Home Insurance in California 2024
Hippo, Farmers and Progressive are among the MarketWatch Guides team’s picks for the best homeowners insurance in California. We rated these providers after assessing several 16 options nationwide based on coverage, cost, customer experience and company reputation.
Based on data from the Insurance Services Office (ISO), 5.3% of insured homes around the country experienced a claim in 2021. The probability of filing a claim in California might be higher since the state faces a significant risk of earthquakes, wildfires and floods. On average, a policy costs $1,587 annually in the state, according to data from Quadrant Information Services.
Average Cost of Homeowners Insurance in California
The average cost of homeowners insurance in California is $1,587 which is lower than the national average of $2,511 according to our analysis of homeowners insurance premiums using data provided by Quadrant Information Services. The annual cost of homeowners insurance can vary greatly based on your specific location which can cause your home to be more or less susceptible to risk. Use the charts below to determine the average cost in your specific area before getting quotes from multiple providers.
Cheapest Homeowners Insurance in California
Hippo is the cheapest homeowners insurance company in California at $1,021 per year on average. Get a quote from at least three providers in your area to determine which is the right fit for your unique needs before making a final decision.
How To Save on Homeowners Insurance
There are a few ways you can save on homeowners insurance, such as trying to reduce the risk of damage to your property. Insurers determine your premium after analyzing the risk of loss. Here are some other steps you can take to save money on your premiums:
Compare Home Insurance Discounts
Discounts are one of the easiest ways to lower your monthly home insurance costs. Most insurers have discounts that are easy to qualify for depending on your situation. Here is an outline of common discounts across our top-rated providers.
What Factors Affect Home Insurance Rates in California?
Factors that affect the cost of home insurance in California include the risk of natural disasters, the cost of construction, the condition of your property and other personal factors. We compiled the following list to help you understand how an insurer might calculate your premium.
Common Causes of Home Insurance Claims in California
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Most home insurance claims in California are related to damage from natural disasters, based on our research. The state experiences extreme weather events that can cause property damage. Understanding the causes behind home insurance claims might help you take steps to protect your property.
- Fires: Data from the California Department of Forestry and Fire Protection’s 2022 Wildfire Activity Statistics report showed 7,477 instances of fires in the state that burned 331,358 acres of land. Although a standard home insurance policy will cover your property’s structure and personal belongings against some levels of fire damage, we recommend you contact your insurer to understand the exact amount of coverage a policy offers.
- Earthquakes: California homeowners are at risk of seeing major losses because of earthquakes. According to data from the California Department of Conservation, the most recent major earthquake in 2022 was of a 6.4 magnitude and caused economic losses of hundreds of millions of dollars. Earthquakes can also cause structural damage to your property, and many home insurers offer coverage as an optional add-on.
- Burglary: Data from the FBI shows there were 53,030 burglary incidents in California in 2022. Theft risk is high in urban cities such as Los Angeles, San Diego and San Jose. To protect against theft, consider installing security cameras and burglar alarms on your property. Doing so can also help you qualify for insurance discounts with some providers.
Our team built the map below to share the risk of climate-related damage in each county in California. The risk scores you see when you hover over a county are normalized scores based on data from the Federal Emergency Management Agency’s (FEMA) National Risk Index (NRI).
California Homeowners Insurance News
State Farm and Allstate were among our highest-scoring home insurance providers based on our comprehensive review methodology. However, both providers recently pulled out of California. Some insurers, such as USAA and Farmers, have also announced they will write a limited number of home insurance policies.
State Farm is not accepting new applications for property insurance in California as of May 2023, citing catastrophe exposure, surging construction costs and a challenging reinsurance market as major deciding factors. However, the insurance giant said it will continue to renew existing policyholders’ coverage at this time.
Allstate published in a November 2022 earnings report stating it “will no longer write new homeowners and condominium business in California.” But like State Farm, it will offer coverage to existing customers. The company has not made further public statements regarding its decision until after State Farm’s more recent announcement.
As a result, we removed State Farm and Allstate from our list of top home insurance companies in California and replaced each company with runners-up.
In the past year, USAA announced it would limit home insurance coverage in California and only insure properties with lower wildfire risk. Similarly, Farmers also announced the writing of a limited number of homeowners policies moving forward.
Tips for Getting Insured in California
Homeowners may find it challenging to find the right amount of coverage in California due to the risk of natural disasters and severe weather