The cheapest home insurer is USAA, which costs an average of $149 per month. It’s followed by State Farm’s $151 monthly premium, according to our cost analysis. However, the most affordable policy for you will depend on your location, house characteristics and more.
Key Takeaways
- Average annual rates for a home insurance policy with $300,000 dwelling coverage and $100,000 liability coverage range from $1,786 per year with USAA to $2,574 with Progressive.
- Your premium will depend on various factors, including your house’s location, age, building materials, roof type and other specific features.
- Common discounts for home insurance reward customers for bundling multiple insurance policies, staying claim-free, installing protective devices and more.
As homeowners insurance costs continue to rise nationwide, finding affordable home insurance is becoming more of a challenge.
To give you an idea of which companies may charge comparatively low rates, we analyzed average cost data for all the companies in our best homeowners insurance rating. Using that data, we calculated each provider’s sample premium for a policy that includes $300,000 in dwelling coverage and $100,000 in personal liability coverage.
Note that your quoted rates will vary based on many factors, so it’s important to shop around.
The cost of home insurance varies widely based on many different factors. In our study, average rates for a policy with $300,000 in dwelling coverage and $100,000 in liability coverage ranged from USAA’s $149 per month to Progressive’s $215 per month, with an overall mean of about $180. By contrast, for a policy with $600,000 dwelling and $300,000 liability coverage, the mean premium for these eight companies is $313 per month.
Our analysis is based on average rate data from Quadrant Information Services for a married homeowner in a three-person household with a wood-frame house. This study looked at average rates for a 38-year-old and a 56-year-old homeowner with a credit score of 720 and a deductible of either $1,000 or $2,500.
We strongly recommend you compare quotes from multiple home insurance companies before committing to one, since rates can vary significantly.
Here are some variables that home insurance providers may take into account to calculate your premium:
- Location: Your house’s ZIP code is a major cost factor. Insurers will evaluate whether the area is prone to crime or natural disasters and how close you are to fire stations, among other considerations.
- Home Value: The cost of rebuilding your home in the event of a total loss is another important variable. This amount takes into account the home’s construction type and materials, its square footage, and local building costs.
- Home Features: While certain protective and security devices may lower your rate, features like pools and trampolines can increase it, due to the greater risk of someone getting injured on your property.
- Home Age: Newly built homes tend to cost less to insure. Older homes may have outdated plumbing and electrical systems that pose a greater risk of damage, among other concerns.
- Claims History: Home insurance companies typically offer a discount for claim-free homeowners and raise rates for those with a history of filing claims. They will likely review your CLUE Report to see the property and auto claims you’ve filed in the last seven years.
- Level of Risk: Insurers will evaluate how risky you are as a customer, based on your credit history, marital status, age, past claims and other factors.
Two primary causes of rising home insurance rates are natural disasters and inflation.
As the threat of weather catastrophes like wildfires, floods and windstorms grows more severe because of climate change, insurance companies end up paying out more in claims than they receive in consumer premiums. In an attempt to protect their business against these risks and recoup losses, providers continue to request rate hikes for policyholders – particularly those in disaster-prone areas.
Another main culprit for rising costs is inflation, which can affect the prices and availability of building materials, according to the Congressional Research Service. Because a large portion of home insurance claims involve rebuilding and repairing property, those inflation-driven price hikes for materials feed into higher insurance rates.
U.S. News & World Report publishes independent reports to empower consumers making important decisions about their lives. We analyzed major home insurance companies in the U.S., focusing on what matters most to consumers: price, claim handling, coverage, discounts and customer service. Here’s a breakdown of our process.
We Chose the Providers You Care About
We identified 27 insurance companies in the U.S. through our in-depth online research on the topic. From there, we narrowed our focus by state availability and complaint data from the National Association of Insurance Commissioners, a regulatory support organization that provides a database of consumer complaints. We also examined online consumer search volume. This reduced the number of companies in our rating analysis to 10.
We Collected Data Across Key Metrics
We collected 16,302 data points across five key metrics to get a complete picture of each provider’s performance.
- We Compared Price (40% of U.S. News Rating). We collected pricing data via Quadrant Information Services, which uses carrier data as well as publicly available filings to get rates. We then aggregated pricing data for different applicant profiles including applicant age, credit score, coverage levels, deductibles and more*. With our consumer satisfaction survey, we also examined how policyholders perceive the value of their provider’s home insurance relative to the price.
- We Examined Claim Handling (25% of U.S. News Rating). We conducted a survey in July 2025 of 1,002 customers to assess their satisfaction with how their insurance company resolved their claims.
- We Reviewed Coverage Range (15% of U.S. News Rating). We collected details about insurance coverage from company websites, such as coverage options for flood insurance, earthquake insurance, identity theft protection and water backup coverage.
- We Reviewed Discounts (10% of U.S. News Rating). We also collected details about insurance discounts, such as bundling, claim-free history and loyalty discounts.
- We Examined Customer Service (10% of U.S. News Rating). Our consumer survey also examined customer service satisfaction on a range of topics, including ease of contacting customer service and ease of filing a claim.
We Aggregated the Data to Create U.S. News Rating
We combined these key metrics to create our U.S. News Rating on a 5-point scale. The U.S. News Rating for each insurance company allows us to make service comparisons. These ratings are periodically updated based on the latest information we collect from Quadrant Information Services, customer surveys and online sources.
Footnote: * Our applicant profiles for quadrant data include:
56-year-old married applicant, 38-year-old married applicant; 720 FICO credit score; a 3-person family living in a wood frame house; median home age for each state, 1-year old home age, 20-year old home age; $1000 deductible, $2500 deductible; Dwelling coverage from $300,000 to $800,000; Liability coverage from $100,000 to $300,000
