Los Angeles residents pay an average of $1,240 per year for homeowners insurance for a $250,000 dwelling coverage policy — over $200 more than the California home insurance average. In part, these high home insurance premiums are due to Los Angeles penchant for natural disasters such as earthquakes, wildfires and mudslides. With this added risk, L.A. homeowners shell out more than the state average for their coverage.
Luckily, four of the five best homeowners insurance companies in Los Angeles — AAA, State Farm, Travelers and USAA — offer average premiums hundreds of dollars cheaper than the Los Angeles average. While Allstate’s average premium is around $1,000 higher than the L.A. average, the company offers fantastic customer service that many homeowners appreciate. Bankrate’s insurance editorial team analyzed third-party customer satisfaction and financial scores, the latest premium data and available policy options to find the best home insurance companies in the area.
Best cheap home insurance companies in Los Angeles
To find the best home insurance for your needs, we collected third-party financial strength data from entities like AM Best. We also compiled customer satisfaction from J.D. Power so that you can make sure you’re choosing a company that cares for your needs. We collected the latest premium data from Quadrant Information Services so that you can make the best home insurance decision for your wallet.
|Home insurance company||Average annual premium for $250K dwelling coverage||J.D. Power customer satisfaction score|
*Not officially ranked with J.D. Power due to eligibility restrictions
**Allstate only writes homeowners policies in certain areas of Los Angeles
USAA scores the highest on our list for customer satisfaction, although it is not officially eligible for J.D. Power ranking since the company only offers policies to military members, veterans and qualifying family members. In addition to keeping its customers happy, USAA stands out for offering the lowest premiums on our list. USAA offers several homeowners insurance policy types and discounts..
Learn more: USAA Insurance review
AAA stands out for offering the second-cheapest auto insurance premiums on our list and a high J.D. Power customer satisfaction score. When people think of AAA, they often think of roadside assistance and auto insurance policies – but the company also offers competitive home insurance with a wide range of homeowners insurance policy options. However, one con to keep in mind is that you’re required to have an AAA membership to purchase home insurance.
Learn more: AAA Insurance review
Travelers stands out for its low average annual premium, which is hundreds of dollars cheaper than the city average. The company offers a wide range of policy add-ons, including green home coverage and identity fraud coverage. However, note that Travelers ranks poorly relative to other companies in the J.D. Power customer satisfaction study for homeowners insurance.
Learn more: Travelers Insurance Review
State Farm stands out for having an average annual premium that is hundreds of dollars cheaper than the city average. The company ranks well above average in customer satisfaction and received an A++ (Superior) financial strength score from AM Best. However, before choosing State Farm, note that the company offers fewer home insurance discounts than some of its competitors.
Learn more: State Farm Insurance review
Allstate stands out for its above-average J.D. Power customer satisfaction score and its wide range of add-on coverage options for home insurance, such as water backup and identity theft restoration. The company’s HostAdvantage coverage is designed to cover potential damage from the guests for homeowners that home share. One of Allstate’s primary downsides is that its average annual home insurance premium is more than $1,000 higher than the Los Angeles average.
Learn more: Allstate Insurance review
Home insurance coverage options in Los Angeles
Most home insurance companies in Los Angeles offer the standard home coverage options like dwelling coverage, personal property coverage, liability protection and guest medical protection. When shopping for home insurance, you may want to be on the lookout for companies that offer coverage options that can be especially useful for L.A. residents.
These coverage types may include:
- Water backup: If you find yourself dealing with a sewage backup in your home, your primary consideration will likely be making sure everyone is safe. Having water backup insurance frees you from worrying about your finances when you’re dealing with potentially dangerous standing sewage.
- Scheduled personal property: Between TVs, musical instruments and workout gear, the dollar value of the items in your home can add up. Scheduled personal property insurance can reimburse you for covered losses.
- Green improvement reimbursement: If a household appliance is damaged or destroyed by a covered peril, this coverage type could help replace it with a more energy-efficient version.
- Yard and garden: This coverage type covers your lawn and landscaping machinery.
- Flood insurance: The city of Los Angeles has a major flood risk. Flood insurance can help cover damages in the event of a covered loss.
Home insurance discounts in Los Angeles
There are several home insurance discounts that may help you save money on your Los Angeles home insurance policy:
- New home: If you have a newly constructed home or even just purchased a home that is new to you, you could save with a discount.
- Bundle: When you bundle your home insurance with other types of insurance, like auto, using the same provider, you can usually save a considerable amount of money on multiple policies.
- Renovations: If you recently renovated your home, many home insurance companies will reward the reduced claim risk with lower premiums.
- Payment: Many insurance companies extend savings when you pay in full or renew your policy early.
- Roof: If you have a new roof, you could save money with a roofing discount.
- Loyalty: If you have been with an insurance company for several years, you could save money with loyalty discounts.
Before you purchase a new home insurance policy, be sure to check what discounts you can use to save money on your premiums.
Frequently asked questions
What is the best home insurance company?
The best home insurance company depends on the buyer. Some homeowners may prefer top-notch customer service, while others may simply be looking for cheap home insurance in Los Angeles, California. One way to find the best home insurance company for you is to talk with an independent insurance agent about your needs. Once you’ve determined which companies have the right policy options for you, it may be helpful to compare online quotes from multiple top providers.
How much does home insurance in Los Angeles cost?
When shopping for home insurance, Los Angeles, California, residents likely try to find the cheapest home insurance available. The average cost of homeowners insurance in Los Angeles is $1,240 per year for a $250,000 dwelling coverage policy. However, the homeowners insurance providers on our list offer home insurance with premiums between $746 and $2,248, on average.
How much home insurance do I need in Los Angeles?
The amount of home insurance Los Angeles residents need depends on their individual circumstances. Mortgage lenders typically require you to have a specific amount of homeowners insurance. To determine the right amount of homeowners insurance, Los Angeles residents may want to talk with an insurance agent who can help calculate coverage amounts based on the value of their home and property.
Bankrate utilizes Quadrant Information Services to analyze 2022 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.