Although home insurance is not legally required in California, it’s required by mortgage lenders and a good idea even if you don’t have a mortgage.
So, how much is homeowners insurance in California? While home insurance premiums vary depending on property owners’ needs, the average cost of homeowners insurance in California is $1,380 according to 2022 Insurance.com data, which is much lower than the U.S. national average rate.
To help you find the best and most affordable homeowners insurance in California, we analyzed rates from top companies for several coverage levels. Read on to learn which home insurance companies offer the best rates and are top-rated.
- The average California homeowner pays $1,380 per year for a home insurance policy, but rates vary based on individual factors.
- Experts recommend that you get enough insurance to cover the costs to repair or replace the structure of your home and personal possessions.
- Potential ways to save money on home insurance include disaster-proofing your house, paying your premium in full, bundling your policies, and installing a security system.
- Most California home insurance policies cover wildfires, but not floods or earthquakes.
- Home insurance covers the cost of additional living expenses if your home becomes uninhabitable after an insured loss, and you have to temporarily relocate.
- How much is homeowners insurance in California?
- What is the best home insurance in California?
- Cheap homeowners insurance companies in California
- Homeowners insurance California rates by ZIP code
- Home insurance cost in California by city
- How much home insurance do I need in California?
- How deductibles affect your insurance rate
- Average cost of California home insurance by coverage level
- California homeowners insurance discounts
- California homeowners insurance FAQ
- Methodology
How much is homeowners insurance in California?
The average cost of home insurance in California, according to Insurance.com’s most recent data, is $1,380, making California the second-cheapest state in the country for home insurance. Its average cost is $1,399 less, or nearly half the national average of $2,779, for the coverage level of:
- $300,000 dwelling coverage
- $1,000 dwelling coverage deductible
- $300,000 liability
The cost of home insurance is different for each homeowner. Some of the biggest factors that impact home insurance rates include:
- Your home's square footage
- Building costs in your area – and your own home's construction, materials and features
- Local crime rates
- The likelihood of certain types of natural disasters, such as wildfires
- Your payment schedule (monthly, annually, etc.)
While you can often get a small discount for paying your premium annually, many California homeowners choose to pay their home insurance premium on a monthly basis. To figure out how much homeowners insurance is in California per month, you can divide the average annual premium ($1,380) by 12 months, which equals $115.
What is the best home insurance in California?
The homeowners insurance company with the cheapest rates isn’t necessarily the best provider. When comparing home insurance companies, other factors to consider are customer service, third-party ratings, discounts, coverage options, and claims processing.
To find the best home insurance companies in California, we leveraged data from Insurance.com’s 2022 Best Home Insurance Companies report, which ranks national insurance companies based on factors including J.D. Power and A.M Best ratings, as well as annual rates. The five companies highlighted in the table below are the top-rated national providers that sell policies in California.
| Rank | Company | Star rating (out of 5) | Average annual rates | J.D. Power rating (out of 1,000) | A.M. Best rating |
|---|---|---|---|---|---|
| 1. | USAA | 4.7 | $1,197 | 882 | A++ |
| 2. | State Farm | 4.3 | $1,448 | 835 | A++ |
| 3. | Allstate | 4.2 | $849 | 829 | A+ |
| 4. | Travelers | 4.1 | $1,089 | 800 | A++ |
| 5. | Nationwide | 4 | $1,421 | 812 | A+ |
| 6. | Farmers | 3.6 | $1,779 | 813 | A |
Cheap homeowners insurance companies in California
The cheapest home insurance company is different for everyone. But according to Insurance.com’s most recent rate data, Allstate has the cheapest home insurance in California, among the carriers we surveyed. Travelers, USAA and Mercury also had cheap insurance rates for California homeowners.
In the table below, you can see the average home insurance rates by company for a policy with $300,000 in dwelling and liability coverage, with a $1,000 deductible.
| Company | Average annual rate |
|---|---|
| Allstate | $849 |
| Travelers | $1,098 |
| USAA | $1,197 |
| Mercury | $1,296 |
| CSAA Insurance | $1,324 |
| Auto Club | $1,325 |
| Nationwide | $1,421 |
| State Farm | $1,448 |
| Farmers | $1,779 |
Homeowners insurance California rates by ZIP code
By entering your ZIP code in the search box and desired coverage level, you’ll see the average home insurance rate for that area. You will also see the highest and lowest premium fielded from major insurers. This will give you an idea of how much you can save by comparing home insurance rates. The difference between the highest rate and the lowest rate is how much you can save by shopping your policy.
HOME INSURANCE CALCULATOR
Average home insurance rates in CALIFORNIA
AVERAGE RATE: $669
Most & least expensive zip codes for homeowners insurance in California
Most Expensive
| Zip Code | City | Highest Rate |
|---|---|---|
| 92561 | Mountain Center | $1,031 |
| 90210 | Beverly Hills | $1,029 |
| 90069 | Los Angeles | $1,020 |
| 90046 | Los Angeles | $1,011 |
Least Expensive
| Zip Code | City | Lowest Rate |
|---|---|---|
| 93445 | Oceano | $606 |
| 93117 | Goleta | $607 |
| 93111 | Goleta | $610 |
| 93433 | Grover Beach | $615 |
Home insurance cost in California by city
The cost of home insurance in California also depends on where you live. Some cities have higher average rates than others, due to factors like crime, wildfire prevalence and home values. The table below includes the average cost of home insurance in California’s largest cities, based on the most recent Insurance.com data, for a policy with $300,000 in dwelling and liability coverage, with a $1,000 deductible.
| City | Average annual rate | $ difference from state average of $1,380 |
|---|---|---|
| San Jose | $1,117 | $263 less |
| Sacramento | $1,224 | $156 less |
| San Fransisco | $1,231 | $149 less |
| Fresno | $1,256 | $124 less |
| San Diego | $1,275 | $105 less |
| Long Beach | $1,279 | $101 less |
| Oakland | $1,413 | $33 more |
| San Bernardino | $1,477 | $97 more |
| Los Angeles | $1,528 | $148 more |
How much home insurance do I need in California?
Every California homeowner has unique coverage needs. The amount of insurance you should get is based on the cost of rebuilding your home, the value of your personal items, and the amount of risk you face, which is tied to your potential liability. Here are the basic components of home insurance, and how much coverage to get to make sure you’re not underinsured.
How deductibles affect your insurance rate
A deductible is the amount of money you pay before your insurance company pays out on a claim. For example, if your home sustains damage of $3,000 and you have a $500 deductible, you pay the first $500 and your insurer pays $2,500.
Some deductibles are based on dollar amounts. Others are based on a percentage of your home's value. If your home is insured for $200,000 and your deductible is 2%, you will owe $4,000 before insurance coverage kicks in. Dwelling and personal property insurance typically have deductibles, but liability and loss of use coverage do not.
Understanding the implications of the deductible you choose when buying homeowners insurance is important. In California, as in all the states, a higher deductible means you'll pay a lower monthly rate. Conversely, lower deductibles equate to higher premiums.
Average cost of California home insurance by coverage level
Another factor that will affect the cost of your home insurance policy is the amount of coverage you purchase. Higher coverage limits equate to higher premiums, whereas policies with lower coverage limits cost less. Here, you can see the average annual rate for a home insurance policy, based on the most recent Insurance.com data, with $1,000 deductible and varying levels of dwelling and personal liability coverage.
| Coverage | Average annual rate |
|---|---|
| $200,000 dwelling/$100,000 liability | $1,259 |
| $200,000 dwelling/$300,000 liability | $1,278 |
| $300,000 dwelling/$100,000 liability | $1,583 |
| $300,000 dwelling/$300,000 liability | $1,603 |
| $400,000 dwelling/$100,000 liability | $1,932 |
| $400,000 dwelling/$300,000 liability | $1,952 |
| $500,000 dwelling/$100,000 liability | $2,294 |
| $500,000 dwelling/$300,000 liability | $2,315 |
| $600,000 dwelling/$100,000 liability | $2,672 |
| $600,000 dwelling/$300,000 liability | $2,694 |
California homeowners insurance discounts
There are several ways to reduce your California home insurance costs. Here are some of the most common home insurance discounts that you may be able to qualify for:
- Installing smoke detectors, a burglar alarm or dead-bolt locks -- 1% to 3%
- Installing a sprinkler system, and a fire and burglar alarm -- 3% to 7%
- Loyalty discounts –about 6% on average, after three to five years, and 9% for ten years or more
- Bundling a home and auto insurance policy –up to 16%.
- Disaster-proofing your home with fire – 7%.
- Paying your 6-month or 12-month premium in full – 7% on average.
California homeowners insurance FAQ
Does homeowners insurance cover wildfires in California?
Yes, most California home insurance policies cover wildfires. However, it’s a good idea to check with your insurance company and read your policy documents to confirm wildfires are covered, as insurance offerings can change depending on location.
Home insurance will pay for the cost of repairing or rebuilding your home after a wildfire, as well as replacing damaged personal items. If your home is uninhabitable after a wildfire, your additional living expenses coverage will cover costs like a hotel, parking, laundry and restaurant meals until you can safely move back in.
Do I need flood insurance in California?
Most California homeowners are not required to carry flood insurance. However, flood insurance can be beneficial, especially if you live along the coast or in a flood zone.
Standard home insurance policies do not cover floods or flood damage, even when caused by a natural disaster. If you want flood protection, you can purchase flood insurance through the National Flood Insurance Program (NFIP) or a private flood insurance carrier.
Do I need earthquake insurance in California?
Most California homeowners should consider investing in an earthquake insurance policy. Standard home insurance policies typically exclude coverage for earthquakes, which means your home is at risk unless you purchase a separate earthquake insurance policy. If you don’t have earthquake insurance and your home is severely damaged in an earthquake, you would be responsible for the cost of repairs out-of-pocket.
By law, your homeowners insurance company must offer you earthquake insurance, but you’re allowed to refuse coverage. The cost of earthquake insurance depends on a variety of factors, like whether your home meets the latest earthquake codes, the proximity to a fault line and the cost of rebuilding the house. Your home insurance company can provide a quote if you’re interested in adding this coverage to your policy.
What if I can't get homeowners insurance in California??
California residents who cannot find homeowners insurance might be able to get coverage through the California FAIR Plan, which is a state-run program. This is usually an option for homeowners in high-risk wildfire areas.
The FAIR Plan offers basic fire insurance, with dwelling and personal property coverage. Only a few perils are covered, including fire and lightning, smoke, and internal explosions. However, you can add optional coverages for a fee.
Because FAIR Plan coverage is less comprehensive, you should only consider it if you absolutely cannot get approved for a private homeowners insurance policy. If you need theft or liability coverage, consider purchasing a "differences in conditions" policy that will cover these gaps. You can find a list of providers of such coverage at the CDI website.
Where do I get claims processing info or file a complaint?
If you end up in a dispute with your insurer, consider contacting the California Department of Insurance. You can file a complaint by dialing 800-927-4357.
Or, you can file a complaint online. When doing so, you can upload supporting documents, such as:
- A copy of your insurance card, both front and back
- Any relevant correspondence between you and the insurer
- A copy of a completed authorization and designation of agent form
Methodology
Insurance.com compared homeowners insurance rates in 2022 provided by Quadrant Data Solutions for dwelling coverage ranging from $200,000 to $600,000 with liability limits of $100,000 and $300,000 and a deductible of $1,000 for all available ZIP codes. ZIP codes were ranked based on the average rates for dwelling coverage of $300,000, liability coverage of $300,000, and a $1,000 deductible.
