Best cheap homeowners insurance in Oakland

Oakland home prices are on the rise. While this may be good news to homeowners looking to sell, new home buyers may be rethinking their budget and looking for ways to save on their homeowners insurance premium. Average home insurance rates in Oakland are $1,071 per year for $250K in dwelling coverage. This is slightly below the state average of $1,084 for California and substantially lower than the national average of $1,383.

Fortunately, there are cheap home insurance providers in Oakland that may beat the city average. Based on Bankrate’s research, ASI Progressive, Mercury Insurance and USAA offer some of the lowest average homeowners insurance rates for Oakland residents.

Best cheap home insurance companies Oakland

We found the best cheap home insurance in Oakland using coverage offerings and rates from the best homeowners insurance companies in the region. Based on data provided by Quadrant Information Services, ASI Progressive, Mercury and USAA are among the cheapest Oakland home insurance companies.

We assigned each carrier a Bankrate Score, with a maximum score of 5.0. This score considers affordability, availability, financial strength ratings and customer satisfaction scores from J.D. Power’s 2022 U.S. Home Insurance Study. We also look for providers that offer online resources and digital tools that enable policyholders to better manage their policies. Based on our findings, you may consider these five carriers for cheap homeowners insurance in Oakland:

*Not officially ranked by J.D. Power due to eligibility restrictions

ASI Progressive

ASI Progressive offers some of the lowest average home insurance rates in Oakland. Additionally, new homeowners could save even more with the company’s discount for recent buyers. ASI Progressive may not offer as many options for policy customization as some other providers on this list, but it does have optional coverage to protect high-value belongings such as jewelry. Oakland residents who live in flood-prone areas may also purchase a flood insurance policy through ASI Progressive. Potential customers should note that the carrier received a below-average score from J.D. Power, indicating that some customers may not be satisfied with the service.

Learn more: Progressive Insurance review

Mercury

Mercury Insurance is the second-cheapest carrier in Oakland on this list, based on average premiums, with average annual premiums that are more than $450 below the city’s average. Mercury did not rank in the J.D. Power Home Insurance Study, which is likely because the carrier is small and regional. The NAIC complaint database does show that Mercury Insurance had only three complaints last year. Besides basic coverages, Mercury’s standard home insurance policies also include identity theft protection and extended replacement cost coverage, which may pay up to 150 percent of your policy’s dwelling coverage following a covered loss.

Learn more: Mercury Insurance review

Travelers

Homeowners who value digital policy management may find what they’re looking for with Travelers’ highly-rated mobile app. In addition to a relatively low average premium, policyholders may save even more with potential discounts for buying a new home, remaining claims-free and having a LEED-certified home. The company also offers a variety of add-ons for policy customization including green home coverage. This means you may be able to replace lost or damaged systems, materials or items with energy-efficient or eco-friendly versions in the event of a covered peril. Potential customers should note that Travelers has the lowest J.D. Power score on our list, indicating that some customers may not be satisfied with the service.

Learn more: Travelers Insurance review

USAA

Although USAA insurance is only available to eligible members of the military and their immediate family members, it receives high marks from J.D. Power for customer satisfaction. Standard USAA homeowners policies include personal property replacement cost coverage and up to $5,000 in identity theft protection, benefits that many insurers only offer as endorsements. USAA policyholders may be able to maximize their financial protection with optional flood, umbrella and valuable personal property policies. Although the company’s average premium is below the average rate for Oakland, policyholders may have limited ways to save as the company does not offer many discounts compared to other providers listed here.

Learn more: USAA Insurance review

Allstate

Homeowners who switch to Allstate may receive a discount up to a 10 percent. The insurer also may extend a potential discount for homes equipped with protective devices and when you purchase new coverage at least seven days before your current policy expires. Among our top picks, Allstate has the highest average rates, but the provider offers comprehensive homeowners policies and a few optional coverages. The carrier’s HostAdvantage product provides home-sharing protections with up to $10,000 in personal property coverage. Allstate sells home insurance through three Oakland agencies.

Learn more: Allstate insurance review

Oakland home insurance considerations

There are no laws that require you to buy home insurance, but if you finance a house, the lender will likely require you to carry a policy throughout the life of the loan. A standard home insurance policy covers you for a number of perils including windstorms, theft and fire. However, two of the most serious perils are not included — earthquakes and flooding. Many insurance companies offer earthquake and flood insurance as endorsements or separate policies. Other common endorsements may include:

• Extended replacement cost: Extended replacement cost may increase your dwelling limit, within the limits of your policy, in case costs to rebuild are higher than your dwelling coverage will cover.
• Green rebuild: If you need to rebuild, repair or replace items after a covered loss, having green rebuild coverage may allow you to use more eco-friendly, efficient materials.
• Water backup coverage: Most standard home insurance policies do not cover losses caused by sewer backups. Water backup coverage protects your finances in the case of  drain or sewage backup.

Home insurance discounts in Oakland

Most carriers offer at least a handful of potential discounts. Once you find cheap home insurance coverage in Oakland, you could still save more by asking the carrier for discounts that apply to your situation. Common discounts may include:

• Restoration discounts: Some insurers extend discounts to policyholders who renovate their homes. These discount programs vary by provider, but may apply to installation of storm windows or shutters, sustainability improvements or upgrades to electrical, cooling, heating and plumbing systems.
• Claims free discounts: Homeowners with no history of home insurance claims for a specified period of time, typically three to five years, may be able to save money on their premiums.
• Bundling and multi-policy discounts: Carrying your auto insurance and home insurance policies with the same insurer may qualify you for a substantial discount. Some carriers may even allow you to share the same deductible if you have a claim for both. Oftentimes, bundling discounts may provide the greatest savings and they sometimes enable you to make one payment for auto and home insurance policies.

Bundling discounts are typically the easiest to qualify for because they simply require you to purchase car and home insurance from the same carrier. Most insurance experts recommend that you ask your insurance agent about potential discounts when you renew your policy as you may qualify for additional savings over time.

Frequently asked questions

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    What is the best home insurance company?

    The best home insurance company for you typically depends on your unique circumstances. This may include personal rating factors like your location, claims history and size of your home. Most insurance experts recommend shopping around to compare quotes, available discounts, available coverages and customer satisfaction ratings in order to find the best home insurance company for you.
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    How much does home insurance in Oakland cost?

    Home insurance Oakland rates average $1,071 per year for $250,000 in dwelling coverage. The city’s rates are lower than the national average of $1,383 and the state average of $1,084. Bear in mind that averages may not reflect the price you will pay for homeowners insurance. Providers may determine rates based on several factors, including the age of your home, its construction type and its proximity to a fire hydrant and fire station. Other factors that impact your insurance premium may include the types and levels of coverages you choose, along with the amount of your deductible.
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    What is the median home price in Oakland, California?

    According to current U.S. Census Bureau data, Oakland’s median home price was $730,000 in 2020. Between 2016 and 2020, Oakland home prices increased by more than 40 percent. Oakland homeowners with a mortgage pay an average of $2,917 per month on home-related expenses, while those without a mortgage pay an average of $754 per month.

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    Methodology

    Bankrate utilizes Quadrant Information Services to analyze 2022 current rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. 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.

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    Bankrate Score

    Bankrate Scores are calculated on a five-point scale and primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. We know it is important for homeowners to be confident their financial protection covers the likeliest risks, is priced competitively and is provided by a financially-sound company with a history of positive customer support.To determine how well the best home insurance companies satisfy these priorities, third-party agency ratings from J.D. Power, AM Best, S&P, NAIC, and Moody’s had the most impact on the companies’ Bankrate Scores. As price is a common consideration for homeowners, we analyzed quoted premiums based on 40-year-old male and female homeowners with a home policy with $250,000 in dwelling coverage. This profile, assessed across nearly 35,000 ZIP codes in the U.S., provided a basis on which homeowners may compare each provider.While coverage options, insurer availability, affordability and customer experience are often the top priorities, Bankrate also analyzed each insurer’s online and mobile resources for policy management and claims handling. Insurance is rapidly evolving to keep pace with our digital world, so these aspects also carried weight in determining Bankrate Scores.