Pat HowardPat HowardManaging Editor & Licensed Home Insurance ExpertPat Howard is a managing editor and licensed home insurance expert at Policygenius, where he specializes in homeowners insurance. His work and expertise has been featured in MarketWatch, Real Simple, Fox Business, VentureBeat, This Old House, Investopedia, Fatherly, Lifehacker, Better Homes & Garden, Property Casualty 360, and elsewhere.
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The average cost of homeowners insurance in California is $122 per monthor $1,460 per year for $300,000 in dwelling coverage, according to our analysis of 2022 rates. However, you could very well see an increase in rates this year due to many California carriers no longer insuring homes in certain parts of the state or leaving the state's home insurance market altogether.
An uptick in home-threatening wildfires, state government regulations that force insurers to take on more risk when writing policies, and ongoing issues with the supply chain has brought the home insurance crisis in California to a tipping point, making it very difficult for homeowners to find the coverage they need.
If you're struggling to purchase home insurance through one of the top companies featured in our guide, you might want to look into the California FAIR Plan — a state-mandated program designed as a last-resort option for homeowners struggling to find coverage on the private market.
At Policygenius, our educational guides are written and fact-checked by licensed home insurance experts and reviewed by our Financial Review Council to ensure autonomy, expertise, and accuracy.
To find the best home insurance companies in California, we analyzed over 25,000 quotes from the 15 largest insurance companies in Caliofrnia to find the average cost of homeowners insurance with each company in 2022.
When analyzing costs for different coverage levels and risk factors, we changed just one variable at a time to ensure the rates we’re comparing are fair and representative of the factor at hand.
We then looked at J.D. Power customer satisfaction scores, AM Best financial health ratings, quality of policy options, discounts, and compared that with the coverage needs of California residents to find the best homeowners insurance in California.
To get the average rate for each company in California, we analyzed rates provided by Quadrant Information Services in March 2022 for over 1,800 ZIP codes in California for a 40-year-old female homeowner with no claim history, good credit, a $1,000 deductible, and the following coverage limits:
Dwelling: $300,000
Other structures: $30,000
Personal property: $150,000
Loss of use: $60,000
Liability: $300,000
Medical: $1,000
All rates based on the above coverage limits except where otherwise noted.
Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs — your actual quotes may differ.
How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.
$1,203/year
$100/month
There's a reason State Farm is one of the top-rated insurance companies in the U.S. — its customer satisfaction ratings are through the roof, it offers a slew of coverage add-ons for full protection, and makes filing claims through its mobile app a breeze.
Pros
Top-tier coverage add-on options
Up to $1 million in personal liability coverage
High customer satisfaction and financial strength ratings
Cons
No discounts for first-time homebuyers
Why State Farm tops our best list
State Farm scored an 835 out of 1,000 in J.D. Power’s 2021 home insurance study — good for 4th place — making it onto our list of the best homeowners insurance companies in California. The insurance giant combines great customer service, flexible coverage options, and an excellent website and mobile app experience. If you’re looking for reliable, affordable coverage from a proven insurance company, you can’t go wrong with State Farm.
How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.
$2,117/year
$176/month
Chubb is a top-tier insurer ideal for high-value homes that need more robust coverage that goes beyond the run-of-the-mill options offered by traditional insurance companies.
Pros
Base policies include extended replacement cost coverage for your home
No deductible on losses greater than $50,000
Cash-out claim settlement options after a loss
Cons
Will typically only insure high-value homes
Why Chubb tops our best list
Chubb is an excellent home insurance option for Californians who own home's valued at $1 million or more or have multiple properties or cars to insure. A base policy with Chubb includes enhanced coverage for both your home and your personal property, and you don’t need to pay a deductible on property damage greater than $50,000. That means if your home is leveled in a storm or destroyed by fire, you will not be financially responsible for any of the repair or rebuild costs.
How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.
$1,174/year
$98/month
Nationwide offers flexible home insurance policy options for every home type and income level.
Pros
Offers numerous policy packages and coverage add-ons
Option to rebuild with stronger materials after a covered loss
Excellent mobile and online claims process
Cons
Below-average customer satisfaction ratings
Why Nationwide tops our best list
Nationwide is known for its slew of coverage add-ons, such as flood coverage and options to rebuild your roof with stronger materials after a covered loss, making Nationwide a smart choice if you live in a California area at risk for extreme weather or wildfires.
How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.
$874/year
$73/month
Allstate's mix of exceptional customer satisfaction ratings, personalized coverage options, and numerous discount opportunities make it one of the most popular homeowners insurance companies on the market.
Pros
Affordable rates in California
Several additional coverage options
Over 8 available discounts
Excellent customer service and claims satisfaction ratings
Cons
Lower-than-average claim satisfaction and digital experience ratings from J.D. Power
Allstate is a reputable home insurance provider that offers flexible policy options at an affordable rate. One benefit of choosing Allstate is its extensive discount options. Homeowners can save up to 25% on their yearly premiums just by bundling their home and auto policies with Allstate.
How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.
$1,209/year
$86/month
USAA's robust coverages and high marks for customer service and claims satisfaction make it a solid home insurance option for military members and their families.
Pros
Several discounts and perks for members of the armed forces
Comprehensive base policy
Industry-best customer service and claims satisfaction ratings
Cons
Only available to military families
Doesn’t offer extended dwelling coverage options
Why USAA tops our best list
USAA routinely scores the highest in J.D. Power’s annual homeowners insurance customer satisfaction study. The study measures how well companies interact with customers, coverage affordability, the billing process, the quality of policy offerings, and quality of information about policy offerings.
One potential reason for USAA’s high score is its cheap premiums — a policy with $300,000 in dwelling coverage costs roughly $86 a month. However, you’re only eligible for coverage with USAA if you’re an active military member, veteran, or a family member of one.
The average cost of homeowners insurance in California is $1,460 per year, or roughly $122 a month, for an insurance policy with $300,000 in dwelling coverage. This is around 23% lower than the nationwide average of $1,899.
UPDATE: Home insurance premiums up 9.9% in California
Home insurance premiums in California increased nearly 10% from May 2021 to May 2022, according to our latest analysis of internal policyholder data. This is due to a mix of rising inflation, labor shortages, and severe wildfires that have plagued the state in recent years.
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.
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 dwelling coverage limit should be equal to your home’s replacement cost — not its market value. That means your coverage is calculated based on things like your home’s square footage and construction costs in your area, not the amount it would go for on the open market.
The table below shows each California companies' average annual premium for different dwelling coverage limits.
The cheapest California homeowners insurance for high-risk homes
Click on each section below to find out which California companies offer the cheapest home insurance for a homeowner with a history of claims, an older home, and a higher deductible policy.
Once you’re ready to shop, a Policygenius expert can help you navigate your budget and coverage needs and help you find the best deal on homeowners insurance in California.
Cheapest California home 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:
Company
Average annual rate
% difference from state average
Pacific
$1,102
-55%
AAA
$1,192
-52%
National General
$1,231
-50%
Allstate
$1,314
-47%
State Farm
$1,320
-47%
USAA
$1,558
-37%
CSAA
$1,861
-25%
Mercury
$2,100
-15%
AIG
$2,643
7%
Farmers
$2,699
9%
Cheapest California home insurance for older homes
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's the cheapest home insurance in California for a home that's over 100 years old:
Company
Average annual rate
% difference from state average
Mercury
$750
-46%
Allstate
$878
-36%
Travelers
$1,082
-21%
National General
$1,139
-17%
USAA
$1,141
-17%
Pacific
$1,148
-17%
CSAA
$1,170
-15%
Nationwide
$1,171
-15%
AAA
$1,263
-8%
State Farm
$1,288
-6%
Cheapest California home insurance for high-deductible policies
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.
Company
Average annual rate
% difference from standard deductible policy
CSAA
$771
-34%
Travelers
$926
-20%
Pacific
$950
-14%
Nationwide
$985
-16%
National General
$1,081
-12%
How to buy homeowners insurance in California
With so many insurance options for California homeowners, it can be overwhelming trying to find the right company and policy that best suits your needs. Because of the potential for extreme weather events in Cali, it’s important to buy a homeowners insurance policy that will work for you when you need it most.
5 simple steps to buying home insurance in California
Reach out to a licensed Policygenius agent. They can help you nail down the type of coverage you need, how much is necessary, and compare quotes from multiple companies — all for free with no impact to your credit score.
Ask if you should consider wildfire, flood, or earthquake coverage. If you live in an area prone to wildfires, it might be difficult to find a private insurance provider willing to cover you. Ask your Policygenius agent if coverage through the California FAIR Plan is a better option for you. And since standard home insurance policies don’t cover flooding from natural disasters or earthquakes, you’ll also want to ask your Policygenius agent about your special coverage options if you live in high-risk areas for either of these hazards. We discuss all three of these coverage options in more detail below.
Calculate how high of a deductible you can afford. Since the average cost of homeowners insurance in California can be over $600 cheaper if you choose a higher deductible, ask your Policygenius agent to help you choose a deductible that works for your budget.
Compare your Policygenius quotes. Once you’ve nailed down your coverage needs, limits, and deductibles, your Policygenius agent will send along a few quotes from different companies. They’ll walk you through the pros and cons of each to help you choose the company that makes the most sense for your needs.
Sign your policy and pay your first premium. After you’ve chosen the company for you, your Policygenius agent will fill out all of the paperwork for you. They’ll even help you switch insurers if you already have a policy with a different company. The last thing you’ll have to do is sign on the dotted line and pay your first premium. Then you can rest easy knowing your home, belongings, and family are protected in case the unthinkable happens.
3 coverage options to consider when buying home insurance in California
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 you buy homeowners insurance in California, there are three additional coverage options you may need to consider to protect against the state’s frequent natural disasters.
Fire 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 may need to purchase separate fire insurance through an entity like the California FAIR Plan — a source of last-resort coverage for Golden State residents.
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 about flood insurance in California.
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 add-on.
The average home insurance rate in California is around $122 a month for $300,000 in dwelling coverage. That’s a little over $36 cheaper than the national average.
What is the cheapest homeowners insurance in California?
With an average annual premium of $874, Allstate is the cheapest home insurance provider in California. However, there are several other insurance companies that provide lower average rates than the statewide average of $1,460. To find the cheapest home insurance in California, compare quotes from multiple companies with Policygenius.
What is the CA FAIR Plan?
The California FAIR Plan — also known as a Fair Access to Insurance Requirements Plan — is a last-resort home insurance option for California residents who aren’t able to find coverage through a standard provider. These plans generally only cover losses related to fire, smoke, lightning, windstorms, explosions, and vandalism. To replicate their homeowners insurance coverage, most California residents pair their CA FAIR Plan with a difference in conditions policy that essentially covers everything that the former doesn’t.
How can I get cheap homeowners insurance in California?
You can make your homeowners insurance more affordabel in California by taking advantage of discounts offered through your home insurance company. This might mean bundling your home and auto policies together for discounts off your premiums, or opting into a retiree discount if you’re over 55, depending on what your company offers. Another way to lower your homeowners insurance rates is by opting for a higher deductible. Just keep in mind a higher deductible means you’ll have to pay more money out of pocket when you file a claim before your insurance kicks in.
Pat Howard is a managing editor and licensed home insurance expert at Policygenius, where he specializes in homeowners insurance. His work and expertise has been featured in MarketWatch, Real Simple, Fox Business, VentureBeat, This Old House, Investopedia, Fatherly, Lifehacker, Better Homes & Garden, Property Casualty 360, and elsewhere.
