Cheap Homeowners Insurance (May 2026)
Verified May 2026 carrier averages — USAA $149/mo (military), State Farm $151/mo (general public), national $180/mo. Plus the 5 most-expensive states and 9 discounts that actually stack.
Updated May 1, 2026·What changed: Verified May 2026 averages: USAA $1,940/yr, State Farm $2,415/yr, Allstate $2,098/yr (Bankrate, U.S. News, NerdWallet). Refreshed most-expensive state list (FL $7,136 highest, ahead of NE and LA). Added Insurify's projection of 5th-consecutive-year rate increases.
Verified by the WalletGrower Editorial Team — current as of April 2026. We update rates, bonuses, fees, and product details regularly against each provider's published disclosures. Vendors can change offers between our update cycles, so we always recommend confirming the current published rate or bonus on the provider's site before signing up or applying.
Quick Answer
- Cheapest overall: USAA at $149/mo (~$1,940/yr) — military/veteran/family eligibility required.
- Cheapest open-to-all: State Farm at $151/mo (~$2,415/yr); Allstate at ~$2,098/yr.
- National average: $180/mo ($2,160/yr) for $300,000 dwelling coverage.
- Most expensive state: Florida at $7,136/yr — reinsurance alone is ~40% of the premium.
- Single biggest savings move: auto+home bundle — State Farm averages $1,010/yr saved (highest bundle discount in the industry).
- Watch-out:floods + earthquakes are NOT covered by standard homeowners insurance — buy separate NFIP/private flood + earthquake policies if you're exposed.
Top Carriers Compared
| Feature | USAA | State Farm | Allstate | Travelers | Lemonade |
|---|---|---|---|---|---|
| Best for | Military families (cheapest overall) | General public (cheapest large carrier) | Bundle + multi-policy | Wide availability + bundling | Tech-first renters / first-time owners |
| Avg national premium | $149/mo ($1,940/yr)Best | $151/mo ($2,415/yr — large-carrier cheapest) | $2,098/yr | $1,978/yr (national avg) | $70–$135/mo (varies sharply by location) |
| Eligibility | Active duty / veteran / family only | Open to all | Open to all | Open to all | Open to all (limited state availability) |
| Bundle savings (auto + home) | Includes USAA bundle | 23% bundle ($1,010/yr avg) — highest in industryBest | Strong bundle programs | Multi-policy discounts | Bundle with auto via partners |
| Claim service | Top J.D. Power scores | Largest agent network in US | Quality digital claims experience | Strong local agent network | AI-driven claims (90 sec for simple) |
5 Cheapest States (Avg Premium)
- 1. Hawaii$1,015/yrLowest in US — strong building codes, no hurricane history in most areas
- 2. Vermont$1,002/yrLow natural-disaster exposure
- 3. Delaware$1,008/yrCoastal but limited hurricane impact
- 4. New Hampshire$1,011/yrLow-disaster Northeast
- 5. Oregon$1,128/yrDespite wildfire risk, structural rates remain low
5 Most Expensive States (Avg Premium)
- 1. Florida$7,136/yrHurricane risk + reinsurance ~40% of premium
- 2. Nebraska$6,587/yrTornadoes + hail
- 3. Louisiana$6,274/yrHurricanes + flooding
- 4. Oklahoma$4,695/yr151 tornadoes in 2024 + 767 hailstorms
- 5. Colorado$4,500+/yrWildfire risk + hail
9 Discounts That Actually Stack
- Auto + home bundle: 10–25% off. State Farm averages 23% / $1,010/yr (industry highest).
- Higher deductible: $500 → $1,000 typically saves 10–20%; $1,000 → $2,000 another 5–10%.
- Monitored security + smoke alarms: 5–15% off (active monitoring required, not just a dummy box).
- New roof: 20–30% off in hurricane/hail-prone states for roofs less than 5 years old.
- Claim-free discount: 5–15% for 3+ years no claims; State Farm and Allstate offer dedicated programs.
- Pay-in-full: 5–10% off the full annual premium.
- Loyalty / multi-year: 5–10% after 3 years with the same carrier.
- Smart home devices: Water leak detectors, smart locks, fire sensors trigger 5% device-specific discounts.
- Senior / retiree: Many carriers offer 5–10% off for homeowners 55+ in some states.
As with auto insurance, homeowners discounts apply multiplicatively — stacking 5 discounts of 10–15% each is closer to 40–50% off, not 60–75%.
Which homeowners carrier should you pick?
Cheapest carrier varies by state more than by brand. Match your situation:
- You qualify for USAA (military/veteran/family)→ USAA$1,940/yr avg + outstanding J.D. Power scores. Cheapest in the US.
- You're a homeowner who also drives→ State Farm (auto+home bundle)23% bundle ($1,010/yr avg savings) — highest in industry, especially valuable on multi-policy households.
- You want digital-first claim experience→ Lemonade or AllstateLemonade has 90-second AI claim payout for simple claims; Allstate's app is among the strongest.
- You live in Florida, Louisiana, or Nebraska→ Get 4+ quotesCarrier pricing variance is enormous in disaster-prone states. Some carriers have stopped writing in FL — coverage availability matters as much as price.
- You live in a wildfire-prone state (CA, CO)→ California FAIR Plan or specialty carriersMajor carriers (State Farm, Allstate) have non-renewed in CA wildfire zones since 2023. Backup coverage may require state-administered FAIR plan.
- You file 1+ claim per 5 years→ USAA or shop after each surcharge cycleMajor carriers raise rates 7–10% per claim; switching post-surcharge often beats waiting for it to age off.
Quote a State Farm Bundle
State Farm's 23% auto+home bundle discount averages $1,010/year savings — the highest in the industry. If you have both auto and home coverage, this single move can offset most of your annual rate increase.
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Frequently Asked Questions
How we verified this
Carrier averages verified May 2026 against U.S. News, Bankrate, NerdWallet, and Insurify 2026 homeowners insurance reports. State-level data verified against MoneyGeek and Insure.com. Insurify's 5th-consecutive-year rate increase projection cited from their February 2026 publication.
Related guides
Auto + home bundle guide
15% avg / $869/yr. State Farm leads at 23% / $1,010/yr.
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Homeowners insurance hub
Coverage types, deductibles, claim guidance.
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Auto insurance hub
All 50 state guides, 7 sub-clusters, calculator.
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Renters insurance
If you rent, you don't need this — see the renters guide instead.
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