Looking at the Least Expensive Homeowner’s Insurance Coverage
According to the Insurance Information Institute‘s (III) facts and statistics, the average annual homeowner’s insurance premium in 2017 was $1,211 across the country. By state, the least expensive was Idaho, with an average yearly rate of $730. On the other hand, Louisiana residents paid an average of $1,968 per year—270% more than those in Idaho.
Where will you fall along this spectrum? And how can you find the cheapest home insurance rates? The IHS Insurance team answers your questions here.
Quick Recap: Factors That Can Impact Your Home Insurance Rates
Before diving in, it’s crucial to emphasize there are thousands of factors that can potentially impact your home insurance rates, including:
- The carrier you select
- The state in which you live, as outlined above
- Your home’s replacement cost (versus its market value)
- Any losses within the past five years
- Whether or not you carry other insurance lines with the company (e.g., auto, scheduled items, umbrella, etc.). For example, carriers often discount home insurance rates by 10-20% if you also carry auto coverage with them.
- Your insurance score
- Your policy’s term (typically, 6-month policy rates are higher than annual premiums)
In fact, because home insurance rates are strongly correlated to statistical data like crime, weather events, and more, what you pay can vary based on the city—and even the neighborhood—where you live.
Related: Why is Home Insurance in Texas So Expensive?
It’s also important to point out that price shouldn’t be your only factor when choosing a home insurance company. You’ll also want to consider the carrier’s financial rating—basically, their ability to pay claims—through organizations like AM Best and Standard and Poor’s, in addition to their online customer feedback. We’ll talk more about this soon.
In the meantime, let’s explore different carriers by what you might expect to pay with these details in mind.
The Cheapest 2020 Home Insurance Among National Carriers
In May of this year, US News took a look at the best insurance companies based on customer ratings, financial ratings, and rates. We’ve ranked them here in order of price, starting with the lowest:
| Company | Sample Monthly Cost |
| Erie Insurance | $79.25 |
| Liberty Mutual | $81.67 |
| Nationwide | $92 |
| The Hartford | $94.42 |
| Amica | $109.33 |
| Farmers | $120.41 |
| State Farm | $122.50 |
| Allstate | $169 |
Granted, this is excellent information. But how can you utilize it to minimize your home insurance costs?
How Can You Choose the Cheapest Home Insurance?
Once you narrowed your options based on the average price, the next step is to contact the friendly staff at IHS Insurance Group. We’ll start by calculating your home’s replacement cost, so it’s ideal to know several essential details about your home, including year built, roof type, square footage, amenities, customizations, and architectural style.
Together, we’ll also decide how much coverage you need for other structures (fences, pool, detached garage, fencing, etc.), and personal property, as well as your ideal liability limits.
Related: How Much Homeowner’s Insurance Do I Need?
As we outline in What is the Best Way to Buy Homeowner’s Insurance, we will also need additional information, such as name, address, and SS number, along with:
- Pets (including exotic animals, such as reptiles) in your household
- Claims that you can recall occurring within the past five years
- Potential liability hazards like pools, trampolines, business on the premises, etc.
From there, the IHS team will pull together your home insurance quotes. Instead of requiring you to contact each carrier directly, or handing over your personal information to an impersonal website, we’ll save you time, effort, and potential frustration by selecting an ideal home insurance carrier from among our broad lineup, based on your specific needs and preferences.
After we’ve submitted quotes for your consideration and you’ve narrowed your options based on price, you’ll want to learn more about their financial strength (i.e., ability to repay claims) from organizations like AM Best and Standard and Poor’s.
Also, don’t forget to explore each company’s online customer reputation across sites like the Better Business Bureau, Consumer Affairs, Reviews.com, the National Association of Insurance Commissioners (NAIC), and JD Power’s annual Insurance Company Customer Satisfaction Survey.
IHS Pro Tip: In our experience, if you encounter many of the same situations and/or complaints, this could indicate that you’re more likely to encounter something similar.
We’ve covered a lot of information in a relatively small space, so let’s go ahead and wrap up, and help you learn more about your next step.
How Can You Learn More About the Cheapest Home Insurance?
At IHS Insurance Group, we represent some of the top national home insurance carriers and smaller regional companies, depending on your unique combination of budget, needs, and preferences.
Based on our decades of combined experience, we can talk with you about your needs and narrow your options down to a few select carriers, which can help save you time, effort, and potential frustration.
Need a FREE Quote or have questions regarding Home Insurance Coverage? We have three convenient ways to reach us:
- If you prefer to talk to a licensed agent directly, please call (866) 480 5063.
- If you prefer to fill out a quick form and have an agent get back with you at your convenience, use the GET A FREE QUOTE.
- Lastly, for those that want an immediate quote, please click HERE.
We look forward to speaking with you today!
