Homeowners insurance covers a home and its belongings, such as appliances and furniture. While the policy is beneficial, the premiums are usually high, mainly because of the surging construction costs and an increase in the frequency of extreme weather conditions like floods and hurricanes. But that does not mean customers must avoid this financial plan. Some companies are known to offer the cheapest homeowners insurance programs with a broad range of coverage types.
Amica
One of the most popular names in the business, Amica is known to offer cheap homeowners insurance. On average, customers will need to pay just $146.2 in monthly premiums for $100,000 liability coverage and $300,000 dwelling coverage. Upon raising the coverage limits to $300,000 in liability and $500,000 in dwelling, the premium increases to $179. The brand has received an A+ rating from AM Best, which proves it is financially stable and capable of paying out claims.
With Amica, homeowners can choose from two policies: standard and Platinum Home Choice. The standard policy is similar to the plans offered by several other companies. It covers personal property, dwelling and other structures, liability, and additional living expenses.
Customers get multiple coverages in their Premium plan that are otherwise available as add-ons. Examples include water backup, personal property replacement, and higher limits on business property coverage, credit cards, and liabilities.
Customers can receive dividends while shopping for both of these policies. This means Amica will pay 5 to 20 percent of the annual premium amount back to the customer every year. That said, the dividends are not guaranteed, and opting in for such a scheme will be relatively more expensive.
State Farm
With an average monthly premium of $170.89 for $100,000 liability coverage and $300,000 dwelling coverage, State Farm is another affordable option for homeowners insurance. But before considering this company, one should note that its policies can be purchased only via a State Farm agent. While customers can begin the quote process online, closing the deal will require meeting a company representative. State Farm has a vast network of agents nationwide, so finding an agent will be easy.
With State Farm, customers can choose from different coverage options, including identity theft, water backup, and service lines. The company also offers extended coverage for rebuilding the home or business property and repairing valuables.
Auto-Owners Insurance
This insurance company charges an average monthly premium of $184.07 for $100,000 in liability coverage and $300,000 for dwelling coverage. The cost increases to $270 when one chooses $300,000 liability coverage and $500,000 dwelling coverage.
Auto-Owners is famous for offering excellent customer service and multiple coverage options for customers. One can also choose a Homeowners Plus Package, which bundles a few existing plans. In addition to offering other benefits, the Plus package adds coverage for damage to the property from food spoilage due to power outages and appliance leaks.
The company also offers many discounts, such as protective devices discounts and multi-policy discounts. Further, customers can get a better deal if they have a water shut-off system and a qualified automatic power backup generator. Interested customers can work with an agent to obtain the right Auto-Owners policy.
Allstate
Another famous homeowners insurance provider, Allstate charges an average monthly premium of $184.15 for $100,000 liability coverage and $300,000 dwelling coverage. This is just 10 cents costlier than Auto-Owners’ price. The monthly premium increases to $267 for $300,000 in liability and $500,000 in dwelling coverage.
Allstate’s standard policy matches the offerings of many other companies, but it provides a few unique benefits. For instance, the company has a rider that allows one to increase the coverage limit for musical instruments and sports equipment. Customers can also get endorsements to increase the coverage for the garden and yard.
Customers wanting to sign up for a policy with Allstate may have to work with an agent. Online sources can only be used to browse available plans, gain more information, and start the process.
Erie
The company is known to have a high property claims satisfaction rating. This means Erie honors claims on time, and customers are satisfied with the claims process. But that’s not the only reason to choose Erie. The brand also offers some of the cheapest homeowners insurance rates. The average monthly cost for $200,000 dwelling coverage is $64. The same plan has an average annual cost of $773. Erie also has three other dwelling coverage options.
- $350,000 coverage: $105/month or $1,256/year
- $500,000 coverage: $139/month or $1,663/year
- $750,000 coverage: $192/month or $2,303/year
Besides a high property claims satisfaction score and low prices, Erie offers various benefits that make it a top contender in the business.
- Low home insurance rates across coverage limits
- Few customer complaints, with a complaint ratio of 0.34
- Availability of both extended and guaranteed replacement cost coverage
- Discounts up to 20% when bundling home and auto insurance
- Extended water coverage for inland flooding, storm surges, or snowmelts
While one may find several companies that offer affordable homeowners insurance, it is important to check whether their plans are available nationwide. Some providers may not offer their services in every state.