Updated: March 29, 2025
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Chubb is the cheapest home insurance company for $100K in dwelling coverage, charging an average of $989 per year. American family has the cheapest home insurance for $250k and $500k coverage.
Save Money on Home Insurance: You can reduce premiums by bundling policies, installing safety devices, increasing your deductible, maintaining. good credit score, bundling home and auto, and comparing quotes from different providers annually.
Your home's value and location impact the cost of the your home insurance. To find the cheapest policy in your state, see the cheapest companies by state below.
The cheapest home insurance provider nationally is Chubb, charging an average of $989 annually for $100K in dwelling coverage. This is followed by State Farm and American Family.
If you’re looking to save more on Chubb’s home insurance, you can bundle it with other Chubb insurance policies for discounts. Alternatively, if you have protective devices installed in your home or have had it renovated within the last six years, you can also qualify for a discount.
The cheapest home insurance for you depends on the dwelling coverage you need. Dwelling coverage is what pays to repair or rebuild your home. See our resources on determine home insurance coverage need.
Use the table below to see the cheapest providers based on your desired dwelling coverage limits.
| Chubb | $ 989 |
| State Farm | $ 1,061 |
| American Family | $ 1,163 |
| Nationwide | $ 1,245 |
| Farmers | $ 1,260 |
| Auto-Owners Insurance | $ 1,265 |
| Allstate | $ 1,505 |
| Travelers | $ 3,979 |
Your dwelling coverage need should reflect the replacement cost of your home—not its market value. Market value includes land and location factors, which aren't relevant for insurance purposes.
To accurately estimate your replacement cost:
Remember to reassess your coverage annually, especially after renovations or when building costs increase in your area.
The cheapest home insurance rates can vary widely by state and city due to these factors:
The tables below help you find the cheapest home insurance companies in your state and city.
| State Farm | $ 1,810 |
The most affordable home insurance provider can also vary widely even within the same state. In New York, for example, State Farm is the cheapest in New York city, while Main Street America Insurance is considered the cheapest in four other New York cities.
Filter the table below to see the city rates in your state based on our available data.
| Montgomery | State Farm | $ 1,460 |
| Birmingham | Allstate | $ 1,552 |
| Mobile | COUNTRY Financial | $ 1,812 |
| Huntsville | Farmers | $ 1,519 |
American Family is the cheapest home insurance provider if you have a poor credit score, which ranges around 300 to 629.
Typically, credit scores affect your home insurance premiums because they are used to predict the likelihood of a claim, with lower scores often leading to higher rates due to perceived risk. However, states like California, Massachusetts, Maryland and Hawaii prohibit insurers from using credit scores to determine premiums.
For $100K in dwelling coverage, American Family offers home insurance at $2,046 per year — $3,269 less than the average cost for those with poor credit. American Family offers several discounts that homeowners with poor credit can benefit from, such as a smart home discount for having qualifying security devices, a pay-in-full discount for paying your policy in one lump sum and a paperless billing discount for opting into electronic statements. These savings opportunities can help offset higher premiums associated with lower credit scores.
| American Family | $ 2,046 |
| Nationwide | $ 2,051 |
| Chubb | $ 2,135 |
| State Farm | $ 2,536 |
| Allstate | $ 3,217 |
| Farmers | $ 4,768 |
| Travelers | $ 13,825 |
| Auto-Owners Insurance | $ 28,040 |
Qualifying for common home insurance discounts can help you lower your premium and make coverage more affordable. By understanding and leveraging these discounts, you can maximize your insurance savings while ensuring your home remains well protected.
Save by bundling your home and auto insurance policies under the same provider. This is a simple way to reduce your overall premiums while keeping all your coverage organized in one place.
If your home is newly built, you could qualify for significant savings. Insurers often offer discounts on newer homes because they are less likely to have structural issues or require costly repairs.
Installing safety features such as burglar alarms, fire alarms, or sprinkler systems can earn you a discount. These devices lower the risk of damage or loss, making your home safer and more cost-effective to insure.
Homeowners who have gone a certain number of years without filing an insurance claim may receive a discount. Maintaining a clean claims history signals to insurers that you are a lower risk, which can lead to lower premiums.
You can save by paying your policy in full or setting up automatic payment
Lowering your home insurance premiums doesn’t have to be complicated. By exploring simple strategies like comparing quotes, taking advantage of discounts and maintaining a claims-free history, you can keep your costs down while still protecting your home. Here are some practical ways to save money on your homeowners insurance.
Comparing home insurance quotes from multiple companies is one of the easiest ways to ensure you get the lowest available rate. Even a small difference in rates can lead to significant savings over time, so it's worth the effort to shop around.
Opting for a higher deductible can lower your annual premium significantly. However, make sure you have enough savings to cover the deductible amount in case you need to file a claim.
A higher credit score can lead to reduced homeowners insurance rates because insurers view you as less of a risk. Paying bills on time and managing debt responsibly are key steps to boost your credit and save on insurance.
The location of your home can greatly affect your insurance costs. Homes near fire hydrants or fire stations are cheaper to insure, while those in flood-prone areas may come with higher premiums.
Annually reviewing your policy ensures you maintain the right level of coverage for your needs. It’s also a good time to compare quotes from other companies to make sure you’re not overpaying for your insurance.
Home insurance typically protects your:
However, standard policies don't cover:
See our resource on what home insurance covers and doesn't cover here.
When shopping for home insurance, the settlement method of ACV vs RCV matters a lot.
Actual Cash Value (ACV) policies pay only the depreciated value of your property. If your 10-year-old roof is damaged, you'll receive payment minus a decade of depreciation—leaving you to pay potentially thousands out-of-pocket for a new roof.
Replacement Cost Value (RCV) policies pay the full cost to replace damaged items with new ones of similar quality. While typically 10-15% more expensive upfront, RCV coverage ensures you can restore your property without significant additional expenses.
For most homeowners, the slightly higher premium for RCV coverage provides substantially better protection and proves more economical long-term.
While home insurance costs vary, there are ways to lower your premiums and make coverage more affordable. From choosing a higher deductible to improving your credit score, simple actions can lead to significant savings. Many people still have questions about buying insurance, so we've answered some of the most frequently asked questions about home insurance.
Chubb offers the lowest rate for $100K in dwelling coverage, averaging $989 per year, or about $82 per month. State Farm follows closely at $1,061 annually, equivalent to $88 per month.
Homeowners with poor credit can see significantly higher premiums. For instance, American Family offers coverage at $2,046 per year for those with poor credit, which is $3,269 more than the national average for good credit.
Raising your deductible reduces the risk for insurers, as you're agreeing to pay more out-of-pocket if you make a claim. As a result, they reward you with lower annual premiums.
Yes, insurance companies often use credit scores to assess risk, and a higher score can lead to lower premiums. By paying bills on time and managing debt, you can improve your credit and potentially reduce your insurance costs.
The 80% rule in home insurance requires you to insure your home for at least 80% of its total replacement value to receive full coverage for partial losses. If you're underinsured below this threshold, the insurer will only pay a proportional amount of your claim, calculated by dividing your actual coverage percentage by 80%.
Home insurance settlements for property damage are generally not taxable income, as the IRS considers them reimbursement for a loss rather than new income. However, portions of a settlement may be taxable if they exceed your property's adjusted basis, compensate for previously tax-deducted losses, or include interest on delayed payments
You can switch home insurance companies at any time, but you might have to pay a fee if you cancel early. To avoid gaps in coverage or paying twice, start your new policy on the same day your old one ends or is cancelled.
About Rachael Brennan
Rachael Brennan is a professional freelance writer. She has been published on a number of websites, including Adweek, Glamour and Cracked. She has also worked in the insurance industry for more than a decade, earning her P&C license in all 50 states and her Life, Health and AD&D license in New York and the surrounding states.
