Best homeowners insurance in Sacramento, CA for 2022

We looked at average costs, coverages available, and customer satisfaction ratings to find the best homeowners insurance companies in Sacramento.

Kara McGinley

By

Kara McGinley

Kara McGinley

Senior Editor & Licensed Home Insurance Expert

Kara McGinley is a senior editor and licensed home insurance expert at Policygenius, where she writes about homeowners and renters insurance. As a journalist and as an insurance expert, her work and insights have been featured in Kiplinger, Lifehacker, MSN, WRAL.com, and elsewhere.

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Michael Reynolds, CSRIC®, AIF®, CFT-I™

Michael Reynolds, CSRIC®, AIF®, CFT-I™

Financial Advisor

Michael Reynolds, CSRIC®, AIF®, CFT-I™, is a financial advisor, principal and founder of Elevation Financial, host of the weekly personal finance podcast Wealth Redefined®, and a member of the Financial Review Council at Policygenius.

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Sacramento is known for its warm climate and beautiful surrounding areas, but it's also at relatively high risk of wildfire damage and is home to three earthquake fault zones. Fortunately, homeowners insurance in Sacramento is relatively affordable.

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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, cost isn’t the only factor to consider when choosing a home insurance company. Not sure what to look for? Policygenius can help you figure out your coverage needs and compare quotes from multiple top companies in Sacramento.  

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

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State Farm

State Farm logo

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

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

Farmers logo

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

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

AAA

AAA logo

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

USAA

USAA logo

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

  • Score discounts for zero claims, being a loyal USAA member, opting into e-billing, and more

  • Base policy includes coverages that cost extra with most other companies

  • Offers earthquake coverage — which is hard to come by

  • Get discounted home security systems and a discount on premiums through its partnership with ADT

  • Industry-best customer service and claims satisfaction ratings

Cons

  • Only available to military families

  • Doesn’t offer extended or guaranteed replacement cost dwelling coverage

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

Mercury logo

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

Compare rates and shop affordable home insurance today

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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

House fire

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.

4 simple steps to buying home insurance in Sacramento

  1. Reach out to a licensed Policygenius agent. Our team of licensed insurance experts are at the ready to help you figure out how much coverage you need and what company offers it at the best price — all for free with no impact to your credit score.

  2. Ask about earthquake coverage. Since homeowners in Sacramento are at high risk for earthquake damage, ask your Policygenius agent to show you quotes from insurers that offer earthquake coverage endorsements in California.

  3. Compare quotes from a Policygenius agent. A Policygenius agent will walk you through quotes from a few different companies to help you find the best policy for your needs.

  4. Sign the policy and pay your first premium. After you’ve chosen the policy you want, your Policygenius agent will complete all of the paperwork for you. The only thing left to do is sign the policy and pay your first premium. They’ll even cancel your old policy for you if it’s not up yet.

Compare rates and shop affordable home insurance today

We don't sell your information to third parties.

Methodology

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.

Author

Senior Editor & Licensed Home Insurance Expert

Kara McGinley

Senior Editor & Licensed Home Insurance Expert

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Kara McGinley is a senior editor and licensed home insurance expert at Policygenius, where she writes about homeowners and renters insurance. As a journalist and as an insurance expert, her work and insights have been featured in Kiplinger, Lifehacker, MSN, WRAL.com, and elsewhere.

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