Cheapest Homeowners Insurance 2025

 Cheapest Homeowners Insurance 2025

This article is a guide into the cheapest homeowners insurance available today. But first, let's shed some light on homeowners insurance and what it covers.

Homeowners insurance is a package policy. This means that it covers both damage to property and liability or legal responsibility for any injuries and property damage policyholders or their families cause to other people. This includes damage caused by household pets.

Damage caused by most disasters is covered but there are exceptions. Standard homeowners policies do not cover flooding, earthquakes or poor maintenance. Flood coverage is provided by the federal government’s National Flood Insurance Program, although it is purchased from an insurance agent. Earthquake coverage is available either in the form of an endorsement or as a separate policy. Most maintenance related problems are the homeowners’ responsibility.

A standard homeowners insurance policy includes four essential types of coverage. They include:

1. Coverage for the structure of the home

This part of a policy pays to repair or rebuild a home if it is damaged or destroyed by fire, hurricane, hail, lightning or other disaster listed in the policy. It will not pay for damage caused by a flood, earthquake or routine wear and tear. Most standard policies also cover structures that are not attached to a house such as a garage, tool shed or gazebo.

2. Coverage for personal belongings

Furniture, clothes, sports equipment and other personal items are covered if they are stolen or destroyed by fire, hurricane or other insured disaster. Most companies provide coverage for 50 to 70 percent of the amount of insurance on the structure of a home. This part of the policy includes off-premises coverage. This means that belongings are covered anywhere in the world, unless the policyholder has decided against off-premises coverage. Expensive items like jewelry, furs and silverware are covered, but there are usually dollar limits if they are stolen. To insure these items to their full value, individuals can purchase a special personal property endorsement or floater and insure the item for its appraised value.

Trees, plants and scrubs are also covered under standard homeowners insurance—generally up to about $500 per item. Perils covered are theft, fire, lightning, explosion, vandalism, riot and even falling aircraft. They are not covered for damage by wind or disease.

3. Liability protection

Liability covers against lawsuits for bodily injury or property damage that policyholders or family members cause to other people. It also pays for damage caused by pets. The liability portion of the policy pays for both the cost of defending the policyholder in court and any court awards—up to the limit of the policy. Coverage is not just in the home but extends to anywhere in the world. Liability limits generally start at about $100,000. An umbrella or excess liability policy, which provides broader coverage, including claims for libel and slander, as well as higher liability limits, can be added to the policy.

4. Additional living expenses

This pays the additional costs of living away from home if a house is inhabitable due to damage from a fire, storm or other insured disaster. It covers hotel bills, restaurant meals and other living expenses incurred while the home is being rebuilt. Coverage for additional living expenses differs from company to company.

Cheapest Homeowners Insurance 2025

Below is a comprehensive list of the cheapest homeowners insurance :

USAA 

Overview

USAA is the fourth-largest home insurer in the U.S. by market share, according to the Insurance Information Institute (Triple-I) and tied for the Best Home Insurance Company Overall in the 2025 Bankrate Awards. It is widely considered one of the best insurance companies for exceptional customer service, but coverage is only available to members of the military community and their families. If you qualify for coverage, USAA offers some of the best cheap homeowners insurance on the market, with top-notch service, a wide range of coverage options and consistently low premiums. The company carries an A++ (Superior) financial strength rating from AM Best, the highest available.

Pros

Cheapest homeowners insurance rates on our list

Military-focused coverage choices

Consistently high customer satisfaction scores

Cons

Only available to active-duty military, veterans and eligible family members

Limited discount options

Auto-Owners

Overview

Auto-Owners, winner of the 2025 Bankrate Awards Best Budget Home Insurance Company, offers property coverage in 26 states through a broad network of independent agents. Its home insurance policies are highly flexible, with coverage options like guaranteed home replacement, equipment breakdown and identity theft coverage. In addition to being the second-cheapest company Bankrate reviewed, the carrier also offers several discounts, including multi-policy, water shut-off system and mortgage-free. Auto-Owners has an A++ (Superior) financial strength rating from AM Best.

Pros

Numerous optional coverage choices

Superior financial strength rating from AM Best

Cons

Only available in 26 states

Fewer digital tools than some other companies

Erie

Overview

Erie’s home insurance rates are well below the national average of $2,181 per year for $300,000 in dwelling coverage, making it a top choice for customers looking for cheap homeowners insurance coverage. The company provides a few add-on coverage options, like extended water coverage and personal valuables insurance, to help you tailor your policy to your needs. Over 13,000 local independent agents across 12 states can help you get a quote and buy a policy. A regional insurer, this company also ranks highly in customer satisfaction. It has an A+ (Superior) financial strength rating from AM Best, as well.

Pros

Ranked fourth in the J.D. Power 2024 U.S. Home Insurance Study for customer satisfaction

Local independent agents

Cons

Only available in 12 states

Few endorsements available

Nationwide

Overview

Nationwide offers diverse coverage options for homes, condos and apartments, farms, pets, vehicles, investment products and much more. For homeowners looking to consolidate their insurance and financial products with one company, Nationwide might be a good choice, as it also offers retirement plans, annuities, mutual funds and other options — all of which contributed to Nationwide being named Best for Bundling Home and Auto Insurance in the 2025 Bankrate Awards. While Nationwide is not the cheapest homeowners insurance company on our list, its average premium is still well below the national average. Additionally, the company offers several discounts that could help you lower your rate. Nationwide holds an A+ (Superior) financial strength rating from AM Best.

Pros

Offers numerous types of insurance and other financial products, including banking and retirement options

Several discounts to help reduce premiums

Cons

Customer service isn’t 24/7

Mobile app provides limited services for homeowners customers

Allstate

Overview

Whatever your preference, Allstate offers options that could make it easy to manage your policy. The company has a nationwide network of brick-and-mortar agencies, a 24/7 contact center and a mobile app. These reasons (and more) led to Allstate being named the 2025 Bankrate Awards winner for Best for First-Time Homeowners. The company holds an A+ (Superior) financial strength rating from AM Best. However, Allstate is one of the most expensive of our cheapest home insurance companies, so it may not be ideal for homeowners on a strict budget.

Pros

24/7 customer service with an online portal, mobile app and contact center 

Wide network of local agents

Many coverage add-ons such as landscaping, eco-friendly home improvements, musical instruments, sports equipment and more

Cons

Highest average premium on our list

Below industry average in the J.D. Power 2025 U.S. Property Claims Satisfaction Study

American Family

Overview

American Family is the 2025 Bankrate Awards winner for Best Digital Home Insurance Company. It ranks toward the top of the service and shopping categories in J.D. Power’s 2025 U.S. Insurance Digital Experience Study. In addition, AmFam offers a lengthy list of policy endorsements. Homeowners can add equipment breakdown, sewer backup, identity protection, scheduled personal property and service line coverage. Specialized coverage choices like flash flood, hidden water damage, matching siding coverage and senior living protection are also available. However, the company has a lower AM Best rating than others on our list, earning an A (Excellent).

Pros

Strong customer satisfaction as indicated by a consistent below-average NAIC complaint index

Local agencies available

Cons

Only issues policies in 19 states 

Scored slightly below average in the J.D. Power 2024 U.S. Home Insurance Study