Best, Cheapest Los Angeles Home Insurance (2021)

Los Angeles homeowners pay an average of $98 a month for home insurance. This article can help you find the lowest rate.

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Best, Cheapest Los Angeles Home Insurance (2021)

The average rate for homeowners insurance in the city of Los Angeles is $98 a month, 15% higher than the California average of $85. More than half of the biggest home insurance providers in Los Angeles have lower rates than the city average. Allstate has the lowest average rate, $51 a month.

This article covers:

How much is home insurance in Los Angeles?

Homeowners in Los Angeles pay an average of $98 a month for home insurance. That's 15% higher than the average California home insurance rate of $85 a month, and 32% lower than the national average homeowners insurance rate of $144 a month.

Average home insurance rates by region
Region Monthly rate
Los Angeles $98
California $85
U.S. $144
Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.

Your final calculated home insurance premium is based on many factors, including:

  • The age of the home.
  • The home's current condition.
  • Construction materials used.
  • Where the house is located.
  • Your insurance claims history.

Cheapest Los Angeles home insurance by monthly rate

Of the 10 largest home insurance providers operating in Los Angeles that we studied, Allstate has the lowest average rate of $51 a month. More than half of the home insurance providers in Los Angeles fall under the city's average rate of $98 a month. AIG has the highest rate of $180 a month.

 

Best home insurance companies in Los Angeles

We did a deep dive into the major home insurance providers in Los Angeles and found Allstate, USAA and State Farm to be the best. Here's why:

Allstate: cheapest rates

Allstate has an average homeowners insurance rate of $51 a month in Los Angeles, the lowest in the city and 48% lower than the Los Angeles average rate of $98.

Allstate's average home insurance rate comparison
  Average monthly rate
Allstate $51
Los Angeles $98
California $85
National $144
Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.

On top of cheap rates, Allstate also provides good customer service. It earned 882 out of 1,000 in J.D. Power's 2021 Property Claims Satisfaction Study. While just under the industry average of 883, this is still quite good for an insurance company of Allstate's size.

Furthermore, Allstate has a NAIC Complaint Index of 0.8. This value represents a company's ability to deal with claims-related issues such as resolution time and payout. The lower the figure, the better. The National Complaint Index is 1.0, which puts Allstate in a strong position.

USAA: cheap rates and best for veterans

USAA's average rate for home insurance in Los Angeles is $61 a month, 38% lower than the monthly average.

USAA's average home insurance rate comparison
  Average monthly rate
USAA $61
Los Angeles $98
California $85
National $144
Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.

The downside of USAA is that it only offers home insurance for military veterans and their immediate family members. However, according to the 2019 U.S. Census, there are an estimated 243,871 veterans living in Los Angeles County. This makes it the second-biggest veteran population in the U.S. after Maricopa County, Ariz. If you are among them, you can take advantage of USAA's low rates.

Also, USAA is often looked upon as "the best of the best" in the insurance industry. In its 2021 U.S. Property Claims Satisfaction Study, J.D. Power gave USAA a rating of 905 out of 1,000. This is the highest rating given to any insurer in 2021. USAA is not officially ranked in J.D. Power's study due to its restricted customer base, otherwise it would be number one for claims satisfaction.

State Farm: cheap rates and most popular

State Farm has an average home insurance rate of $67 a month, 32% less than the Los Angeles average.

State Farm's average home insurance rate comparison
  Average monthly rate
State Farm $67
Los Angeles $98
California $85
National $144
Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.

Even though it doesn't offer the cheapest home insurance rates in Los Angeles, it turns out State Farm is even more popular in terms of the number of policyholders underwritten than Allstate. According to the Insurance Information Institute's 2021 Insurance Fact Book, State Farm is the top writer of property and casualty insurance in the country, holding 9.3% of the industry market share. GEICO comes in second, with 6.6%.

On top of low rates, State Farm's popularity is, in part, due to its claims-resolution history. The company has a NAIC Complaint Index of 0.06, far below the National Complaint Index of 1.0.

Methodology

We used Quadrant Information Services to generate thousands of home insurance quotes for every ZIP code in Los Angeles from the following providers:

  • AIG
  • Allstate
  • Auto Club
  • CSAA
  • Farmers
  • The Hartford
  • Mercury
  • Metlife
  • State Farm
  • USAA

Our sample home used the following policy specifications:

  • Dwelling coverage: $275,000
  • Personal property coverage: 50% of dwelling ($137,500)
  • Other structures coverage: 10% of dwelling ($27,500)
  • Loss of use coverage: 20% of dwelling ($55,000)
  • Liability coverage: $100,000

Coverage sets were calculated using the following deductible limits:

  • $500
  • $1,000
  • $1,500
  • $2,000

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