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With a little bit of research, it may be possible to find cheap home insurance in Los Angeles. L.A. residents pay an average of $1,368 per year for homeowners insurance for a $250,000 dwelling coverage policy — roughly $143 more than the California home insurance average. The home insurance landscape in California is currently in flux, and the high home insurance premiums in Los Angeles are likely due to a variety of factors, including higher cost of living, escalating losses from wildfires, rising property replacement costs, higher costs for reinsurance, mudslides, and more. Bankrate’s insurance editorial team examined data from Quadrant Information Services and according to our research, AAA is one of the cheapest options for homeowners insurance in Los Angeles.
Best cheap home insurance companies in Los Angeles
Insurance rates vary between states. USAA and AAA offer some of the best cheap home insurance in Los Angeles, California, based on our analysis of average rate data from Quadrant Information Services. We collected third-party financial strength data from entities like AM Best to find the best home insurance for your needs. We also compiled customer satisfaction scores from J.D. Power so that you can make sure you’re choosing a company that cares for your needs. Bankrate used this data to assign each provider a Bankrate Score, with a maximum score of 5.0, to provide an overall rating that helps you quickly and efficiently compare home insurance companies.
In Los Angeles and across the state, many homeowners may need help finding affordable coverage. State Farm and Allstate recently stopped writing new home insurance policies in the state, and Farmers has limited writing new policies in the state as well. Wildland urban interface (WUI) and destruction from wildfires pose new insurance challenges that are giving home insurance companies pause in the state. When insurance companies leave the state or stop writing new business, the remaining companies may increase rates to account for the added risk of more customers. It also has a habit of creating a domino effect where more and more insurers take cues from the bigger companies and stop offering coverage. If you cannot secure home insurance coverage from traditional insurance companies, you may be eligible for coverage through the California FAIR plan.
|Home insurance company||Bankrate Score||Average annual premium for $250K dwelling coverage||J.D. Power score|
*Not officially ranked with J.D. Power due to eligibility restrictions
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 active-duty military members, veterans and qualifying family members. In addition to keeping its customers happy, USAA stands out for offering some of 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 some of the cheapest auto insurance premiums on our list. 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, earning the lowest scores compared to the other companies on our list.
Learn more: Travelers Insurance review
- June 2, 2023: Allstate announced it is no longer issuing new home, condo and commercial insurance policies due to wildfire risk and increased rebuilding costs.
- May 27, 2023: State Farm stopped accepting new business applications for homeowners, condominium and commercial policies.
- February 2023: Farmers Insurance has canceled over 1,000 home insurance policies in San Diego due to heightened wildfire risk.
Home insurance coverage options in Los Angeles
While standard home insurance policies protect from numerous perils, there are many risks that can only be covered by adding endorsements to your policy. Depending on your home and where it is located, different add-on coverage options can help to protect you against risks that may be present. Whether the common issues are flood plains, sewer backups or something else entirely, there are endorsements and additional insurance policies to help protect your home.
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.
- Earthquake: California experiences seismic activity year-round, and earthquake damage is typically excluded from home insurance policies. Depending on your provider, earthquake insurance can be added as an endorsement or purchased as a separate policy. Most earthquake coverage in California is issued through the California Earthquake Authority.
- Flood insurance: The city of Los Angeles has a major flood risk and damage from floods is excluded from standard home insurance policies. Flood insurance can help cover damages to your dwelling, other structures and personal property in the event of a covered loss. You can purchase flood insurance through the National Flood Insurance Program (NFIP) or some private insurers.
- Wildfire: Homes in areas prone to wildfires may have limited fire coverage that excludes damage from wildfires. Some carriers offer wildfire endorsements, but not all. Standalone wildfire policies may be available through private insurers or the California FAIR plan program.
- 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.
Home insurance discounts in Los Angeles
Insurance companies may offer a range of possible discounts for policyholders. In general, the more discounts you can qualify for and combine, the lower the cost of your homeowners insurance will be. 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.
- Green discount: If you renovate your home with certain types of certified green or eco-friendly materials, you may qualify for a green discount on your homeowners policy.
- Automatic payments: Many providers offer discounts for paying in full when you renew your policy. However, you may still earn a discount if you choose an installment plan if you set up automatic payments.
Before you purchase a new home insurance policy, be sure to check what discounts you can use to save money on your premiums. This can be useful to include when getting free quotes from multiple companies to compare rates. Of the discounts we’ve discussed, bundled policies and new home discounts may have some of the biggest impacts on rates.
Frequently asked questions
Finding the best homeowners insurance company will depend on what you need to properly insure your home. If you want access to unique optional coverage, look for insurance carriers that offer what you need. If affordability is key, the best homeowners insurance company for you may be one of the cheapest home insurance companies. Also understand whether you want to work with a local agent or would prefer to fully manage your policy and claims process online, as all of these factors could help guide you toward the best home insurance company for your needs.
The average cost of homeowners insurance in Los Angeles is $1,368 per year for $250,000 in dwelling coverage, according to Bankrate’s analysis of average rate data from Quadrant Information Services. This is slightly below the national average cost of homeowners insurance, but it’s a little higher than the average cost of a homeowners insurance policy in California, which averages about $1,225 per year for $250,000 in dwelling coverage. Your rates are likely to differ from the average, though, as homeowners insurance rates are determined by a combination of numerous factors, including the ZIP code, age of the property, the coverage options selected and any qualifying discounts. In turn, your rates could be higher or lower depending on these and other factors.
The amount of home insurance needed for a home in Los Angeles will depend on the size and square footage of your home, as well as any extra amenities you might have added. For example, when it comes to your dwelling coverage, it can help to consider the square footage of your home as well as whether you’ve made any recent renovations completed. If you have a swimming pool, you might also want to increase your personal liability to ensure guests are covered in case they’re injured. 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.
Mudslides and mudflow are not uncommon in California, but unfortunately, are not covered by home insurance. Keep in mind that, according to the Triple-I, mudslides and mudflow are two different types of events and the type of insurance coverage you’d need to protect your finances against damage from each is different, too. Mudflow is typically caused by heavy rainfall that essentially creates a river of mud that can seep into your home and cause damage, and would typically be covered by flood insurance purchased from the NFIP or a private insurer. Mudslides, on the other hand, are when a mass of earth or rock moves downhill, propelled by gravity. To protect your finances against damage to your home or business caused by a mudslide, you’d need to look into purchasing difference in conditions (DIC) insurance. Consider speaking with your insurance agent about how to protect yourself from costly damage due to mudslides or mudflow to ensure you are properly covered.
Bankrate utilizes Quadrant Information Services to analyze 2023 rates for 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.
Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.
Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.
- Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
- Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
- Tier 3 (Support): To encompass the many ways a home insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.