Cheapest Homeowners Insurance 2025: Save $1,200+ Even in High-Risk States (Real Rates & Companies)
Updated November 30, 2025 – Open Enrollment for Home Insurance is Year-Round
Home insurance rates jumped 21% nationwide in 2025 — the biggest increase in 20 years — but millions are still locking in coverage for $800–$1,400/year (or less) by shopping the right carriers and discounts.
Even if you live in Florida, California, Texas, or have bad credit, an old roof, or past claims — you can still save up to $1,247/year right now.
Here’s the most up-to-date, data-backed guide to the absolute cheapest homeowners insurance in 2025.
Average Homeowners Insurance Cost 2025 (Before vs After Discounts)
| State | Average Full Price | After Max Discounts | You Actually Pay | Yearly Savings |
|---|---|---|---|---|
| National Average | $2,478/year | $1,231–$1,600 | $1,200–$1,800 | Up to $1,247 |
| Florida | $6,840/year | $2,900–$4,200 | $2,900+ | Up to $2,640 |
| California | $2,980/year | $1,400–$2,100 | $1,400+ | Up to $1,580 |
| Texas | $4,142/year | $1,900–$2,800 | $1,900+ | Up to $2,242 |
| Louisiana | $4,500+/year | $2,500–$3,500 | $2,500+ | Up to $2,000 |
Source: Bankrate Home Insurance Study Nov 2025 → https://www.bankrate.com/insurance/homeowners-insurance/homeowners-insurance-statistics/
Top 10 Cheapest Homeowners Insurance Companies 2025 (National Ranking)
| Rank | Company | Avg Annual Rate (After Discounts) | Best For | Credit Impact |
|---|---|---|---|---|
| 1 | Auto-Owners | $1,398 | Best overall rates + claims handling | Low impact |
| 2 | USAA (military & families) | $1,243 | Cheapest for eligible members | Very low |
| 3 | Erie Insurance | $1,456 | Northeast & Midwest | Low |
| 4 | State Farm | $1,680 | Bundling home + auto (up to 25%) | Moderate |
| 5 | Allstate | $1,720 | Old homes & high-value coverage | Moderate |
| 6 | American Family | $1,589 | Midwest & West | Low |
| 7 | Travelers | $1,765 | High-risk areas & claims forgiveness | Moderate |
| 8 | Nationwide | $1,690 | Vanishing deductible & bundling | Moderate |
| 9 | Chubb | $1,950 | Luxury homes & wildfire protection | Low |
| 10 | Lemonade | $1,200–$1,600 | Fastest digital quotes (under 3 min) | No credit check in most states |
Source: NerdWallet & ValuePenguin 2025 Home Insurance Report → https://www.nerdwallet.com/article/insurance/average-homeowners-insurance-cost
Cheapest Companies in High-Risk States 2025
| State | Cheapest Carrier 2025 | Avg Rate After Discounts | Notes |
|---|---|---|---|
| Florida | Security First / Universal | $2,900–$3,800 | Citizens as backup |
| California | CSAA (AAA) / Auto Club | $1,400–$2,100 | Best wildfire mitigation |
| Texas | State Farm / Allstate | $1,900–$2,800 | Windstorm & hail coverage |
| Louisiana | Lighthouse / Southern Fidelity | $2,500–$3,500 | Hurricane deductibles |
How to Get the Absolute Lowest Rate in 2025 (Even With “Problems”)
- Bundle Home + Auto → Up to 30% off (State Farm, Allstate, Nationwide)
- Raise Deductible to $2,500–$5,000 → Saves $300–$800/year
- Install Smart Home Devices → Up to 15% off (Ring, Nest, SimpliSafe)
- Pay Annually → 5–10% discount
- Claim-Free 3+ Years → Up to 20% off
- New Roof / Wind Mitigation (FL) → Save $1,000+ in Florida
- Wildfire Defensible Space (CA) → Up to 25% off in high-risk zones
See exact savings: https://www.policygenius.com/homeowners-insurance/ (free quote tool)
FAQ – People Also Ask
Q: Can I get homeowners insurance with bad credit in 2025?
A: Yes — Auto-Owners, USAA, and Lemonade barely use credit. Others discount 10–40% for low scores.
Q: What if I have an old roof (20+ years)?
A: Erie, Allstate, and Travelers still write policies. Expect 10–25% surcharge or replacement cost exclusion.
Q: Is flood insurance included?
A: Never. Get separate NFIP or private flood → average $700–$1,200/year.
https://www.floodsmart.gov/
Q: Best company for hurricane-prone areas?
A: Security First (FL), Lighthouse (LA), or Citizens Property Insurance as last resort.
Related Guides on Our Site
→ Cheapest Health Insurance 2025
→ $0 Health Insurance 2025
→ Florida Health Insurance 2025
→ Texas Health Insurance 2025
Don’t overpay in 2025 — rates are still rising.
Get free quotes from 5+ carriers in under 3 minutes:
https://www.policygenius.com/homeowners-insurance/
or
https://www.thezebra.com/homeowners-insurance/
Shop today — the average person who compares saves $1,247/year according to the latest data.
