Home insurance is a type of property insurance that protects your houseand personal belongings from damage or loss caused by natural disasters, theft, vandalism, fire, and other perils. It also provides liability coverage if someone gets injured on your property or sues you for damages. Home insurance can vary in cost depending on many factors, such as the location, size, age, and condition of your home, the coverage limits and deductibles you choose, the discounts you qualify for, and the company you buy from. To help you find the best cheapest home insurance, we have analyzed the average premiums, customer ratings, and discounts of some of the largest home insurance companies in the U.S. Based on our research, here are the cheapest home insurance companies of 2025:
1- Erie
Erie is the cheapest home insurance company in our analysis, with an average annual premium of $899 for $350,000 dwelling coverage. Based on Erie home insurance reviews, it is also one of the highest-rated home insurance companies, scoring 839 out of 1,000 points on J.D. Power’s customer satisfaction survey and having a low complaint ratio with the National Association of Insurance Commissioners (NAIC).
Erie offers homeowners a range of coverage options and discounts, such as:
- Guaranteed replacement cost: This covers the full cost of rebuilding your house after a covered loss, regardless of the policy limit or depreciation.
- Identity theft recovery: This covers the expenses related to restoring your identity if it is stolen or compromised.
- Service line protection: This covers the repair or replacement of damaged underground service lines, such as water, sewer, gas, or electric lines.
- Multi-policy discount: This applies if you bundle your home and auto insurance with Erie.
- Safety device discount: This applies if you have smoke detectors, fire alarms, sprinkler systems, or security systems in your house.
- Advance quote discount: This applies if you get a quote from Erie at least seven days before your policy effective date.
Erie is available in 12 states and Washington, D.C.
2- Nationwide
Nationwide is the second-cheapest home insurance company in our analysis, with an average annual premium of $1,227 for $350,000 dwelling coverage. Nationwide also has a good reputation for customer service and claims handling, scoring 812 out of 1,000 points on J.D. Power’s customer satisfaction survey and having a low complaint ratio with the NAIC.
Nationwide offers homeowners a variety of coverage enhancements and discounts, such as:
- Brand New Belongings: This covers the replacement cost of your personal property after a covered loss, without deducting for depreciation.
- Better Roof Replacement: This covers replacing your roof with stronger and safer materials after a covered loss.
- Water backup: This covers the damage caused by water backing up from drains or sewers.
- Earthquake: This covers the damage caused by earthquakes or earth movements.
- Flood: This covers the damage caused by floods or surface water.
- Multi-policy discount: This applies if you bundle your home and auto insurance with Nationwide.
- Home purchase discount: This applies if you buy a new house or switch to Nationwide from another insurer.
- Claims-free discount: This applies if you have no claims or few claims in the past.
- Protective device discount: This applies if you have smoke detectors, fire alarms, sprinkler systems, or security systems in your house.
Nationwide is available in all 50 states and Washington, D.C.
3- State Farm
State Farm is the third-cheapest home insurance company in our analysis, with an average annual premium of $1,500 for $350,000 dwelling coverage. State Farm also has a solid reputation for customer service. It claims to handle, scoring 814 out of 1,000 points on J.D. Power’s customer satisfaction survey and having a low complaint ratio with the NAIC.
State Farm offers homeowners a range of coverage options and discounts, such as:
- Personal articles policy: This covers the loss or damage of your valuable items, such as jewelry, art, or collectibles.
- Home alert protection: This covers the cost of repairing or replacing your smart devices, such as security cameras, thermostats, or smoke detectors.
- Identity restoration: This covers the expenses related to restoring your identity if it is stolen or compromised.
- Multi-policy discount: This applies if you bundle your home and auto insurance with State Farm.
- Home security discount: This applies if you have smoke detectors, fire alarms, sprinkler systems, or security systems in your house.
- Roofing discount: This applies if you have impact-resistant roofing materials that can withstand hail and wind damage.
State Farm is available in all 50 states and Washington, D.C.
4- Progressive
Progressive Home Insurance reviews are generally positive, with many customers praising its competitive rates, convenient online tools, and helpful customer service. However, as with any insurance provider, there are some negative reviews, primarily related to claim handling and customer service issues. Progressive Home Insurance offers comprehensive coverage for your house and belongings. With options like dwelling coverage, personal property protection, and liability insurance, Progressive can help safeguard your assets from unforeseen events. Progressive offers various discounts, which can help you save money on your premiums. These discounts may vary depending on your specific situation and location. It’s always recommended to contact Progressive directly for the most accurate and up-to-date information.
Progressive Home Insurance is one of the best cheap home insurance companies. A standard policy with $350,000 in dwelling coverage’s average annual rates for Progressive Homeowners Insurance is $750. But the average rates of the same policy is much higher at other competitors, such as $1,160 at Nationwide, $1,275 at Erie, $1,300 at State Farm, $1,800 at Chubb and $2,050 at Farmers.
Progressive offers homeowners a range of discounts, such as:
- Bundle Discount: Combine homeowner and auto insurance for a discount.
- Home Security Discount: Install a security system for a discount.
- Claims-Free Discount: Receive a discount for having no claims.
- Renewal Discount: Renew your policy for a discount.
- Automatic Payment Discount: Set up automatic payments for a discount.
- Senior Discount: For policyholders over a certain age.
5- Allstate
Allstate is our analysis’s fifth-cheapest home insurance company, with an average annual premium of $1,800 for $350,000 dwelling coverage. Allstate also has a solid reputation for customer service. It claims to handle, scoring 814 out of 1,000 points on J.D. Power’s customer satisfaction survey and having a low complaint ratio with the NAIC.
Allstate offers homeowners a range of coverage options and discounts, such as:
- HostAdvantage: This covers the loss or damage of your personal property when renting out your home on platforms like Airbnb or VRBO.
- Green improvement reimbursement: This covers the extra cost of repairing or replacing your house with energy-efficient materials after a covered loss.
- Identity theft restoration: This covers the expenses related to restoring your identity if it is stolen or compromised.
- Multi-policy discount: This applies if you bundle your home and auto insurance with Allstate.
- Welcome and loyalty discount: This applies if you are a new customer or renew your policy with Allstate.
- Claims-free discount: This applies if you have no claims or few claims in the past.
- Home buyer discount: This applies if you buy a new or newly renovated house.
- Protective device discount: This applies if you have smoke detectors, fire alarms, sprinkler systems, or security systems in your house.
Allstate is available in all 50 states and Washington, D.C.
6-CNA
CNA is one of the leading providers that offers a wide range of products and services. They offer a wide range of coverage options, low cost home insurance, and excellent customer service backed by financial stability and local expertise. It is a well-established carrier with more than a century’s worth of experience in the insurance industry. CNA provides coverage nationwide and offers 24/7 claims reporting. Many customers have reported positive experiences with their claims and appreciate the personalized service they receive in CNA Home Insurance Reviews. Ultimately, the value of the insurance policy will depend on your specific needs, budget, and where you live. Although there are some potential downsides like higher premiums and limited availability.
7- USAA
USAA is the seventh cheapest home insurance company in our analysis, with an average annual premium of $1,943 for $350,000 dwelling coverage. USAA is also the highest-rated home insurance company, scoring 889 out of 1,000 points on J.D. Power’s customer satisfaction survey and having a low complaint ratio with the NAIC.
USAA offers homeowners comprehensive coverage and discounts, such as:
- Replacement cost coverage: This covers the full cost of rebuilding your house and replacing your personal property after a covered loss, without deducting for depreciation or policy limit.
- Military uniform coverage: This covers the loss or damage of your military uniform while on active duty or deployed.
- Identity theft coverage: This covers the expenses related to restoring your identity if it is stolen or compromised.
- Multi-policy discount: This applies if you bundle your home and auto insurance with USAA.
- Claims-free discount: This applies if you have no claims or few claims in the past.
- Protective device discount: This applies if you have smoke detectors, fire alarms, sprinkler systems, or security systems in your house.
USAA is available in all 50 states and Washington, D.C., but only for members of the U.S. military and their families.
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