Owning a home in California can be a major investment, one that is important to protect through homeowners insurance. The average cost for a homeowners insurance policy in the Golden State is $1,127 per year for $250,000 in dwelling coverage, according to Bankrate’s 2022 analysis of quoted annual premiums. Though California is known for a high cost of living, this is lower than the national average based on the same amount of dwelling coverage.
To get started on your homeowners insurance search, Bankrate’s research revealed that the best homeowners insurance companies in California include USAA, State Farm CSAA, Allstate, and The Hartford. From there, we assessed average premiums, coverage offerings, discounts, policy features and third party scores to help you find the right insurance company for your needs.

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 narrow down the list, we calculated a Bankrate Score to analyze each company in a number of categories. These include average annual premiums, available coverage, discounts and policy features based on premium data from Quadrant Information Services. 2021 J.D. Power customer satisfaction ratings are also included to indicate how satisfied customers are with their homeowners insurance company. The higher a company ranked in each category, the higher its overall Bankrate Score, with the highest score being 5 out of 5.

Home insurance company Bankrate Score Average annual premium for $250K dwelling coverage J.D. Power score
USAA* 4.8 $672 882/1,000
State Farm 4.7 $842 835/1,000
CSAA Insurance Group 4.2 $931 828/1,000
Allstate 3.9 $606 829/1,000
The Hartford 3.5 $1,725 798/1,000

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

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

USAA

USAA earned 882 out of 1,000 points with J.D. Power for overall satisfaction, making it one of the top providers in the country that writes policies in California. However, because it is only available for members of the military and their immediate families, it is not eligible for official rankings by J.D. Power. For those that are eligible to become USAA members, it is often one of the most affordable providers. It also has unique options that are beneficial to military members, like coverage for uniforms damaged in a covered loss.

Learn more: USAA Insurance review

State Farm

State Farm earned 835 out of 1,000 points from J.D. Power for overall satisfaction and in several other categories, including policy offerings, billing and interaction. State Farm is the largest personal auto insurance carrier in the U.S., so drivers looking for an established company with a local agency presence might enjoy this carrier. In addition to the standard coverage types like dwelling and personal property coverage, State Farm also offers pet insurance through Trupanion. Compared to other carriers, State Farm may have less discount opportunities when it comes to home insurance.

Learn more: State Farm Insurance review

CSAA Insurance Group

CSAA Insurance Group is an AAA insurer. The insurance company offers affordable premiums in California compared to the state average, with an average annual premium of $931 for a $250K dwelling. The insurer rated above average in customer satisfaction, with a J.D. Power score of 828 out of 1,000 points. CSAA Insurance Group was given an A (Excellent) rating from AM Best. However, out of the other companies on this list, CSAA’s average premiums for homeowners insurance are the second most expensive.

Learn more: AAA Insurance review

Allstate

Allstate offers a broad list of coverage options for homeowners in California to choose from. From the standard coverage options like dwelling coverage, liability protection, personal property and guest medical protection, to the not-so-common options like flood insurance coverage and yard and garden coverage, Allstate offers plenty of coverage types to meet your needs. While Allstate performed well in a number of categories, its score in the National Association of Insurance Commissioners (NAIC) Complaint Index indicated that it received more complaints than the expected baseline.

Learn more: Allstate Insurance review

The Hartford

The Hartford is an AARP homeowners insurance program. Homeowners in California who opt for The Hartford might enjoy selecting coverage that fit their homeowners insurance policy needs. The drawback is that The Hartford is only available to AARP members. However, the AARP membership enables you to receive more benefits and savings on homeowners insurance.

Learn more: The Hartford Insurance review

Additional companies to consider

Kin Insurance

Kin Insurance is an insurtech startup founded in 2016 and headquartered in Chicago. Its mission is to offer affordable coverage to homeowners and reports that customers save an average of $500 when switching from another home insurance carrier.

With Kin’s HO-3 policies, California homeowners will receive coverage on belongings, home, liability, medical payments, and more. Additionally, standard coverage includes wildfire insurance for damage caused to your home’s structures, trees and plants and expenses for fire department services.

Learn more: Kin Insurance review

How much is homeowners insurance in California?

The average cost of homeowners insurance in California for $250,000 in dwelling coverage is $1,127 per year. Although this is below the national average cost of homeowners insurance of $1,393 per year, the insurance premium for every home may be higher or lower than both of these averages depending on size, age and location of the home, coverage options and other factors.

Home insurance in California

When purchasing home insurance in California, it helps to know more than just the average cost of homeowners insurance. Given the hazards posed by natural disasters and other geographical risks, homeowners in California have several unique considerations when it comes to ensuring their home insurance adequately protects what could be their largest asset.

Common causes of loss in California

California is a large state and every region faces different risks, whether from natural or man-made disasters. However, some causes of loss are common throughout the state. These include:

  • Fire and lightning: Fire is a major concern for California residents, even for those who don’t live in wildfire zones. Lightning storms can quickly escalate to fire, as seen in the August Complex fire that burned over 1 million acres in August 2020, according to Cal Fire. Ensuring that your dwelling coverage is enough to cover the reconstruction costs of your home in the event of a fire loss is crucial to a personalized homeowners insurance policy.
  • Earthquake: Many active fault lines run through California, but earthquake coverage is excluded from most standard homeowners policies. Instead, earthquake insurance in California can be purchased separately through the California Earthquake Authority and various other private insurers. Because of this, the risk of earthquakes does not impact the rates of homeowners insurance policies.
  • Theft: In 2020 alone, California’s Department of Justice recorded 145,377 instances of burglary and 527,748 instances of larceny. Crime rates in each ZIP code affect the homeowners insurance rates of each neighborhood, another reason why individual homeowners quotes may vary from the state and national average. To protect your belongings, it can also help to review your personal property coverage in your homeowners policy to ensure it is enough to protect your belongings.

Home insurance coverage options in California

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

  • Flood insurance: California is considered a flood-prone state due to its valleys and coastal land areas. However, most homeowners insurance policies will not include damage caused by floods. Instead, flood insurance can be purchased through the National Flood Insurance Program (NFIP) and through some private carriers.
  • Fire insurance: Although coverage for some fires are 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 want to consider purchasing a separate policy like the FAIR Plan. California FAIR Plan (CFP), based in Los Angeles, 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 amount on your homeowners policy. Some solutions can be to increase your personal property amount or purchase a scheduled personal property endorsement as an additional coverage. Because each insurance company may have different guidelines in how they approach expensive belongings, it can help to speak to an insurance agent to see what the best solution is for you.

Frequently asked questions

What is the cheapest homeowners insurance in California?

There are several large providers in California offering cheaper homeowners insurance policies (compared to the state average), which include all of the standard protections such as coverage for dwellings, personal property, other structures and liability. To find the most affordable policy for your situation, compare quotes from multiple providers based on the coverage you need and see how adding discounts, like bundling, will affect your premium.

How do I get homeowners insurance in California?

Many insurance companies offer online quotes, but you can also call a company or visit a local agency. You will need some basic information like your address and date of birth, along with information about your home, like how old the roof is and the details about any custom features. Once you have a quote and would like to buy a policy, a company representative will walk you through the application process.

What is the California FAIR Plan?

The California FAIR Plan is a last resort solution for homeowners who have difficulty obtaining home insurance from traditional carriers. Their home could be denied coverage due to factors like severe wildfire risk, condition of the home, occupancy status or other reasons. Under the Fair Plan, California homeowners can obtain very limited coverage for named perils only, although more options may be added on for an additional charge.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2022 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. California city data reflect 2021 rates. 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.

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