California homeowners insurance: A complete guide

Is home insurance required in California?

California does not require homeowners insurance by law, but your mortgage lender can require you to carry it. If you have a mortgage, your lender has a financial interest in your home and requires that interest to be protected. Even without a lender requirement, homeowners insurance protects you from significant financial loss from damage and liability claims.

So, even if the state does not require it, you may still need to get California homeowners insurance. Plus, you might be better off getting coverage to protect yourself financially from losses due to issues like wildfires, as well as other common perils that homeowners insurance typically covers, like theft and personal liability due to someone getting injured on your property.

What does home insurance cover in California?

California homeowners insurance covers the house, personal belongings and certain liability risks after covered losses. Common covered causes of damage include fire, wildfire, smoke, theft, vandalism, wind, hail, lightning and certain damage caused by falling trees. Coverage varies by insurer and policy, so check your policy for exclusions and limits.

“The majority of California property owners can expect their homeowners’ insurance to cover the following,” explains Todd Greenbaum, president and CEO at Input 1, an insurance billing and payments software provider:

“Interior or exterior damage to the dwelling and, sometimes, other outdoor structures such as a pool, gazebo, patio, etc.
Loss of, or damage to, personal property, such as furniture, appliances, electronics and clothing
Injury that occurs while on the property
Damage from fire/smoke (including wildfires), theft or vandalism
Damage from weather such as wind, hail and lightning
Other damages from external events, such as a tree falling on the dwelling.”

Keep in mind, however, that coverage varies by policy; some policies may include more or fewer items than those listed above. Note that some perils are generally always excluded, such as earthquakes. Instead, California homeowners might separately purchase earthquake insurance.

Floods are also typically excluded, explains Evan Walker, owner at The Law Office of Evan W. Walker. “There may also be sub-limits on covered personal property like jewelry (e.g., even if $10,000 of jewelry is stolen, the sub-limits may limit payment to $500). Common exclusions under personal liability coverage include certain breeds of dogs and liability arising from your autos or your work,” he adds.

How much is homeowners insurance in California?

The average cost of homeowners insurance in California is $1,653 a year or $138 a month. This rate is based on a home with a $300,000 dwelling coverage limit, a $1,000 dwelling coverage deductible, and a $300,000 liability limit.

That’s below the national average, though some parts of California are more expensive than others to insure, especially if you add in additional insurance, such as earthquake coverage. Getting quotes can help you get a better sense of home insurance rates based on factors like your location and coverage limits.

Overall, California homeowners insurance may be below the national average, but there are still many nuances to consider. And with several major carriers leaving, along with growing risks due to factors like climate change, costs could go up further.

“Because California is such a large state, location matters more than you think. Carriers are staying away from more rural areas due to wildfire risk, and locations near water are more expensive and harder to insure. For these reasons, deductibles can vary and may leave customers exposed,” says Greenbaum.

“There may also be limits on coverage due to the current economic and climate circumstances. Loss due to wildfire can have a high deductible or be excluded entirely. Additionally, the increased cost of materials and labor could increase replacement costs above coverage limits should there be a total loss,” he adds.

As such, California homeowners should closely review their limits and other policy details. And if you’re looking for a new policy, be sure to compare home insurance companies and see where you can find the best coverage amid these challenges.

How much is homeowners insurance in California per month?

California homeowners insurance costs an average of $138 per month, based on an annual premium of $1,653. Your rate may be higher or lower depending on your home's location, dwelling coverage limit, deductible, claims history and other factors. Homes in areas with elevated wildfire risk may cost more to insure or be harder to cover.

Best homeowners insurance companies in California

The best home insurance company in California for 2026 is Travelers, followed by Allstate and Auto Club Enterprises. Since Allstate doesn't write new policies in California, Travelers is your best bet for new coverage. Our rating is based on price, NAIC complaints, and AM Best financial ratings. The total Insurance.com score is calculated out of five using these factors.

Home insurance companies available in California include:

Travelers
Allstate
Auto Club Enterprises (AAA)
State Farm
CSAA Insurance (AAA)
Nationwide
Mercury Insurance
USAA

These homeowners insurance companies in California often offer competitive rates, but you should compare carriers to see where you can get the best home insurance rates for your specific home.

Cheapest home insurance in California

Travelers is the cheapest home insurance company in California among the surveyed carriers, with an average rate of $1,103 a year for $300,000 in dwelling coverage, according to Insurance.com analysis (2026). Allstate is next at $1,166, but it is not writing new California homeowners policies.

California homeowners insurance laws

California does not require homeowners insurance, but state law provides protections for homeowners who have coverage. California regulates how insurers handle claims and when they can cancel or nonrenew policies. These rules can affect your rights if you have a claim or receive a cancellation or nonrenewal notice.

For example, “be aware of the Fair Claims Settlement Act, which is found in the California Code of Regulations,” says Walker.

This Act includes various regulations that can help homeowners when it comes to getting claims handled, such as not allowing insurers to require property repairs be done by a specific person or entity. Altogether, these regulations aim “to promote the good faith, prompt, efficient and equitable settlement of claims on a cost-effective basis,” the Act states.

California home insurance laws also come into play in terms of pricing.

“There are limits on how much an insurance carrier can charge for premiums, but the limits are not well-defined. This is one reason that more carriers are leaving the state, making insurance both harder to get and more expensive,” says Greenbaum.

There are also limits as to when and why an insurance company can cancel your home insurance coverage:

Within the first 60 days that the policy is in force, it can be canceled for any reason
After 60 days, policies can only be canceled or nonrenewed for specific reasons allowed by law
The home insurance company must provide at least 20 days' notice for policy cancellation, 10 days if the cancellation is for nonpayment
The home insurance company must provide at least 75 days' notice for a nonrenewal
All notices of cancellation and nonrenewal must provide the reason

Is there a grace period for homeowners insurance in California?

California law requires at least 10 days' notice before an insurer cancels a homeowners policy for nonpayment, but that notice period is not the same as a guaranteed grace period. Your insurer's policy and billing rules determine what happens if you do not pay. Pay your premium on time to avoid a lapse in coverage.

How to get home insurance in California

To get California homeowners insurance, determine your coverage needs, compare several insurers, research the companies and buy the policy that provides the protection you need. You should compare at least three to five quotes when possible and use the same coverage limits for each quote. Availability can depend on your property's location and wildfire risk.

Follow these steps:

Determine your coverage limits. Consider how much the replacement cost of your home is, as well as how much you need for personal property and liability coverage. You should also consider earthquake coverage, which is available as a separate policy from many home insurance companies or through the California Earthquake Authority (CEA).
Request quotes. Get quotes from as many companies as you can; at least three to five is a good comparison. Make sure you're comparing apples to apples in terms of home insurance coverage and consider any extras each policy might include.
Research the companies. Check the reputation of the companies you are considering, using resources like J.D. Power, AM Best, and our best home insurance companies ranking.
Buy your policy. Once you've made a choice, pay the premium to begin coverage.

Remember that flood coverage is not part of a homeowners policy, so you will need to shop for that separately.

Which areas of California are high-risk for wildfires?

Wildfire risk is concentrated in parts of Southern and Northern California, including areas of Ventura, Los Angeles, San Diego, Riverside, Sutter and Butte counties. California's Fire Hazard Severity Zone map identifies areas with moderate, high and very high wildfire risk. You can use the map to check the wildfire risk for your property.

In Butte County, the risk is centered around the town of Paradise, which was hit by the deadly 2018 Camp Fire. CalMatters has determined that the areas labeled as high or very high risk of wildfire have increased by 168% since 2011. It has also reported that the number of Californians living in those two zones is approximately 3.7 million.

If you wish to know if your home is located in an area considered at risk of wildfire, you can enter your address into the map.

FAQ: California homeowners insurance

Does homeowners insurance cover wildfires in California?

Yes, most California homeowners insurance policies cover wildfire damage. A covered wildfire loss can trigger dwelling, personal property and additional living expense coverage, subject to your policy's limits, deductible and terms. Because coverage can vary, review your policy or ask your insurer to confirm how wildfire damage is covered at your property.

When is fire season in California?

Historically, fire season in California ran from late spring through fall, but wildfires now occur year-round across the state.

Is flood insurance required 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 earthquake insurance because standard home insurance excludes earthquake damage. Without it, you would pay for repairs yourself after an earthquake. Insurers must offer earthquake coverage, but you can decline it. Costs depend on factors such as your home's construction, proximity to a fault line and rebuilding cost.

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 on the CDI website.

Where do I get help with a claim 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

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