Best cheap homeowners insurance in San Francisco

Owning a house in San Francisco is not an easy feat. The Golden city is home to over 815,000 people, but only 38 percent own the home they live in. This is far lower than the national average of 64 percent.

However, the cost of home insurance in San Francisco is cheaper than the national average of $1,383. For a dwelling coverage limit of $250K, the average annual cost of home insurance is $1,033. Homeowners insurance is designed to help protect your finances from unforeseen perils, but you may not need to break the bank to purchase a policy. Bankrate evaluated average premiums, coverage options, financial strength data and customer service ratings to determine that Mercury, ASI Progressive and USAA offer some of the cheapest homeowners insurance rates in San Francisco.

Best cheap home insurance companies San Francisco

Mercury, ASI Progressive and USAA offer some of the cheapest average homeowners insurance rates in San Francisco, according to Bankrate’s analysis of average rate data from Quadrant Information Services. We also analyzed third-party financial strength ratings and customer satisfaction scores from J.D. Power, as well as policy options, discounts, and availability, to determine the best cheap homeowners insurance companies in San Francisco.

We used these same factors to award each company a Bankrate Score with a maximum of 5.0 out of 5. The higher the Bankrate Score, the better the company performed in our analysis. This same information can be used to determine the best homeowners insurance companies for your needs, based on what factors matter the most to you.

*USAA is not eligible for official ranking with J.D. Power due to eligibility restrictions

Mercury

Mercury is a national insurer known for its affordability and high customer satisfaction. With some of the lowest average annual rates in San Francisco, Mercury could be a good choice for homeowners who value affordability. Policyholders could save even more with potential discounts for wildfire mitigation, water leak detection systems and being claims-free. Mercury is not rated by J.D. Power, but it does receive a financial strength rating of A (Excellent) from AM Best. However, Mercury does not offer as many endorsements as some other homeowners insurance providers, and there is no option to file a claim online.

Learn more: Mercury Insurance review 

ASI Progressive

Progressive offers average homeowners insurance rates below the average for San Francisco. Policyholders may save even more with discounts for new construction, new homeowners and getting a quote in advance. Progressive’s policies are underwritten by American Strategic Insurance (ASI) and can be customized with endorsements for water backup and personal injury. Progressive scored just above average in J.D. Power’s customer satisfaction study, but its mobile app is available only for auto insurance, and compared to competitors, Progressive has few add-ons.

Learn more: ASI Progressive Insurance review 

USAA

If you are an active or retired member of the military, or a qualifying family member who is eligible for membership, USAA may be an affordable homeowners insurance option. Although not technically eligible for ranking, USAA has a high customer satisfaction score from J.D. Power. USAA’s home insurance policies have a variety of add-ons such as home sharing coverage, earthquake insurance and flood insurance. Its average premiums are cheaper than San Francisco’s, and policyholders may save even more with potential discounts for military deployment, policy bundling, safe home and claims-free. Homeowners who prefer working with a local agent may not be satisfied with USAA as the provider has few physical locations.

Learn more: USAA Insurance review 

State Farm

With 18 percent of the market share, State Farm is the largest insurer in the U.S. Homeowners who prefer working with a local agent may find what they’re looking for with one of State Farm’s 50 San Francisco-based agents. Policyholders may save on their policy with discounts like multi-line, protective device and upgraded roof. The carrier also holds the highest available rating, A++ (Superior), from AM Best for financial strength. State Farm has a highly-rated mobile app and online portal, but its J.D. Power scores dropped significantly from 2021 to just barely above average, indicating customer satisfaction may be declining.

Learn more: State Farm Insurance review  

Travelers

Travelers has one of the highest average premiums on our list, but its rates are still lower than the average for San Francisco. Additionally, policyholders may be able to save with discounts for new homes, being claims-free, safe home features, LEED-certified green homes and policy bundling. In addition to a discount for a LEED-certified home, environmentally-conscious homeowners may appreciate Travelers’ endorsement for green home coverage. Other add-ons include replacement cost, other structures, loss of use, jewelry and valuable items coverage and identity fraud protection. Potential customers should note that Travelers does have the lowest J.D. Power score for customer satisfaction on our list.

Learn more: Travelers Insurance review

Home insurance coverage options in San Francisco

Since your house is probably your priciest possession, choosing the right home insurance coverage could provide you with vital financial protection. Homeowners may want to consider that San Francisco is prone to wildfires, storms and earthquakes. In fact, according to the California Earthquake Authority, there is a 75 percent chance of a damaging earthquake in the Bay Area in the next 30 years. On top of the common coverages included in a standard policy, some additional coverages you may want to consider include:

• Earthquake insurance: Although not part of a standard home insurance policy, earthquake insurance may sometimes be purchased separately or as an endorsement. If you are unable to get coverage from a private insurance company, you could look into coverage options from the California Earthquake Authority.
• Water backup insurance: Water backup insurance covers water damage to your home caused by a backup in your water pipes. This coverage is also sometimes called sewer backup coverage.
• Home sharing coverage: Since San Francisco is a major tourist destination, it could be a practical choice to have your house covered against potential damage when you let out your property to guests. Home sharing coverage is available from several nationwide insurance companies and is turning into a popular coverage option for those who host guests in their house.

Home insurance discounts in San Francisco

In addition to finding a carrier that offers cheap homeowners insurance rates, you may be able to save even more with discounts. Most insurance companies offer a selection of discounts, but these are some of the most common you might see when searching for San Francisco homeowners insurance:

• Safe home discounts: If you have safety devices like burglar alarms,and sprinkler systems installed in your house, you may qualify for a discount.
• Green home discounts: If your house is built with sustainable materials, you may qualify for a discount.
• Policy bundling discounts: You may be able to procure a discount if you get your home insurance from the same provider as other types of insurance (auto, for example).
• Home renovation discounts: If you have made certain improvements or upgrades to your home, it may qualify you for a home renovation discount. Many companies offer discounts to homeowners who make updates to certain systems, like plumbing or electrical.
• Claims-free discounts: If you have never filed a claim on your home through your homeowner’s insurance policy, you may be eligible for a claims-free discount. This discount may be lost if a claim is filed, causing your premium to go up the cost of the discount.

Although each company may price its discounts differently, bundling discounts typically earn policyholders the most significant savings.

Frequently asked questions

• • 
    

    What is the best home insurance company?

    Since insurance is highly personal and needs-based, no one provider can qualify as the best in this crowded market. However, some of the most reputed home insurance companies are the ones that have a history of consistently offering the most competitive rates, excellent customer service, and coverage and discount options. Our best home insurance companies list could help you get started.
  • 
    

    How much does home insurance in San Francisco cost?

    The average cost of homeowners insurance in San Francisco is $1,033 per year for $250K in dwelling coverage. That puts the average cost of homeowners insurance in San Francisco below the national average of $1,383 per year and below the California average of $1,084. Your rate will likely differ from the average cost, however, because your rates may be dependent on a range of factors, like your ZIP code, the type and amount of coverage you need, the features of your home and any discounts you qualify for.
  • 
    

    Do I need earthquake insurance in San Francisco?

    Damage to your home caused by earthquakes is not normally covered in a standard homeowners policy. However, San Francisco is prone to earthquakes since it sits on several fault lines. Because of this risk, it may be a good idea to add additional earthquake coverage to your homeowners insurance policy.

• • 
    

    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.

  • 
    

    Bankrate Score

    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.