There are plenty of options for folks looking to protect their homes on a budget
Of course you want to protect your home, but you don’t want it to cost an arm and a leg. We hear you, and we’re here to help.
Now, you don’t want to just pick the cheapest policy available. Price is certainly important, but you should look at the full picture. If a policy costs $40 per month, but you’re on the hook for a $100,000 repair after a big storm comes through, it wasn’t really a cheap policy, was it?
So today we’ll look at three of the most affordable providers in the market, all of which offer comprehensive protections. Even though you’re getting a rock-bottom price, you won’t be hung out to dry when you need to make a claim.
The proverbial new kid on the block, Lemonade is looking to shake up the insurance industry with a transparent approach that puts customers in control of their coverages. With easy-to-understand language and reasonably priced premiums, they’re our top pick for affordable homeowners insurance.
Lemonade is looking to disrupt the homeowners insurance industry by providing customers with a simple purchasing process and rates anyone can afford. Their approach is as refreshing as … well … a glass of lemonade.
In our Lemonade home insurance review, we were immediately impressed by their user-friendliness and the overall customer experience. Their website is super intuitive, and everything is put into layman’s terms. There’s no confusing jargon, and their AI-powered quote-building tool — which is named Maya, by the way — actually makes the purchasing process fun.
But what about that all-important question, though? What about Lemonade’s prices? We’re happy to report they’re one of the most affordable providers we’ve encountered. That isn’t to say they are the cheapest provider out there, but in terms of protections versus cost, they’re hands-down our favorite. And we’re talking standard policies in the sub-$100-per-month price bracket.
One thing to note, though, is that Lemonade is currently available in only 22 states, so make sure you live in an area where they offer coverage.
One of the most well-known names in the homeowners insurance industry is also one of the most affordable. State Farm offers coverage for customers at reasonable prices. And their bundling options are among the best we’ve seen.
State Farm is one of the biggest names in the insurance industry for a reason. There are no flashy deals or gimmicks here. You get rock-solid coverages at affordable prices.
What’s more, in our review of State Farm homeowners insurance, we found that oftentimes you’re going to get more protection from them than you would from a more expensive competitor. Their standard protections outclass most other providers out there, and you’ll pay less for it.
State Farm’s policies include protections like business property insurance, which protects any items you use professionally, and a building ordinance rider, which will help make sure that if your home needs repairs, everything will be done up to current code.
We have more information in our guide to State Farm’s home insurance costs, but the long and short of it is this: If you want the best bang for your buck, State Farm is definitely worth a closer look.
In our experience, Allstate is easy to work with, they offer unique protections, and their policies are affordable. We especially liked their customizable plans with loads of add-on options.
Allstate is another provider that’s made a name for themselves by offering great protections at low prices. Their standard policies are robust, and their add-on protections, like identity theft insurance and short-term rental coverage, are pretty interesting options to consider.
In our Allstate analysis, we really liked that they take a tiered approach to their policies. Once you’ve input all your information into their online quote tool, you can select from a basic, standard, or advanced plan. Obviously, the basic is going to be more affordable than the advanced, but just how affordable is it? In our test policy of a home in Atlanta worth $300,000, the basic plan was only $63 per month.
That said, the basic plan was really basic. More on this in our Allstate policies guide, but we wouldn’t necessarily recommend cutting corners when it comes to protecting your home. Thankfully, even their advanced plan came in well under the national average (about $110 per month), at only $91 per month.
It’s tough to say if this will be your experience since homeowners insurance premiums rely on so many factors, but in our research, we found that, generally speaking, Allstate is one of the more affordable providers out there.
Hopefully this helps you start building the list of homeowners insurance providers you want to check out, but if you still feel like you need a little more guidance, we’ve got some more information for your consideration
Shopping around for homeowners insurance might seem like a chore, but it’s actually a very important part of the home-buying process. Every home is unique, and you want to make sure yours is protected from any potential threat.
FYI: There are actually eight different kinds of homeowners insurance, although the most typical policies are HO-3 policies. If your home is extremely valuable, or if you own extremely high value items, you might want an HO-5 policy.
The main reason you need homeowners insurance is to protect yourself in the event of a catastrophe. If a tornado comes through and levels your house, you’ll still be on the hook for the mortgage payments. Adequate homeowners insurance will cover the difference and make sure you get back to baseline.
However, homeowners insurance does more than cover you should the unthinkable happen. Modern insurance policies go much further.
Everything you’d possibly need to know about this in our homeowners insurance buyers guide, but it’s important to understand homeowners insurance isn’t just for when a tornado blows your roof off. Most modern insurance policies offer six key protections:
Keep in mind that there are a number of other protections you can purchase as add-ons to your standard policy. When you’re shopping for quotes, make sure you’re comparing not only costs, but also the coverages you’ll be receiving, and make sure you add on the protections you feel are necessary for your home and individual situation.
This begs the question, though, how much does all this cost?
This is a good question, but it’s a bit like asking, “How much is a new car?” Are you looking for a Toyota or a Bentley? One will cost you more than the other. Homeowners insurance premiums depend on a myriad of factors, but some of the most important include:
Let’s cut to the chase, though. Generally speaking, an adequate homeowners insurance policy for an average home will cost you between $100 and $150 per month, depending on your limits and coverages. Now, if you need to take a monorail to get from the kitchen to your bedroom, that’s another story, but for a moderately priced home, that’s a good ballpark figure.
FYI: The state with the highest average homeowners insurance rates is Oklahoma. Sooners pay $370 per month on average, mostly due to the threat tornadoes pose.
Now, there are ways to lower your premium if you’re so inclined. Let’s discuss those now.
Each provider is different, but most offer discounts for certain customers. Your individual situation will vary, but you may get a discount if:
Just kidding on that last one, but Maine does offer the lowest average homeowners insurance rates, at $73.50 per month. That said, each provider has different requirements for discount eligibility, so talk to your agent to make sure you’re not leaving money on the table.
That about does it for our money-saving tips and our list of the best cheap homeowners insurance providers. If you’re not convinced that one of these three is right for you, though, you should make your way over to our list of the best homeowners insurance providers of 2022. There you’re sure to find a provider to fit both your needs and your budget.
Is homeowners insurance expensive?
Your premium will depend on a number of factors, but generally speaking, an average homeowners insurance policy will cost between $100 and $150 per month.
What determines my homeowners insurance premium?
Many factors are taken into account in determining a homeowners insurance premium, but some of the biggest are your home’s value, your home’s age, your home’s location, and your home’s construction materials.
Why do I need homeowners insurance?
Homeowners insurance protects you should something catastrophic happen to your home. If significant repairs are needed, you won’t have to spend your own money.
How can I get cheap homeowners insurance?
The best way to get an affordable homeowners insurance policy is to shop around. Many insurers also offer discounts, so be sure to ask your agent.
Who is the cheapest homeowners insurance provider?
Your policy will depend on a wide variety of factors, but some of the most affordable providers of homeowners insurance are Lemonade, State Farm, and Allstate.