The average cost of homeowners insurance in Sacramento is $1,401 per year. This is around 10% cheaper than the state average of $1,565 per year in California and about 26% cheaper than the national average of $1,899 per year.
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.
Methodology & why you can trust our rates
Policygenius has analyzed home insurance rates provided by Quadrant Information Services in March 2022 for ZIP codes in all 50 states plus Washington, D.C., 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.
Best homeowners insurance companies in Sacramento
Of the companies we evaluated, USAA has the lowest rate in Sacramento, with an average policy cost of $814 — nearly $590 cheaper than the Sacramento citywide average. In addition to looking at cost, checking a company’s J.D Power score will give you some insight on how customers were satisfied with the company’s customer service and claims processes — the lower the score the worse the company was rated by its customers.
Policygenius analyzed thousands of quotes from the 5 largest Sacramento insurers to find the average cost of homeowners insurance with each company in 2022. We then looked at 2021 J.D. Power customer satisfaction scores and compared that with the coverage needs of Sacramento residents to find the best homeowners insurance in Sacramento.
Company | Average yearly cost | J.D. Power Rating |
|---|---|---|
State Farm | $996 | 835 |
Farmers | $1,825 | 813 |
AAA | $1,216 | 834 |
USAA | $814 | 882 |
Mercury | $901 | -- |
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-ons, including equipment breakdown, water backup, and service line coverage
Get up to $1 million in personal liability coverage
Score discounts for bundling, installing security devices, and choosing a high deductible
File and track claims online, over the phone, in person, or through its mobile app
High customer satisfaction and financial strength ratings
Cons
No discounts for first-time homebuyers or going a year without a claim
Read our full State Farm home insurance review
Why State Farm tops our best list
State Farm has some of the highest customer satisfaction ratings around. State Farm’s home insurance costs an average of $996 a year in Sacramento — over $400 cheaper than the citywide average.
If you're a Sacramento homeowner that needs more liability coverage offered by standard insurers, State Farm may be your best bet — the insurer offers up to $1 million in liability protection.
How to get a quote
Online through State Farm
Farmers is one of the largest and most reputable home insurance providers in the industry, offering special discounts for teachers, nurses, first responders, and non-smokers — plus the option to rebuild your home with green materials after a claim.
Pros
Several discounts and unique ways to save, including claim forgiveness and declining deductibles
3 flexible coverage packages with varying levels of protection for most coverage and budget needs
Offers extended and guaranteed replacement cost coverage options
File claims online, via text, on its mobile app, or by calling its claims center
Cons
Rates are typically more expensive
Below-average customer satisfaction ratings
No repair network to help you find a certified contractor or repair professional after filing a claim
Read our full Farmers home insurance review here
Why Farmers tops our best list
One of the biggest insurance companies around, Farmers offers flexible, customizable coverage options so you can find a policy that best fits your needs and budget. Farmers also offers extended replacement cost coverage — which allows you to increase your dwelling coverage limit up to 150%.
How to get a quote
Online through Farmers
While AAA is mostly known for its auto insurance and roadside assistance, it also offers a comprehensive home insurance policy — complete with flood and earthquake insurance add-ons and multiple discounts. But you'll need to be a AAA member to qualify.
Pros
Multiple perks and discounts for AAA members
Save up to 10% on auto insurance and 25% on home insurance if you combine the two under a companion policy
Offers flood and earthquake coverage so you don't have to purchase separate policies elsewhere
Excellent customer service ratings
Cons
Must be a AAA member to qualify
Why AAA tops our best list
AAA offers cheaper-than-average rates to Sacramento homeowners, costing an average of $1,216 per year. The insurer also offers coverage add-ons, like earthquake coverage and flood coverage, that Sacramento homeowners can add to their homeowners policy for an additional fee.
In addition to great coverage options, AAA scored an 834 out of 1,000 in J.D. Power’s 2021 home insurance study — among the highest of any company that was evaluated. Just keep in mind you need to be an AAA member to qualify for coverage.
How to get a quote
Online through AAA
Why USAA tops our best list
According to our analysis, USAA offers the cheapest home insurance in Sacramento, with policies costing $814 a year. If you’re a military-affiliated homeowner in Sacramento looking to save, consider purchasing homeowners insurance through USAA.
Sacramento was rated relatively high risk for earthquakes, according to FEMA’s National Risk Index. USAA offers earthquake coverage, which is ideal for homeowners living near one of the three fault zones in Sacramento.
How to get a quote
Online through USAA
Mercury provides customizable coverage and a several additional coverage options across three comprehensive policy tiers.
Pros
Flexible and robust policy options
Excellent bundling discount
Industry-best digital shopping ratings
Cons
Higher than average customer complaints
Why Mercury tops our best list
With policies costing an average of $901 per year, Mercury is the second cheapest insurer in Sacramento, according to our analysis. The insurer offers exceptional coverage options, including identity theft protection which is automatically included in their standard home policies. Mercury also offers policyholders several available discount options, including a 15% off your home and auto insurance when you bundle your policies.
How to get a quote
Online through Policygenius or Mercury
Cheapest homeowners insurance companies by ZIP code in Sacramento
Looking at average home insurance costs for 15 of the most popular companies in Sacramento, we found that the cheapest home insurance in the city can be found in the 95831 ZIP code (Pocket) and the 95832 Zip code (Freeport) with USAA. The average USAA rates in these areas is $770 per year — about 45% cheaper than the Sacramento average of $1,401 per year
ZIP code | Company | Average yearly cost |
|---|---|---|
95811 | USAA | $806 |
95814 | USAA | $806 |
95815 | USAA | $848 |
95816 | USAA | $806 |
95817 | USAA | $826 |
95818 | USAA | $782 |
95819 | USAA | $805 |
95820 | USAA | $826 |
95822 | USAA | $801 |
95823 | USAA | $856 |
95824 | USAA | $856 |
95830 | USAA | $804 |
95831 | USAA | $770 |
95832 | USAA | $770 |
95833 | USAA | $869 |
95834 | USAA | $800 |
95835 | USAA | $791 |
95836 | Mercury | $798 |
95837 | USAA | $805 |
95838 | USAA | $848 |
The most affordable areas for homeowners insurance in Sacramento
Continuing with the trend in the above table, the 95831 ZIP code (Pocket) is the most affordable area for home insurance in Sacramento, with an average home insurance rate of $1,365 per year.
ZIP code | Average yearly cost |
|---|---|
95831 | $1,365 |
95811 | $1,369 |
95816 | $1,377 |
95819 | $1,379 |
95818 | $1,386 |
The most expensive areas for homeowners insurance in Sacramento
With an average home insurance rate of $1,430, the 95823 ZIP code (Parkway) is the most expensive area for home insurance in Sacramento.
ZIP code | Average yearly cost |
|---|---|
95823 | $1,430 |
95836 | $1,423 |
95832 | $1,422 |
95815 | $1,421 |
95830 | $1,418 |
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
Shopping for homeowners insurance in Sacramento
An important part of shopping for homeowners insurance is nailing down how much coverage you need. When figuring that out, you’ll want to consider how much your home’s replacement cost is, how much protection you’ll need for your financial assets, and more.
In this section, we break down the average annual home insurance rates in Sacramento for different coverage and deductible levels, as well as the cheapest and most expensive home insurance companies in the state for dog owners and pool owners. Once you’re ready to shop, a Policygenius expert can help you navigate your coverage needs and help you find the best deal on homeowners insurance in Sacramento.
Sacramento home insurance costs by coverage amounts
Dwelling coverage is one of the most important parts of your homeowners insurance policy — it protects the structure of your home from damage by covered perils, like fire and windstorms.
You should have enough dwelling coverage to fully rebuild your home in the event of a disaster. In general, the higher your dwelling coverage limits, the higher your insurance premiums.
Dwelling coverage amount | Average yearly cost |
|---|---|
$100,000 | $546 |
$200,000 | $882 |
$300,000 | $1,237 |
$400,000 | $1,590 |
$500,000 | $2,349 |
Liability coverage protects your financial assets if you’re responsible for damaging someone else’s property or if they’re injured while in your home. It can cover the cost of the injured party’s medical expenses or your legal fees if they sue you over the matter.
Liability coverage amount | Average yearly cost |
|---|---|
$100,000 | $1,205 |
$200,000 | $1,181 |
$300,000 | $1,401 |
$400,000 | $1,416 |
$500,000 | $1,423 |
Sacramento home insurance costs by deductible amount
A deductible is the amount you’re responsible for paying out of pocket before your insurance will kick in for the repair bills. The higher your deductible is, the lower your premiums will be.
As seen in the table below, Sacramento residents can save $615 on home insurance by choosing a $2,000 deductible over the $500 option.
Deductible amount | Average yearly cost |
|---|---|
$500 | $1,618 |
$1,000 | $1,401 |
$2,000 | $1,003 |
Home insurance discounts in Sacramento
If you’re looking to save on homeowners insurance, consider fortifying your home by installing some of the below safety features. In Sacramento, homeowners with burglar alarm systems pay an average of $46 less a year in home insurance than those without one.
While you won’t get a huge discount if your house has one of the following features and nothing else, they can add up if you have several protective devices in your home. Here is the average annual rate and average discount percentage for homes in Sacramento with deadbolts, smoke alarms, or burglar alarms.
Discount | Average yearly cost |
|---|---|
Dead bolt | $1,396 |
Smoke alarm | $1,393 |
Burglar alarm | $1,355 |
Home insurance companies in Sacramento for dog owners
If you own certain dog breeds — like a pit bull, Rottweiler, or German shepherd — insurers may consider you a higher liability risk to insure, due to their potential aggressive behavior. As a result, some insurers may exclude coverage for your dog on your policy or even deny you coverage altogether.
But some insurance companies are friendlier toward dog owners than others. With an average rate of $814 per year, USAA has the cheapest home insurance rates in Sacramento for a home with a dangerous dog breed, while Farmers' average yearly premium of $1,825 is the highest.
Company | Average yearly cost |
|---|---|
USAA | $814 |
Mercury | $901 |
State Farm | $996 |
AAA | $1,216 |
Farmers | $1,825 |
Home insurance companies in Sacramento for pool owners
Pools increase the risk of injury on your property. If you have a pool, consider purchasing the maximum amount of liability coverage available.
With an average rate of $814 per year, USAA has the cheapest home insurance rates for Sacramento homes that have a swimming pool, while Farmers’ average yearly premium of $1,825 is the most expensive.
Company | Average yearly cost |
|---|---|
USAA | $814 |
State Farm | $996 |
Mercury | $1,066 |
AAA | $1,216 |
Farmers | $1,825 |
How to buy homeowners insurance in Sacramento
With so many factors to consider, buying homeowners insurance can seem complicated, but it doesn’t have to be. Here are some tips to consider while you shop for home insurance in Sacramento.
