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Best cheap homeowners insurance in Sacramento

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Nearly half of Sacramento’s 500,000+ residents are homeowners, and they know how important a good homeowners insurance policy is to protect their investment in their homes. The average home in Sacramento is valued at $336K, and without home insurance, most owners would find it difficult to rebuild after a disaster such as a fire.

The average rate for homeowners insurance in Sacramento is $887 a year for a $250K dwelling, though your own rate will probably be different because it is based on a number of factors that are unique to you. To find the best cheap home insurance in Sacramento, we looked at factors that included the quality of customer service and financial stability, as well as low premium prices.

Best cheap home insurance companies Sacramento

We reviewed all the companies that are writing policies in Sacramento, looking at their average prices for city residents based on 2021 rate data, as well as their reputation for customer service and financial stability. We checked out the breadth of their offerings, both for their basic policies as well as add-ons, or endorsements, that allow you to customize your policy. We also looked at whether each company’s website made it easy to manage your account online. These five stood out.

Home insurance company Average annual premium for $250K liability J.D. Power customer satisfaction score
Mercury $538 Not rated
USAA $569 889/1,000
Progressive $575 797/1,000
State Farm $608 829/1,000
Travelers $667 803/1,000


Mercury is a regional insurer that writes auto and home policies in a handful of states, including Arizona, California, Texas and Nevada. As a regional company, it’s not rated by J.D. Power, but Mercury has a reputation for solid customer service. Mercury’s average rates for Sacramento homeowners are the lowest of any company we surveyed, and it offers numerous discounts for things like bundling, protective devices and gated community to bring your rate down even more.

Learn more: Mercury Insurance review


USAA topped the J.D. Power list in points in 2020, even though it is not eligible for ranking because of its eligibility requirements. USAA has a well-earned reputation for efficient and supportive customer service. USAA only writes policies for members of the military, veterans and their eligible family members, so not everyone can benefit from the low rates. USAA’s coverage options are in line with what other companies offer, but it also has coverage that is specific for military policyholders, such as insurance to cover your uniform in the event of a loss.

Learn more: USAA Insurance review


Progressive writes solid policies for Sacramento homeowners, and the already low average rates may be even lower from a good handful of discounts, including ones for bundling, quoting in advance, new home purchase and paying in full. Progressive scored slightly below average in its customer service ranking, but it does offer some good perks to policyowners, such a contractor network that will recommend a qualified contractor if you are in need of repairs or rebuilding. You will also pay only one deductible if you bundle your home and auto insurance, which can save you money in the event of a claim.

Learn more: Progressive Insurance review

State Farm

State Farm is the largest homeowners insurance company in the U.S. by market share, and it works hard for its policyowners. State Farm’s J.D. Power ranking is above average, indicating that the company places a premium on good customer service. The company’s user-friendly and informative website helps you to manage your account easily online. Its average premium cost is below the Sacramento average, and discounts for bundling, home alert systems and using impact-resistant roofing products helps keep that rate down even more.

Learn more: State Farm Insurance review


Travelers has been writing policies for more than 165 years, and its Sacramento policyholders are protected financially from fire, windstorms and theft. Travelers offers optional insurance on top of its basic coverages, so you can customize your policy by adding green home coverage, identity fraud coverage, protection against water backup and sump pump discharge — and more. Although Traveler’s average premium was the highest of our five chosen insurers, it was still more than $200 below the Sacramento average, making it still a good potential choice for anyone who is trying to save money.

Learn more: Travelers Insurance review

Sacramento home insurance recommendations

Having a home insurance policy is not required by law as auto insurance is, but you would be wise to purchase a policy to protect your investment in your home. For a minimal investment, you will be protected if a catastrophic incident such as a fire destroys or damages your home. A basic HO-3 policy — the most common type of policy — covers damage to your home and other structures, such as a garage and your belongings. It also covers liability and loss of use coverage, which would help pay if you had to live elsewhere while your home was repaired.

Here are some other coverage options you may want to consider.

  • Flood insurance: Even the smallest of ditches can flood in a severe rainstorm, and flood damage is not covered by HO-3 policies. Your insurer can sell you a flood policy, however, for a small annual charge.
  • Water backup: Another factor that is not covered by a basic policy is water back-up from a clogged sump pump. This can cause significant damage, especially to the lower levels of your home, so if you have a sump pump this may be a good investment.
  • Valuable items coverage: Your personal belongings are covered by a basic policy up to a certain level. If you have expensive collections or items, such as artwork, sports equipment, electronics or jewelry, an endorsement to your policy will provide additional coverage.

Home insurance discounts in Sacramento

Making use of available discounts may save you a significant percentage on your premium costs. Most major insurers have at least a few, and some of them are easy to earn. Here are some that are more common for Sacramento homeowners:

  • Loyalty: Sometimes it pays to stay with the same insurer for a long time. You may receive a discount if you are a policyholder for longer than one year.
  • Claims-free: Your insurer is happiest when you don’t file any claims on your policy. In fact, you may receive a discount if you go for a certain period, often three to five years, without any claims.
  • Safety devices: Anything that makes your home safer, whether it is a smoke detector or a burglar system wired to the local police force, will likely earn you a discount.
  • Bundling, or multi-policy: You can earn a discount by having both your car and your home insurance policies with the same company. Some insurers will give you a discount if you bundle your home with life, umbrella or another type of policy.

Frequently asked questions

What is the best home insurance company?

The best insurance company is the one that offers you great rates, excellent customer service and a broad range of coverage options so you can craft a policy that works for your specific circumstances. You can find the best company for you by reviewing our best-of lists and asking for quotes from the companies that are best suited for your needs.

How much does home insurance in Sacramento cost?

The average homeowners policy in Sacramento costs $887 a year. This is well below the California average of $1,101. Your own premium rate will be based on factors such as the age and location of your home and your own age and credit rating.

How much home insurance do I need in Sacramento?

You want to be able to pay for any repairs or rebuilding that is needed if your house faces a calamity such as a fire or flooding. Keep in mind that this amount won’t necessarily be the same as your home’s market value, but is more closely related to construction costs in your area.


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.

Written by
Mary Van Keuren
Insurance Contributor
Mary Van Keuren has written for insurance domains such as Bankrate,, and The Simple Dollar for the past five years, specializing in home and auto insurance. She has also written extensively for consumer websites including and Slumber Yard. Prior to that, she worked as a writer in academia for several decades.
Edited by
Loans Editor, Former Insurance Editor