| Insurance Company | Average Annual Premium |
|---|---|
| Allstate | $1,609 |
| Geico | $1,516 |
| Progressive | $1,353 |
| State Farm | $1,914 |
| Liberty Mutual | $1,892 |
To get these sample quotes, we used the profile of a 35-year-old Columbus, Ohio, resident who is a non-smoker with good credit and no recent insurance claims. The home insured is a single-family, two-story house built in 1992. We used the following coverage limits:
- $350,000 in dwelling coverage
- $35,000 in other structures coverage
- $200,000 in personal property coverage
- $350,000 in liability coverage
- $1,000 in medical payments coverage
- $70,000 in loss-of-use coverage
- $1,000 deductible for all coverage types
Compare homeowners insurance quotes on Insurify.
Factors Influencing Cost
Insurance companies consider many factors to calculate your personalized premium. Here are some of the things that can affect the cost of your homeowners insurance policy.
Home Characteristics
The insurance company will likely look at the age, condition, roof construction, square footage, number of stories, and building materials to determine your premium.
In general, newer homes in good condition are cheaper to insure than older homes or houses in poor condition. You might get a lower premium if your home is located near a fire station, or if you have protective devices, like an alarm system or fire sprinkler system, in your home.
Potential Liabilities
All homeowners face potential liabilities, but your risk of lawsuits could be higher if you have a swimming pool, trampoline, play structures, or a certain dog breed at home. Therefore, If you have any of these structures or animals on your property, you could pay more for homeowners insurance.
Location
Your state, city, and ZIP code will affect your home insurance premium. If you live in an area that is prone to severe weather, like tornadoes or hurricanes, or if your neighborhood has a high crime rate, your premium can go up. You might also pay a higher home insurance rate if your property is located near the coast.
Coverage Types and Limits
When you purchase home insurance, you can choose your coverage types and coverage limits. If you choose high coverage limits, you can expect to pay a higher premium. Additionally, purchasing optional home insurance policies, like water backup coverage or guaranteed replacement cost coverage for your dwelling, could raise your rate.
Claim History
Your insurance claim history and the claim history of homeowners in your area can impact the cost of your insurance policy. If you’ve filed any insurance claims within the last several years, it could increase the cost of your home insurance policy.
Credit Score
Many insurance companies use credit-based insurance scores to calculate your premium. When you apply for a policy, you might be asked to provide your Social Security number, which is used to check your credit. Homeowners with a good credit history might pay lower rates.
Insurance Company
Rates for the same types and amounts of coverage can vary depending on the insurer you get a quote from. To find the most affordable home insurance for your situation, consider getting home insurance quotes from several insurance providers.
Top Homeowners Insurance Companies
To choose the best home insurance, it’s important to compare a few different providers. These are some of the top home insurance companies on the market.
State Farm
State Farm is the largest home insurance provider, with more than 18% of the total market share. It’s also an excellent insurer to consider if you want to bundle your policies for a lower premium. State Farm customers who bundled their auto and home insurance saved $1,127 per year in 2021.
In addition to policy bundling, State Farm has roofing discounts and home security discounts. There are also a few unique programs for homeowners, like State Farm’s partnership with Wildfire Defense Systems (WDS), which helps homeowners in select states protect their homes against wildfires.
Important
State Farm stopped accepting new applications for home insurance in California, including all business and personal lines property and casualty insurance, on May 27, 2023. Existing policies and personal auto insurance policies were not impacted by this change.
Allstate
Allstate offers a big selection of optional coverages, so it could be a good choice if you’re looking to customize your policy. Some of the optional coverages available are:
- Sports equipment
- Yard and garden
- Identity theft
- Water backup
- Musical instruments
Allstate also sells green improvement reimbursement coverage, which pays for the higher cost of replacing damaged items with more energy-efficient versions.
Progressive
Progressive’s home insurance policies are underwritten by other insurance companies, including American Modern, Foremost, National General, Nationwide, and Plymouth Rock. The provider that underwrites your policy depends on your location.
Progressive has multiple discounts, too. You can qualify for a lower premium if you bundle your policies, get a quote in advance, insure a newly purchased or newly constructed home, pay in full, or have an alarm system in your house.
Liberty Mutual
Liberty Mutual offers all the standard home insurance coverages and personal property replacement cost coverage, plus optional coverages for jewelry, water backup, and inflation protection.
In terms of discounts, Liberty Mutual offers savings if you don’t have any recent insurance claims or are getting a new policy before your old coverage expires, insuring a newly renovated home or a home with a new roof, or enrolling in automatic payments; there are also other discounts available.
Geico
Geico sells home insurance but doesn’t underwrite its own policies. Instead, it works with partner companies, like AIG, Chubb, Homesite, and Travelers, to issue your policy.
Geico offers a wide variety of endorsements, but you need to contact an agent to find out what’s available in your area. To lower your premium, Geico provides discounts for bundling your policies, having a home security system, and having smoke detectors and fire extinguishers in your home.
How to Save Money on Homeowners Insurance
The cost of home insurance is different for every homeowner. But depending on factors like your location and the characteristics of your home, your policy could be expensive. Here are several ways to reduce your homeowners insurance costs.
- Look for insurance discounts: It’s common for home insurance companies to offer discounts, which can reduce your premium. You can usually find savings for insuring a new home, having a newer roof, and paying your premium in full.
- Make your home more secure: If your home is equipped with security features, like a burglar alarm, connected fire alarms, or a fire sprinkler system, you could qualify for home insurance savings.
- Choose higher deductibles: Most home insurance policies have a deductible that you must pay out-of-pocket when you have a claim. Choosing higher deductibles will likely lower your monthly or annual premium.
- Bundle your policies: Most home insurance providers will lower your premium if you purchase a home insurance policy with an auto insurance policy.
- Get multiple quotes: Home insurance premiums can vary based on your insurance company. Get quotes from a few companies to see which one can offer you the best deal for the coverage you want.
How to Choose the Best Homeowners Insurance
Homeowners insurance provides valuable protection for the physical structure of your home, your personal belongings, and your liabilities. It’s important to choose the best policy for your needs. Here are some steps for choosing the best home insurance policy.
- Evaluate your coverage needs: Think about what types of coverage and how much coverage you need. For example, if you have a collection of art or fine jewelry, you may need to get an endorsement to cover those items. If you have a pool or trampoline in your yard, you might want higher liability coverage limits.
- Compare companies: There are dozens of well-known home insurance providers on the market, and each one has pros and cons. Before you purchase a policy, shop around and compare several companies based on coverage options, discounts, customer reviews, financial strength ratings, and online and mobile tools.
- Read the fine print: Every home insurance policy is slightly different. It’s a good idea to review the fine print before purchasing coverage. Know what’s covered, what perils are not covered, how much your coverage limits are, and if there’s a separate deductible for natural disasters, such as a hurricane deductible.
How Much Homeowners Insurance Do I Need?
Every homeowner needs a different amount of home insurance coverage. Insurance experts recommend having enough dwelling insurance to cover the full replacement cost of your home. Your personal property coverage limit should be about 50% of your dwelling insurance limit, and your loss of use coverage limit should be roughly 20% of your dwelling coverage limit. For personal liability, you should choose your coverage limits based on the potential risks on your property.
Is Homeowners Insurance Required?
Homeowners insurance is not a legal requirement. However, many lenders require home insurance if you have a mortgage. Once your mortgage is paid off, you have the option to drop your home insurance coverage, but doing so puts you at financial risk if your home sustains serious damage.
Do You Need Homeowners Insurance?
Generally speaking, yes, you need homeowners insurance whether it’s required by a lender or not. Home insurance protects the physical structure of your home, your personal items, and your liability if someone gets hurt on your property or you damage someone else’s property. Without home insurance, you are financially responsible if your home or personal items get damaged or destroyed, as well as for your legal fees in a lawsuit.