The cost of owning a home in San Jose, California is extremely high, which is likely why San Jose’s homeownership rate of 55.3% is much lower than the national average rate of 63.9%. However, homeowners in San Jose get a break when it comes to insurance. On average, home insurance in San Jose costs $832 per year for a policy with $250K in dwelling coverage.
Although the average cost of home insurance in San Jose is lower than the United States national average rate, there are ways that San Jose homeowners might get an ever lower premium. We found five companies that offer the best cheap home insurance in San Jose based on price, coverage options, discounts and more.
Best cheap home insurance companies San Jose
The table below includes the most popular home insurance carriers in San Jose with the cheapest rates. These companies were chosen using criteria including the carrier’s average annual premium, discounts offered, coverage options available, financial strength and third-party customer satisfaction scores.
|Home insurance company||Average annual premium for $250K liability||J.D. Power customer satisfaction score|
Mercury is a Los Angeles-based insurance company, so it understands the unique risks California homeowners face. Mercury offers some of the cheapest homeowners insurance in San Jose, with an average annual premium of $426 for a policy with $250K in dwelling coverage.
The company offers standard coverage with limited endorsements, but there are multiple discounts available, including savings for living in a gated community, homes built with fire-resistant materials, bundling your auto and home insurance policy and insuring a new home.
Travelers is another home insurance company that stands out for its below average rates. The average San Jose home insurance policy from Travelers costs $519 per year for $250K in dwelling insurance, which is over $300 cheaper than the average rate in the city.
We like that Travelers offers a variety of endorsements for added protection, including contents replacement cost coverage, green home coverage, a personal articles floater, water backup/sump pump coverage and a few others. The company also offers a handful of discounts that can help you get a lower rate, including one for LEED certified homes.
USAA is known as the insurance company for military personnel. You must be an active duty or retired service member in order to purchase home insurance from USAA. If you qualify, you will get access to USAA’s exceptional customer service, affordable rates and comprehensive coverage.
USAA is one of the only home insurance companies that includes earthquake coverage for free with every policy, which is ideal for San Jose homeowners. Additionally, military uniforms are automatically covered for active duty and deployed members. USAA offers several discounts, including savings for policy bundling, being claims-free and having a security system in your home.
Progressive is a solid home insurance company across the board. In San Jose, the company offers below average rates, with an average annual premium of $534 for $250K in dwelling insurance, plus a variety of discounts. You can even compare Progressive’s rates to competitor prices using the online HomeQuote Explorer tool.
With Progressive, San Jose homeowners can lower their rate by qualifying for discounts, including getting a quote in advance, installing a security system, bundling policies, insuring a new home, paying in full and enrolling in paperless statements. The coverage is fairly basic, but you can add water backup and personal injury coverage to your policy for an extra cost.
State Farm is the largest home insurance provider in the country, with just under 17% of the home insurance market share. The company is highly rated by J.D. Power for overall customer satisfaction, and it offers affordable policies for San Jose homeowners, with an average annual premium of $536 for a policy with $250K in dwelling insurance.
Home insurance coverage from State Farm is limited, and the company does not provide many options for customizing your policy. However, there are some good potential discounts available, including savings for impact-resistant roofs, home security systems and bundling your home and auto insurance policy, which can save you as much as $965 per year.
San Jose home insurance options
Homeowners insurance in San Jose is not legally required, unless your mortgage lender requires you to have it. Even without a home loan, having home insurance is generally a smart investment. Here are some home insurance coverages that San Jose homeowners may consider getting:
- Earthquake insurance: Standard home insurance policies almost never include coverage for earthquake damage. Because San Jose is located on the San Andreas fault line, homeowners should strongly consider earthquake insurance to protect their home and personal items in the event of a major quake. You should have at least enough earthquake insurance to cover the cost of rebuilding your home.
- Flood insurance: Similar to earthquakes, most home insurance policies exclude coverage for flood damage. San Jose does experience flooding, so investing in a flood insurance policy can provide added peace of mind. You should have enough flood insurance to cover your home’s replacement value, and the cost of your personal items.
- Dwelling extended replacement cost coverage: Dwelling extended replacement cost coverage is an optional policy that is offered by some home insurance companies. If your home is completely destroyed by a covered event, this coverage will pay to rebuild your home back to its original condition, even if the cost is greater than your dwelling insurance policy limit.
Home insurance discounts in San Jose
Most home insurance companies in San Jose offer discounts that can help homeowners get a lower rate. The more discounts you can qualify for, the more money you can save. Here are some popular home insurance discounts available in San Jose:
- Pay in full discount: Homeowners who pay their annual premium upfront and in full can usually qualify for a discount on their policy.
- Security system discount: If your home is equipped with a security system, you might save money on your policy due to the decreased risk of theft.
- Claims-free discount: Homeowners who have no insurance claims on their record within the last several years are often able to save money.
- Policy bundling discount: Many insurance companies offer a discount to policyholders who insure their home and vehicle with the same provider.
Frequently asked questions
What is the best home insurance company?
The best home insurance company is different for everyone. It depends on factors like where you live, how much coverage you need, what type of coverage you need, what discounts you qualify for and more. Homeowners should shop around and get multiple quotes to see which provider can offer the best rate for the coverage they need.
How much does home insurance in San Jose cost?
The average cost of home insurance in San Jose is $832 per year for a policy with $250K in dwelling coverage. However, home insurance rates are personalized, and you might pay more or less than the citywide average rate based on your age, credit score and claims history.
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 2021 Quadrant Information Services data.