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.
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.
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
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
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
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
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
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.
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.
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.
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.
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.
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.
Home insurance discounts in San Jose
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.
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.
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.
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.
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:
Other structures: $30,000
Personal property: $150,000
Loss of use: $60,000
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.