A homeowners insurance policy is like a fiscal safety net for the largest purchase of one’s life. You can cover yourself from expensive repairs after a fire or replacing stolen particulars.
The Most Affordable Homeowners’ Insurance Companies in 2022
| COMPANY | SAMPLE MONTHLY COST | A.M BEST RATING |
| Erie Insurance | $98 | A+ |
| Liberty Mutual | $113 | A |
| Amica | $124 | A+ |
| Nationwide | $126 | A+ |
| American Family | $152 | A |
All rates are indicative only. For applicable quotes, you should contact your insurance agent or company directly.
You can often reduce your insurance costs by buying both your homeowners and your auto insurance policies from the same company. Bundling is a term that can be used to reduce your insurance costs.
The Best Auto and Home Insurance Bundles for 2022
| COMPANY | AM BEST RATING | MULTIPRODUCT DISCOUNTS |
| USAA | A++ | YES |
| Allstate | A+ | YES |
| State Farm | A++ | YES |
| American Family | A | YES |
| Nationwide | A+ | YES |
It’s not difficult to find the right home insurance policy. First, determine the worth of your home and contents. Next, choose a company that offers the coverage you require at a fair price.
These steps will help you purchase homeowners insurance.
1. Decide what you want insure. The standard homeowners policy does not usually cover valuable jewelry, artwork or other collectibles. You may also need additional coverage if your trampoline or pool poses a danger to other people. You will also need flood insurance if you live in a flood-prone region.
You will also need to have additional insurance if you live near an earthquake-prone area. To find out where you are located relative to a fault line, and how likely an earthquake is to strike, use the U.S. Geological Survey fault map.
2. Calculate how much home insurance you require. Take inventory of all your personal possessions. Keep receipts. This information will help you decide the amount of coverage that you need to protect your property.
Get an estimate for your home and any other structures in your area from your insurance company.
Calculate how much you would spend on lodging, meals out and other living expenses in the event that your home is destroyed or rendered uninhabitable by a disaster.
3. Select an insurance company. You want an insurance company that offers homeowners insurance at a reasonable price. You should also look for an insurer that has a high financial strength rating, either from AM Best, or another rating agency. This rating agency gets positive consumer and professional reviews and allows you to file a claim and seek assistance 24 hours a day.
4. Select a policy. A good home insurance policy will offer sufficient coverage, terms that are simple to understand, and discounts. Instead of a cash value policy paying only the depreciated value, consider purchasing a replacement cost policy. This policy will cover the cost of replacing your property.
Insurance companies often offer discounts if you purchase more than one type policy, such as auto insurance or home insurance. This is known as insurance bundling, or a multi-policy discounts. It is a good idea for the insurance company as it increases revenue per customer and promotes customer loyalty.
Bundling insurance doesn’t always mean you save money. According to Amy Bach, a consumer advocacy group United Policyholders, auto insurance companies may offer lower rates than those that sell multiple types of policies. Bach states that an auto insurance company may offer additional benefits that are not offered in an insurance package from another insurer such as ticket forgiveness and claims-free discounts.
