Best Homeowners Insurance in California (2024)
- Travelers has the cheapest homeowners insurance in California, charging $901 a year.
- However, low rates and good ratings make Nationwide California’s best home insurance company.
- Home insurance rates on average range from $1,087 a year in San Jose to $1,466 in Los Angeles.
Cheapest insurance companies in California
California’s cheapest home insurance companies
Travelers has the cheapest home insurance for most California residents. Its rates average $901 a year ($75 a month) for a typical home. This is roughly 28% less than the state average of $1,260 a year.
Military members and their families, however, can get even cheaper rates with USAA.
| Company | Annual rate | LendingTree score |
|---|---|---|
| Travelers | $901 |  |
| AAA Southern California | $1,108 |  |
| Mercury | $1,149 |  |
| Nationwide | $1,194 | |
| AAA Northern California | $1,261 | |
| State Farm | $1,304 |  |
| Farmers | $1,614 | |
| Chubb | $2,343 | |
| USAA* | $799 | |
*USAA is only available to the military community.
Best homeowners insurance companies in California
Nationwide’s prices and ratings make it the best homeowners insurance company in California.
However, Travelers has the best rates, while AAA, USAA and Chubb are among California’s top home insurance companies for other reasons.
| Company | Annual rate | Overall satisfaction | Complaint rating |
|---|---|---|---|
| Best overall: Nationwide | $1,194 | 812 (Average) | 0.96 (Average) |
| Best rates: Travelers | $901 | 790 (Poor) | 0.98 (Average) |
| Best in SoCal: AAA | $1,108 | 810 (Below average) | 1.59 (Poor) |
| Best for military: USAA | $799 | 881 (Excellent) | 0.49 (Excellent) |
| Best complaint rating: Chubb | $2,343 | 801 (Below average) | 0.11 (Excellent) |
Ratings include satisfaction scores from J.D. Power’s 2023 U.S. Home Insurance Study and 2023 complaint data from the National Association of Insurance Commissioners (NAIC).
Best overall homeowners insurance in California: Nationwide
Nationwide’s combination of low rates and relatively high ratings makes it the best overall homeowners insurance company in California. Its customer service ratings are just average, but they beat companies with comparable prices. Nationwide also has some extra coverages, beyond just the basics, that can come in handy.
Pros
Discounts available for bundling, home renovations and avoiding claims.
Nationwide’s smart home program includes free devices that monitor your home for break-ins, water leaks and fire.
Optional identity theft coverage includes credit monitoring and only adds $45 to your annual rate.
Cons
Customer service ratings are just average.
Best cheap home insurance in California: Travelers
Travelers’ discounts provide a few extra ways to make the company’s low rates even cheaper. For example, if you’ve bought your home within the past year, you can get a homebuyer discount. Travelers also offers customizable options for giving your belongings extra protections you may need.
Pros
Rates are about 28% less than the state average.
Customizable add-ons for extra protection.
Discounts available for LEED-certified “green” homes.
Cons
Poor J.D. Power rating for overall customer satisfaction.
Best home insurance in Southern California: AAA
AAA is better known for its towing services, but it also provides affordable home and auto insurance. In Southern California, AAA’s average home insurance rate, after you factor in its cheapest membership fee, is less than $100 a month. (AAA’s home insurance rates are higher in Northern California.) However, a poor complaint rating keeps us from giving AAA a stronger recommendation.
Pros
Bundling policies can save you up to 20% on home insurance and up to 16% on car insurance.
You can save another 12% if you’re over 50.
Other discounts for new homes, fire-resistant roofs and new plumbing.
Joining AAA also gives you 24/7 roadside assistance.
Cons
Poor NAIC complaint rating.
Below average customer satisfaction rating from J.D. Power.
You have to pay a membership fee to get AAA insurance.
Best home insurance for military families: USAA
USAA checks most of the boxes for the qualities you need in a good insurance company, including low rates and high ratings.If your belongings are damaged or stolen, USAA replaces them with new items, without reducing your payment for depreciation. And if you’re an active-duty service member, USAA’s insurance protections extend to your uniforms and military equipment.
Pros
California’s cheapest overall home insurance rate.
Industry’s best overall home satisfaction rating.
Easy-to-earn discounts help you save more.
Cons
USAA is only available to current and former members of the military and their families.
Lack of personalized service.
Best complaint rating: Chubb
Chubb caters to customers with luxury homes. Its excellent NAIC complaint rating shows that it does a good job meeting customers’ high expectations. Chubb’s standard policies also include features that would cost you extra at other companies.
Pros
Extended replacement cost coverage included in standard coverage.
Free home appraisals and loss-prevention consultations.
Cash settlement option available for total losses.
Cons
Rates are 86% higher than the state average.
Usually only available to high-value homes.
Savings Tips
Travelers, AAA Southern California and Mercury offer average rates below $1,150 a year.
Home insurance rates can vary by city, with an average of $1,087 a year in San Jose versus $1,466 in Los Angeles.
Shopping around and comparing home insurance quotes could save you $360.
How much is home insurance in California?
The average cost of home insurance in California is $1,260 a year, or $105 a month, for a typical home. The actual price you pay depends on several factors, including:
- Your home’s age and construction features
- Your neighborhood’s fire risks, crime rate and exposure to severe weather
- Your insurance history
- The amount of coverage you need
- Any discounts you may be eligible to receive
Each insurance company weighs these factors differently and offers different discounts.
When you compare quotes from multiple companies, you can find the one with the best rate for your needs and situation.
Home insurance rates by coverage amounts
The amount of home insurance coverage you need is among the factors that determine your rate.
For example, a policy with $450,000 in dwelling coverage costs 26% more than a $350,000 policy. The difference amounts to $288 a year, or $24 a month.
Your policy’s dwelling coverage pays to repair damage to your home from a covered peril such as fire or fallen tree.
| Dwelling limit | Annual rate |
|---|---|
| $350,000 | $1,121 |
| $400,000 | $1,260 |
| $450,000 | $1,409 |
If you have a mortgage, your lender will likely make you insure your home at its replacement value. This is the estimated cost of rebuilding your home, which is usually lower than its market value.
You can insure your home for a lower amount if you have a low mortgage balance or own the home outright. However, doing so can leave you short on funds to repair or rebuild after a disaster.
California home insurance rates by city
In California’s largest cities, home insurance rates range from $1,087 a year in San Jose to $1,466 in Los Angeles.
A typical home in San Diego costs an average of $1,168 a year to insure, while the average price of home insurance in San Francisco is $1,174 a year.
| City | Annual rate |
|---|---|
| Anaheim | $1,269 |
| Bakersfield | $1,181 |
| Chula Vista | $1,197 |
| Fresno | $1,253 |
| Irvine | $1,352 |
| Long Beach | $1,186 |
| Los Angeles | $1,466 |
| Oakland | $1,334 |
| Riverside | $1,439 |
| Sacramento | $1,187 |
| San Diego | $1,168 |
| San Francisco | $1,174 |
| San Jose | $1,087 |
| Santa Ana | $1,235 |
| Stockton | $1,186 |
Earthquake and flood insurance in California
Standard home insurance does not cover earthquakes or floods, but separate insurance is available for each of these risks.
How much is earthquake insurance in California?
The average price for earthquake insurance in California is $1,342 a year for a single-family home.
Your earthquake insurance rate depends largely on your home’s features and distance from fault lines. You’ll pay more if your home is old, built of masonry and/or has more than one story. Earthquake retrofits can get you a discount.
Earthquake insurance typically covers:
- Your dwelling
- Other structures or extensions, including retaining walls and walkways
- Your personal property
- Loss of use (temporary living expenses during repairs)
Earthquake insurance deductibles tend to be high. They typically range from 5% to 25% of your coverage limits.
If you insure your home for $300,000 with a 15% deductible, you’re responsible for up to $45,000 in repairs. Your earthquake insurance covers the rest.
All California home insurance companies are required to offer earthquake insurance, but you don’t have to buy it.
Most home insurers offer earthquake insurance from the nonprofit California Earthquake Authority (CEA). In addition, Palomar and GeoVera are good companies to contact if you shop for earthquake insurance on your own.
How much is flood insurance in California?
The average cost of flood insurance in California is $851 a year for government-backed National Flood Insurance Program (NFIP) policies.
Flood insurance is only required if you need a mortgage for a home in a high-risk flood zone. Otherwise, it’s optional — but often worth considering.
Most flood insurance is purchased through the NFIP, which is managed by the Federal Emergency Management Agency (FEMA). These policies include up to $250,000 in coverage for your home and up to $100,000 for your belongings.
A few private companies also offer flood insurance in California. Some of these companies offer more protections than you can get from FEMA.
For example, some private flood insurance providers offer loss of use. This can come in handy if flood damage forces you to rent a temporary home during repairs. FEMA doesn’t offer loss of use coverage.
What is the California FAIR Plan?
The California FAIR Plan is basic homeowners insurance for homes with particularly high wildfire risks.
The program is only available for homes considered too risky to insure. If other insurance companies refuse to insure you, the FAIR Plan may be your last resort.
A standard FAIR Plan policy only covers fire and a few other risks. You have to purchase a difference-in-conditions policy for liability coverage and other normal home insurance protections.
As of 2022, the average cost of a FAIR Plan policy with difference-in-conditions protection was about $3,200 a year.
Frequently asked questions
Homeowners insurance is not required by law in California. However, lenders typically require it for a mortgage, and homeowners associations also often require it.
Catastrophic wildfires and other disasters have made it hard to get homeowners insurance in California. Insurance companies blame these events for creating financial hardships for them. Many have raised their rates, and some have pulled out of the state.
Yes. You can get a home insurance quote before you buy a home in California. Getting an insurance quote before you submit an offer allows you to see how much it may cost to insure the home — or if it even qualifies for insurance.