Best homeowners insurance in San Jose, CA for 2022

We looked at average costs, coverage availability, and customer satisfaction ratings to find the best homeowners insurance companies in San Jose.

Pat Howard 1600

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Pat Howard

Pat Howard

Managing Editor & Licensed Home Insurance Expert

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.

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

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

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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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San Jose is home to 6,600 tech companies and world-renowned colleges like Stanford University. Not to mention its breezy, sunbaked coastal vibes are reminiscent of a city on the Mediterranean. So it's no surprise that the “Capital of Silicon Valley” is one of the most expensive cities in the country to buy a house. But despite the increase in wildfires and the never-ending possibility of a major earthquake, the cost of homeowners insurance in San Jose is relatively affordable.

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The average cost of homeowners insurance in San Jose is $1,258 per year or $105 a month. That’s around 20% cheaper than the California statewide average of $1,565 per year, and about  34% 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 San Jose.  

Best homeowners insurance companies in San Jose

Of the companies we evaluated, Mercury has the lowest rate in San Jose, with an average policy cost of $724 per year — over 50% cheaper than the California state average. Average annual rates for Farmers, State Farm, AAA, and Mercury are also less than the state average.

Looking at the largest companies in San Jose by market share, Policygenius analyzed the latest rate data from Quadrant Information Services to find the average cost of home 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 San Jose residents to find the best homeowners insurance in San Jose.

Company

Average yearly cost

J.D. Power Rating

State Farm

$883

835

Farmers

$1,044

813

AAA

$1,244

834

USAA

$740

882

Mercury

$724

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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’s score of 835 out of 1,000 in J.D. Power’s 2021 home insurance study makes it one of the highest rated home insurance providers in San Jose, and its $883 average annual premium is among the cheapest. If you’re looking for customizable coverage, good customer service, and multiple savings options, State Farm is a safe bet.

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

Homeowners insurance policies with Farmers come with rate savings features not offered through most providers, such as premium rebates if you go a certain number of years without filing a claim. 

We also love its “declining deductibles” feature, where Farmers will subtract $50 from your deductible each year you’re a customer — without it impacting your rate. While the upfront savings may not always be there, Farmers finds creative ways to put money back in your pocket.

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 is mostly known for its auto insurance and roadside assistance services, but it’s also a highly rated home insurance provider. In addition to its cheap premiums, 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. 

One thing to keep in mind is AAA membership is required for coverage, so you’ll need to pay a membership fee in addition to your home or car insurance premium.

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

USAA stands out for its high customer satisfaction score with J.D. Power and its cheap home insurance premiums. A policy with $300,000 in dwelling coverage costs around $740 per year — over 50% cheaper than the average rate in California. One major perk of insuring your house with USAA is it offers earthquake protection as a policy add-on, sparing you from having to purchase separate earthquake insurance.

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

Mercury's $724 average annual premium makes it the cheapest home insurance provider in our analysis. And the insurer gives you even more opportunities to save with several available discounts, including a generous 15% off your home and auto insurance when you bundle your policies.

While primarily known for its cheap rates and solid bundling options, it's the company’s digital tools that help it stand out amongst the competition. Mercury scored an 821 out of 1,000 in the shopping segment of J.D. Power’s 2021 digital experience study — the highest score of any company in the analysis. The study measures insurers’ desktop website, mobile website, and mobile apps based on factors like ease of navigation and clarity of information. 

How to get a quote

Online through Policygenius or Mercury

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Cheapest homeowners insurance companies by ZIP code in San Jose

The cheapest home insurance in San Jose can be found in the 95134 ZIP code of North San Jose. The average Mercury policy in this area is $668, which is the cheapest in the city and nearly half the citywide average. 

Homeowners in most areas of San Jose are likely to find the cheapest rates with USAA or Mercury. These two insurers had the cheapest average annual premium in each San Jose ZIP code that we looked at.

ZIP code

Company

Average yearly cost

95101

USAA

$728

95110

USAA

$757

95111

USAA

$772

95112

USAA

$757

95113

Mercury

$724

95116

USAA

$757

95117

Mercury

$695

95118

Mercury

$712

95119

Mercury

$688

95120

Mercury

$684

95121

Mercury

$703

95122

USAA

$772

95123

USAA

$731

95124

Travelers

$636

95125

Travelers

$703

95126

USAA

$720

95127

Mercury

$704

95128

USAA

$729

95129

Mercury

$693

95130

Mercury

$675

95131

Mercury

$675

95132

Mercury

$713

95133

Mercury

$677

95134

Mercury

$668

95135

Mercury

$682

95136

Mercury

$682

95138

USAA

$727

95139

Mercury

$687

95141

Mercury

$697

95148

USAA

$738

95192

USAA

$757

The most affordable areas for homeowners insurance in San Jose

Continuing a trend from the previous section, the 95129 ZIP code (West San Jose) has the cheapest average annual home insurance rate in San Jose. While the median home value of $2.5 million in the 95129 ZIP code is among the highest in San Jose, its $1,200 average annual premium is the lowest by a thin margin.   

ZIP code

Average yearly cost

95129

$1,200

95124

$1,204

95125

$1,211

95118

$1,214

95134

$1,214

The most expensive areas for homeowners insurance in San Jose

The most expensive home insurance rates are in East San Jose. Homes in these ZIP codes are closer to the foothills of Blue Oak Ranch Reserve and other natural areas prone to wildfires, which likely explains the higher-than-average premiums.

ZIP code

Average yearly cost

95116

$1,318

95122

$1,318

95141

$1,316

95127

$1,309

95135

$1,309

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 San Jose

When you shop for homeowners insurance, you’ll want to make sure the coverage amounts in your quote reflect your actual coverage needs. That way, you’ll know you’re getting an accurate coverage and rate comparison. 

In this section, we break down the average annual home insurance rates in San Jose for different coverage and deductible levels, as well as the cheapest and most expensive home insurance companies for dog and pool owners.

San Jose home insurance costs by coverage amounts

Dwelling coverage is the part of your homeowners insurance that covers your home itself from covered losses, such as a fire or windstorm. Your coverage limit should equal your home’s replacement cost, or the amount it would take to rebuild your house from the ground up. 

As the table below highlights, more dwelling coverage typically means higher homeowners insurance rates.

Dwelling coverage amount

Average yearly cost

$100,000

$500

$200,000

$804

$300,000

$1,115

$400,000

$1,423

$500,000

$2,083

Personal liability coverage is the section of your homeowners insurance that pays for legal or medical bills if someone is injured or their property is damaged and you’re found legally responsible. 

In other words, if a visitor is injured at your home and they require surgery or other medical attention, liability coverage may cover the costs. This coverage is also meant to cover expensive litigation in the event the injured party decides to sue, so you’ll want enough liability coverage to cover the value of all of your assets.

As highlighted in the table below, opting for more liability coverage will generally increase your rate, but it doesn’t have quite the same impact on your premium as dwelling coverage.

Liability coverage amount

Average yearly cost

$100,000

$1,079

$200,000

$1,108

$300,000

$1,258

$400,000

$1,360

$500,000

$1,270

San Jose home insurance costs by deductible amount

Your deductible is the amount you’re responsible for paying on property damage or theft claims. Choosing a high deductible is a good way to lower your rate, but bear in mind that you’ll need to pay more out of pocket when you file a claim. 

In San Jose, you can save around $500 dollars when you choose a $2,000 deductible over a $500 one.

Deductible amount

Average yearly cost

$500

$1,466

$1,000

$1,258

$2,000

$963

Home insurance discounts in San Jose

You may be eligible for discounts if your house has certain safety features — like fire alarms or security systems — since these reduce your chances of having to file a claim.

The average discount for deadbolts and smoke alarms on a house with $300,000 in dwelling coverage is 0.32% and 0.48%, respectively. This means you’re not likely to see big rate savings if your house has these features and nothing else. With an average discount of 3.1%, burglar alarms provide a slightly larger discount for San Jose homeowners.

Discount

Average yearly cost

Dead bolt

$1,254

Smoke alarm

$1,252

Burglar alarm

$1,219

Home insurance companies in San Jose for dog owners

Certain dog breeds are responsible for the most dog bite liability claims, so some insurance companies will charge you higher premiums if you have a so-called aggressive dog breed. Some major insurance companies may even exclude the dog from coverage or deny you coverage altogether if your dog is one of these breeds.

Looking at the largest home insurance companies in California, we analyzed rates for a homeowner who owns a so-called aggressive dog breed. Mercury’s $724 average annual premium is the lowest, while AAA’s $1,244 average annual rate is the highest by a good margin.

Company

Average yearly cost

Mercury

$724

USAA

$740

State Farm

$883

Farmers

$1,044

AAA

$1,244

Home insurance companies in San Jose for pool owners

Having a pool increases your home’s dwelling coverage limit and it’s also a liability risk — both of which can increase your home insurance premiums. 

In San Jose, owning a pool can increase your home insurance premium an average of $23 per year, according to our analysis. USAA has the lowest average rates for a San Jose home with a pool, while AAA has the highest rates.

Company

Average yearly cost

USAA

$740

Mercury

$854

State Farm

$883

Farmers

$1,044

AAA

$1,244

How to buy homeowners insurance in San Jose

Once you’re ready to shop, a Policygenius expert can help you navigate your coverage needs and quotes to help you find the best deal on homeowners insurance in San Jose.

5 simple steps to buying home insurance in San Jose

  1. Reach out to a licensed Policygenius agent. One of our home insurance experts 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.

  2. Ask if you should consider wildfire, flood, or earthquake coverage. If you live in an area of San Jose prone to wildfires, it might be difficult to find a private insurance provider willing to cover you. A Policygenius expert can help you decide if nonstandard insurance options like the California FAIR Plan is right for you. Standard home insurance policies don’t cover flooding from natural disasters or earthquakes, so you’ll also want to ask your Policygenius agent about your coverage options if you live in areas with a high risk of either of these hazards. Learn about how flood insurance in California works here.

  3. Calculate how high of a deductible you can afford. Since the average cost of homeowners insurance in San Jose can be around $500 cheaper if you choose a higher deductible, ask your Policygenius agent to help you choose one that works for your budget.

  4. 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.

  5. 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.

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Frequently asked questions

What is the average home insurance cost in San Jose?

The average home insurance rate in San Jose is roughly $105 a month. This is around $25 less per month than the state average.

How much does earthquake insurance cost?

Earthquake insurance in San Jose can cost anywhere from a few hundred to a few thousand dollars per year. Premiums largely depend on your home’s location, your home’s construction type, and your deductible amount.

Do most Californians have earthquake insurance?

While earthquakes disproportionately impact California homeowners compared to those in other parts of the country, only around 13% of Golden State residents reportedly have earthquake insurance.

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

Managing Editor & Licensed Home Insurance Expert

Pat Howard

Managing Editor & Licensed Home Insurance Expert

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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.

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