Best homeowners insurance in California for 2023

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 Allstate 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, customer satisfaction ratings from the J.D. Power 2022 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:

*Not officially ranked by J.D. Power due to eligibility restrictions

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.

The top 5 home insurance companies in California

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.

How much is home insurance in California?

The average cost of homeowners insurance in California for $250,000 in dwelling coverage is $1,225per 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.

California’s average premium may be lower than the national average due to a lower risk of certain types of weather damage in many parts of the state. However, the state’s risk of wildfire damage is quite high, so be sure to discuss your risk in conversations with your insurance agent.

The cheapest cities for homeowners insurance in California

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:

• Carnelian Bay: $1,115 — 22 percent below the national average
• Brookdale: $1,117 — 22 percent below the national average
• Stanton: $1,117 — 22 percent below the national average
• Applegate: $1,118 — 22 percent below the national average
• Escondido: $1,118 — 22 percent below the national average

The most expensive cities for homeowners insurance in California

On the opposite end of the spectrum are areas where the cost of living is higher than the rest of the state, where 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:

• Anza: $1,431 — 0 percent below the national average
• Lake Arrowhead: $1,429 — 0 percent below the national average
• Morongo Valley: $1,428 — 0 percent below the national average
• Sugarloaf: $1,424 — 0 percent below the national average
• Pinon Hills: $1,421 — 0 percent below the national average

How to find the best cheap home insurance in California

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 a 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.

Common 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:

Home insurance coverage options 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 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.
• 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 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.

Frequently asked questions