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Best homeowners insurance in California for 2023

Based on Bankrate’s research, USAA, Chubb, Travelers, Nationwide and Encompass offer Californians some of the best home insurance policies in the state.

Updated Nov 17, 2023
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Compare the best homeowners insurance companies in California

Our research revealed that the five carriers below are among the best California homeowners insurance companies. On our list, USAA and Chubb earned the highest Bankrate Scores, which may make them particularly worthy of consideration if you’re looking for carriers with strong third-party ratings. In our quest to find the best California homeowners insurance, we reviewed average rates, financial strength scores from AM Best and customer satisfaction ratings from the J.D. Power 2023 U.S. Home Insurance Study, coverage offerings, discounts, digital tools and more.

If you’re shopping for the best homeowners insurance in California, you may want to consider these companies:

Insurance company AM Best J.D. Power Average monthly premium Average annual premium*
A++
881
/1,000
$62
$738
Get a quote
A++
801
/1,000
$162
$1,942
Get a quote
A++
790
/1,000
$66
$795
Get a quote
A+
812
/1,000
$78
$936
Get a quote
A+
Not rated
$250
$2,997
Get a quote
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Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

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Bankrate insight

We have confirmed that these carriers are currently writing homeowners insurance policies in California. However, coverage may be limited to certain areas of the state or homes with certain damage-mitigation features.

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Bankrate's trusted insurance industry expertise

Read our full methodology

The home insurance market can be complicated, but Bankrate's insurance editorial team used our unique perspective to bring readers information they need to make educated decisions when shopping for home insurance.

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years of industry expertise

122

carriers reviewed

20.7K

ZIP codes examined

1.2M

quotes analyzed

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Quick Facts
Moneybag
$382/year
average savings through Bankrate
Two Thirds
2 out of 3 homes
are underinsured
Insurance Home
1 out of every 20
insured homes makes a claim each year
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The top 5 home insurance companies in California

USAA

Best for military-focused coverage

Rating: 3.7 stars out of 5
3.7 Bankrate Score
JD Power: 881/1,000 AM Best: A++

Average annual premium

$ 738 for $250k dwelling coverage
USAA Review Get a personalized quote

Why USAA made our list: Although its eligibility restrictions preclude it from official ranking, USAA earned the highest J.D. Power score for customer satisfaction. For those eligible to become USAA members, the company is often one of the most affordable California homeowners insurance companies. It also has unique options beneficial to active-duty military members, like coverage for uniforms damaged in a covered loss.

Who USAA may be good for: If you are affiliated with the military or a qualifying family member, USAA could be a good choice. The company offers low average rates and coverage options tailored to military families.

Chubb

Best for high-value homes

Rating: 3.5 stars out of 5
3.5 Bankrate Score
JD Power: 801/1,000 AM Best: A++

Average annual premium

$ 1,942 for $250k dwelling coverage
Chubb Review Get a personalized quote

Why Chubb made our list: Chubb's product line is geared more towards high-net-worth individuals, earning it our 2023 Bankrate Award for Best Home Insurance Company for High-Value Homes. However, eligibility may be restricted based on home value, so Chubb may not be an option for all homeowners. One key offering that may appeal to California homeowners is the company's Wildfire Defense Services, which works year-round to monitor, prevent and mitigate losses to your home and valuables from wildfire.

Who Chubb may be good for: Chubb may be a good choice for high-value homes needing specialty earthquake or flood coverage since Chubb offers both options for eligible homes. Specializing in custom policy coverage, homeowners with wine, jewelry and art collections may be interested in Chubb's tailored coverage and HomeScan risk-mitigation consulting.

Travelers

Best for green homes

Rating: 3.3 stars out of 5
3.3 Bankrate Score
JD Power: 790/1,000 AM Best: A++

Average annual premium

$ 795 for $250k dwelling coverage
Travelers Review Get a personalized quote

Why Travelers made our list: Travelers standard home insurance policies are on the simpler side, but the insurer offers policyholders multiple ways to customize with a healthy list of insurance endorsements like water backup coverage, identity theft coverage and higher limits for valuables like jewelry and silverware. Although these add-ons will likely increase your premium, there are a nice handful of discounts available to help you save. These include a multi-policy discount, a claims-free discount, a discount for a newly-purchased home and one for homes with protective devices like smoke detectors and home security systems.

Who Travelers may be good for: It’s no secret that California is pushing for greener homes. If you’re ahead of the game and already live in a Leadership Energy and Environmental Design (LEED) certified home, you could save up to 5 percent on your Travelers home insurance premium. Travelers also offers specialized green home coverage, which can help shoulder the added costs of repairing or replacing your home with green materials following a covered loss.

Nationwide

Best for unique coverage options

Rating: 3.2 stars out of 5
3.2 Bankrate Score
JD Power: 812/1,000 AM Best: A+

Average annual premium

$ 936 for $250k dwelling coverage
Nationwide Review Get a personalized quote

Why Nationwide made our list: Nationwide offers several endorsements, including the unique Better Roof Replacement option, water backup coverage and identity theft protection. Additionally, the company may help California homeowners obtain flood and earthquake insurance. However, the company does have a lower-than-average J.D. Power customer satisfaction score.

Who Nationwide may be good for: Shoppers looking for unique coverage may want to consider Nationwide. The company’s unique Better Roof Replacement option and ability to help homeowners obtain separate policies like flood coverage could help round out your insurance portfolio.

Encompass

Best for bundling with auto insurance

Rating: 3.2 stars out of 5
3.2 Bankrate Score
JD Power: Not rated AM Best: A+

Average annual premium

$ 2,997 for $250k dwelling coverage
Encompass Review Get a personalized quote

Why Encompass made our list: Although Encompass is on the pricier end of premiums in the state, the company offers a plethora of discounts and highly customizable policies that may help your premium stretch. Encompass’ standout money-saving feature is its single deductible option: if you purchase your home and auto insurance policies from Encompass, your claims for both policies could be subject to just a single deductible if the loss occurred from the same event. Home and auto policies from Encompass are available in three coverage tiers — Special, Deluxe and Elite — each with its own list of coverage options and limits.

Who Encompass may be good for: Homeowners looking to house their home and auto insurance policies under one roof may be interested in Encompass. However, the inability to get a quote or file a claim online may deter some shoppers.

Additional California home insurance companies to consider

AAA

AAA

Who this may be best for

Homeowners who are already AAA members

The American Automobile Association, or AAA for short, writes home insurance in California through its subsidiary insurance groups. Depending on your ZIP code, your California home insurance policy could be underwritten by CSAA, Automobile Club of Southern California or AAA Northern California, Montana, Nevada and Utah Insurance Exchange. AAA’s home insurance policies are fairly standard, and may only be worthwhile for those who are already members. It may not make financial sense to join AAA solely for its home insurance policies, but some homeowners may be interested in AAA’s other perks, like its travel discounts.

Mercury

Mercury

Who this may be best for

Homeowners on the California FAIR plan

Mercury only writes home insurance policies in 10 states, California being one of them, and may appeal to homeowners who prefer a smaller company. Its difference in conditions, in particular, may appeal to homeowners who have had to resort to the California FAIR plan, an insurance program for homeowners unable to secure coverage in the private market. The difference in conditions endorsement can help fill in coverage gaps found in the FAIR plan, such as rain, theft, water service line and liability coverage.

How Bankrate chose the best home insurance companies in California

California residents have multiple insurers to choose from, several of which offer more affordable premiums for homeowners insurance than the state average. To help you find the best home insurance company for you, we calculated a Bankrate Score to analyze each company across several categories. The rating sections include average annual premiums from Quadrant Information Services, available coverage, discounts and policy features. We also reviewed J.D. Power customer satisfaction ratings to indicate how satisfied customers are with their company’s service and AM Best ratings to assess financial stability. The higher a company ranked in each category, the higher its overall Bankrate Score — 5.0 being the highest possible.

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Finding cheap home insurance in California

With multiple large insurers limiting coverage in the Golden State and some remaining ones cracking down their eligibility standards, homeowners may feel pressured to buy whatever policy they can get — even if it’s out of budget. Knowing how to compare quotes, look for discounts and other savings strategies can help you lock in a cheap rate. Back to top Caret Up

Cheapest home insurance companies in California

Not every California homeowner will be able to secure a cheap policy, particularly those in a high-risk wildfire area. In fact, homeowners with homes at elevated risk for wildfire damage may struggle to secure any insurance policy, let alone a cheap one. That said, getting familiar with the cheapest home insurance companies in California can be a good starting point if you’re looking for coverage.

Carrier Monthly premium for $250k coverage Annual premium for $250k coverage Savings vs state avg. for $250k coverage
$44
$526
- $699
Get a quote
$54
$642
- $583
Get a quote
$62
$738
- $487
Get a quote
$66
$795
- $430
Get a quote
$78
$936
- $289
Get a quote
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This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

How Bankrate chose the cheapest home insurance companies in California

Bankrate sources our rate data from Quadrant Information Services. In order to find the best cheap home insurance in California, we started by reviewing the most up-to-date rates available. From there, we narrowed the search to include rates from the larger insurers in the state by market share. Given the volatility of the California home insurance market, we ensured that each provider on our list is still writing policies in the state.

How to get cheap California home insurance

Finding the right California home insurance for your needs is an important part of securing your financial health. Home insurance is designed to help shield your finances from the fallout of unexpected home damages and can help you keep your finances intact if you suffer a loss. To find the best homeowners insurance in California at a price that works for you, you may want to consider these steps:

  1. Establish your needs. Determining how much home insurance you need could help you avoid over- or under-insuring your home. You may want to use an online tool to determine your home’s rebuilding value (each insurer will also use its own tool for this step) and you might also consider making a home inventory for your personal belongings.
  2. Decide what factors matter most to you. Some shoppers may be looking for the cheapest rate, others may need specialty coverage and some might be set on having digital tools. Knowing what features of an insurer are important to you can help you find a company that meets those needs.
  3. Search for companies. Once you know what you are looking for in an insurer, you can start to research companies to find several that might meet your needs.
  4. Request quotes. Next, request quotes from the companies that you think might be a good fit. You’ll be able to review coverage offerings, discounts and average rates to determine which is going to ultimately be best for your coverage needs and budget.
  5. Buy your policy. Once you have a quote that you’d like to proceed with, your agent or a representative from the company will help you buy your home insurance.

Best home insurance discounts in California

Home insurance discounts are an easy way to lower your premium. Most major insurers offer at least a few savings opportunities that might help you get a cheaper rate. Here are some common home insurance discounts in California:

How to save on home insurance policy renewals in California

For better or for worse, your insurance premium is not permanent. If you’re looking to lower your home insurance rate without going through the trouble of changing insurers, there are a couple of steps you can take to secure a more favorable rate:

  • Fortify your home against wildfire damage. Wildfire damage is a key concern for most home insurance providers in California, and you could be rewarded with a discount if you take measures to protect your home from wildfire damage.
  • Minimize claims. You may not need to file a claim every time your home is damaged. In fact, it may even be cheaper in the long term to avoid it. Many home insurance providers view customers who have filed a claim in the past as more likely to do so in the future, and may charge them higher rates. To avoid this surcharge, it may be cheaper to pay for damages out-of-pocket if they’re close to your deductible.
  • Raise your deductible — if you can afford it. Opting for a high-deductible home insurance policy may help you get a lower rate. However, be cautious when doing so, and make sure that your deductible is still something you can realistically pay at a moment’s notice.
  • Boost your home’s security. Shoring up your home’s security can do more than just give you added peace of mind, it may also result in added savings. Many insurance providers extend discounts to homeowners who take steps to further secure their homes. Depending on your insurer, this could be as simple as adding a deadbolt, or as involved as a whole-home alarm system.
  • Peruse discounts. Home insurance policies typically renew annually, which leaves plenty of time to check for missed discounts. It may be worth setting aside some time with your insurance agent to see what discounts you potentially missed when you first signed up for your policy, and which ones you’ve only recently qualified for.
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Understanding home insurance costs in California

California’s complex insurance laws make it difficult for insurance providers to raise insurance rates in tandem with rising risk levels. The result? California insurance rates are stuck at an artificially low level, and home insurers have little choice but to limit new business to remain financially solvent. Back to top Caret Up

How much is home insurance in California?

The average cost of homeowners insurance in California for $250,000 in dwelling coverage is $1,225 per year. Although this is below the national average cost of homeowners insurance of $1,428 per year, the insurance premium for every home may be higher or lower than either of these averages depending on the home’s size, age and location, coverage options, and other individual rating factors. When looking for the best homeowners insurance in California, it’s helpful to consider how these factors could affect your final premium.

If you’re wondering why California’s home insurance rates are so low considering how risky the state is, it’s largely because of strict consumer protection laws. California state laws (Proposition 103, in particular) prohibit insurers from raising rates more than 7 percent without approval from the state’s Department of Insurance. As you can imagine, this clogs up the process and results in home insurance rates getting stuck at unsustainably low levels. 

While this may seem like good news for homeowners, it is actually one of the many factors that contributed to the market instability plaguing the state.

Insurance company $150K $250K $350K $450K $750K
$578
$738
$910
$1,083
$1,792
$1,200
$1,942
$2,574
$3,096
$4,657
$670
$908
$1,158
$1,397
$2,251
$698
$936
$1,161
$1,402
$2,341
$1,914
$2,997
$3,893
$5,202
$8,714
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This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

California homeowners insurance rates by city

When hearing that location can influence home insurance costs, many people’s minds jump to state-by-state cost considerations. While the state you live in plays a role in the cost of your insurance, so does your ZIP code. The interactive map below shows home insurance rates from across the state to help you compare.

Home insurance rates vary by state, but they also vary by city. Depending on where you live, the cost of living may be higher or lower. In some areas, the price for materials and labor related to repairing home damage, or the risk of the damage happening in the first place, may be lower, which results in cheaper home insurance rates. These five cities are the cheapest in California, according to our data from Quadrant Information Services. Average rates for home insurance in the cities listed below are all 22 percent below the national average:

  • Carnelian Bay: $1,115
  • Brookdale: $1,117
  • Stanton: $1,117
  • Applegate: $1,118
  • Escondido: $1,118

On the opposite end of the spectrum are areas where the cost of living is higher than the rest of the state, the risk of damage is greater or both. These five cities have the most expensive California homeowners insurance rates, based on our research. If you live in these areas, shopping around and comparing home insurance quotes may be helpful in finding cheaper coverage. Average home insurance costs in these cities all hover around the national average cost of home insurance:

  • Anza: $1,431
  • Lake Arrowhead: $1,429
  • Morongo Valley: $1,428
  • Sugarloaf: $1,424
  • Pinon Hills: $1,421

*Rates are for $250,000 in dwelling coverage.

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Insuring your California home

On top of all the other stressors of owning a home, Californians also have earthquakes, wildfires and floods to contend with. Take a closer look at the coverage options available in California so you can rest assured that your home is protected. Back to top Caret Up

What does home insurance cover in California?

Before panic-buying every home insurance endorsement your insurer offers, it’s helpful to first understand which disasters are specifically covered in your policy. Once you have a better understanding of what’s covered by your home insurance policy, you can identify potential coverage gaps.

The most common type of home insurance policy is an HO-3. This type of home insurance provides dwelling coverage, other structures coverage and personal property coverage, in addition to liability, medical payments and additional living expenses. Your dwelling and other structures are typically insured on an “open peril” basis, meaning they are protected from everything except what is specifically excluded as outlined in your policy. Your personal property, however, is only protected from the losses, or “perils,” that are named in your policy.

A study from Mercury Insurance identified the most common insurance claims filed by California homeowners. We’ve listed them below by popularity and provided context on how they are already covered by a standard home insurance policy:

  • Water damage: Water damage claims made up nearly 57 percent of California’s home insurance claims. Leaky appliances, burst pipes and other sudden and accidental water damage can all be covered by your home insurance policy. Notably, almost all home insurance policies do not cover flood damage.
  • Wind: Home insurance can help when a gentle breeze turns not-so-gentle. High winds can damage your roof, siding and other areas of your home, but your home insurance policy could be able to help.
  • Fire: Your dwelling and personal property are financially protected from fire damage, with some key exceptions. Intentionally set fires are not covered by home insurance, and if you live in a wildfire-prone area, your insurer could exclude wildfire damage from your policy.
  • Theft: While it’s not a natural disaster, theft can be just as devastating on a personal level. Theft is a named peril on the vast majority of home insurance policies and can cover your dwelling, other structures and personal property up to your specified coverage limits.

Additional home insurance coverage types in California

In a state prone to wildfires, mudslides and earthquakes, asking insurance companies specific questions about what your policy does and does not include is important. For instance, even though California is prone to earthquakes, home insurance companies do not typically include coverage for such incidents. Due to common natural disasters, many insurance experts recommend these extra coverage types for California homeowners:

  • Earthquake coverage: Due to its position along the San Andreas Fault, California is one of the most earthquake-prone states in the country. You can usually purchase California earthquake coverage as a separate policy, often sold by the California Earthquake Authority. A private insurance company may also sell earthquake policies.
  • Flood insurance: California is considered a flood-prone state due to its valleys and coastal land areas. However, standard home insurance does not include damage caused by floods. Instead, you can buy flood insurance through the National Flood Insurance Program (NFIP) and some private flood insurers.
  • Fire insurance: Although coverage for some fires is included in basic homeowners insurance policies, Californians are at an increased risk because of the high probability of wildfires. If you live in an area where finding home insurance coverage is difficult because of the involved risk, you may consider purchasing a separate policy like the FAIR Plan. California FAIR Plan (CFP) recommends only getting coverage through its association as a last resort, but it could offer fire insurance for your home.
  • Scheduled personal property: If you own high-value items, like artwork or jewelry, these may not be fully covered by the personal property coverage on your homeowners policy. Some solutions can be to increase your personal property coverage limits or purchase a scheduled personal property endorsement as additional coverage. Because each insurance company may have different guidelines in how it approaches expensive belongings, it can help to speak to an insurance agent to see what the best solution is for you.

Related content:

Common California home insurance problems

California has something to offer for all kinds of homeowners with its buzzing cities, hundreds of miles of coastline, sky-grazing mountain ranges, mild winters and otherworldly desertscapes. While California’s cultural cachet and natural beauty make it a desirable place for many to put down roots, finding the right home insurance policy can be a challenge. Here are a few hurdles homeowners may encounter:

  • Dwindling coverage options: In the past year, three of California’s largest home insurance providers by market share, State Farm, Allstate and Farmers have either stopped accepting new home insurance policies. Together, these three insurers wrote nearly 22 percent of all home insurance policies in California, and their departure from the state signals an unstable insurance landscape.
  • Difficulties finding a policy: Wildfires are among the most devastating and expensive home insurance claims. In 2022, the National Interagency Coordination Center estimated that California wildfires did $380 million in damage. With that in mind, USAA has tightened its wildfire safety standards to only write policies for homes below a certain risk threshold. While it’s unclear how the new guidelines will affect current policyholders, it certainly doesn’t make it easier for new homeowners to get coverage.
  • Strained FAIR plan: The FAIR plan is supported by California’s private home insurers, and if too many homes are on the plan, it could take just one bad wildfire season to wreak havoc. The potential payout required from private insurers in the event of widespread wildfire losses could put them at risk for financial solvency and incentivize them to limit the number of new home insurance policies.
  • Natural disasters: California’s natural beauty comes at a steep price. While there’s plenty to enjoy about the great outdoors here, earthquakes, landslides, floods and wildfires pose major threats to homeowners across the state. When shopping for homeowners insurance, California property owners will likely need to consider endorsements or additional policies to be financially protected from Mother Nature’s wrath.

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Recent news in the California homeowners insurance market

Due to the increased frequency and devastation of wildfires in California, some insurance providers are limiting the number of new home policies they accept, while others are declining to write any new home coverage in the state. When carriers back out of a state, it likely has implications for all homeowners, so Bankrate's insurance editorial team is closely monitoring this rapidly evolving situation. We will revise Bankrate articles as circumstances change so you have the latest and most accurate information to help make sound insurance decisions. Significant recent changes in the California home insurance market include:

  • On Nov. 2, 2022: Allstate quietly paused writing new homeowners and condominium insurance policies in California. California's fourth biggest home insurer cited more frequent wildfire claims and rebuilding costs being too costly to underwrite.
  • As of May 27, 2023: State Farm stopped accepting new property and casualty applications for homeowners, condominium and commercial policies — new auto insurance policies are still being issued. State Farm cited high reinsurance and rebuild costs in its reason behind the decision, as well as wildfire concerns.
  • July 7, 2023: Farmers announced that it will limit new home insurance policies in California to “a level consistent with the volume [it] projected to write each month before recent market changes.” Similar to Allstate and State Farm, Farmers credited catastrophic weather events, rising rebuild costs and inflation for the coverage limit.
  • July 21, 2023: Smaller insurers AmGUARD and Falls Lake filed withdrawals with the California state insurance regulator. Unlike Farmers, State Farm and Allstate, these two insurers intend to drop policyholders at their renewal dates.
  • Aug. 2, 2023: Safeco announced its plans to cancel home insurance policies for homeowners in San Francisco in the Bay Area beginning October 2023.
  • Aug. 30, 2023: USAA publicized its plan to limit new California home insurance coverage in March 2024. The insurer plans to raise its wildfire safety standards and only insure homes that pose a lower risk. For now, it is unclear how this decision will affect active USAA policies.
  • Sept. 21, 2023: California Governor Gavin Newsom issued an executive order calling for “prompt regulatory action” to “improve the efficiency, speed and transparency of the [home insurance] rate approval process.” The order is expected to grant insurers permission to adjust rates that more accurately reflect California’s wildfire risk. While this likely means higher rates for homeowners, the order states that insurers will only be able to do so if they agree to write more policies in high-risk fire areas. New regulations are not expected to be drafted until December 2024.

There are still more than 100 available home insurers in California. However, homeowners should be aware of this shift in availability. If you cannot secure insurance for your home, you may want to consider the California Fair Plan, which provides coverage for homes considered high-risk. As of 2021, the FAIR Plain insured 268,231 policies.

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Written by
Natalie Todoroff
Writer, Insurance

Natalie Todoroff is an insurance writer for Bankrate, prior to which she wrote for a popular insurance comparison shopping app. After graduating with a B.A. in English, she initially pursued a career in book publishing. Now, she’s focused switching gears from professional reader to professional writer.

Edited by Editor, Insurance
Reviewed by Director of corporate communications, Insurance Information Institute