Owning a home in California can be a big investment that needs home insurance protection. According to Bankrate’s 2022 analysis of reported annual premiums, the average cost of homeowners insurance in the Golden State is $1,127 per year and homeowners insurance is $250,000. Although California is known for its high cost of living, it is below the national average for the same home insurance coverage.
To start looking for your homeowners insurance, Eragoncred research found that the best homeowners insurance companies in California are USAA, State Farm CSAA, Allstate and The Hartford. From there, we rank average premiums, insurance quotes, discounts, policy features, and third-party reviews to help you find an insurance company that fits your needs.
Best home insurance company in california
California residents have several insurance companies to choose from, some of which offer homeowners insurance premiums that are lower than the state average. To narrow down the list, we calculated a bank rate score to analyze each company across multiple categories. This includes average annual premiums, availability coverage, rebates and policy features based on premium data from Quadrant Information Services. The 2021 JD.com also includes a premium customer satisfaction rating to indicate how satisfied customers are with their homeowners insurance company. The higher a company ranks in each category, the higher its overall bank rate score, up to a maximum of 5 out of 5.
| Home insurance company | Bankrate Score | Average annual premium for $250K dwelling coverage | J.D. Power score |
|---|---|---|---|
| USAA* | 4.8 | $672 | 882/1,000 |
| State Farm | 4.7 | $842 | 835/1,000 |
| CSAA Insurance Group | 4.2 | $931 | 828/1,000 |
| Allstate | 3.9 | $606 | 829/1,000 |
| The Hartford | 3.5 | $1,725 | 798/1,000 |
*Not officially ranked by J.D. Power due to eligibility restrictions
We have confirmed that these carriers are currently underwriting homeowners insurance policies in California. However, coverage may be limited to certain areas of the state or households with certain derogations.
USAA
USAA has an overall satisfaction score of 882 out of 1,000 from J.D. Power, making it one of the top providers of policy in California. However, since it applies only to military personnel and their immediate family members, it is not eligible for an official J.D. fit power. It is generally one of the cheapest providers for those who qualify for USAA membership. It also has unique options that are beneficial to military personnel, such as: B. Covers uniforms damaged by insurance loss.
State Farm
State Farm earned 835 points out of 1,000 from J.D. Overall satisfaction and several other categories of power, including policy quotes, billing, and interactions. State Farm is the largest private auto insurance company in the U.S., so drivers looking for an established company with a local agency might like this insurance company. In addition to standard types of insurance such as home and personal contents insurance, State Farm also offers pet insurance through Trupanion. State Farm may have less opportunity for discounts on home insurance than other airlines.
CSAA Insurance Group
CSAA Insurance Group is a AAA insurance company. The insurer offers affordable premiums in California compared to the California average, with an average annual premium of $931 for a $250,000 home. For customer satisfaction, the insurer received a J.D. Competency score of 828, which is 1,000 points above the average. CSAA Insurance Group is rated A (Excellent) by AM Best. However, among other companies on this list, CSAA has the second most expensive average homeowners insurance premium.
Allstate
Allstate offers California homeowners a wide range of insurance options to choose from. From standard insurance options such as home insurance, liability insurance, personal property and guest health insurance, to less common options such as flood insurance, yard and garden insurance, Allstate offers many types of insurance to meet your needs. While Allstate performed well in multiple categories, its score on the National Association of Insurance Commissioners (NAIC) Complaint Index indicated that it received more complaints than expected.
Hartford
Hartford is AARP’s homeowners insurance plan. California homeowners who choose The Hartford may be happy to choose coverage that meets the requirements of their homeowners insurance policy. The downside is that Hartford is only open to AARP members. However, AARP membership allows you to get more home insurance benefits and savings.
More companies to consider
Kin Insurance
Kin Insurance is an insurtech startup founded in 2016 and headquartered in Chicago. Its mission is to provide affordable coverage for homeowners, and it reports that customers save an average of $500 when switching from another home insurance company.
Kin’s HO-3 policy provides California homeowners coverage for property, housing, liability, medical expenses, and more. Additionally, standard coverage includes wildland fire insurance for damage to your home’s structures, trees and plants, as well as fire service expenses.
How much is home insurance in California?
The average homeowners insurance cost for a $250,000 homeowners insurance in California is $1,127 per year. While this is lower than the national average homeowners insurance cost of $1,393 per year, any home can have a premium that is higher or lower than both averages, depending on the home’s size, age and location, insurance options and other factors.
Home insurance in california
When shopping for home insurance in California, learn more than just the average home insurance cost. Given the dangers posed by natural disasters and other geographic hazards, California homeowners must make some unique considerations when ensuring that their home insurance adequately protects what may be their greatest asset.
Common Causes of Losses in California
California is a large state, and each region faces different risks, whether natural or man-made. However, some causes of loss are common across the state. These include:
- Fire and Lightning: Fire is a major problem for California residents, even those who don’t live in wildfire areas. Thunderstorms can quickly escalate into fires, such as the August Composite Fire, which burned more than 1 million acres in August 2020, according to Cal Fire. The key to getting personal homeowners insurance is that your homeowner’s insurance is enough to cover the cost of rebuilding your home in the event of a fire.
- Earthquakes: Many active fault lines pass through California, but earthquake insurance is not covered by most standard homeowners insurance policies. Instead, California earthquake insurance can be purchased separately through the California Earthquake Administration and various other private insurers. Therefore, earthquake risk does not affect home insurance rates.
- Theft: In 2020 alone, the California Department of Justice recorded 145,377 thefts and 527,748 thefts. Crime rates in each zip code affect homeowners insurance rates in each neighborhood, another reason individual homeowner quotes may differ from state and national averages. To protect your property, it’s also helpful to look at personal property insurance on your homeowner’s policy to make sure it’s adequate to protect your property.
Home Insurance Coverage Options in California
In a state prone to wildfires, mudslides, and earthquakes, asking your vendor specific questions about what your policy includes and doesn’t include is an important step. For example, although California is prone to earthquakes, home insurance policies often do not include automatic coverage for such events. Due to frequent natural disasters, many insurance experts recommend these types of coverage to homeowners in California:
- Flood Insurance: California is considered a flood-prone state because of its valleys and coastal areas. However, most home insurance policies do not cover damage from flooding. Instead, flood insurance can be purchased through the National Flood Insurance Program (NFIP) and some private carriers.
- Fire Insurance: While some fire coverage is included in a basic homeowners insurance policy, Californians are at increased risk due to the high likelihood of wildfires. If you live in an area where home insurance is difficult to find due to the risks involved, you should consider purchasing a separate policy, such as a FAIR plan. The Los Angeles-based California Fair Program (CFP) recommends getting insurance through its association only as a last resort, but it may provide fire insurance for your home.
- Suggested personal property: If you own high-value items such as art or jewelry, the personal property amount on your homeowner’s policy may not fully cover these items. Some solutions may involve increasing the amount of your personal property or purchasing a scheduled personal property certificate as additional insurance. Since each insurance company may have different policies for dealing with expensive items, it may be helpful to speak with an insurance agent to find out which solution is best for you.
Frequently Asked Questions
What is the cheapest home insurance in California?
There are several major providers in California that offer homeowners insurance at a lower price (compared to the national average) that includes all standard protections such as condo, personal property, other structures, and liability. To find the cheapest policy for your situation, compare quotes from multiple providers based on the coverage you need, and see how adding discounts such as discounts can help. Bundling, for example, affects your premiums.
How do I get home insurance in California?
Many insurance companies offer online quotes, but you can also call the company or visit a local agency. You will need some basic information such as your address and date of birth, as well as information about your home such as: B. Details of the age of the roof and custom features. Once you receive a quote and want to purchase a policy, a company representative will guide you through the application process.
What is the California Equity Program?
The California Fair Plan is a last resort for homeowners who struggle to get home insurance from traditional carriers. Your home may be denied coverage due to serious wildfire risk, home condition, occupancy, or other reasons. Under the Equity Program, California homeowners can only get very limited named risk coverage, but more options can be added for an additional fee.
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