On average, Sacramento homeowners pay $925 per year for a policy with $250K in dwelling coverage, which is slightly cheaper than California’s statewide average of $1,084 per year. Although these figures are both lower than the national average of $1,383, many Sacramento homeowners still want to find ways to save on their home insurance policy.

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Quick Facts
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$382/year
average savings through Bankrate
Two Thirds
2 out of 3 homes
are underinsured
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1 out of every 20
insured homes makes a claim each year
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To help you find the cheapest home insurance in Sacramento, we evaluated the largest companies by market share using criteria like coverage options, customer satisfaction and financial strength. We also collected average rates from Quadrant Information Services. Based on our research, we determined that the cheapest home insurance companies in Sacramento include Grange, USAA and Mercury.

Best cheap home insurance companies in Sacramento

The cheapest home insurance providers in Sacramento are Grange, USAA and Mercury, according to rate data from Quadrant Information Services. After collecting average rates, we compared these rates to customer satisfaction ratings from J.D. Power’s 2022 U.S. Home Insurance Study, claim handling, coverage options, and mobile accessibility to give each of the top providers a Bankrate Score out of 5 points. Companies with a high Bankrate Score are the strongest overall based on the factors we evaluated for.

Based on our findings, the best cheap home insurance companies for Sacramento homeowners include:

Home insurance company Bankrate Score Average annual premium for $250K dwelling coverage J.D. Power score
Grange 3.7 $555 N/A
USAA* 4.8 $558 884/1,000
Mercury 4.0 $561 N/A
Allstate 3.9 $608 815/1,000
State Farm 4.7 $653 829/1,000

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

Grange

Grange offers some of the cheapest average home insurance rates in Sacramento on our list. Grange might be a good option for homeowners looking to customize their policy. The company has a wide selection of potential endorsements including assisted living coverage, sewer backup coverage, valuable items coverage, service line coverage and equipment breakdown coverage. Although Grange offers a range of potential discounts, you do have to work with an agent to get a quote or purchase a policy.

Learn more: Grange Insurance review

USAA

Although it is not technically eligible for ranking due to eligibility restrictions, USAA has the highest rating for overall customer satisfaction in J.D. Power’s 2022 Home Insurance Study. USAA only writes policies for eligible active-duty members of the military, veterans and their immediate family members, so not everyone can get coverage. For those who qualify, USAA offers low average rates and coverage options tailored to the needs of the military community. These include insurance to cover your uniform in the event of a loss.

Learn more: USAA Insurance review

Mercury

Mercury is a regional insurance company that underwrites policies in a few states, including California. Its average rate for $250K in dwelling coverage is $561 per year, which is significantly cheaper than Sacramento’s average premium. In addition, Mercury offers a wide variety of discounts, including potential savings for owning a home that’s less than nine years old, having fire protective devices, bundling policies and having no claims within the past three years. Unfortunately, Mercury doesn’t offer online quotes for home insurance, so prospective customers must work with an agent in your area.

Learn more: Mercury Insurance review

Allstate

Allstate may be one of the best Sacramento homeowners insurance providers if you’re looking for a variety of both endorsements and discounts. The company offers lots of add-on policies, including yard and garden, sports equipment, musical instruments, water backup, green improvement reimbursement and business property coverage. Allstate also provides discounts for potential policy savings if you’re a recent homebuyer or have protective devices in your home. While Allstate has a very highly-rated mobile app, it was rated below average for customer satisfaction in J.D. Power’s most recent home insurance study.

Learn more: Allstate Insurance review

State Farm

State Farm is the largest homeowners insurance company in the U.S. by market share. State Farm’s J.D. Power ranking is above average, indicating that customers are generally satisfied with its services. The company’s user-friendly website and mobile app may help you manage your policy online. State Farm’s average premium is below the Sacramento average, and it offers potential discounts for bundling, home alert systems and having an impact-resistant roof. However, State Farm offers fewer add-on coverages than many other companies we reviewed.

Learn more: State Farm Insurance review

Home insurance coverage options in Sacramento

Homeowners insurance is not a legal requirement anywhere in the U.S., but it’s likely that your mortgage lender will require you to carry insurance. Even if you purchase a home in cash or own the property outright, having home insurance may still be beneficial in protecting you financially from unexpected covered perils.

Standard HO-3 home insurance policies typically include coverage for your dwelling and personal property, and provide liability, medical payments and loss of use coverage. For Sacramento homeowners looking for additional coverage, add-on policies could fill gaps in their coverage. Some of the most common home insurance endorsements include:

  • Earthquake insurance: Standard home insurance policies don’t typically provide coverage for earthquakes. Because earthquakes are a risk in Sacramento, it may be a good idea to consider purchasing a separate earthquake insurance policy. Many California home insurance companies can provide this coverage, or you may be able to get it from the California Earthquake Authority.
  • Water backup: Another peril that is not usually covered by a basic homeowners policy is water back-up from a sewer line or sump pump. This could cause significant water damage, especially to the lower levels of your home.
  • Valuable items coverage: Your personal belongings are covered by a basic homeowners insurance policy up to a certain level. If you have a lot of valuable items, such as artwork, sports equipment, electronics or jewelry, an endorsement to your policy could provide additional coverage.

Home insurance discounts in Sacramento

Making use of available home insurance discounts may save you a significant percentage on your premium. Most major insurers have at least a few potential discounts, and some of them could be easy to earn. Here are some of the more common ones you may see:

  • New home or new buyer: If you recently purchased a home, or you purchased a home that was newly built, some Sacramento insurance companies may give you a small discount on your premium.
  • Claims-free: Your insurer may reward you with 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, sprinkler system or a burglar alarm, could earn you a discount with some insurers.
  • Bundling, or multi-policy: One of the largest discounts may be earned by bundling multiple insurance policies with the same carrier. Bundling home and auto is the most common strategy with this discount, but some insurers will give you a discount if you bundle your home with an umbrella policy or another type of policy as well.

Home insurance discounts may help you lower your premium, but not every discount holds the same savings potential. For example, bundling your policies and having no recent insurance claims will probably help you save more than being a new home buyer or installing home safety devices. However, every insurance company is different, so it may be a good idea to ask an insurance agent how much you could save with various discounts.

Frequently asked questions

    • The best homeowners insurance company will likely vary for everyone. Most insurance professionals advise that the best home 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 may want to start your search for the best California homeowners insurance company by reviewing your coverage needs and comparing quotes from different providers.
    • Home insurance rates may be different in every city and state. The average homeowners insurance policy in Sacramento costs $925 a year for $250K in dwelling coverage. This is well below the California average of $1,084. Your own premium rate will likely differ based on factors such as the age and location of your home, your insurance claim history and your marital status.
    • Every Sacramento homeowner may have different coverage needs, but in general, most insurance professionals recommend you have enough dwelling insurance to cover the cost of rebuilding your home in case of a covered peril, as well as enough personal property insurance to replace all your personal belongings. In addition, Sacramento homeowners may want to consider adding endorsements to their policy for more financial protection. For example, earthquakes are a potential risk in the Sacramento area, so having a separate earthquake insurance policy may be beneficial.
    • 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.

    • 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.