Compared to the national average cost of homeowners insurance at $1,312, Modesto homeowners pay an average of $885 annually for coverage on a $250,000 dwelling. Still, it is important for residents to weigh their options to ensure they’re getting the best cheap homeowners insurance available in the region.
Bankrate identified the top five best cheap homeowners insurance providers in Modesto based on affordability, coverage options, available discounts and average customer satisfaction index rating. Using this breakdown, homeowners can find the most affordable coverage from a provider that is best able to meet their unique coverage needs.
Best Cheap Home Insurance Companies in Modesto
The table below outlines the best cheap home insurance providers in Modesto based on their average annual premium for a $250,000 dwelling and customer satisfaction index rating. We discuss each company’s coverage options and available discounts in further detail within the sections below:
|Home Insurance Company||Average Annual Premium for $250k dwelling coverage||J.D. Power score|
*USAA is not eligible for official ranking with J.D. Power due to eligibility restrictions
Mercury Insurance Group policyholders can expect to pay just $523 annually for homeowners insurance coverage on a $250,000 dwelling in Modesto. In addition to their standard dwelling protection coverage, Mercury offers add-on coverages for personal property, extended replacement cost, additional living expenses, personal liability protection, guest medical protection, identity theft protection and additional personal property coverage for special valuables.
Policyholders can save on their home insurance premium by bundling with their auto insurance, having protective devices installed, having homes constructed from fire-resistant materials, having a newer home or living in a gated community. Unfortunately, J.D. Power does not have a customer satisfaction rating for Mercury.
The most affordable homeowners insurance provider in Modesto is Progressive at just $519 annually for coverage on a $250,000 dwelling. Standard coverages offered by the company include dwelling coverage, other structures, personal possessions, loss-of-use, personal liability and medical payments. However, the provider also offers add-on coverages, including water back-up and personal injury.
While Progressive is the cheapest provider on the list, that does not mean homeowners cannot save even more through the company’s many available discounts. Policyholders can save by bundling with their auto insurance, getting a quote in advance, having certain safety devices installed in their home, purchasing a new home, signing up for e-documents, having a newer home or paying for their policies in full.
For standard homeowners insurance coverage that is affordable, State Farm is a good option for those living in Modesto. While the provider does not offer many additional coverage options aside from personal and medical liability, they do offer comprehensive coverage with their standard dwelling policies. Through this standard policy, homeowners will have protection for their jewelry, collectibles, pictures, cameras, musical instruments, sports equipment, appliances, furniture, clothing, electronics, lawn decorations, swing sets and tools. Items are covered for acts of nature, arson, theft and vandalism. One differentiator for this provider is that State Farm’s base policy covers damage from things like accidental discharge of water from your plumbing system, tearing or bulging of HVAC equipment and artificially generated electrical currents.
Similar to USAA, State Farm only offers three main discount options to policyholders: multi-policy bundles, home alert protection systems and roofing upgrades.
Despite its spot as the most expensive homeowners insurance provider on this list, the average cost of a Travelers home insurance policy still beats the regional average by $215. Travelers offers many coverage options ranging from the basic (dwelling, other structures, personal property, loss-of-use, personal liability) to the robust (special personal property, contents replacement cost, additional replacement cost protection, jewelry and valuables, personal articles, water backup and sump pump discharge, identity fraud, green home). Especially if you have a lot of valuables to insure, Travelers has many coverage options to help meet your needs.
Travelers also offers its customers many ways to save. Policyholders can receive discounts for having multiple policies, buying a home within the past year, having a claims-free record, having eligible protective devices installed and having a certified “green home” by the Leadership Energy and Environmental Design organization.
If you live in Modesto and happen to be an active military member, veteran or spouse of an active-duty servicemember, USAA homeowners insurance is another affordable option. The provider offers standard dwelling coverage in addition to loss-of-use, personal belongings, personal liability, home sharing, other structures and earthquake coverage options. Be aware that adding optional coverages will increase your premium amount (as with all of the providers on this list).
USAA only offers three main discount programs: bundling with an auto policy, having zero claims for five or more years and having ADT home security systems installed. The ADT program, however, is less of a discount and more of a partnership between the two entities, with USAA crediting eligible policyholders with the cost of security system installation. Although USAA is ineligible to receive a formal ranking from J.D. Power due to the fact that they only serve military members and their families, the company boasts the highest customer satisfaction rating at 905/1000.
Home Insurance Coverage Options in Modesto
While homeowners insurance is not a legal requirement, many mortgage lenders will require applicants to obtain a policy in order to receive loan approval. Standard home insurance policies typically do not cover things like earthquakes, identity theft or plumbing system failures, so it is important to ensure you have the proper add-on coverages in place to protect you when the unexpected occurs. The following are just some of the additional coverage options that Modesto residents should consider when shopping for a home insurance provider:
- Replacement Cost Coverage: Robberies, burglaries, and thefts occur at a much higher rate in Modesto when compared to the rest of California. With such a high instance of property crime in the region, replacement cost coverage can help cover the cost of replacing any items that are stolen in the event your home is robbed.
- Earthquake Coverage: Modesto has a high earthquake risk, having experienced nearly 80 earthquakes in the past 90 years. Since most homeowners insurance providers do not cover damage caused by earthquakes in a standard policy, it is highly recommended that Modesto residents seek out carriers that have this as an add-on option.
- Water Backup Coverage: One in three Modesto homes was built 60 years ago or longer, meaning your plumbing system could be on its last legs if it has not been upgraded in recent history. Unless you have a water backup policy in place, you will be stuck paying out-of-pocket for any water damage incurred as a result of plumbing system failures.
Home Insurance Discounts in Modesto
Modesto homeowners might not pay as much for coverage as other regions of the United States, but that does not mean they do not need to take advantage of available discounts where they can get them. Many insurance carriers offer a broad range of discounts to policyholders, including the following:
- Multi-Policy Discount: By bundling your home insurance policy with an auto insurance policy from the same provider, you may be able to save on your premium.
- Home Security Discount: Many insurance carriers offer discounts for homeowners who have qualifying home security systems installed.
- Claims-Free Discount: Policyholders who have made zero claims in the past five years may be eligible for a discount depending on their provider.
- Home Age Discount: Newer homes are less risky to insure, which is why many providers offer special discounts for homes that fall within a certain age group.
Those looking to get the most savings from available discounts would benefit most from a multi-policy discount. According to Travelers’ website, policyholders who bundle at least three policies save an average of 12% on their insurance expenses.
Frequently Asked Questions
What is the best home insurance company?
The best home insurance company in Modesto depends on your specific coverage needs, budget and desired customer service experience. In order to ensure you have the most affordable coverage from the best provider, we recommend shopping around and doing thorough research before making a final decision.
How much does home insurance in Modesto cost?
The average cost of homeowners insurance in Modesto is $885 annually for coverage on a $250,000 dwelling. However, homeowners can save even more on their premiums by researching the best cheap home insurance providers in their region.
How much home insurance do I need in Modesto?
There is no set amount of home insurance that is legally required. However, your mortgage lender may specify the policy limits you need to hold in order to be approved for a loan. In most cases, insurance experts recommend obtaining a policy that is able to cover the full cost of replacing your home in the event it becomes unlivable. You can identify what this number should be by taking inventory of your home and all of your personal belongings.
Bankrate utilizes Quadrant Information Services to analyze rates for all ZIP codes and homeriers 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 2020 Quadrant Information Services data.