Best homeowners insurance in California (2024)
The average cost of homeowners insurance in California is $115 per month or $1,383 per year for $300,000 in dwelling coverage, according to our latest insurance pricing analysis.
While the average home insurance premium in California may be relatively low compared to the national average, record wildfire losses and high inflation have led many insurance companies to raise premiums on existing customers or exit the state altogether to make up financial ground. In fact, just in the last year, premiums on home insurance policy renewals increased 11% in California, according to our latest analysis of internal policyholder data.
Our picks for the best homeowners insurance companies reflect the best options for the here and now in California, so carriers with even temporarily limited coverage were not considered in this guide. Because of the state's recent news events and constantly evolving insurance landscape, we will continue monitoring the situation and updating our list accordingly
Compare the best homeowners insurance companies in California
Based on Policygenius' analysis of the most widely available insurance companies in the state, Nationwide, Farmers, Travelers, AAA, and Bamboo Insurance are California's best homeowners insurance companies in 2023.
While Allstate and State Farm — two of California's largest insurers in terms of market share — were among the highest-rated companies in our analysis, we didn't include them in our top picks as they're no longer selling new home insurance policies in the state. [1]
Methodology & why you can trust our rates
How much is homeowners insurance in California?
The average cost of homeowners insurance in California is $1,383 per year, or roughly $115 a month, for an insurance policy with $300,000 in dwelling coverage. This is less than the nationwide average of $1,754.
California homeowners insurance rates by city
Home insurance costs in California can vary greatly depending on where you live. Cities with a relatively large percentage of homes in high-risk wildfire areas — such as Los Angeles, Fontana, and Riverside — tend to have higher average home insurance rates, while lower risk cities like San Jose and Fremont have lower average rates.
Here’s a look at the average cost of home insurance in the 20 largest cities in California.
California homeowners insurance rates by coverage amount
Your homeowners insurance premiums will vary depending on both your company and how much dwelling coverage you need to protect your home from serious weather damage. Your policy's dwelling coverage limit should be equal to your home’s replacement cost — not its market value.
The table below highlights the average annual premium in California for five different levels of dwelling coverage, which is the part of your policy that covers structural damage to your home. Generally speaking, more dwelling coverage means higher homeowners insurance rates, as shown in the table below.
Cheapest homeowners insurance companies in California
Based on our analysis, Allstate, Mercury, USAA, Pacific Specialty, and Travelers are the five cheapest home insurance companies in California, with statewide average premiums ranging from $874 to $1,151 per year. Nationwide, CSAA, and AAA are also among the most affordable home insurance carrier options for California residents in 2023, as detailed in the table below.
Cheapest California homeowners insurance if you have a high-deductible policy
Your deductible is the amount you’re responsible for paying toward a covered loss when you file a claim. So if you filed a claim for $5,000 in roof damage and you have a $1,000 deductible, your insurer would reimburse you $4,000 for a new roof.
A higher policy deductible means lower premiums, and vice versa. Just keep in mind that you’ll need to pay more out of pocket in the event your property is damaged or you’re a victim of theft.
Below are the companies with the cheapest home insurance rates in California for policies with a $2,500 deductible.
Cheapest California homeowners insurance if you have an older home
The median age of homes in California is 45 years old, according to an analysis of U.S. census data by House Method. And like everything else, the age of your home plays a role in how much you pay for home insurance in California.
Older and historic homes are usually more expensive to insure than newer homes. This is because insurers consider them a higher risk than newer homes since they can be fragile, their construction materials may be obsolete, and certain structural components like the roof or plumbing may not be in good shape or up to current-day code. Because of this, they'll charge higher premiums to offset the risk.
Here are the cheapest home insurance options in California for a 50-year-old home.
Cheapest California homeowners insurance if you have a history of claims
One of the biggest factors that plays a role in your home insurance premium is your claims history. You'll typically pay more for home insurance if you have multiple claims on your record, since insurers perceive you as posing a greater risk of filing more.
Here's the cheapest home insurance companies in California for a homeowner with three claims within a five-year period.
California home insurance coverage options for wildfires, flooding, and earthquakes
In addition to looking at how much each insurance company charges for different coverage levels and risks, you should also be aware of what your policy does and doesn’t cover.
When buying homeowners insurance in California, there are three additional insurance options you may need to consider to protect against the state’s frequent wildfires, flooding, and earthquakes.
Wildfire insurance
Wildfires have likely surpassed earthquakes as the disaster California homeowners should be most concerned about. With fire season in California lasting months on end, it's getting increasingly difficult for homeowners in wildfire-prone areas to find coverage due to the increased risk of expensive claims.
If you’ve exhausted all of your options and still can’t find a policy, you have a couple of options for purchasing last-resort fire insurance or standard home insurance:
Surplus lines insurance: A type of policy that's designed for normally uninsurable risks, like homes located in high-risk wildfire areas or properties with several prior insurance claims. The Surplus Line Association of California has a list of all carriers in the state that write excess and surplus lines insurance on its website. [2]
California FAIR Plan: A state-mandated program designed for homeowners who are unable to find coverage on the private market.
In California, it's common for homeowners to purchase fire insurance through the CA FAIR Plan, and the remaining home insurance policy coverages via a carrier that offers difference in conditions (DIC) insurance. The California Department of Insurance provides a list of all companies that offer DIC policies on its website. [3]
Learn more >> Fire insurance: How to protect your home from wildfire damage
In the news
Homeowners in California see rates increase ahead of peak wildfire season
Home insurance rates went up nearly 10% in California from 2021 to 2022. Here’s what you can expect this wildfire season.
Kara McGinley • August 2, 2022
Flood insurance
Most homeowners insurance policies don’t cover flood damage, so California residents in at-risk areas will want to consider flood insurance on top of their coastal home insurance policy. In addition to comparing home insurance quotes, Cali homeowners can also compare private flood insurance rates with Policygenius, or choose a policy through a government entity like the National Flood Insurance Program.
Learn more >> Flood insurance in California: Coverage & costs
Earthquake insurance
Most homeowners insurance policies also don’t cover damage caused by earthquakes or tremors, so California residents may want to consider separate earthquake insurance to protect against the state’s frequent quakes.
While the probability of a severe earthquake impacting your house is fairly low, earthquake insurance may be worth it if you live within close proximity to an active fault or if your house is made of stone, brick, or other materials that make it more at risk of collapsing during a quake.
California residents can purchase earthquake insurance through either the California Earthquake Authority or private insurers via Policygenius. Some home insurance providers also offer earthquake coverage as a separate policy