Nearly two-thirds (71%) of homeowners say the cost of their homeowners insurance has increased over the past few years, according to a 2026 survey from the Pew Research Center, including 42% who say it has gone up a lot.
According to experts, inflation, tariffs, government regulations, labor shortages and climate change have all contributed to rising costs.
CNBC Select has analyzed dozens of homeowner insurance companies to find affordable providers that are still standouts for coverage, customization and customer service. To find out how we made our selections, check out our methodology.
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
Amica offers two tiers of homeowners insurance: A standard policy and the brand's Platinum Choice plan, which covers more situations and has extended coverage for jewelry and liability. Add-on options include computer coverage, sump pump backup coverage, and dwelling replacement coverage.
Progressive doesn't underwrite its own insurance policies. Through its HomeQuote Explorer platform, however, it gathers multiple quotes from over a dozen top insurers to help you quickly compare and save.
Best for low rates: Amica
- Platinum Choice has higher 130% dwelling coverage
- Some policies pay dividends
- Doesn't restrict dog breeds
- Not offered in Hawaii or Alaska
- Dividend policies not available in every state
Who's this for? Amica has the lowest rates of all the companies we've reviewed, along with one of the highest scores for customer satisfaction on J.D. Power's 2024 home insurance survey.
Standout features: Amica's Platinum Choice HO-5 policy has an extended replacement cost benefit that reimburses up to 130% of your dwelling coverage limit. There's also protection for personal property replacement, water backup/sump pump, business property and credit cards.
Best for new homeowners: Nationwide
- Rates well below national average
- Discounts for bundling, new homes, staying claims-free and more
- Credit card fraud protection standard
- Less-than-stellar customer service reviews
- Not available in all states
- Can't purchase a policy online
Who's this for? If you bought your house within the last 12 months, Nationwide has a new home discount that can lower your premiums.
Standout benefits: Nationwide customers who bundle their home and car policies can save as much as 20%, according to the company's website.
Best for customer satisfaction: Erie Insurance
Erie Homeowners Insurance
Policy highlights
Erie Insurance offers homeowners insurance with unique features, including coverage for gift cards if the business has closed, lost/damaged cash and precious metals and up to $500 for animals injured in a covered loss. Coverage for flooding, earthquakes, identity theft and high-value items available as add-ons. Guaranteed replacement cost coverage is available for both your dwelling and property
Maximum coverage
Not disclosed
Availability
Erie homeowners policies are available in Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, Wisconsin and Washington, D.C.
Pros
- Policies offer 100% guaranteed replacement costs
- Scores highly for customer service with J.D. Power
- Customers who bundle auto and home insurance can save up to 25%
Cons
- Must work with agent to get quote and purchase policy
- Only available in 12 states and Washington, D.C.
- Restricts certain dog breeds
Who's this for? Erie Insurance offers both affordability and stellar service, with an A+ from the Better Business Bureau and half the volume of complaints of similarly sized insurers. It also ranked third for customer satisfaction in J.D. Power's 2025 home insurance survey.
Standout benefits: Erie coverage up to $500 for pets in a covered loss, an uncommon benefit for homeowners insurance.
Best for customization: American Family
American Family Homeowners Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
American Family offers coverage for a variety of situations, including home-based businesses and short-term rentals. The company also offers coverage for vacant homes and vacation homes. A wide variety of policy add-ons can help you get the coverage you need and skip what you don't.
Pros
- Additional coverage available for equipment breakdown coverage, flash flooding and hidden water damage that's not visible in your home
Cons
- Not available nationwide
Who's this for? American Family lets you tailor your policy, with add-ons like identity theft protection, service line and equipment breakdown coverage.
Standout benefits: If you also own a car, American Family also offers auto insurance, allowing you to bundle your policies for a discount — we previously named it as a strong pick for this scenario in our top car insurance companies.
Best for military members and veterans: USAA
- USAA Perks™ has discounts on moving and storage, home security and cleaning services
- Claims-free discount available
- Covers uniforms and equipment for active-duty members
- Coverage and discounts are not available in all states
- Must become a USAA member in order to get a quote
Who's this for? USAA offers robust coverage to active and retired service members. It's one of the most affordable providers on the market and consistently ranks highly for customer satisfaction by J.D. Power.
Standout benefits: With USAA's Home Protector coverage, you can get 25% more to cover rebuilding costs, remove debris and meet building ordinance requirements.
Best for discounts: Auto-Owners Insurance
Auto-Owners Homeowners Insurance
Policy highlights
Auto-Owners offers affordable policies that cover the primary structure, personal property, personal liability, medical payments for others and temporary living expenses if you have to relocate after a covered event. Add-ons include guaranteed home replacement, protection for equipment breakdown and increased coverage for flooding-related damage. Auto-Owners' Homeowners Plus plan reimburses for losses caused by appliance leaks and power outages.
Maximum coverage
Not disclosed
Availability
Auto-Owners homeowners insurance is available in 26 states
Terms apply.
Pros
- Bundling discount available with Auto-Owners life or auto policy
- Lower-than-average number of complaints
- Above-average customer satisfaction scores from J.D. Power
Cons
- Quotes not available online
- Only issues policies in 26 states
Who's this for? Auto-Owners has a dozen discounts for homeowners, including for making on-time payments, having a water shut-off system or bundling your home policy with auto or life insurance.
Standout benefits: Paid off your home loan? You may qualify for a lower rate with Auto-Owners if you don't have a mortgage or line of credit on your property.
How much is homeowners insurance?
In February 2026, homeowners insurance averaged $2,424 a year for a $300,000 dwelling nationwide, according to data from Bankrate.
However, separate Bankrate data from November found that these rates vary widely across the U.S. While California homeowners pay an average of $1,641 per year for a $300,000 dwelling, the average Florida homeowner pays $5,838 per year. Illinois homeowners pay about $2,225 per year, while New York homeowners pay about $1,860.
What factors influence the cost of homeonwers insurance?
According to the Insurance Information Institute, there are several factors that influence the prices you'll pay for homeowners insurance. Here are a few of them:
- Location: If you live in an area that's prone to wildfires, hail and windstorm damage or hurricanes, your homeowners insurance will likely be more expensive than areas that don't have these threats. More locally, your insurance costs can be swayed by your neighborhood's crime rate and even the cost of labor and materials for rebuilding.
- The home's age and construction: If your house is older, insurers may see it as a higher risk. After all, your aging house may have outdated construction materials or out-of-date systems. You may also need to add ordinance or law coverage to ensure your home would be repaired to code.
- Credit history: While three states — California, Maryland and Massachusetts — restrict the use of credit scores in calculating homeowners insurance, it is considered fair game in all other states. Where allowed, your credit-based insurance score will play a role in determining how much you'll pay. For example, those with higher scores typically pay less than those with lower scores.
- Past claims: If you've filed a homeowners insurance claim in the past, it could prompt insurers to charge you more, even if you've moved since. Similarly, if your address has had several claims filed on it, you may also see higher rates.
- Your marital status: Unless you're in Hawaii or Massachusetts, where considering marital status is prohibited, your marital status will play a role in your homeowners insurance costs. Typically, married couples are charged less for coverage because insurers see them as less risky.
How to save on homeowners insurance
Here are some ways you can lower your rate.
1. Shop around
Each insurance company considers a home and homeowner differently, so it's worth getting several quotes and comparing the deductibles, coverage limits and benefits to find the best price. Asking your neighbors about their policy can be helpful, but the one that's cheapest for them might not be for you.
2. Look for discounts
An insurance company's quote is a starting point: You could qualify for a rate reduction based on your profile, your policy or your home. Common discounts include:
- Paying your premium on time and in full
- Installing smart-home devices like video doorbells and electronic locks
- Going paperless and setting up autopay
- Remaining claim-free for a certain number of years
- Bundling your home insurance with another policy from the same provider
Not all discounts are available in every state, and insurers typically limit how discounts can be combined.
3. Raise your deductible
When you have to file a claim after a covered event, the deductible is the amount you pay before your insurance coverage kicks in.
If you're in a position to cover more out-of-pocket costs, you could save considerably. Raising your annual deductible from $500 to $1,000 can save as much as 25% on premiums, according to the Insurance Information Institute.
4. Improve your credit score
In all but a handful of states, insurance companies consider your credit history when calculating your monthly premiums. While your insurance score differs slightly from your FICO Score, it's determined using many of the same criteria.
A strong track record of on-time payments can help boost your credit, as can lowering your ratio of outstanding debt to available credit and limiting the number of loans and credit cards you apply for.
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
ShieldSilver plan covers HVAC, electrical, plumbing systems, while the ShieldGold plan adds laundry appliances. The ShieldPlatinum increases coverage limits and adds microwaves, ceiling fans, icemakers and roof leak repairs.
Not available in Alaska or Hawaii.
The Bronze Care plan covers appliances and the Gold Care plan protects HVAC, electrical and other home systems. The Platinum Care plan covers both and adds garage door openers, ceiling fans and plumbing clogs.
Not available in Nevada, Washington or Wisconsin
Homeowners insurance FAQs
What is the most common type of homeowners insurance?
For single-family homes, HO-3 insurance is the most common type of policy. This generally covers your home at its replacement value and personal property at its actual cash value, as well as your liability as a homeowner.
What is the most basic homeowners insurance?
HO-1 insurance is the most bare-bones policy. It covers the structure of your home and attached structures from a limited number of covered threats but doesn't include personal property (clothes, furniture, etc.), liability insurance or additional living expenses. If you have a mortgage, you may be required to have HO-3 insurance.
Can you cancel homeowners insurance?
You can usually cancel a homeowners insurance policy anytime before it expires and get reimbursed for any unused premiums. If you have a mortgage, however, you may be required to keep enough insurance to cover your loan amount.
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Our methodology
CNBC Select looked at dozens of homeowners insurance companies and reviewed their average rate for a 40-year-old with good credit, no history of claims and $300,000 in dwelling coverage.
We also weighed coverage options, discounts, nationwide availability and the claims process, as well as customer satisfaction ratings from J.D. Power, the National Association of Insurance Commissioners and the Better Business Bureau.
We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
Based on these categories, our picks for the cheapest homeowners insurance are:
- For low rates: Amica
- For new homeowners: Nationwide
- For customer satisfaction: Erie Insurance
- For customization: American Family
- For military members and veterans: USAA
- For discounts: Auto-Owners Insurance
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