With its sunny climate and pristine beaches, San Diego is one California’s most desirable places to live. But the geographical positioning of the city makes it vulnerable to natural disasters like earthquakes, wildfires and landslides. If you are part of the 53.3 percent of homeowners here, having proper insurance coverage could be an integral part of your financial plan.
A standard home insurance policy with $250,000 in dwelling coverage costs around $926 per year in San Diego, lower than the national annual average of $1,312. Although not required by law, home insurance is often a necessity if you have a mortgage or home loan. If you are looking for the best cheap homeowners insurance in San Diego, Bankrate has done research to help make your insurance journey easier.
Best cheap home insurance companies San Diego
Bankrate’s insurance editorial team reviewed companies based on several factors, like average premiums obtained from Quadrant Information Services, third-party ratings, available coverages and discounts offered. When shopping for home insurance, San Diego residents may want to consider the following companies:
|Home insurance company||Average annual premium for $250K dwelling||J.D. Power score|
|USAA*||$516||889 / 1,000|
|Travelers||$608||803 / 1,000|
|Progressive||$641||797 / 1,000|
|Nationwide||$690||808 / 1,000|
Although only available to military members and their immediate families, USAA home insurance is one of the cheapest options in San Diego. The company also consistently receives high scores from J.D. Power, although it is not eligible for official ranking. When it comes to coverages, USAA offers basic options and a few endorsements, like earthquake coverage and home sharing coverage.
The company does not offer many discounts, but since its average premium is so low, discounts may not be necessary to control your price. You can, however, save money for insuring multiple policies, being claims free and having protective devices.
Mercury has some of the most affordable average home insurance rates in San Diego. Although Mercury was not rated by J.D. Power, the company receives a 0.00 complaint index score for its homeowners product from the National Association of Insurance Commissioners (NAIC), meaning that few or no complaints were filed in 2020.
Mercury has a range of additional options such as home systems protection, service line coverage and identity management services. You might be able to save on your policy by bundling policies, living in a gated community, buying a newly built house and having safety devices on the property.
If you are looking for a highly customizable home insurance policy, you might want to get a quote from Travelers. The company offers a long list of optional features, including water backup, special personal property coverage, additional replacement cost coverage, contents replacement cost and identity theft protection.
Although Traveler’s average premium is quite a bit lower than the city’s average, there are still plenty of ways you might be able to save. Discounts include green home, loss-free, multi-policy, protective device and new homebuyer.
Progressive, whose home insurance policies are underwritten by American Strategic Insurance (ASI) offers customizable coverage to help you find a policy that fits your needs. One of the company’s most unique features is its Home Quote Explorer tool, which lets you compare home insurance quotes from several providers, all from Progressive’s website.
If you are searching for a long list of discounts, Progressive delivers. You may be able to save by bundling home and auto policies, having safety devices, signing up for paperless billing and more.
Nationwide’s average premium is the highest on our list, but still much lower than the city’s average. The company offers several helpful endorsements, including earthquake coverage, identity theft protection and valuable items coverage.
You might be able to save on your annual premium with discounts for safety devices, upgraded roofing, prior insurance, policy bundling and being claims-free for a number of years.
Home insurance coverage options in San Diego
Home insurance may not be legally required, but is often a necessity when you have a loan on your property. It can also give you a sense of financial security and peace of mind. A basic home insurance policy provides some financial protection, but you may consider adding the following endorsements to your policy for added coverage:
- Flood insurance: Standard policies do not cover damages caused by floods. Some private carriers offer separate flood insurance policies. You could also purchase flood insurance through the National Flood Insurance Program.
- Earthquake insurance: Similar to flood insurance, earthquake damage is not typically covered on a home policy, but you may be able to add it by endorsement. The California Earthquake Authority also offers coverage.
- Water and sewer backup: Damage caused by water backing up in a sewer or drain line is not usually covered by a standard home insurance policy. Adding water and sewer backup coverage to your policy could help protect you from costly repairs.
Every home insurance company offers a different suite of coverages. If you are unsure what coverages or how much coverage you need, talking to an insurance professional can help.
Home insurance discounts in San Diego
To offset the cost of home insurance, most companies offer some discounts to eligible customers. By taking advantage of discounts, you could lower your insurance premium. Discounts vary from one insurer to another, but some of the most common ones include:
- Claims-free: If you have not filed a claim in several years, you may qualify for a discount.
- Safety devices: Having anti-theft systems, smoke alarms, sprinklers, a fire extinguisher or an alert system in your home could lower your premium.
- Paid-in-full: If you pay your policy in full, you might get a discount. This option is not typically available if your home insurance premium is paid from your mortgage escrow account.
- Policy bundling: If you purchase several types of insurance from the same carrier, you could save on each policy.
You can often research a company’s discounts online, but since every company has different qualifications, talking to a representative is often the best way to see what discounts you qualify for.
Frequently asked questions
What is the best home insurance company?
Because insurance is personal, what suits you may not suit others and vice versa. The best home insurance company will vary depending on your needs. You may want to look for a company that offers competitive rates, unique coverage options and ample discounts, has excellent third-party ratings and high overall customer satisfaction.
How much does home insurance in San Diego cost?
A standard home insurance policy in San Diego costs an average of $962 per year, lower than both the national annual average of $1,312 and California’s annual average of $1,014. Your premium will depend on your specific rating factors, like your claims history, the value of your home and what coverages you choose.
How much home insurance do I need in San Diego?
Home insurance is not a legal requirement, but your mortgage lender will likely require you to be insured. When deciding how much coverage to purchase, you may want to consider your home’s rebuilding cost, what kind of personal property you have and if you have any speciality items that you need coverage for. Considering your liability exposures, like trampolines or pools, is also important. A licensed insurance agent can help you decide how much coverage is right for you.
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 may be different.