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There are plenty of options for folks looking to protect their homes on a budget
Updated March 14, 2023
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Who doesn’t like saving money? If you want to knock a few bucks off your monthly homeowners insurance premium, we can’t blame you. But be careful, though. If you cut too many corners you might be on the hook for some pretty expensive repairs, kicking yourself and wishing you’d paid more.
Think about it this way — you wouldn't want to go super cheap on your home security system, right? Well, your homeowners insurance policy is shouldering just as much responsibility. Home insurance is home security, after all, and covers you in the event of burglary, inclement weather, natural disasters, and all sorts of hazards.
You obviously don’t want to spend an arm and a leg, though. That’s why we’ve compiled this list of the best, most affordable homeowners insurance providers out there.
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With a transparent approach to homeowners insurance that puts customers in control of their coverages, this proverbial new kid on the block is really shaking things up. Their easy-to-use quote tool and well designed website make shopping a breeze, and Lemonade’s simple, user-friendly approach will help you fully understand the coverages you’re purchasing.
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 24 states, so make sure you live in an area where they offer coverage.
State Farm has been around for a little over a century, and during that time they’ve learned how to treat their customers right. They’re one of the best-known providers in the industry, and they’re also one of the most affordable.
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 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.
Allstate offers plenty of resources for your insurance questions.
That said, that basic plan was really basic. We have more information on this in our Allstate policies guide, but we wouldn’t really recommend protecting your home with such a bare-bones policy. The good news is that their more advanced plan with better coverages was still really affordable — just $91 per month. That’s still significantly below the national average of $110.
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 2023. 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.
