Finding ways to cut homeownership costs is a top priority for many people. One of the best ways to do that is by comparison shopping your homeowners insurance. We evaluated average rates for large home insurance companies in California to help you get started.
Cheap Home Insurance in California Cost Comparison
If you’re shopping for California home insurance, rates have a sizable difference from one home insurance company to another. Before buying, shopping with multiple companies will help you find the right coverage at the best price for your needs.
| Company | Average California home insurance cost |
|---|---|
|
Allstate (no longer selling new home insurance policies in California)
|
$718
|
|
Mercury
|
$736
|
|
National General
|
$778
|
|
$784
|
|
|
$890
|
|
|
$952
|
|
|
State Farm (no longer selling new home insurance policies in California)
|
$965
|
|
Automobile Club of Southern California
|
$1,003
|
|
CSAA Insurance Group
|
$1,066
|
|
$1,097
|
|
|
$1,352
|
|
|
AIG
|
$1,771
|
|
Hartford
|
$1,898
|
|
$2,386
|
Homeowners Insurance Cost Factors in California
Your ability to snag cheap home insurance in California will hinge on many rating factors, such as:
- The materials your home is made of
- The age of your home
- The cost to rebuild your home
- Your personal claims history
- The claims history of your location
- The fire rating of your location
- The coverage amount and policy limits
- Your deductible amount
Home insurance quotes are influenced by those factors and companies weigh them differently, so make sure to get quotes from multiple companies to find the best rate for you.
What Does Homeowners Insurance Cover in California?
A standard home insurance policy (also known as an HO-3) protects your house for any issues that aren’t specifically excluded in the policy. Common exclusions include earthquakes, flooding, sinkholes, power failure, neglect, wear and tear, and intentional damage.
Personal property (your belongings) is covered for specified “perils” in a standard home insurance policy. Vandalism, theft, fire, lightning and explosion are just some of the problems covered by home insurance.
Standard home insurance policies include the following main coverage types:
- Dwelling: A primary coverage that pays to repair or rebuild your home if it’s damaged under a covered issue. In addition, it covers attached structures, like a deck or garage.
- Other structures: This covers the cost to repair or replace structures that aren’t attached to your home, such as a fence or in-ground swimming pool.
- Personal property: This pays to repair or replace your belongings if damaged from a covered incident, such as a fire or theft. Your personal belongings include your clothes, jewelry, electronics, furniture, kitchen appliances and other items.
- Liability: This covers property damage and injuries you accidentally do to others. For example, if a visitor is seriously injured after falling down your icy steps, your home liability coverage could pay for a settlement. If there is a lawsuit, it also could pay for a court judgment against you and your legal defense costs.
- Medical payments to others: This covers minor medical claims for someone hurt in your home (who isn’t a household member), regardless of fault. For example, if a guest slips on an unsecured rug and is hurt, medical payments coverage can pay for their medical expenses. Coverage amounts are on the smaller side, such as $1,000.
- Additional living expenses: If you’re unable to live in your home due to an issue covered by your policy (like a fire), additional living expenses coverage reimburses extra costs incurred such as a hotel bill, restaurant meals and other necessary services, like storage.
Compare Home Insurance Quotes
1
Farmers
OK
Low
1
Farmers
Compare rates from participating carriers in your area via EverQuote's website.
2
American Family
Very good
Low
2
American Family
Compare rates from participating carriers in your area via EverQuote's website.
3
Chubb
OK
Very low
What’s Not Covered by Homeowners Insurance in California?
Common exclusions found in a standard California home insurance policy include problems like earth movement (including earthquakes, landslides, sinkholes and mudflows), floods, power failure, nuclear hazard, war, neglect or wear and tear, vermin and insect infestations and intentional loss.
Also not covered is “ordinance or law,” which means home insurance won’t pay to bring your home up to code but only to the condition it was in before the loss. If there are new codes that builders must adhere to when repairing or rebuilding your home, you’re responsible for these extra costs unless you pay for an endorsement that will cover these outlays.
It’s always wise to read your policy closely to understand what is excluded from coverage.
Flood Insurance in California
Your standard home insurance policy doesn’t cover flood damage. And with flooding becoming more frequent, especially after fires due to burn scars, you may want to consider flood insurance to protect your home. California may be in the middle of a severe drought, but serious storms with flooding still occur.
Financial aid from the government after a flood can be limited. It’s wise to have your own flood insurance to rely on. Most people who have flood insurance buy it through the National Flood Insurance Program (NFIP), a federal program. Private flood insurance is also available.
FEMA’s Individuals and Households Program (IHP) can provide financial and direct assistance after a major disaster or emergency, if you’re eligible. This program helps people find housing after an event directly caused by a disaster that insurance or other sources do not cover.
Earthquake Insurance in California
California is a hot spot for earthquakes. According to the U.S. Geological Survey, California has more earthquakes that cause damage than any other state. The California Geological Survey says that there are around 200 potentially dangerous faults and over 70% of Californians live “within 30 miles of a fault where high ground shaking could occur in the next 50 years.”
The California Geological Survey notes that there are usually two to three earthquakes big enough to cause moderate structural damage each year.
Each October, there is the annual “Great California ShakeOut” to instill the quick reactions of drop, cover and hold on when an earthquake occurs. That may help you survive an earthquake, but what about your home?
If you want coverage for California earthquake damage, you need to buy a separate earthquake insurance policy. A standard home insurance policy doesn’t cover earthquakes.
Earthquake insurance typically covers:
- Dwelling
- Personal property
- Other structures
- Additional living expenses
Earthquake insurance has a separate deductible from your homeowners insurance, typically between 10% to 25% of the dwelling’s policy limit.
Allstate and State Farm Not Offering New Home Insurance Policies in California
As of May 27, 2023, State Farm stopped offering new homeowners insurance policies in California as a way to manage its own risks. State Farm said issues such as increasingly high construction costs and a rapidly growing threat of catastrophic events in the state led to the decision. If you currently have a State Farm home insurance policy, your policy won’t be affected by this decision and you won’t lose coverage.
State Farm’s announcement comes after Allstate’s decision to stop selling new homeowners insurance policies in California in 2022. Allstate cited the same issues as State Farm—increased home repair and rebuild costs and the risk of catastrophic events, such as wildfires. Those who already had Allstate home insurance retained their coverage when the company stopped selling new California home insurance policies.
Tips for Buying Homeowners Insurance in California
Whether you’re about to close on your first house in California or switching insurance companies, you want to acquire a policy at a reasonable price with good coverage. Here are guidelines for both new and longtime homeowners:
- Evaluate your rebuilding costs. Reach out to a contractor or your insurance company to figure out the cost of rebuilding your home based on material and labor costs in your area. You want your dwelling coverage amount to be at least equal to this estimate.
- Assess how much liability coverage you need. You should buy an amount that matches the value of your assets that could be lost in a lawsuit. A minimum of $300,000 is recommended.
- Contemplate add-on coverage for your belongings. If you have high-value items, jewelry or pricey sports or electronic equipment, consider scheduling personal property for those precious possessions.
- Review about the benefits of replacement cost instead of actual cash value. Consider replacement cost coverage for your home and belongings—you will get the amount you need to replace your home and items with new versions instead of a depreciated amount.
- Look for coverage gaps. Some home insurance companies offer add-on benefits for issues not covered in a standard home policy. For example, to help pay for damage from water backups or provide higher limits for landscaping such as trees and shrubs if harmed in fire or theft.
- Ask for discounts. Make certain you’re getting all the discounts available to you. For example, you may get a discount for having smart home monitoring systems or buying your home and car insurance through the same company.
- Research financial ratings. Examine financial strength ratings from companies such as A.M. Best or Standard & Poor’s. Some banks may not approve your mortgage unless your insurance company has at least an “A” financial strength rating.
- Compare quotes from multiple home insurance companies. The price for the same policy can vary significantly among insurance providers. If you don’t shop around, you won’t know how much you can potentially save.
Methodology
Average home insurance rates were calculated using data from Quadrant Information Services. Rates are based on a policy with dwelling coverage of $300,000 and liability coverage of $100,000.
