Best cheap homeowners insurance in San Diego

Best cheap home insurance companies San Diego

The top three cheap home insurance companies in San Diego include USAA, Mercury and ASI Progressive, according to Bankrate’s analysis of coverage and average homeowners insurance 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. This is slightly lower than the 2022 national average of $1,383 for the same dwelling coverage.

Bankrate’s insurance editorial team reviewed companies based on several factors, like average annual premiums, J.D. Power customer satisfaction ratings, AM Best financial strength ratings, digital tool accessibility, coverage availability and discounts. These factors are analyzed to assign each carrier a Bankrate Score out of 5 points. When shopping for cheap home insurance, San Diego residents may want to start with quotes from these carriers:

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

USAA

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

ASI Progressive

Progressive home insurance policies are underwritten by American Strategic Insurance (ASI). 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 buying a newly-constructed home. ASI Progressive receives a ranking below average in the 2023 J.D. Power Property Claims Satisfaction Study, and it only offers a few optional coverage types, so potential for policy customization may be limited.

Learn more: ASI Progressive Insurance review

Mercury

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

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 coverage types, 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

Allstate

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 may want to note that Allstate scored below average in the J.D. Power study, suggesting that some customers may not have been 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 your home is damaged by a covered peril, a home insurance policy may save you from expensive out-of-pocket costs. However, some homeowners want more financial protection than a standard homeowners policy provides. For more robust coverage, 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 might consider adding 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, also known as HO-3 insurance,   does 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.
• Flood insurance: Most home insurance policies do not cover flood damage, which can be challenging for individuals living in coastal cities such as San Diego. Even a small body of water, however, can cause flooding under the right circumstances, and FEMA estimates that since 1996, 99 percent of U.S. counties have been impacted by flooding. If you live in a flood zone and have a mortgage, it is likely that your lender will require you to purchase a flood insurance policy.

Every home insurance company offers a different suite of coverage types, which can also vary by state. If you are unsure what coverage types 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 might be able to lower your insurance premium. Discounts 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.
• Smart home discount: Some insurance providers may give you a discount for installing smart home devices, such as smart smoke detectors, smart water sensors and smart video doorbells.
• 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.
• Bundling discount: If you purchase several types of insurance from the same carrier, you have the potential to save on eligible policies.

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

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2023 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 Score

Our 2024 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlight where they fall short.

• Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best, Demotech and the NAIC, were analyzed.
• Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
• Tier 3 (Support): To encompass the many ways a home insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.