Cheapest Homeowners Insurance 2026: Best Low-Cost Options

The average homeowners insurance premium is $1,428/year — but millions of homeowners pay hundreds more than necessary because they haven't shopped recently or taken available discounts. Here's how to find the cheapest coverage without sacrificing protection.

Cheapest homeowners insurance companies 2026

| Company | Avg. annual premium | States available | Notable | |---|---|---|---| | Erie Insurance | $1,050 | 17 states | Lowest rates where available | | Amica Mutual | $1,280 | All states | Low rates + best claims satisfaction | | State Farm | $1,380 | All states | Large agent network + discounts | | Travelers | $1,340 | All states | Multiple discount options | | Auto-Owners | $1,200 | 26 states | Strong Midwest/Southeast | | Nationwide | $1,290 | All states | SmartHome discount program | | USAA | $1,150 | All states | Military only |

Premiums based on $300,000 dwelling coverage, national averages. Your rate depends on location, home, and risk profile.

7 ways to get the cheapest homeowners insurance

1. Bundle home and auto (biggest single discount)

Adding homeowners to your auto policy — or vice versa — typically saves 10–25% on both policies. At $400/year savings combined, this is the most impactful single action.

2. Raise your deductible

Moving from a $1,000 to $2,500 deductible saves 10–15% on your premium. Savings of $150–$250/year. Only do this if you have $2,500 accessible for a claim.

3. New roof discount

A roof less than 10–15 years old earns significant discounts with most insurers. In some states, the discount can be $300–$500/year. If your roof is over 15 years old, replacing it can actually pay back the cost in reduced premiums within 5–7 years.

4. Install a monitored security system

A monitored alarm (not just a basic smoke detector) can earn 5–15% discounts. Smart home systems (Ring, SimpliSafe, ADT) are widely accepted. Typical savings: $50–$150/year.

5. Maintain a claims-free record

Many insurers reward long claims-free periods with discounts of 5–15%. Small claims (under $2,000–$3,000) are often not worth filing — the premium increase over 5 years can exceed the claim amount.

6. Shop every 2–3 years

Insurance rates shift continuously. An insurer that was cheapest 3 years ago may have increased rates. Competitive companies regularly undercut incumbent insurers to win new customers. Getting 3–4 quotes at renewal takes under an hour and can save $200–$500.

7. Loyalty isn't always rewarded

Some insurers offer loyalty discounts; others quietly increase rates for long-term customers ("price optimization"). If you've been with the same insurer for 5+ years without shopping, you're likely paying more than new customers for the same coverage.

What to watch for with the cheapest options

The danger with the absolute cheapest homeowners insurance:

Inadequate coverage limits: Some cheap policies underinsure your home. Always confirm dwelling coverage equals your home's replacement cost — not the market value.

Financial strength: Stick with insurers rated A or better by A.M. Best. A financially weak company may struggle to pay major claims.

Claims satisfaction: Look at J.D. Power scores and NAIC complaint ratios. A company saving you $100/year but handling claims poorly costs you more when it matters.

Frequently Asked Questions

What is the cheapest homeowners insurance company? Erie Insurance consistently offers the lowest homeowners insurance rates in the states where it operates (17 states in the Midwest, Mid-Atlantic, and Southeast). Nationally available options with competitive pricing include Amica Mutual, State Farm, and Travelers. Rates vary significantly by state and property — always compare 3–5 quotes for your specific home.

How can I lower my homeowners insurance rate? The most effective ways to lower homeowners insurance: (1) bundle with auto insurance (10–25% discount), (2) raise your deductible from $1,000 to $2,500 (saves 10–15%), (3) install monitored security system and smoke detectors (2–15% discount), (4) maintain a claims-free record, (5) new or recently replaced roof (10–20% savings), (6) shop quotes every 2–3 years. Some of these combined can save $300–$600/year.

Is cheap homeowners insurance a bad idea? Cheap homeowners insurance is fine if it comes from a financially strong insurer with good claims handling. The risk with very cheap insurance: inadequate coverage limits (leaving you underinsured in a major loss), poor claims service, or financially weak companies that may struggle to pay large claims. Prioritize: (1) correct coverage amounts, (2) A-rated insurer, (3) then find the lowest price among qualifying options.