Nationwide: Cheapest Home Insurance for a $200K Home

Clearsurance.com recently published a report on the best and cheapest home insurance providers. 

Nationwide offers the lowest average premiums for a $200,000 house with annual premiums under $1,000. 

Policy Comparison for $200,000 Insurance Policy

The policies compared for this report had the following characteristics:

• $200,000 dwelling coverage
• $100,000 personal property
• $20,000 loss of use
• $20,000 other structures coverage
• $300,000 liability protection
• $5,000 medical coverage
• $1,000 deductible

Nationwide was the only provider to offer annual premiums under $1,000.

The next cheapest coverage is offered by Allstate at $1,096. Farmer’s insurance had the highest premiums of the companies compared to this study, at $1,616.

Policy Comparison for $400,000 Insurance Policy

State Farm, USAA, and Nationwide offered the most affordable premiums with only $25 difference in annual rates from the first to third cheapest. State Farm’s premiums averaged $1,864, USAA averaged $1,868, and Nationwide rounded out the cheapest three with $1,889. 

Farmers Insurance also had the highest premiums for a $400,000 policy, coming in at $2,909 annually.

General Factors Impacting Home Insurance Premiums

The average company premiums provide a small portion of the whole picture. Other factors impact rates. One of the primary influencers is where a policy is written. State laws regulating insurance policies impact rates significantly. 

Lawsuit prevalence within a state also affects how much risk insurance companies assume when writing a policy. Insurance providers charge higher premiums in states with more lawsuits per capita.

The risk of catastrophic events is the most critical factor in calculating insurance rates. The more likely an insurance company will have to pay a claim, the higher the premiums they will charge. 

For example, in many areas of Florida, homeowners may struggle to find a home insurance policy because of the high risk of hurricane damage. Those who can find coverage can expect to pay some of the most expensive premiums in the country.

Situational Factors Impacting Home Insurance Premiums

Home insurance policies are designed to protect a homeowner from catastrophic losses following damage to their home. The more risk an insurance provider assumes, the higher the premiums will be.

When an insurance company writes a policy for a $400,000 house, they take on a higher risk than when they write a $200,000 policy. The age, value, and size of a home all make a difference in the premiums.

If a homeowner has filed a claim within the past three years, they will likely pay higher premiums than if they had a claims-free record. 

Safety features installed in a home can also affect insurance rates. The more secure a home is and the more safeguards to keep problems from occurring, the lower the insurance rates will be. Car insurance providers often offer a discount for vehicles with anti-theft devices. Similarly, home insurers offer discounts for homes with security systems.

Insurance Provider Customer Satisfaction Ratings

While the cost of a policy is often the deciding factor regarding which insurer to go with, customers should also consider customer satisfaction ratings.

The more satisfied current customers are, the more likely a new customer will also have a good experience.

Using Clearsurance.com’s own data, the following companies received the highest customer satisfaction scores: 

• USAA
• Erie Insurance
• Progressive
• State Farm
• Geico

A good claims experience may be worth paying a few extra dollars a month for.

Tips for Saving on Home Insurance

Regardless of the company or state averages, there are ways that customers can save on their individual policies. Clearsurance.com shares some of the most popular and effective ways to pay less.

• Bundle home insurance with other types of coverage insurance products, such as an auto insurance policy.
• Raise the home insurance deductible
• Change the level of coverage
• Install home safety features
• Claims-free discount

Other discounts may be available, and homeowners should review the possibilities to ensure they receive any for which they are eligible.

Read Clearsurance.com’s entire report here: The Cheapest and Best Homeowners Insurance Companies as Rated by Customers in 2023.