Best Homeowners Insurance Rates In California

On average, your neighbors pay $82 a month.

See Your Rates
Local Insurance Information

Compare Homeowners Insurance In California

The Golden State is known for many things, including beautiful beaches, fruit and wine, cosmopolitan cities, and the movie industry. California is so large that if it were its own country, it would have the world's fifth-largest economy. There are major homeowners insurance risks that you should be aware of. Whether you’re looking to move there, or are already a Californian.

Average California Homeowners Insurance Rates

How much is home insurance in California? Homeowners insurance premiums in California are moderate compared to other states. The average cost of homeowners insurance in California is $986. That's slightly lower than the national average of $1,173. There are 29 states and the District of Columbia that have higher average home insurance rates than California.

California Average Annual Homeowners Insurance Rates
  2013 2014 2015
California Annual Average $966 $974 $986
California Price Per Month $81 $81 $82
US Annual Average $1,096 $1,132 $1,173
US Cost Per Month $91 $94 $98
National Rank 26 26 30
Source: Facts + Statistics: Homeowners insurance

The graph below shows the change in average California home insurance rates from 2011 to 2015, the most recent year the data is available. According to the III, California homeowners insurance rates increased from $967 in 2011 to $986 in 2015, a jump of $19 dollars, or 1.96 percent.

California average homeowners insurance rates

Choosing a homeowners insurance company in California should be easier. Actually, it’s already easy. The key to finding the best rates is to compare home insurance quotes in California from multiple companies.

Most Popular California Home Insurance Companies

Last year, these were the most common home insurance companies reported by QuoteWizard users living in the state of California. Out of the 48,266 California homeowners that used QuoteWizard to request insurance quotes last year, 2,332 had no home insurance.

  1. Allstate
  2. Farmers
  3. AAA
  4. Geico
  5. Liberty Mutual
  6. 21st Century
  7. Progressive
  8. Nationwide
  9. Safeco
  10. USAA
Get a quote from some of these top rated insurers! Request Quote Get a Quote From Top Insurers

Best Homeowners Insurance Companies in California

The above list shows California’s most popular home insurers according to our users. But popular doesn’t always mean best.

Our study on the Best Homeowners Insurance Companies focuses on top of the line companies. In no particular order, these companies stand out among the rest:

  1. Amica: Best Overall
  2. MetLife: Best for Bundling
  3. Allstate: Best for Local Agents
  4. Hartford: Best for Seniors
  5. State Farm: Best for Pet Owners
  6. Travelers: Best for Flexible Policies
  7. Nationwide: Best Replacement Coverage
  8. Farmers: Best for Eco-Friendly Homes
  9. Liberty Mutual: Best for Quick and Easy Quotes
  10. Auto Owners Insurance: Best Claims Experience
Get a quote from some of these top rated insurers! Request Quote Get a Quote From Top Insurers

Top California Home Insurance Company Market Share

Source: Insurance Information Institute
Rank Company Financial Strength Market Share
1 Farmers Insurance Group A 16.2%
2 Allstate A+ 8.6%
3 CSAA Insurance Exchange A+ 6.4%
4 Liberty Mutual A 5.7%
5 Auto Club Exchange Group A 5.4%
6 USAA Insurance A++ 4.8%
7 Nationwide Mutual A+ 3.9%
8 Mercury General Corp. A- 3.6%
9 Travelers Companies A++ 3.2%
Find affordable homeowners insurance in California
See how much you can save!
Get Quotes

California Homeowners Insurance Rate Factors

Many factors come into play when insurance companies calculate homeowners insurance rates. Some, like the age of your home, are unique to each person and house. Others, like crime rates or natural disasters, affect all CA residents.

Your Personal Rate Factors

Your House

How much you’ll pay for insurance varies depending on the home. These are the main factors that affect your house’s rates:

  • Your home’s age. Old homes generally come with higher insurance rates. As a home gets older, major repair issues can arise. So, old homes are more likely to have a hefty home insurance claim. 18 percent of CA homes were built between 1970 and 1979, which isn’t too old for a home.
  • The quality of your roof. A well-maintained roof with region-appropriate material can help cut your premiums. Your roof can be the difference between serious damage and minor repairs after a disaster. In Southern California, for example, avoid wood shingles as they’re a major fire hazard.
  • Your home’s replacement cost. This is the cost to rebuild your home from the ground up after an accident or disaster. Your dwelling/structure coverage should match your home’s replacement cost. So, a higher replacement cost means higher premiums. Replacement cost depends on the style and size of your home, not how much you bought it for. For example, a luxury home in Pasadena could have a lower replacement cost than a house worth a quarter of that in Sacramento.

Claims History

If you’ve filed several claims over the past few years, you’ll likely have higher home insurance rates. Claims usually stay on your record for five to seven years. If you file another claim during that time, your prices could soar. Because of this, homeowners try not to file any avoidable claims.

Pets

If you own an exotic pet or a specific dog breed, you may pay more for home insurance. Or, you may even have a difficult time finding a company to insure your home in the first place. According to the AVMA, just over half of California homes own a pet, the third lowest rate in the country.   

Credit Score

Your credit score will also determine your insurance prices. Home insurance companies look at your credit score while pricing your policy. Unfortunately, people with bad credit pay more in premiums. CA falls in the middle of the credit score spectrum, with the 26th best average credit score in America.

California Rate Factors

Weather

CA is the second-most natural disaster prone state in America, which is why California has higher-than-average rates. But it’s also the third-largest state by area, so climate varies depending on where you live. Homeowners insurance hazards are different depending on whether you’re in Northern or Southern CA. If you live in NorCal, make sure your roof can handle the rain and constant fog. If you’re in SoCal, check for foundation cracks in case of an earthquake. And take steps to mitigate your home’s fire risk.

No matter where you are in the state, CA faces a variety of natural disasters. These include:

  • Earthquakes
  • Floods
  • Heat waves
  • Wildfires
  • Mudslides
  • Severe thunderstorms

California has a high earthquake risk, and homeowners insurance doesn’t cover earthquake damage.  Make sure you buy a separate policy to cover earthquake damage.

According to the California Department of Insurance, there are steps you can take to prepare your home for a natural disaster.

  • Record a complete household inventory.
  • Strengthen the roof, walls, and foundation of your home.
  • Buy flood insurance.

Property Crime

Burglary is a serious property crime. Areas with high burglary rates have higher homeowners insurance premiums. CA has the 25th highest property crime rate in America. In 2017, California’s average property crime rate was 2,496.7 per 100,000 people. Luckily, property crime in the state is down more than two percent from 2016.

Property crime (and the high premiums that result from it) depend on the city you live in. For example, Palo Alto has an average of 21.6 property crimes annually per 1,000 residents. Whereas Sacramento has an average of 34.92 property crimes annually per 1,000 residents.

Like preparing for natural disasters, there are steps you can take to prevent property crime. These include: alarms, security cameras, deadbolt locks, and more.

Types of Home Insurance Policies

As a homeowner, you have several policy options when shopping for home insurance. In CA, you can choose from these insurance types:

  • HO-1: This is the most basic insurance policy. It covers normal damages.
  • HO-2: This is a broad homeowners insurance. It covers everything in HO-1, and falling objects and damages to AC units, pipes, and other home systems.
  • HO-3: This is the most popular homeowners policy type. It covers damage from all damages unless specifically excluded. HO-3 also covers unattached structures.
  • HO-5: This is a comprehensive policy like HO-3, but it comes with more coverage and less property claim limitations. This is considered a premium policy.
  • HO-6: If you own a condo, this may be the best policy for you. It covers possessions and provides liability for condo owners.
  • HO-7: This policy offers similar coverage as HO-3, but for mobile homeowners.
  • HO-8: If you own an older home, you may need a policy to cover the unique needs of older homes. This policy is like HO-3, but specifically for older homes.

California Department of Insurance

Website:
Homepage
Insurance Commissioner:
Dave Jones
Insurance Hotline:
(800) 927 – 4357 (HELP)
Office Hours:
Monday - Friday
9:00 am to 5:00 pm
File a Consumer Insurance Complaint
Complaint Page

Sources:

QuoteWizard.com LLC has made every effort to ensure that the information on this site is correct, but we cannot guarantee that it is free of inaccuracies, errors, or omissions. All content and services provided on or through this site are provided "as is" and "as available" for use. QuoteWizard.com LLC makes no representations or warranties of any kind, express or implied, as to the operation of this site or to the information, content, materials, or products included on this site. You expressly agree that your use of this site is at your sole risk.