5 Cheapest Homeowner Insurance Options in 2024
Protecting your home with reliable homeowner's insurance is essential, but finding affordable coverage can feel like a challenge in today's rising insurance market. This blog will guide you through finding the cheapest homeowner insurance options in 2024 without sacrificing essential coverage.
Cheap Homeowner Insurance Options:
While "cheap" is an attractive term, it's crucial to prioritize quality coverage alongside affordability. Here are some of the most affordable homeowner insurance companies in 2024:
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DescriptioAverage Premium: $1,010 per year (Source: Bankrate)
Key Features:
Strong customer satisfaction ratings.
Offers discounts for bundling home and auto insurance, installing security systems, and having a good credit score.
Available in 12 states and the District of Columbia.
Learn More: https://www.erieinsurance.com/
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Average Premium: $1,035 per year (Source: Bankrate)
Key Features:
Mutual insurance company, meaning policyholders are also owners, potentially leading to lower costs and dividends.
Known for excellent customer service.
Available in 26 states.
Learn More: https://www.auto-owners.com/
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Average Premium: $1,104 per year (Source: Bankrate)
Key Features:
Only available to military members, veterans, and their families.
Offers consistently competitive rates and excellent customer service.
Provides discounts for bundling home and auto insurance.
Learn More: https://www.usaa.com/
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Average Premium: $1,111 per year (Source: NerdWallet)
Key Features:
Offers online-only policies, making them potentially more affordable.
Focuses on providing streamlined coverage and ease of use.
Available in 34 states and Washington D.C.
Learn More: https://www.homesite.com/
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Average Premium: $1,139 per year (Source: NerdWallet)
Key Features:
Offers a wide range of coverage options and customizable policies.
Known for strong financial stability and claims handling.
Available in all 50 states and Washington D.C.
Learn More: https://www.travelers.com/
Important Note:
While these companies offer some of the cheapest rates, it's crucial to compare quotes from multiple insurers. Your individual circumstances, such as location, property value, and claims history, will significantly impact your premium.
Additional Resources:
Policygenius: https://www.policygenius.com/homeowners-insurance/
NerdWallet: https://www.nerdwallet.com/article/insurance/cheap-homeowners-insurance
The Zebra: https://www.thezebra.com/homeowners-insurance/rates/
How to Compare Home Insurance Offers:
Comparing quotes from multiple insurers is essential to finding the best coverage at the most affordable price. Here's how:
Looking at Coverage Limits: Ensure each quote provides the same level of coverage for your dwelling, personal property, and other desired protections.
Comparing Deductibles and Premium Prices: Deductibles are the amount you pay out-of-pocket before your insurance kicks in. A higher deductible can lower your premium, but consider the financial burden you can handle in case of a claim.
The Importance of Comparing Homeowners Insurance Rates: By comparing rates, you can potentially save hundreds of dollars per year on your homeowner's insurance.
Here are some examples of successful rate comparisons:
Example 1: A homeowner switched from their current insurer to a competitor, saving $500 per year by choosing a policy with a slightly higher deductible.
Example 2: Another homeowner bundled their home and auto insurance, achieving a combined discount of 20%, resulting in annual savings of $350.
Key Factors to Consider When Comparing Homeowner Insurance:
Dwelling Coverage: This protects your house and its structures from damage caused by fire, theft, vandalism, and other covered perils.
Personal Property Coverage: This safeguards your belongings inside the home, such as furniture, electronics, and clothing.
Loss of Use Coverage: This covers temporary living expenses if your home becomes uninhabitable due to a covered event.
Personal Liability Coverage: This protects you from legal costs if someone is injured on your property.
Medical Payment Coverage: This covers medical bills if someone gets hurt at your home, regardless of fault.
Replacement Cost vs. Actual Cash Value: Replacement cost coverage pays to rebuild your home to its pre-loss condition, while actual cash value coverage considers depreciation.
Deductible: This is the amount you pay out-of-pocket before your insurance kicks in. A higher deductible generally translates to a lower premium.
Discounts: Many companies offer discounts for bundling home and auto insurance, installing security systems, having good credit, and being a claim-free customer.
Factors That Influence Home Insurance Rates:
Several factors play a crucial role in determining your homeowner's insurance premium. Understanding these factors allows you to make informed decisions and potentially secure lower rates:
Location:
Crime Rates: Areas with higher crime rates, such as theft and vandalism, often lead to higher premiums.
Natural Disaster Risks: Living in a region prone to earthquakes, floods, wildfires, or hurricanes significantly impacts your premium.
Property Values: The cost of rebuilding your home in your area directly influences your premium.
Home's Condition:
Age and Construction: Older homes with outdated plumbing, electrical systems, or roofing may have higher premiums.
Maintenance: A well-maintained home with recent upgrades can lower your risk of claims and potentially lead to lower premiums.
Building Materials: Homes built with fire-resistant materials or those with security features like burglar alarms can qualify for discounts.
Coverage and Deductible:
Level of Coverage: Choosing higher coverage limits for dwelling, personal property, and additional protections will increase your premium.
Deductible: Opting for a higher deductible, the amount you pay out-of-pocket before insurance kicks in, generally translates to a lower premium.
Personal Factors:
Claims History: A history of frequent claims can lead to higher premiums.
Credit Score: In some states, your credit score can be used to assess your risk and potentially impact your premium.
Insurance History: Maintaining continuous insurance coverage with a single company can sometimes lead to discounts.
Additional Factors:
Swimming Pools: Owning a pool increases your risk of liability and may raise your premium.
Breed of Pets: Certain dog breeds deemed high-risk can lead to higher premiums.
By understanding these factors and making informed choices, you can potentially secure lower homeowner's insurance rates and protect your valuable investment.
Ways to Get the Cheapest Homeowners Insurance:
Beyond choosing an affordable insurance company, there are several ways to further reduce your homeowner insurance costs:
Package Deals and Bundles: Many insurers offer discounts for bundling home and auto insurance, sometimes even including renter's insurance or flood insurance.
Tips for Negotiating Rates: Contact your current insurer and negotiate your rates. Mentioning competitive quotes from other companies can incentivize them to offer better terms.
Maintaining a Good Credit Score: A good credit score demonstrates your financial responsibility and can lead to lower insurance premiums.
Installing a Smart Home Security System: Many insurance companies offer discounts for homeowners who install smart home security systems, as these systems can deter break-ins and provide real-time monitoring, potentially reducing the risk of claims.
Kangaroo Home Security's Dory - The Dory Insurance Concierge Service:
Kangaroo recognizes the value of smart home security in reducing homeowner insurance costs. That's why we offer Dory, a service dedicated to helping homeowners obtain discounts on their premiums.
Here's how Dory works:
Kangaroo connects homeowners with insurance providers who offer discounts for having a Kangaroo home security system installed.
Dory streamlines the process of accessing these discounts, saving homeowners time and effort.
The highest insurance discount we've obtained for a Kangaroo customer to date was $500.
What your home insurance WON'T pay for:
While homeowners insurance offers protection for various situations, it's crucial to understand what it doesn't cover. Here are some common exclusions:
Natural Disasters:
Flooding: Standard homeowners insurance doesn't cover flood damage. You'll need separate flood insurance to protect your home from rising water.
Earthquakes and Ground Movement: Damage caused by earthquakes, landslides, and sinkholes is typically excluded. In some cases, separate earthquake insurance might be available.
Hurricanes and Windstorms: Depending on your location, your standard policy might not cover the full extent of damage caused by hurricanes or windstorms. You might need additional coverage depending on the risk in your area.
Maintenance and Neglect:
Wear and Tear: Gradual deterioration of your home due to age and normal wear and tear isn't covered.
Pest Infestations: Damage caused by insects, rodents, and other pests is typically excluded.
Mold and Wet Rot: Mold and wet rot are often excluded, especially if caused by poor ventilation or maintenance.
Other Exclusions:
Intentional Damage: Damage caused by the homeowner or anyone intentionally residing in the property is not covered.
Power Surges: Damage caused by power surges from your utility company is typically excluded.
Business Activities: Damage or liability arising from operating a business within your home is typically not covered.
High-Value Items: Standard policies might have limits on the value of certain belongings like jewelry or artwork. You might need additional coverage for these valuables.
Government Action: Damage caused by government actions like condemnation or zoning changes is excluded.
War and Nuclear Hazards: Damage caused by war, terrorism, or nuclear incidents is not covered.
Important Note:
It's essential to carefully read your specific policy to understand the exact exclusions that apply. These are just some common examples, and your coverage might vary depending on your insurer and location.
Navigating the Maze: Types of Homeowners Insurance Policies
Protecting your home is crucial, but understanding the different types of homeowners insurance can feel overwhelming. Here's a breakdown of the most common policies:
Standard Homeowner's Insurance Policies (HO-1 to HO-8):
HO-1 (Basic Form): The most basic coverage, offering protection against named perils like fire, lightning, and theft.
HO-2 (Broad Form): An upgrade from HO-1, covering additional perils like vandalism and windstorm damage.
HO-3 (Special Form): The most popular policy, providing "open peril" coverage for your dwelling, meaning it covers everything except for specifically listed exclusions like earthquakes or floods.
HO-4 (Renter's Insurance): Designed for tenants, covering their personal belongings and liability within the rented space.
HO-5 (Comprehensive Form): The most comprehensive coverage, offering broader protection than HO-3, including higher limits and replacement cost coverage for personal property.
HO-6 (Unit-owners' Form): Specifically for condo owners, covering their individual unit and personal belongings, while common areas are typically covered by a separate master policy.
HO-7 (Mobile Home Form): Tailored for manufactured homes, providing coverage for unique risks associated with these structures.
HO-8 (Modified Coverage Form): Used for older or historic homes, offering limited coverage with specific exclusions.
Don't Hesitate to Shop Around:
Getting quotes from multiple homeowner insurance companies allows you to compare coverage, rates, and features to find the best fit for your needs and budget. Remember, affordable homeowner insurance shouldn't compromise on essential protection for your home and belongings.
