Best Cheap Homeowners Insurance in 2022

There are plenty of options for folks looking to protect their homes on a budget

Lemonade's logo
Lemonade
SecureScore™: 9.4/10
A relatively new name in the insurance industry, Lemonade is already making waves with its transparent approach, affordable rates, and exceptional customer service.
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State Farm manufactured home coverages
State Farm
SecureScore™: 9.3/10
If you’re looking for one of the best bangs for your homeowners insurance buck, State Farm provides comprehensive protections for reasonable premiums.
Allstate's online quote tool is easy to use.
Allstate
SecureScore™: 8.4/10
Another one of our budget-friendly picks, Allstate is a no-nonsense provider that offers all the protections you need and a user-friendly online quote tool to boot.

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.

Most Affordable Homeowners Insurance Providers in 2022

Home Insurance

  • Lemonade - While it’s not quite a household name yet, it will be soon. You don’t often hear the word “exciting” associated with homeowners insurance, but if that word can describe any insurer, it’s Lemonade. Their commitment to transparency makes it simple to purchase a policy that suits your needs, and their premiums are some of the most affordable on the market today.
  • State Farm - Everyone knows the name State Farm. They’ve got almost a century of experience protecting homes, and with their track record, it's no wonder they’re one of the most popular insurance providers in the country. Their prices are affordable, their protections are robust, and their customer service is stellar.
  • Allstate - Allstate has a reputation for providing complete protections at reasonable prices, and they have nearly 100 years of experience as well. As one of the first providers in the industry to offer short-term rental insurance, Allstate is constantly evolving to ensure their customers are protected from whatever life throws their way.
  • 1 Lemonade - Best Overall Cheap Home Insurance

    Lemonade's logo
    SecureScore™ 9.4
    Affordability
    9.8
    Coverage
    8.8
    Customer Service
    9.8
    Online Quote
    10
    Discounts
    8.8
    Bundles
    9.1
    SecureScore™
    9.4
    How We Review

    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.

    • Low rates
    • Fast, fun AI quote builder
    • Transparent policies
    • Excellent digital experience
    • Instant claims payments via the Lemonade app
    • Giveback program invests unused claims in charities

    • Can’t replace belongings at cost
    • Only available in 22 states (so far)
    • Only in business for six years

    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.

    Lemonade Insurance Options

    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.

  • 2 State Farm - Best Standard Coverages for Cheap

    State Farm manufactured home coverages
    SecureScore™ 9.3
    Affordability
    9.4
    Coverage
    9.4
    Customer Service
    9.2
    Online Quote
    8.7
    Discounts
    8.8
    Bundles
    10.0
    SecureScore™
    9.3
    How We Review

    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.

    • Heavy discounts on multi-product bundles
    • Replacement cost value possessions coverage
    • Fast online quotes and claims
    • 19,000 agents nationwide
    • Top-rated for customer satisfaction
    • Free three-year Ting subscription

    • Can’t purchase bundles online
    • Fewer discounts than some close competitors
    • Not available in Massachusetts or Rhode Island

    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 online quote generator isn’t a marvel of design, but it’s quick and easy.

    State Farm’s online quote generator isn’t a marvel of design, but it’s quick and easy.

    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.

  • 3 Allstate - Best Affordable Add-ons

    Allstate's online quote tool is easy to use.
    SecureScore™ 8.4
    Affordability
    9.0
    Coverage
    8.7
    Customer Service
    7.4
    Online Quote
    8.5
    Discounts
    8.3
    Bundles
    8.6
    SecureScore™
    8.4
    How We Review

    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.

    • Short-term rental insurance
    • Home and auto policy bundling
    • Easy-to-use online quote tool
    • Multiple discounts
    • Unique protections

    • Policies can be pricey
    • Online complaints
    • Can’t add guaranteed or extended replacement cost coverage

    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.

    Allstate offers plenty of resources for your insurance questions.

    Allstate offers plenty of resources for your insurance questions.

    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

Why Do I Need Homeowners Insurance?

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.

What Does Homeowners Insurance Cover?

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:

  1. Dwelling: This covers the actual structure of your home.
  2. Personal property: This protects the items in your home.
  3. Other structures: This covers any other structures on your property, like a garage or a pool.
  4. Personal liability: This covers you if someone is injured on your property and wants to sue.
  5. Medical liability: This covers the medical costs of someone injured on your property.
  6. Loss of use: This covers your living expenses if your home is damaged to an extent that you can no longer live there.

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?

How Much Is Homeowners Insurance?

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:

  • Your home’s worth
  • Your home’s location
  • Your home’s age
  • Your home’s building materials
  • Your home’s safety and security measures

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.

How Can I Lower My Homeowners Insurance Costs?

Each provider is different, but most offer discounts for certain customers. Your individual situation will vary, but you may get a discount if:

  • You go a certain period of time without making a claim
  • You install a home security system
  • You bundle multiple insurance policies
  • You move to Maine

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.

Homeowners Insurance FAQs

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.

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