Home insurance rates are different everywhere you go with the average policy for $200,000 of dwelling coverage costing $1,806 per year. Rates will vary depending on the state and zip code that you live in, the size and build of your home, liability selection, and your claims history. Finding affordable home insurance means shopping around to see what carrier has the best rates in your area based on the carriers’ experience in your area.
While home insurance rates do vary widely, we were able to compile a list of companies known for more affordable home insurance. Here’s what we found.
Erie Insurance is a large regional insurance carrier serving 11 states and the District of Columbia (Illinois, Indiana, Kentucky, Maryland, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and Wisconsin. It offers home, auto, boat, commercial, and life insurance so policyholders can pretty much get all insurance needs served with one call.
The average annual premium for Erie Insurance’s home policies is $1,088. The company received a score of 839 out of 1,000 on the J.D. Power customer satisfaction survey.
Homeowners can seek additional discounts for bundling policies or having home safety devices such as a security system.
CSAA is part of the AAA Insurance Group family serving Arizona, Colorado, Connecticut, Delaware, Maryland, Montana, Nevada, Oklahoma, Oregon, South Dakota, Utah, Washington D.C., and Wyoming. It has limited coverage in California, Idaho, Indiana, Kansas, Kentucky, New Jersey, New York, Ohio, Pennsylvania, Virginia, and West Virginia. It’s best to call for a quote in these states.
CSAA offers home, renters, auto, and life insurance for your convenience. To get an affordable home policy, you must be a AAA member which costs between $38 and $74 each year.
The average cost of a CSAA home insurance policy is $1,127 annually with a J.D. Power customer satisfaction score of 825 out of 1,000.
AIG is a worldwide insurance carrier that offers affordable home insurance through its Private Client Group in the U.S. The carrier offers homeowners, private collection, excess liability, auto, and yacht insurance. The AIG target is generally for higher-end homeowners but they do offer reasonable rates for an average home.
The average cost of an AIG home insurance policy is $1,130 per year and they received a score of 809 out of 1,000 in the J.D. Power customer satisfaction survey.
AIG offers several discounts including a bundling discount and a new home discount for homes less than 10 years old or newly renovated. They also offer a unique 3% discount for homes with an installed lightning protection system.
Progressive is a national insurance carrier that offers home and auto insurance along with commercial insurance lines. Progressive touts its comparison tool, HomeQuote Explorer to help you shop for the lowest rate in your area.
The average cost of a Progressive home insurance policy is $1,141 per year. The company received a J.D. Power score of 797 out of 1,000, lower than any of our other providers.
Progressive offers a multitude of discounts including bundling home and auto together, paying policies in full, and electronic notifications.
MetLife is a national insurance carrier that is best known for its Snoopy commercials for life insurance. The company also offers home, auto, dental, and vision insurance for consumers. The company also has an umbrella policy it offers to those who are concerned about having enough liability coverage with their home and auto insurance policies.
On average, a MetLife home insurance policy costs $1,256 per year. The company received 824 out of 1,000 points on the J.D. Power customer satisfaction survey.
Aside from the standard bundle and save discounts, MetLife also offers discounts for employees of employers who participate in employee benefits programs with MetLife.
What Does Home Insurance Cover?
Homeowners insurance covers you for financial losses resulting from covered claims. Common covered claims include fire, theft, vandalism, windstorm, and internal water damage like a pipe bursting.
There are certain coverages that a homeowners policy has that include:
- Dwelling: Cost to repair or replace your home
- Additional Structures: Pays for new sheds, fences, or detached structures
- Personal Belongings: Replaces damaged or lost items such as furniture, electronics, and home goods
- Loss of Use: An allowance to help offset costs of not being able to use your home during a covered claim
- Personal Liability: Covers expenses and settlements when you are accused of being responsible for someone else’s injuries or property damage
- Medical Payments: This is an amount that pays small medical bills that are incurred when a guest gets injured on your property
These are common coverages for home insurance and don’t vary even though some companies may highlight them better than others.
What does vary is the value of coverage. Some carriers are able to sell cheaper policies because they use actual cash value numbers which reflect a depreciated value of your home and belongings. Better coverage is replacement cost coverage that makes you whole after a loss with real-time values.
Replacement Cost vs. Actual Cash Value
Both the replacement cost and the actual cash value are ways to define the value of a loss and what is covered. Some insurance policies will use actual cash value while others use replacement cost. Actual cash value is the depreciated value of items while replacement cost is the current market value to replace an item. Because actual cash value is not paying for a full replacement, it is often a less expensive policy. Homeowners should directly ask insurance representatives what type of coverage there is when shopping for affordable home insurance.
While our list is a good place to start for affordable top home insurance, make sure to shop around with your local market to get the best possible rates for your home. A change in zip code can dramatically change the rates for any insurance carrier making it hard to determine who is the overall cheapest across the board.