Best cheap homeowners insurance in Anaheim

1
pixeldigits/Getty Images
Bankrate Logo

Why you can trust Bankrate

While we adhere to strict , this post may contain references to products from our partners. Here's an explanation for . This content is powered by HomeInsurance.com (NPN: 8781838). For more information, please see our

The average home value in Anaheim, California is $575,600. If you own a house in Anaheim, a home insurance policy can provide financial protection for what could be your largest investment.

The average cost of home insurance in Anaheim is $1,033 per year for $250,000 in dwelling coverage. This is in line with the California average of $1,014 per year and quite a bit lower than the national average of $1,312 annually. If you are looking for home insurance, you may want to consider several factors of each insurance company, including average premiums, coverages, discounts and customer satisfaction scores. Having this information might help you feel more confident in your home insurance choices.

Best cheap home insurance companies Anaheim

Anaheim residents have several choices when it comes to home insurance, but finding the best and cheapest coverage can take a bit of research. Using current premium information obtained from Quadrant Information Services, Bankrate’s editorial team analyzed the average premiums of numerous insurance providers. To narrow the list down to the five best companies, we reviewed each company’s customer satisfaction scores from J.D. Power, available coverages and discount options. Based on our research, the best homeowners insurance carriers in Anaheim are:

Home insurance company Average annual premium for $250K dwelling coverage J.D. Power score
Mercury $541 Not rated
USAA* $582 889 / 1,000
Progressive $647 797 / 1,000
State Farm $678 829 / 1,000
Travelers $693 803 / 1,000

*USAA is ineligible for official ranking with J.D. Power due to eligibility restrictions

Mercury

Mercury is headquartered in California and is known for selling affordable car insurance, but the company also provides home insurance with the lowest average premium on our list. A Mercury home insurance policy includes the standard dwelling, personal property, liability and additional living expenses coverages. However, you might also be able to add extended replacement cost, which covers up to 150% of the dwelling limit if you need to rebuild your home.

USAA

USAA consistently receives high scores from J.D. Power, although it is not eligible for official ranking since it only sells insurance to military members, veterans and their immediate families. Along with the standard home coverages you might expect, USAA provides options to purchase coverage for floods and earthquakes, both of which may be a concern in California. Although the company does not offer as many discounts as some providers, its average rates are the second lowest on our list.

Progressive

Progressive currently has nine agents available in Anaheim, which might be appealing if you like to handle your coverage needs face-to-face. If you prefer to research and buy coverage online, Progressive’s HomeQuote Explorer is a unique feature that allows you to get home insurance quotes from several carriers to compare premiums and coverages. If you are looking for a company that offers several discounts, Progressive might be a good choice. You may be able to earn a discount for getting a quote before your old policy expires, bundling your home coverage with your auto policy, having home safety features installed and more.

State Farm

State Farm received above-industry-average customer satisfaction scores from J.D. Power, which may be an attractive feature if you value customer service. A combination of claim-filing ease and speed, a large network of local agents and a full-featured mobile app and website might factor into the high customer ratings. In addition, State Farm’s discounts could make it possible to buy a quality, cheap home insurance policy.

Travelers

Travelers home insurance is a good option for new homeowners who are learning as they go. The Travelers website features a library of resources on how insurance works, including short, helpful videos. Besides the helpful resources, Travelers has an extensive list of optional home insurance coverages. Optional coverages include water backup and green home coverage, which pays for eco-friendly replacements or rebuilding after a covered loss.

Home insurance coverage options in Anaheim

Home insurance is typically not required unless you have a mortgage. However, having home insurance does not mean you have coverage for all scenarios. Floods, earthquakes, mold and sewer backups are often not automatically covered by home insurance policies. Some optional coverages Anaheim homeowners may want to consider are:

  • Flood insurance: Roughly 600 Anaheim properties on over 544 acres are in a floodplain. If you do not have flood insurance, you may be at financial risk if your home is damaged or lost due to flooding. Flood insurance is typically purchased as a separate policy.
  • Earthquake insurance: Standard homeowners policies do not typically include earthquakes as a covered peril. You may be able to add earthquake coverage as an endorsement, but you may also need to purchase a separate policy. The California Earthquake Authority provides coverage and information regarding earthquake insurance.
  • Green rebuilding coverage: Some carriers offer optional coverage that allows you to use green building materials to replace or rebuild your property after a loss.

Since every homeowner is different, talking to a licensed agent could help you determine the most appropriate coverage options for you.

Home insurance discounts in Anaheim

Home insurance in Anaheim costs an average of $1,033 per year. Although that is lower than the average cost of home insurance in the U.S. as a whole, finding ways to save on your premiums could free up money for other expenses. Some discounts that Anaheim residents might be able to take advantage of are:

  • Bundling discounts: Buying homeowners insurance and car insurance from the same carrier could reduce your premiums on both policies.
  • Payment discounts: Setting up automatic monthly payments or paying in full for your home policy may qualify you for a discount. However, if your home insurance is paid from an escrow account within your mortgage, you likely will not qualify for these discounts.
  • Claims-free discounts: Although your home insurance is designed to protect your finances if your home is damaged or destroyed, filing a claim might increase your premiums. If you have avoided filing claims, you might get a discount on your policy.
  • Safety: A home equipped with safety devices such as a security system, deadbolt locks or carbon monoxide and smoke detectors could earn you a discount.

Every company offers different discounts. You can often research discounts on a company’s website, or you could call and talk to a representative to see if you qualify for additional savings opportunities.

Frequently asked questions

What is the best home insurance company in Anaheim?

The best home insurance company will depend on your needs. Although the companies we reviewed are among the best in the area, each homeowner has different insurance needs. Determining what you need from your insurance policy and getting quotes from several companies could help you find coverage that is right for you.

How much home insurance do I need in Anaheim?

Home insurance in Anaheim is not required by law, but your mortgage lender may require it. To determine how much home insurance you need, you may want to speak with a local agent who can help you estimate your home’s rebuilding cost. Although using your home’s value can give you a rough estimate of how much insurance you need, building and replacement costs may be higher or lower than your home’s market value. You should also consider how much personal property and liability coverage you need.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:

  • Coverage A, Dwelling: $250,000
  • Coverage B, Other Structures: $25,000
  • Coverage C, Personal Property: $125,000
  • Coverage D, Loss of Use: $50,000
  • Coverage E, Liability: $300,000
  • Coverage F, Medical Payments: $1,000

The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).

These are sample rates and should be used for comparative purposes only. Your quotes will differ.

Written by
Cynthia Paez Bowman
Personal Finance Contributor
Cynthia Paez Bowman is a finance and business journalist who has been featured in Bankrate, Business Jet Traveler, MSN, CheatSheet.com, Freshome.com and TheSimpleDollar.com. She regularly travels to Africa and the Middle East to consult with women’s NGOs about small business development and works with select startups and women-owned businesses to provide growth and visibility.
Reviewed by
Insurance Writer & Editor