Best cheap homeowners insurance in San Diego

San Diego, California’s geographical positioning makes it vulnerable to natural disasters like earthquakes, wildfires and landslides. For the 53.9% of San Diego homeowners, home insurance could be an integral part of your financial plan. Although not required by law, home insurance is often required if you have a mortgage or home loan. If you are looking for the best cheap homeowners insurance in San Diego, Bankrate has done research to help make your insurance journey easier.

Best cheap home insurance companies San Diego

The top three best cheap home insurance companies in San Diego are USAA, Mercury and ASI Progressive, according to Bankrate’s analysis of coverage and average premium data supplied by Quadrant Information Services. In San Diego, the average annual cost of home insurance is $974 for $250,000 in dwelling coverage.

Bankrate’s insurance editorial team reviewed companies based on several factors, like average annual premiums, third-party ratings, financial strength, accessibility, availability, coverage and discounts offered. These factors are analyzed to develop a unique Bankrate Score on a five-point scale for each carrier. When shopping for home insurance, San Diego residents may want to start here when looking for the best, cheap homeowners insurance companies:

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

USAA

Although only available to military members and their immediate families, USAA home insurance is the cheapest option in San Diego. The company also consistently receives high scores from J.D. Power, although it is not eligible for official ranking. Besides basic options, USAA offers a few endorsements, like earthquake coverage and home sharing coverage. The company does not offer many discounts, but since its average premium is so low, discounts may not be necessary to control your price.

Learn more: USAA Insurance review

ASI Progressive

Progressive, whose home insurance policies are underwritten by American Strategic Insurance (ASI) offers personalized coverage to help you find a policy that fits your needs. One of the company’s most unique features is its Home Quote Explorer tool, which lets you compare home insurance quotes from several providers, all from Progressive’s website. You may be able to save by bundling home and auto policies, having safety devices, signing up for paperless billing and more. While ASI Progressive receives a ranking just above average in the 2022 J.D. Power Property Claims Satisfaction Study, it falls short compared to other providers on our list with a 3.7 Bankrate Score.

Learn more: ASI Progressive Insurance review

Mercury

Mercury has some of the most affordable average home insurance rates in San Diego. Mercury has a range of additional options to customize your home insurance, such as home systems protection, service line coverage and identity management services. You might be able to save on your policy by bundling policies, living in a gated community, buying a newly built house and having safety devices on the property. Though Mercury receives a Bankrate Score of 4, it is not rated in the J.D. Power Property Claims Satisfaction Study, which may reduce an important comparative aspect for homeowners seeking companies that have high-ranking customer satisfaction.

Learn more: Mercury Insurance review

Travelers

If you are looking for a robust home insurance policy, you might want to get a quote from Travelers. The company offers a long list of optional features, including water backup, special personal property coverage, additional replacement cost coverage, contents replacement cost and identity theft protection. Discounts include green home, loss-free, multi-policy, protective device and new homebuyer. However, Travelers earned a below-average property claims satisfaction ranking and a 3.7 Bankrate Score.

Learn more: Travelers Insurance review

Allstate

While Allstate has the highest average premium on our list, it is still $300 lower than the average for San Diego homeowners insurance. This carrier offers optional add-ons to tailor your coverage, like water backup, ID theft restoration, home sharing and coverage for home and garden, sports equipment and scheduled personal property for valuable items. Although it receives a 3.9 Bankrate Score, it performed just below average for property claims satisfaction.

Learn more: Allstate Insurance review

Home insurance coverage options in San Diego

Home insurance may not be legally required, but is often a necessity when you have a loan on your property. It can also give you a sense of financial security and peace of mind. A basic home insurance policy provides some financial protection, but you may consider adding the following endorsements to your policy for added coverage:

• Flood insurance: Standard policies do not cover damages caused by floods. Some private carriers offer separate flood insurance policies. You could also purchase flood insurance through the National Flood Insurance Program.
• Earthquake insurance: Similar to flood insurance, earthquake damage is not typically covered on a home policy, but you may be able to add it by endorsement. The California Earthquake Authority also offers coverage.
• Water and sewer backup: Damage caused by water backing up in a sewer or drain line is not usually covered by a standard home insurance policy. Adding water and sewer backup coverage to your policy could help protect you from costly repairs.

Every home insurance company offers a different suite of coverage types, which can also vary by state. If you are unsure what coverages or how much coverage you need, talking to an insurance professional can help.

Home insurance discounts in San Diego

To offset the cost of home insurance, most companies offer some discounts to eligible customers. By taking advantage of discounts, you could lower your insurance premium. Discounts vary from one insurer to another, but some of the most common ones include:

• Claims-free: If you have not filed a claim in several years, you may qualify for a discount.
• Safety devices: Having anti-theft systems, smoke alarms, sprinklers, a fire extinguisher or an alert system in your home could lower your premium.
• Paid-in-full: If you pay your policy in full, you might get a discount. This option is not typically available if your home insurance premium is paid from your mortgage escrow account.
• Policy bundling: If you purchase several types of insurance from the same carrier, you have the potential to save a bit on each policy.

You can often research a company’s discounts online, but since every company has different qualifications, talking to a representative is often the best way to see what discounts you qualify for. Exact discounts vary by carrier, but the most impactful ones tend to include policy bundling and safety feature discounts. Most discounts can be stacked together to provide even greater savings on your home insurance policy.

Frequently asked questions

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    What is the best home insurance company?

    Because insurance is personal, what suits you may not suit others and vice versa. The best home insurance company will vary depending on your needs. You may want to look for a company that offers competitive rates, unique coverage options and ample discounts, has excellent third-party ratings and high overall customer satisfaction.

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    How much does home insurance in San Diego cost?

    A standard home insurance policy in San Diego costs an average of $974 per year for $250,000 in dwelling coverage, lower than both the national annual average of $1,383 and California’s annual average of $1,084. Your premium will depend on your specific rating factors, like your claims history, the value of your home and what coverages you choose.

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    How much home insurance do I need in San Diego?

    Home insurance is not a legal requirement, but your mortgage lender will likely require you to be insured. When deciding how much coverage to purchase, you may want to consider your home’s rebuilding cost and inventory your personal property and any specialty items that you need coverage for. Considering your liability exposures, like trampolines or pools, is also important. A licensed insurance agent can help you decide how much coverage is right for you.

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    Methodology

    Bankrate utilizes Quadrant Information Services to analyze 2022 rates for all 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 may be different.

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    Bankrate Score

    Bankrate Scores 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.