5 Best Homeowners Insurance Companies in California
After in-depth research, we at the Guides Home Team found the following providers to offer the best and cheapest homeowners insurance in California:
- Hippo: Our pick for fast quotes
- Liberty Mutual: Our pick for discounts
- Farmers: Our pick for customizable coverage
- Nationwide: Our pick for inclusive standard coverage
- USAA: Our pick for club members
According to homeowners insurance data from Quadrant Information Services, the average cost of homeowners insurance in California is $1,587, which is lower than the national average of $2,511.
| Provider | Average Annual Premium | A.M. Best | J.D. Power |
|---|---|---|---|
| Hippo | $1,021 | A- | NR |
| Liberty Mutual | N/A | A | 789/1000 |
| Farmers | $1,966 | A | 800/1000 |
| Nationwide | $1,506 | A | 812/1000 |
| USAA | $1,576 | A++ | 881/1000 |
Hippo
Our pick for quick quotes
4.3
Cost: 3.5
Availability and Ease of Use: 4.6
Brand Trust: 3.1
Coverage: 4.3
Our Rating
Our Review
A.M. BestA-J.D. PowerNRAnnual Cost$1,021
Pros and Cons
Pros All coverage tiers include 25% extended replacement cost Claims to provide quotes in 1 minute, which is corroborated by customer reviews we read Receives fewer than the average number of complaints for a company of its size Cons Discounts are limited compared to other providers on this list Bans certain dog breeds from coverage
Why We Chose Hippo
Although Hippo doesn’t have as much experience writing homeowners policies as giants like Liberty Mutual and Nationwide, it is a financially capable insurance provider with modern conveniences the aforementioned providers don’t offer. Hippo claims to provide insurance quotes in 60 seconds or less and, in our own experience pulling quotes from its website, it makes good on that promise. It caters to the modern homeowner, offering several discounts that help yousave on premiumsfor installing various smart home technologies.
Hippo also earned an A- from AM Best, suggesting that it has the financial stability to back up its policies and pay large claims, which should provide peace of mind to any customers worried about its relatively young status in the industry.
Discounts and Endorsem*nts
Discounts:Recent home purchase, gated community, smart home devices, automatic sprinkler systems and smart-home monitoring using Ring home sensors that Hippo provides.
Additional coverage options:Equipment breakdown, water backup, service line, valuables, extra jewelry and watches, scheduled personal property and mortgage payment protection
**AM Best ratings are accurate as of May 2024.
Liberty Mutual
Discounts
4.3
Cost: 4.3
Availability and Ease of Use: 4.6
Brand Trust: 4.5
Coverage: 3.9
Our Rating
Our Review
A.M. BestAJ.D. Power789/1000Annual CostN/A
Pros and Cons
Pros 24/7 customer service Unique discount for employment and education often available Includes mold coverage Cons Extensive questions about property in online quote form Policies without discounts can be pricey
Why We Chose Liberty Mutual
With more than 110 years of experience, Liberty Mutual is a well-regarded insurance provider of business, renters, auto, and home insurance. Its home insurance policies stand out for its comparably low costs, customizable coverage with a wide range of options forliabilityand personal property, and depth of discount opportunities. There are several ways to save with Liberty Mutual, whether you’re looking to bundle your home and auto insurance or simply shopping online.
Discounts and Endorsem*nts
Discounts:Safe homeowner program, claims-free, online purchase, early shopper, newly purchased home, new/renovated home, new roof, multi-policy, insured to value, paperless policy and preferred payment discounts.
Additional coverage options:Personal property replacement cost, blanket jewelry, earthquake, water backup and inflation protection.
Nationwide
Inclusive Standard Coverage
4.6
Cost: 3.9
Availability and Ease of Use: 4.6
Brand Trust: 4.8
Coverage: 5
Our Rating
Our Review
A.M. BestAJ.D. Power812/1000Annual Cost$1,506
Pros and Cons
Pros Includes inflation protection Extensive list of add-ons Unique smart home discount Cons Separate deductible for personal property claims Customer service can be difficult to reach Fewer discounts
Why We Chose Nationwide
The extensive coverage options from Nationwide make it a top provider for California residents. An additional unique highlight from this provider is its smart-home program that offers premium discounts if you purchase a smart home monitoring system and set it up within 55 days of enrolling. This encourages homeowners to set up an in-home system that identifies potential issues like water leaks before they worsen.
Discounts and Endorsem*nts
Discounts:Protective devices, construction or renovation age, claim free history, bundling
Additional coverage options:Replacement cost for personal property, tools, loss assessment, identity theft protection, water backup, building ordinance, better roof replacement, equipment breakdown, service line, landlord furnishings increased coverage for homeowners that have tenants
Farmers
Customizable Coverage
4.6
Cost: 4.3
Availability and Ease of Use: 5
Brand Trust: 4.5
Coverage: 4.6
Our Rating
Our Review
A.M. BestAJ.D. Power800/1000Annual Cost$1,966
Pros and Cons
Pros Allows for heavy customization of dwelling, loss of use and personal property coverage Offers a wide variety of discounts Claim forgiveness may prevent premium increases after a covered loss Cons Often has higher rates than other providers in this review Is missing some commonly-offered endorsem*nts like water backup coverage
Why We Chose Farmers
Farmers is a well-established insurance company that has been in operation since 1928. With an A rating from AM Best, it has earned a strong reputation over the years. Additionally, it has been featured in the J.D. Power survey and outranks some of its competitors.
Our analysis of customer reviews and secret-shopping process revealed that Farmers offers the most customizable coverage among the companies we evaluated. For example, Farmers allows you to adjust yourdwelling coverageamounts to meet your specific needs and budget. Farmers also offers a user-friendly online experience, providing basic information that allows you to compare coverage options and discover how you can save with discounts.
Discounts and Endorsem*nts
Discounts:Multiline, home safety, declining deductible, affinity, e-Policy, UL-approved roofing materials, new home, non-smoker, protective device, green certification, rent to own, claims-free, preferred payment/EFT and good payer
Additional coverage options:Equipment breakdown, water backup, service line, valuables, extra jewelry and watches, scheduled personal property and mortgage payment protection
USAA
Military Members
4.5
Cost: 3.7
Availability and Ease of Use: 4.6
Brand Trust: 5
Coverage: 3.6
Our Rating
Our Review
A.M. BestA++J.D. Power881/1000Annual Cost$1,576
Pros and Cons
Pros Features affordable rates for members Membership comes with unique benefits Offers additional coverage for earthquakes Cons Fewer discounts Only available for service members and their families
Why We Chose USAA
According toa studyon active-duty service members by state in 2017 by state government research publication Governing, California had the highest population of U.S. military employees in the country at 184,540. Each of those members, as well as veterans, and their families can qualify for a membership with USAA and receive access to financial services including homeowners insurance, car insurance, banking,renters insurance and loan services. The company’s homeowners insurance policies are among the best in the country. The reason that we did not rank them higher on our list is because only military members and their families qualify for coverage.
Getting a quote requires setting up an eligible membership and providing personal information. If you don’t qualify or don’t want to deal with the hassle, you canuse this tool to find other providers in your area.
Discounts and Endorsem*nts
Discounts:Auto insurance policy bundling, payment history, weather-resistant roofing, new building or renovations, home protection devices
Additional coverage options:Earthquake insurance, military uniform replacement, identity theft,flood insurance, increased coverage limits for personal property and dwelling
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.
- Property location: Various regions in California face a significant risk of natural disasters like wildfires, earthquakes, storm surges and other ocean-related events. For instance, there’s a risk of wildfires in Los Angeles and San Diego due to the dry climates. If your home is in such a region, insurers consider it risky to cover you and charge higher rates.
- Construction cost: Many regions in the state have a high cost of living, such as Silicon Valley and Los Angeles. The labor and material costs in these regions are also high, which causes an increase in your home’s replacement expenses and raises premiums.
- Age and condition of the property: Older homes in historical regions like Old Sacramento may have higher repair or replacement costs due to older structures and materials. For this reason, insurance providers will charge higher rates if you live in such a home.
- Credit score: The insurance company you choose will analyze your credit history to determine if you are risky to insure. You can qualify for a better rate if you pay your bills on time and settle outstanding debts.
- Claims history: Insurers will consider you a high-risk individual if you have filed many claims in the past, resulting in a more expensive policy. Other factors insurers consider include the type and severity of your past claims.
Average Cost of Homeowners Insurance in California
The average cost of homeowners insurance in California is $1,584.03 which is lower than the national average of $2,417 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 Money on Home Insurance in California
You can save money on home insurance in California by qualifying for discounts, comparing rates from different providers and taking steps to protect your home against natural disasters.
Check for Eligible Discounts
Most insurance providers allow you to lower your premiums with various discounts, which could include:
- Bundling: If you purchase multiple policies from the same insurer, you can earn a discount on your premium. For instance, you can bundle your home and auto insurance policies.
- Home security system: Consider installing smoke detectors and burglary alarm systems to improve the safety of your home, which could help you qualify for a discount.
- Disaster preparedness: You can save on your policy if your home is better retrofitted to withstand natural disasters like earthquakes and wildfires.
- Claims-free: Insurers consider it less risky to insure homeowners who have not filed a claim within a specific timeframe and may offer a related discount.
- Green home: Some insurers in California may also offer savings on your premium if your home is energy-efficient or environmentally friendly.
Implement a Wildfire Mitigation Strategy
Since wildfires are a significant risk in California, you might qualify for a lower home insurance rate if you reduce the risk of wildfire damage to your property. You can do so by removing vegetation that could catch fire or contribute to spreading wildfire, creating a defensible space around your property.
It’s also important to opt for fire-resistant building materials if you renovate your home, enhancing its ability to withstand wildfires.
Shop Around
Every insurance provider uses a different underwriting formula to determine home insurance premiums, which can result in varying rates. When you shop around and compare quotes, explore multiple options and choose the most suitable one based on your needs.
Getting Coverage for Natural Disasters in California
There’s a significant risk of natural disasters like earthquakes and wildfires in California, making it important to have sufficient coverage to protect against these disasters. Homeowners will need special coverage to protect against earthquake damage, while wildfires will be covered in a standard policy.
Earthquake Coverage
According to the California Earthquake Authority (CEA), most Californians live within 30 miles of a fault line, making it highly likely that your home will be impacted by one or more earthquakes over the course of your ownership. A standard homeowners policy generally does not cover earthquake damage, so you must purchase a separate earthquake policy if you want to be covered. Certain providers offer protection against earthquake-related damage as an add-on to your standard policy, but other providers do not. If your preferred provider does not offer this coverage, The CEA offers earthquake coverage to homeowners throughout the state for around $45 a month and offer free estimates on their website.
Wildfire Coverage
The damage done to land by wildfires peaked in 2020 at 4.3M acres burned, prompting many major insurance players to reconsider offering coverage in the state. Over the past two years, the state has managed to reduce the land damage by 90%, but the 2024 outlook for increased wildfire risk in the state has kept the number of providers available dropping and the rates increasing.
Although you will have protection against wildfire damage with a standard policy, the level of coverage can vary depending on your insurer. Review your coverage details to ensure your policy will cover the cost of rebuilding and repairing your home in case of fire damage.
California Homeowners Insurance News
State Farm and Allstate are among our highest-scoring home insurance providers based on our comprehensive reviews methodology. However, both providers have pulled out of California.
State Farm is not accepting new applications for property insurance, citing catastrophe exposure, surging construction costs and a challenging reinsurance market as major deciding factors. The insurance giant said it will continue to renew existing policyholders as of this time.
Allstate published in a November 2022 earnings report that it “will no longer write new homeowners and condominium business in California.” Like State Farm, it will continue to offer coverage to existing customers. It didn’t make any further public statements regarding the business move until after State Farm’s announcement in May 2023.
As a result, we removed these providers from our top home insurance companies in California list and replaced them with runners-up.
Frequently Asked Questions about Homeowners Insurance in CA
You may need to purchase a homeowners insurance policy on your property if you have a mortgage. Many lenders expect borrowers to have a policy with certain minimums for coverage limits to be sure that the home doesn’t lose value in the event of an unexpected peril. Even if a policy isn’t required, it can still be a smart investment to protect you from property damage and loss.
California is the most vulnerable state to earthquake damage, but homeowners insurance doesn’t cover earthquakes under a standard policy. However, many California home insurance companies offer extra coverage as an add-on to your policy. The California Earthquake Authority, as CEA is the primary provider of earthquake coverage to homeowners throughout the state.
Wildfires are typically covered under your homeowners insurance as standard policies include damage to your building or personal property from fires in your home. Some policies may have a specific deductible for wildfires or separate coverage amounts, so be sure to check over the details after getting a quote to verify your protection.
According to data we collected in partnership with Quadrant Information Services, the average cost of homeowners insurance in California is around $1,584 per year. The amount that you are quoted will differ based on factors such as the city you live in, your home size, and your credit score.
Many parts of California experienced catastrophic flooding during the atmospheric rivers this past winter. Flood insurance is not included in a standard home insurance policy. Flood insurance is available through the federally backed National Flood Insurance Program and dozens of private flood insurers.
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Methodology: Our system for ranking the best home insurance companies
Our team surveyed dozens of home insurance providers and created a scoring system to assess and compare each company’s quality and service. Here are the factors that account for our provider scores according to our home insurance rating methodology:
- Cost (27%): We compare cost data for homes nationwide to assess how competitively priced each provider is. We also consider each company’s available discounts when determining its overall cost of coverage.
- Coverage (28%): We analyze the comprehensiveness of each provider’s standard home insurance policy and compare optional policy endorsem*nts to determine the quality of coverage.
- Availability and ease of use (15%): We evaluate each company’s customer service options, such as live chat, a customer support phone line, and multiple channels for filing claims and generating quotes. Similarly, we score providers based on their digital resources, such as a mobile app or online customer portal.
- Brand trust (15%): We gauge reputation by evaluating consumer reviews and third-party financial strength and customer experience ratings, including from J.D. Power, AM Best and customer review aggregators.
Companies with the best customer service exhibit 24/7 availability, useful digital tools and a quick claims-filing process. Providers that offer extensive discount options, endorsem*nts, customizable coverage options and unique features score significantly higher than those that don’t, putting them toward the top of our recommendations to readers.
AM Best Disclaimer
If you have feedback or questions about this article, please email the MarketWatch Guides team ateditors@marketwatchguides.com.
Mike MillerSenior Writer
Mike Miller is a writer with a decade of experience producing product and service content to help consumers make informed purchasing decisions. Mike has a bachelor’s degree in creative advertising. In his spare time, Mike enjoys riding and fixing motorcycles, reading a good book and spending time with his wife and two cats.
Tori AddisonEditor
Tori Addison is an editor who has worked in the digital marketing industry for over five years. Her experience includes communications and marketing work in the nonprofit, governmental and academic sectors. A journalist by trade, she started her career covering politics and news in New York’s Hudson Valley. Her work included coverage of local and state budgets, federal financial regulations and health care legislation.
Mark FriedlanderAdvisor
Mark Friedlander is Director, Corporate Communications, at the Insurance Information Institute (Triple-I), a New York-based nonprofit research and education organization focused on providing consumers with a better understanding of insurance. Mark serves as a national spokesperson for the Triple-I, handling a wide array of insurance industry media issues. His responsibilities also include spearheading the association’s hurricane season communications strategy and its member company support and media outreach in Florida, where he is based.
