Best cheap homeowners insurance in Los Angeles
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With a little bit of research, it may be possible to find cheap home insurance in Los Angeles, California. Los Angeles 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 high home insurance premiums in Los Angeles are likely due to a variety of factors, including higher cost of living, potential for natural disasters like wildfires and mudslides, and more.
Bankrate’s editorial team researched the top home insurance companies by market share and their average premiums in the Los Angeles market. We also reviewed customer satisfaction scores, financial strength ratings and optional policy coverage so you can find the best cheap homeowners insurance in Los Angeles. According to our research Allstate and USAA are two of the cheapest options for homeowners insurance Los Angeles.
Best cheap home insurance companies in Los Angeles
Insurance rates vary between states. Allstate, USAA and AAA offer some of the best cheap home insurance Los Angeles, California, based on our analysis of average rate data from Quadrant Information Services. 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. This data was used by Bankrate to assign each provider a Bankrate Score with a maximum score of 5 to provide an overall rating at a quick glance, helping drivers to swiftly and easily compare insurance companies.
|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
**Allstate only writes homeowners policies in certain areas of Los Angeles
Allstate stands out for having the cheapest rates on our list and a 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 the Allstate mobile app is geared toward auto insurance policy management and not homeowners policy management.
Learn more: Allstate Insurance review
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 some of the lowest premiums on our list. USAA offers several homeowners insurance policy types and discounts.
Learn more: USAA Insurance review
State Farm stands out for having an average homeowners insurance premium for $250K in dwelling coverage that is hundreds of dollars cheaper than the city average for the same amount of coverage. The company also scored well above average for customer satisfaction on the 2022 J.D. Power U.S. Home Insurance Study and received an A++ (Superior) financial strength rating from AM Best. However, it’s worth noting that the company offers fewer homeowners insurance discounts than some of its competitors.
Learn more: State Farm 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
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 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.
- 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
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.
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.