Best cheap homeowners insurance in Madison

Best cheap home insurance companies in Madison

Allstate, Wisconsin Mutual and Travelers offer the cheapest average rates on homeowners insurance in Madison, according to Bankrate’s analysis of rate data provided by Quadrant Information Services. However, Madison residents have numerous options when it comes to finding good homeowners insurance policies with affordable rates.

Bankrate’s insurance editorial team, which includes licensed agents, reviewed several of the most prominent carriers in Madison, Wisconsin using customer satisfaction ratings based on the 2022 J.D. Power Property Claims Study and other third-party ratings and rankings to determine the best cheap home insurance companies. We also used these and other factors to assign a Bankrate Score to each carrier. Bankrate Scores are based on a five-point scale, and are designed to help you make a quick comparison among carriers. When comparing cheap home insurance companies, using Bankrate Scores can give you a good idea of how the company fares overall.

The table below offers information on some of the cheapest and best home insurance companies in Wisconsin.

*Due to membership restrictions, USAA is considered ineligible for ranking by J.D. Power

Allstate

Allstate offers cheap home insurance in Madison. It has the lowest average rates in the city, according to our analysis of average rate data from Quadrant. Not only is Allstate highly rated for customer satisfaction, but it offers useful discounts for homeowners too. Allstate is known to reward homeowners with no claims with its claim-free rewards program, which offers a discount for each year you do not file a claim. Allstate also has a claim rate guard system that helps keep your rate from increasing even if you do file a claim. However, the company is rated slightly below average for claims satisfaction by J.D. Power.

Learn more: Allstate Insurance review

Wisconsin Mutual Insurance

Wisconsin Mutual Insurance offers an array of homeowners insurance coverage options for residents of Madison. This includes several levels of packages that allow you to choose the level of coverage you need based on both your budget and home type. The company also offers packages geared toward secondary homes, “hobby farms” and newer construction homes. In addition to these packages, Wisconsin Mutual also offers a blanket valuable protection option, increased liability, and cybersecurity coverage for a more robust policy. However, Wisconsin Mutual does not offer a mobile app for claims filing or policy management, so it may not be the best fit if you prefer to make claims or manage your policy from your phone.

Travelers

When you have a homeowners insurance policy with Travelers, there are many coverage options available, such as contents replacement cost, water backup and additional replacement cost protection. These coverages may be added to your policy as needed. Even though Travelers’ average rates are below the citywide average rates for homeowners insurance, there are still plenty of discounts available through the insurer, including multi-policy, green home and loss-free discounts. However, one of the downsides of Travelers is that it’s rated below average for customer satisfaction.

Learn more: Travelers Insurance review

USAA

USAA is not available for every homeowner, as it is specifically for active members of the military, veterans and eligible immediate family members. However, if you do qualify for USAA insurance, it is one of the best cheap homeowners insurance options in Madison. A USAA policy includes the standard coverage and covers your personal belongings at their current replacement cost with no depreciation. USAA also offers unique coverage options that are tailored specifically toward military members, such as coverage for uniforms if they’re damaged by a covered peril.

Learn more: USAA Insurance review

Erie

If you’re looking for the best cheap homeowners insurance in Madison, Erie may be an insurance company to consider. Erie’s standard homeowners policy includes theft coverage, pet insurance, and guaranteed replacement cost protection. Depending on your state, you may also have the option to add on earthquake insurance, flood insurance and water and sewer backup protection. However, Erie doesn’t offer as many discounts as some of the other Madison insurance companies we reviewed. Erie’s average rates are also higher than the citywide average rates for Madison.

Learn more: Erie Insurance review

Home insurance coverage options in Madison

Homeowners insurance is not a legal requirement, but may be necessary if you have a mortgage on your home. Home insurance policies are also useful if your home sustains damage. Your policy could help you rebuild and repair, and offer protection against serious financial hardships in those circumstances.

When obtaining home insurance quotes or reviewing your existing policy, the following additional coverage types may be beneficial for those looking for cheap home insurance in Madison, Wisconsin:

• Water backup: Water backup is an available add-on from some insurance carriers. This covers sewer backups, plumbing damage and flooding due to burst pipes. This may be particularly helpful for Madison residents during the winter months.
• Personal property floater: The property crime rate in Madison is higher than the state average for Wisconsin, so it may not be a bad idea to consider adding on additional coverage for the items in your home.
• Flood insurance: The most common natural disasters in Wisconsin include severe storms, floods and tornadoes. Therefore, it is often worth considering purchasing flood insurance in addition to your standard policy.
• Additional living expenses: If it becomes necessary for you to temporarily move into a hotel or apartment due to a covered peril to your home, this add-on will help cover these costs. However, some policies include it as standard.

Home insurance discounts in Madison

While the cost of home insurance in Madison is, on average, significantly less than other parts of Wisconsin or the rest of the country, most homeowners welcome additional savings. There are several common discounts available to Madison residents. These include:

• Multi-policy: One of the easiest ways to obtain discounts is by using the same insurance carrier for your homeowners insurance as you do for your auto insurance or any other insurance policies you may have.
• Safety measures: Installing a security device or other protective measures in your home could earn you discounts from your insurance carrier.
• New home: Newly-built homes often qualify for additional discounts from insurance providers.
• Home renovation: Many companies offer a home renovation discount to homeowners who are or have recently made certain types of updates to their homes. For example, if you have replaced major systems, such as electrical, plumbing or building materials, you may qualify for lower rates.
• Green building materials: If your home was built using qualifying green building materials, such as those certified by the Leadership in Energy and Environmental Design (LEED), or other eco-friendly products, then you may be eligible for further discounts.

Of all of these discounts, the most impactful home insurance discount may be the multiple policy discount. Insurance companies like to reward customers who insure more than one policy with them. Having safety features in your home may also help you save on the cost of your policy. Plus, there may be other discounts, like insuring a new home, that you qualify for, and if you bundle home and auto insurance together, it tends to result in a bundling discount, which may further cut down on the cost of insuring your home.

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2023 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:

• Coverage A, Dwelling: $250,000
• Coverage B, Other Structures: $25,000
• Coverage C, Personal Property: $125,000
• Coverage D, Loss of Use: $50,000
• Coverage E, Liability: $300,000
• Coverage F, Medical Payments: $1,000

The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).

These are sample rates and should be used for comparative purposes only. Your quotes will differ.