Best homeowners insurance in Los Angeles of 2021

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The high cost of real estate in Los Angeles places home ownership out of reach for many people. In fact, fewer than 40% of Los Angelenos own their home. Additionally, in 2018, California suffered more than $1.5 billion in losses due to fires. Catastrophic losses such as these have significantly increased homeowners insurance rates for many Los Angeles homeowners.

Best home insurance companies in Los Angeles

We collected information on some of the best Los Angeles homeowners insurance options by looking at customer satisfaction data, various options offered by the carrier, overall costs as determined by average 2021 rate data from Quadrant Information Services and J.D. Power’s annual survey of the home insurance market.

Home insurance company Average annual premium for $250K dwelling J.D. Power customer satisfaction score
AAA $750 Not rated
Allstate $2,248 829/1,000
State Farm $810 829/1,000
Travelers $787 803/1,000
USAA $746 889/1,000

AAA

AAA is best known for its roadside services and auto coverage, but it also offers home insurance that some people find to be a great fit for their needs. AAA generally offers excellent pricing and notable discounts for eligible policyholders.

Allstate

Allstate has a number of coverage options that can be added to a homeowners policy, including water backup coverage, business property and HostAdvantage for people who list their homes with services like AirBnB. Though Allstate is not the cheapest insurance carrier on average, rates can vary significantly based on a variety of factors including where you live and the replacement cost of your home.

State Farm

State Farm has well-rounded coverage and several discounts that people can use to save money on premiums. State Farm prices are competitive with similar carriers in price, discounts and coverage options.

Travelers

Travelers Homeowners Insurance has been rated a 93.60 out of 100 by This Old House. Reviews highlight excellent metrics including overage, availability and customer service. Prices are competitive in the industry.

USAA

USAA is a well respected company with a solid client base. Serving military families since its inception, USAA is customer friendly and focused. Premiums are typically competitive, and USAA offers many other non-insurance benefits to its members.

Average homeowners insurance cost in Los Angeles

The average annual home insurance premium in Los Angeles is $1,240, which is relatively low considering that the median home value in Los Angeles is $752,508. In fact, the average homeowners insurance premium in Los Angeles is only slightly higher than the average annual homeowners insurance premium in the entire state of California – $1,101.

The average annual California homeowners insurance premium also compares favorably with the annual national average of $1,211, and California ranks in the lower half of all states for average homeowner insurance premiums. Other states which experience higher than average natural disasters throughout a given year have much higher average annual rates.

Neighboring states to the north with similar experiences with serious forest fires have lower annual average premiums than California. In Oregon, the average annual homeowners insurance premium is $776. In Washington state, the average is $975. This is not surprising however when one considers the significant difference in home values between California and its two neighbors to the north.

Overall, both California and Los Angeles in particular compare extremely well with the rest of the country in the cost one will incur in purchasing homeowners insurance.

Home insurance considerations in Los Angeles

The cost of homeowners insurance will vary considerably depending upon specific characteristics of the area where one’s home is located. This includes the natural disasters which regularly occur in different regions.

Los Angeles common causes of loss

In recent years, a rash of fires and the risk of earthquake has had a significant impact on the price of Los Angeles homeowners insurance:

  • In 2017, major insurance companies wrote $7.8 billion worth of California homeowners policies but suffered a 201.17% loss rate, according to the California Department of Insurance.
  • In 2018, companies wrote $8.3 billion worth of policies and had a 170.08% loss rate.
  • According to an August 2019 report in The Los Angeles Times, some California homeowners have incurred home insurance rate increases of over 420%.
  • According to a CDI report, 10% of homeowners in affected areas received non-renewal notices from their insurance companies between 2015 and 2017.
  • According to the California Earthquake Authority, the Golden State has more than 500 active faults. Based on III statistics, the 2010 Baja California earthquake caused $100 million in losses.

Californian has made accommodations to assist homeowners secure coverage in the face of these disasters. To help protect California homeowners, the California Earthquake Authority offers dwelling home insurance that covers earthquake damage. Qualified Los Angeles homeowners who cannot find a private insurance company willing to cover their houses can purchase home insurance through the California FAIR Plan. The FAIR program offers fire insurance policies that cover damage caused by fire, internal explosions, lightning and smoke.

Home insurance coverage options in Los Angeles

Typically, homeowners can choose several types of coverages that specifically address anticipated causes of loss to protect their home and its contents. In California and Los Angeles, with its particular natural disaster challenges, Homeowners coverages can include:

  • Dwelling insurance: This covers damage to your home and attached structures such as a garage.
  • Earthquake insurance: This type of insurance covers damage to your home caused by an earthquake. Most dwelling policies do not cover earthquake damage though it often is available as supplemental coverage.
  • Loss of use insurance: This insurance helps pay your living expenses if a covered calamity, such as storm damage, renders your home uninhabitable.
  • Personal property insurance: Personal property insurance covers the contents of your home, including clothing, electronics and furniture.

Frequently asked questions

What is the cheapest homeowners insurance in Los Angeles?

Insurance rates can vary widely according to location and your personal factor. To find the cheapest for you with the coverage you need, get several quotes.

How do I get homeowners insurance in Los Angeles?

Many major homeowners insurance companies write policies for Los Angeles properties. You can also purchase home insurance through the California Earthquake Authority.

Can insurance companies raise my Los Angeles homeowners insurance rate following a natural disaster?

Yes. Due to recent fires, insurance companies have imposed substantial rate increases on policyholders in affected areas. This practice is not unique to California.

Does dwelling insurance cover earthquake damage?

Most dwelling policies do not pay for earthquake damage. However, many insurance companies offer separate earthquake policies, and the California Earthquake Authority sells dwelling insurance policies that cover earthquake losses.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 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 may be different.
Rates are determined based on 2021 Quadrant Information Services data.