Best cheap homeowners insurance in San Diego
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On average, home insurance in San Diego costs $974 per year, or $81 per month, for a policy with $250,000 in dwelling coverage. Based on our analysis, USAA, Mercury Insurance and ASI Progressive offer some of the cheapest San Diego homeowners insurance.
San Diego’s geographical location makes it vulnerable to natural disasters like earthquakes, wildfires and landslides. 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 that may help make your insurance search 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 homeowners insurance San Diego 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, J.D. Power customer satisfaction ratings, financial strength ratings, accessibility, availability, coverage options and discounts offered. These factors are analyzed to develop a unique Bankrate Score on a 5-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:
|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
Although only available to eligible military members and their immediate families, USAA offers some of the lowest average premiums in San Diego. The company also consistently receives high scores from J.D. Power, although it is not eligible for official ranking. In addition to standard coverage, 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, policyholders may rely less on discounts to find a low rate.
Learn more: USAA Insurance review
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, getting a quote in advance or and buying a newly-constructed home. While ASI Progressive receives a ranking just above average in the 2022 J.D. Power Property Claims Satisfaction Study, it only offers a few optional coverage types, so potential for policy customization may be limited.
Learn more: ASI Progressive Insurance review
Mercury has some of the most affordable average homeowners insurance rates in San Diego. The company has a range of additional options to customize your home insurance, such as home systems protection, service line coverage and identity management services. Mercury also offers a wide variety of discounts, so you might be able to save on your premium by bundling auto and home insurance policies, installing protective devices, belonging to a homeowners association and more. Mercury is not rated in the J.D. Power 2022 U.S. Home Insurance Study, likely because it is a smaller insurer that only writes policies in 11 states.
Learn more: Mercury Insurance review
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 coverages, including water backup, special personal property coverage, additional replacement cost coverage, contents replacement cost coverage and identity theft protection. Travelers has one of the higher average premiums on our list, but offers discounts for potential savings. These include green home, loss-free, multi-policy, protective device and new homebuyer. Travelers earned a below-average customer satisfaction score in the J.D. Power study, indicating that some customers may not be satisfied with the service.
Learn more: Travelers Insurance review
While Allstate has one of the highest average annual premiums on our list, it is still fairly affordable compared to average rates in San Diego. Plus, policyholders may be able to save on their premium with discounts for protective device installation, new homebuyer and more. Allstate offers numerous optional endorsements to tailor your coverage like water backup, electronic data recovery, home sharing, sports equipment and business property. Potential customers should note that Allstate scored below average in the J.D. Power study, indicating that some customers were not satisfied with the service.
Learn more: Allstate Insurance review
Home insurance coverage options in San Diego
While state and local laws do not require you to buy homeowners insurance, if you finance a house, the lender will likely require you to carry a policy through the life of the loan. If disaster strikes, a home insurance policy may provide a certain level of financial protection. However, some homeowners want more financial protection than a standard homeowners policy provides. For more robust protection, you might consider adding endorsements to your San Diego home insurance, such as:
- Scheduled personal property: Most standard home insurance policies impose sub-limits on certain types of personal property. To increase the coverage on expensive belongings such as artwork, collectibles, jewelry or musical instruments, you could add a scheduled personal property endorsement to your homeowners policy. Oftentimes, a single scheduled property endorsement may cover more than one item, like two guitars, with no deductible.
- Earthquake insurance: Standard home insurance policies do not typically cover structural damage or losses to personal property caused by earthquakes. However, some insurers offer earthquake endorsements or standalone earthquake policies. 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 your finances 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 may 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 may vary from one insurer to another, but some of the most common ones include:
- Claims-free discount: If you have not filed a claim in several years, you may qualify for a discount.
- Safety devices discount: Having anti-theft systems, smoke alarms, sprinklers, a fire extinguisher or an alert system in your home could lower your premium.
- New roof discount: Replacing your old roof with a new one may earn you a discount on San Diego home insurance. Some providers may also offer a discount for homes with roofs constructed with impact-resistant materials.
- Multi-policy discount: 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
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.
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.
San Diego homeowners may consider earthquake insurance because of the city’s potential risk for quakes. According to the California Earthquake Authority (CEA), San Diego faces a 75 percent probability of experiencing a major earthquake, magnitude 7.0 or greater, within the coming years. Most standard home insurance policies do not cover losses caused by earthquakes. Some insurers offer earthquake endorsements for homeowners policies, while others sell standalone earthquake policies. You can also purchase earthquake insurance through the CEA.
Typically, renters insurance is fairly affordable, averaging $174 per year or about $15 per month. As renters insurance does not cover the structure of the home you rent, it is generally much cheaper than homeowners insurance. However, your rate for rental insurance may vary based on factors like how much coverage you buy, your claims history and your deductible.
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.
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.