live, Farmers offers discounts to help you save, including:

  • Bundle discounts if you buy multiple policies from Farmers
  • Business/professional group discount
  • Nonsmoker discount
  • Discounts for deadbolts and strong locks
  • Discounts for security systems that connect to local police
  • Discounts for a fire alarm that automatically alerts the local fire department

Farmers Coverage Options

Farmers offers three customizable packages as a starting point:

  1. Standard—Designed for homeowners who are just starting out
  2. Enhanced—Higher policy limits and extra features
  3. Premier—Highest limits and coverage on personal property, with optional guaranteed replacement cost

The three packages are customizable, and you can raise or lower limits and add or change coverage. Additional coverage options for the packages include:

  • Eco-Rebuild (get up to $25,000 toward the extra cost of replacing materials and appliances with green alternatives)
  • Contents Replacement Cost Coverage
  • Identity Shield

Best for Local Agent Support : State Farm

State Farm

 State Farm

State Farm ranks 36th on the Fortune 500 list of largest companies. It holds 18% of the home insurance market, and has more than 58,000 employees and more than 19,000 independent contractor agents who service 83 million policies and accounts nationwide.

  • An extensive network of agents

  • Robust mobile app

  • High customer satisfaction ratings

  • Fewer discounts than competitors

COVID-19 Relief: Customers are urged to contact State Farm via mobile app, phone, or local agent to discuss any financial difficulties related to COVID-19.

State Farm Discounts

State Farm offers fewer discounts compared with other companies on this list. Still, customers may be able to save on premiums with these discounts:

State Farm Coverage Exclusions

State Farm Homeowners policies do not cover the following articles and events:

  • Floods
  • Ground water
  • Earthquakes
  • Mudslides
  • Nuclear hazards
  • Rodents
  • Birds
  • Insects
  • Domestic animals
  • Business related events and equipment
  • Watercraft

These exclusions are pretty standard to most homeowners policies.

Best for Seniors : AARP Homeowners Insurance—The Hartford

The Hartford

Founded more than two centuries ago in 1810, the Hartford has the distinction of having insured Abraham Lincoln’s home—for a consideration of $24. The company has also been the AARP’s direct insurance for home and auto since 1984. AARP members can take advantage of savings and credits to lower home insurance rates.

  • An online quote system that automatically fills in home data based on address

  • Discounts for seniors through AARP program

  • Upgraded packages

  • Loss of use coverage potentially capped

COVID-19 Relief: The Hartford invites policy holders who are having financial difficulties due to the coronavirus to contact them. They are also offering 15% credits for auto insurance policies.

The Hartford Discounts

  • Save up to 5% on your car insurance and 20% on your home insurance when you bundle
  • Discounts for deadbolts, smoke detectors, and other home security devices
  • Renewal credit when you renew your home policy for four years
  • Retiree credit if you and your spouse are retired or work less than 24 hours a week

The Hartford Coverage Options

The Hartford offers standard home insurance coverage options, plus two optional packages that combine extra coverages into a ready-to-buy policy:

  1. Home Advantage Package (enhances the typical base policy with Identity Fraud Expense coverage, “new for old” actual cost replacement, reimbursement for lock replacement, and personal injury liability protection)
  2. Home Advantage Plus Package (includes all the Home Advantage options plus equipment breakdown coverage and a disappearing deductible)

The company also offers stand-alone options to increase coverage:

  • Replacement Plus (to help with sustainability minded in-home upgrades)
  • Green Rebuilding (to increase policy limits by up to 10% when you choose green materials)
  • Water Backup (also sump pump overflow)
  • Assisted Living Care Coverage (extends your home insurance coverage to a relative who lives in an assisted living care facility)
  • Scheduled Personal Property

Best for Military Families : USAA



USAA is available only to military families and veterans. With an excellent reputation for customer satisfaction and financial stability, it’s our top option for military families.

  • High customer satisfaction

  • Excellent financial stability

  • One-stop shopping for insurance, banking, and investing products

  • Only available to active military members, veterans, and their families

  • No local agents available

COVID-19 relief: Policy cancellations for non-payment have resumed except in states where it is still prohibited. However, if you're experiencing financial difficulties due to the coronavirus, USAA wants to hear from you and will work with you.

USAA Discounts

USAA members have access to many discounts, from flowers and shipping to tax filing and car buying. Specific to home insurance, USAA members can take advantage of these discounts:

  • Save up to 10% when you bundle property and auto insurance
  • Save up to 10% if you’re claim free for five years
  • Protective Device Credit and special savings with ADT home security systems

USAA Coverage Options

Standard USAA policies cover you for fire, theft, vandalism, most weather-related events, liability, and identity theft. You’re also covered for loss due to a covered peril of military uniforms or equipment you own if the loss occurs while you’re on active or reserve duty (with no deductible). Additional coverage options include:

  • Flood insurance
  • Earthquake coverage
  • Valuable personal property
  • Home-sharing coverage (if you rent out a room or your entire house)

Compare Providers


What Does Home Insurance Cover?

Home insurance policies typically cover all of the following:

  • Coverage for the structure of your home and any other structures on the property
  • Covered losses such as fire, vandalism, theft or a natural disaster
  • Cost to repair or rebuild your home
  • Accidental property damage at your home
  • A visitor is injured at your home
  • Your personal belongings inside your home 

What Doesn't Home Insurance Include?

Home insurance doesn’t cover your vehicles if they're damaged on the property. It also doesn’t cover a rental property or a tenant’s belongings. You may need to add on additional coverage types to your plan. Make sure you read your policy and talk to your insurance company so you know what’s included and what’s not included in your specific policy. 

How Much Does Home Insurance Cost?

No two homes are alike and neither are two home insurance quotes. Typical variables that affect the cost of home insurance include:

  • Location of the property
  • Property type
  • If the property is in a flood zone
  • Home value
  • Coverage amount
  • Type of coverage
  • Previous reported losses

Is Home Insurance Worth the Cost?

Home insurance is definitely worth the cost because it can save you a significant amount of time and money in the long run. Home repairs are expensive; it’s likely that your premium and deductible would be less expensive than many costly home repairs without any insurance benefits. 

Is Home Insurance Mandatory?

Home insurance is mandatory with most mortgage lenders. If you finance a property, the lender typically requires proof of insurance prior to the settlement. Homeowners insurance may also be mandatory if you live in a dwelling that is part of a homeowners association (HOA) or condo association. 


To determine the top cheap home insurance companies, we considered several factors, including financial strength. To do so, we turned to data from A.M. Best, the oldest credit rating agency in the world. Using its Financial Strength Rating (FSR) Scale, we researched the financial stability of each company and only considered those with an A, A+, or A++ rating.

We also looked at customer satisfaction. To narrow the field, we looked at results from the J.D. Power 2020 U.S. Property Claims Satisfaction Study. We only considered companies that earned at least three out of five stars on its Power Circle ratings, and at least 876 out of 1,000 on its Overall Customer Satisfaction Index Ranking.

We also considered reputation using ratings from the Better Business Bureau. We eliminated companies that had a rating lower than a B+. Finally, we looked at grades from Consumer Reports as one last check. The companies that made our list scored an 82 or higher on its 2019 report, the most recent available.

Article Sources

Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
  1. Insurance Information Institute. "Facts + Statistics: Insurance company Rankings." Accessed May 18, 2021.

  2. Fortune. "Fortune 500 State Farm Insurance." Accessed May 18, 2021.

  3. J.D. Power. "Homeowners' Satisfaction with Property Claims Reaches Record High as Insurers Focus on Relationship Management, J.D. Power Finds." Accessed December 6, 2020.

  4. ConsumerReports. "Best Homeowners Insurance Companies." Accessed December 6, 2020.