Finding affordable homeowners insurance that still provides comprehensive protection is a top priority for budget-conscious homeowners. You want to save money without sacrificing essential coverage. This guide will show you how to get the cheapest full coverage homeowners insurance while avoiding costly gaps in protection.
What is “Full Coverage” Homeowners Insurance?
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5 Cheapest Homeowners Insurance Companies (2024)
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What Does Full Coverage Typically Include?
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How to Get the Lowest Rates Without Sacrificing Protection
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7 Smart Ways to Save on Homeowners Insurance
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Red Flags: When Cheap Insurance Isn’t Worth It
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State-by-State Cheapest Options
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Final Verdict: Best Balance of Price & Protection
1. What is “Full Coverage” Homeowners Insurance?
“Full coverage” isn’t an official insurance term, but it generally means a policy that includes:
Dwelling coverage (for your home’s structure)
Other structures (garages, sheds)
Personal property (your belongings)
Liability protection (if someone sues you)
Loss of use (temporary living expenses)
Medical payments (for guest injuries)
The cheapest true full coverage policies typically come from insurers offering HO-3 policies (the most common homeowners insurance form) with reasonable deductibles.
2. 5 Cheapest Homeowners Insurance Companies (2024)
Based on national average rates for $250K dwelling coverage:
| Company | Annual Premium | Best For | Special Discounts |
|---|---|---|---|
| State Farm | $1,200 | Bundling (home + auto) | New home, security systems |
| Allstate | $1,250 | Customizable coverage | Claim-free, early signing |
| USAA (military only) | $1,100 | Veterans & families | Multi-policy, loyalty |
| Farmers | $1,300 | Older homes | Smart home devices |
| Travelers | $1,175 | High-value homes | Green home, pay-in-full |
Note: Rates vary by location, home value, and claims history.
3. What Does Full Coverage Typically Include?
A proper full coverage HO-3 policy should protect against:
16 Named Perils for Personal Property:
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Fire/smoke
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Theft
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Vandalism
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Wind/hail
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Falling objects
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Weight of ice/snow
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Water damage (sudden, not flood)
Open Perils for Dwelling:
Covers everything except what’s specifically excluded (earthquakes, floods, war).
4. How to Get the Lowest Rates Without Sacrificing Protection
A. Choose the Right Deductible
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$1,000 deductible = Lower premium but higher out-of-pocket costs
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$2,500 deductible = Best balance for savings
B. Bundle Home + Auto Insurance
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Savings: Up to 25% (State Farm, Allstate, Progressive)
C. Improve Your Credit Score
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A 700+ credit score can cut premiums by 20%+
D. Ask About All Possible Discounts
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Security systems (alarm, cameras)
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New roof (especially impact-resistant)
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Loyalty/claims-free (5+ years with no claims)
5. 7 Smart Ways to Save on Homeowners Insurance
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Pay annually instead of monthly (avoids installment fees)
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Drop unnecessary riders (like identity theft coverage)
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Avoid over-insuring (don’t include land value)
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Increase liability limits gradually (start at $100K)
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Get a home inspection to prove low risk
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Compare quotes every 2 years
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Consider usage-based insurance (Nationwide’s “SmartMiles”)
6. Red Flags: When Cheap Insurance Isn’t Worth It
Too-good-to-be-true rates (could mean poor claims service)
Missing key coverages (like sewer backup)
Low financial strength ratings (check AM Best)
High complaint ratios (see NAIC data)
7. State-by-State Cheapest Options
| State | Cheapest Insurer | Avg. Annual Rate |
|---|---|---|
| Texas | USAA | $1,800 |
| Florida | Citizens (state-backed) | $2,200 |
| California | Mercury | $1,100 |
| New York | Travelers | $1,300 |
| Illinois | State Farm | $1,050 |
8. Final Verdict: Best Balance of Price & Protection
The cheapest full coverage homeowners insurance comes from:
State Farm (best for bundling)
USAA (best for military)
Travelers (best overall value)
Pro Tip: Always get at least 3 quotes and read the fine print on exclusions.
Need help finding the best deal? Ask in the comments!
