Last Updated: August 28, 2022

Cheap Homeowners Insurance: 11 Ways to Save on Home Insurance in 2022

Getting cheap homeowners insurance can help you save big bucks while getting adequate protection for your home.

The annual average home insurance cost in the U.S is $1383 in 2022 for a dwelling coverage of $250,000. So, it’s always a good idea to look for ways to reduce costs. 

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Cheapest Home Insurance Companies According to State

Here is an approximate estimation of the avearge annual rate from the cheapest insurance companies, you may have to pay according to the state you live in: 

State   Cheapest Company Average Annual Rate
Alabama  Allstate  $1,191  
Alaska  Country Financial  $900 
Arizona  American Family  $1,066 
Arkansas  Shelter  $1,857  
California  Oregon Mutual  $760 
Colorado  Auto-Owners  $1,193 
Connecticut  Vermont Mutual  $673 
Delaware  Nationwide  $519 
Florida  Nationwide  $1,472 
Georgia  Farmers  $1,295  
Hawaii  DB Insurance  $257 
Idaho  American National  $457 
Illinois  Allstate  $1,198 
Indiana  Buckeye  $705 
Iowa  West Bend  $1,077  
Kansas  Auto-Owners  $2,058  
Kentucky  Cincinnati Insurance  $1,506 
Louisiana  Farmers  $715 
Maine  Vermont Mutual  $553 
Maryland  Brethren Mutual  $683 
Massachusetts  Preferred Mutual  $712 
Michigan  Westfield  $977 
Minnesota  North Star  $1,262 
Mississippi  Allstate  $1,095 
Missouri  Auto Club of SoCal  $1,391  
Montana  Chubb  $1,344  
Nebraska  American Family  $1,976  
Nevada  Nationwide  $642 
New Hampshire  Main Street America  $574 
New Jersey  Selective  $519 
New Mexico  State Farm  $1,237  
New York  NYCM  $590 
North Carolina  State Farm  $790 
North Dakota  Farmers Union  $1,306  
Ohio  Ohio Mutual  $759 
Oklahoma  American National  $2,409 
Oregon  Mutual of Enumclaw  $505 
Pennsylvania  Cumberland Mutual  $446 
Rhode Island  Narragansett Bay  $815 
South Carolina  American National  $750 
South Dakota  North Star  $1,755  
Tennessee  Westfield  $1,196 
Texas  Chubb  $2,082 
Utah  Mutual of Enumclaw  $662 
Vermont  Vermont Mutual  $478 
Virginia  Main Street America  $599 
Washington  Mutual of Enumclaw  $538 
Washington, D.C.  Allstate  $780 
West Virginia  Westfield  $947 
Wisconsin  Rockford Mutual  $608 
Wyoming  Nationwide  $940 

Source: Nerd Wallet

Connect With The Best Insurance Agents Near You

Contact a local agent online to help you with your insurance needs.

11 Ways to Save on Home Insurance in 2022

You now know the cheapest homeeowners insurance available in your state and the carriers that provide them. Here are 11 additional things you can do if you want to save on home insurance in 2022.  

Disaster-Proof Your Home 

According to the Insurance Information Institute (III), in 2020, more homeowners were found taking more significant steps to protect their homes against natural disasters. Building stronger roofs or even upgrading them to breakage-proof windows. Such changes come as disasters such as hurricanes and floods are expected to increase in number and intensity. If you work towards protecting your home against disasters, you can get a lower premium on insurance.  

The easiest way to save money on your average home insurance cost is by making sure that you are adequately covered for any natural disasters. There are a few ways of doing this. Like – adding storm shutters, reinforcing the roof, or buying stronger materials among them. Also, consider modernizing heating and electrical systems since they could reduce fire damage.  

You can also consider adding hazard insurance endorsements to your existing insurance plan. Having multiple policies that cover different aspects can be more economical.  

Bundle Your Home Insurance  

Homeowners insurance and car insurance are two of the most crucial policies to have, with the latter one being mandatory in almost all states if you have a car. While you already know the average home insurance cost, the average premium rate for cars is also quite an expense. According to Nerd Wallet, the national average for car insurance is $1,592 annually.  

Despite both the policies being essential and costly, you can save 5-15 percent on each policy if you bundle them together. So, companies that sell homeowners and auto coverage will give you a discount on your premium if you bundle home and auto insurance from them.  

Although, make sure the combined price is lower than buying the different coverages from different companies.  

Shop Around for Home Insurance 

Despite the average home insurance cost being the same, regardless of which company you approach, we recommend shopping around before you settle on a policy.  

There are many ways to find cheap insurance. With just a quick search on your phone, you can find several quotes and even insurance directories that can help you get all the information you need.  

If you prefer going old school, you can ask your friends, check the yellow pages, or contact your state’s department of insurance. Some states provide information on typical rates charged by significant insurers and what companies have had frequent complaints from customers in their area.  

However, don’t just consider price alone because a good insurer will also give you fair quality services. Here are some insurance companies which are excellent overall:  

  • Lemonade  
  • USAA  
  • Renegade Insurance  
  • Nationwide  
  • Allstate  
  • Liberty Mutual  
  • Progressive  
  • Farmers Insurance  
  • State Farm  

How-Much-Is-Home-Insurance-In-Different-States

Connect With The Best Insurance Agents Near You

Contact a local agent online to help you with your insurance needs.

Consider Raising Your Deductible  

Insurance companies recommend a high deductible because it can save you money. For example, your yearly premium is $1,500, and the average deductible in your state is $3,000.  

Then by switching to a higher amount of deductibles (let’s say $5,000), you could be saving as much as 25% on your premium.  

Most people have separate deductibles for the area they live in. For example, someone living near coasts with wind damage or certain states where hail storms are common have separate deductions from their total insurance policy costs.  

Analyzing what kind of damage your home may be prone to and separating a deductible accordingly may also help to add on to savings in an average home insurance cost plan.  

Know Your Rebuilding Costs 

People often mistake the cost of their entire home for the cost of building. The land under your home doesn’t come under rebuilding costs. Be sure to plan your budget accordingly.  

If you have a higher rebuilding budget, you may get a higher quote on your insurance premium. Calculate wisely!  

Invest To Make a More Secure Home

You can avoid paying an arm and a leg for home insurance by installing some safety devices, such as deadbolt locks, smoke detectors, or fire sprinkler systems. Some companies even offer up to 20% discounts if you install these security precautions.  

However, make sure the security equipment is compatible with what makes sense in your situation.  

Improve Your Credit Score

Most insurers use your credit score to determine your insurance costs. The higher your credit score, the lower your premium.   

How can you improve your credit score?  

  • Pay your bills on time, consistently  
  • Limit submission of new credit applications  
  • Review your credit reports, check for errors  
  • Avoid closing accounts that have been paid off  
  • Keep your credit utilization rate equal to or below 30%  

Ask for Discounts

Do your homework and find out all the discounts your insurer is providing. Insurers can cut down your costs for a wide variety of reasons, such as:  

  • No smokers in the house  
  • Recently constructed home  
  • Paperless billing  
  • Premium payment automated via banks  
  • Modernized plumbing or electric systems  
  • Upgraded roofs or windows in the past year  
  • Newly installed smoke detectors and fire extinguishers  

Make sure you get every discount that applies to you.   

Don’t Claim for Small Losses

Filing claims excessively can increase your rates. Calculate the cost of paying out of pocket against the impact of that claim on your premium before paying claims. 

Even the smallest of claims will be compensated. But most insurers provide discounts if you are claim-free for a certain number of years.  

Find the Right Coverage   

Don’t over-insure your belongings or your home.   

  • Insure your home for the cost it would take to rebuild, not on the market value. Chances are the rebuilding cost will be lower, and it’s also the one you will possibly need.   
  • Your policy will pay only for what you own, no matter how much coverage you get. Most home insurance policies require you to protect your personal belongings for a fixed sum based on the value of your house without considering how much you may need. This can lead to over-insuring and hence over-paying.  

However, make sure you don’t under-insure as well. Not getting enough coverage can put you in great financial difficulty in the case of an accident, damage, or liability.   

Get Rid of Risky Items (if you can)

Discard any pools, trampolines, or other equipment that are no longer in use. Insurers consider these items a liability risk as people might get injured using them, and you can be held legally liable.

Conclusion

Everyone wants to save as much as possible on their home insurance. Understanding different ways to reduce the cost, and doing a bit of homework can help you find the cheapest homeowners insurance available in your area. 

Talk to an insurance agent for expert advice and additional information on the best homeowner’s policy for you.  

Frequently Asked Questions (FAQs)

What makes home insurance rates go up?

Home insurance rates increase every year due to a number of factors: 

Inflation

Inflation increases the cost of rebuilding homes, and hence your premium. 

You added risky equipment to your home

When you have a pool, trampoline or playground equipment at your house, you might be more prone to accidents and liabilities. 

You filed a claim

Every claim you have filed increases the cost of your premium. Usually, non-catastrophic claims like water damage, house fires and such can spike up your cost more than claims filed due to natural disasters. 

Your property got older

The older your property gets, the more expensive your premium will be. This is because older property will need additional improvements than new ones. The cost of repairing or rebuilding older properties will also be higher. 

Natural disasters have increased in your area

If natural disasters like wildfires, windstorms or hail are on the rise, your premium will also increase due to the increased risks. 

Does my age affect my homeowner’s insurance premium?

No, your age does not affect your homeowner’s insurance rate. However, in some cases, you might be eligible for discounts if you are a senior citizen. 

Your age can affect your car insurance premium though. 

Is it better to pay insurance annually or monthly?

If you pay annually, most insurers offer up to 5% discounts. But if you can’t pay a lump sum amount, paying monthly would be a smarter choice for you. 

Do I need flood insurance if I already have a homeowners insurance policy?

Yes, you need flood insurance even if you already own a homeowners insurance policy. Most standard home insurance or renters’ insurance policies provide no protection against flood (or similar natural disasters). 

Is home insurance and property insurance the same?

Homeowners insurance is a type of property insurance that protects a person’s house and other belongings from theft, fire, and other perils. 

Property insurance is an umbrella term that can include homeowners’ insurance, renters’ insurance, flood insurance, and earthquake insurance. 

Connect With The Best Insurance Agents Near You

Contact a local agent online to help you with your insurance needs.

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