Best cheap homeowners insurance in San Jose

Unlike car insurance, homeowners insurance is not legally required in California, but it remains a financial tool for protecting what is likely to be your largest asset. If your home has a mortgage, it is likely your mortgage company will require homeowners insurance coverage. The average cost of home insurance in San Jose, California, is lower than the national average rate, but there are ways that San Jose homeowners might get an even lower premium. Bankrate found five companies that offer the best cheap home insurance in San Jose based on price, coverage options and discounts.

Best cheap home insurance companies in San Jose

The table below includes the best home insurance carriers in San Jose, California, with the cheapest rates based on our assessment. These companies were chosen using the carrier’s average annual premium, discounts offered, coverage options available, financial strength and third-party customer satisfaction scores. Additionally, each carrier is assigned a Bankrate score ranging from 0 to 5 points to highlight their overall performance for these criteria. These insurers may be helpful to research since the cheaper premiums they offer can help offset the expensive cost of owning a home in San Jose, California.

On average, home insurance in San Jose costs $867 per year for a home with $250K in dwelling coverage, based on 2022 premium data from Quadrant Information Services. Homeowners insurance rates in San Jose are below California’s average rates of $1,084 per year and far below the national average of $1,383 per year for the same coverage.

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

Mercury

Mercury, a Los Angeles-based insurance company, understands the unique risks California homeowners face. Mercury offers some of the cheapest homeowners insurance in San Jose, with an average annual premium of $447 for a policy with $250K in dwelling coverage. The company offers standard coverage with limited endorsements, which may limit the amount of policy customization you need. However, there are multiple discounts available, including wildfire mitigation, a claims-free discount and a discount for water leak detection.

Learn more: Mercury Insurance review

ASI Progressive

In San Jose, ASI Progressive offers below-average rates, with an average annual premium of  $466 for $250K in dwelling coverage. With ASI Progressive, San Jose homeowners may lower their homeowners insurance costs by qualifying for discounts, including getting a quote in advance and insuring a new home. Its property coverage is fairly basic and offers few customizations, but you can add water backup and personal injury coverage to your policy for an extra cost.

Learn more: ASI Progressive Insurance review

USAA

USAA is known as the insurance company for military personnel. You must be an active duty or retired service member, or a qualifying family member, to purchase home insurance from USAA. If you qualify, you will gain access to USAA’s exceptional customer service, affordable rates and comprehensive coverage. USAA offers several discounts, including savings for policy bundling, being claims-free and having an active and monitored home security system.

Learn more: USAA Insurance review

Travelers

Travelers is another home insurance company that stands out for its below-average rates. The average San Jose home insurance policy from Travelers costs $542 per year for $250K in dwelling coverage. Travelers offers a variety of endorsements for added protection, including contents replacement cost coverage, green home coverage and water backup coverage. Although the discounts are limited compared to other providers, Travelers does offer a handful of discounts that may help lower your rate, including one for LEED-certified homes.

Learn more: Travelers Insurance review

State Farm

State Farm is the largest home insurance provider in the country, with just over 18% of the home insurance market share. The company offers affordable policies for San Jose homeowners, with an average annual premium of $578 for a policy with $250K in dwelling coverage. Home insurance coverage from State Farm is limited, and the company does not provide many options for policy customizations. However, some good potential discounts are available, including savings for impact-resistant roofs, home security systems and bundling your home and auto insurance policy.

Learn more: State Farm Insurance review

San Jose home insurance options

Homeowners insurance in San Jose is not required by the state, but your mortgage lender will likely require you to have it. Even without a home loan, having home insurance can help financially protect you should your home become damaged or destroyed. Below are some home insurance coverage options that San Jose homeowners may consider:

• Earthquake insurance: Standard home insurance policies exclude coverage for earthquake damage. Because San Jose is located on the San Andreas fault line, homeowners should strongly consider earthquake insurance to help cover the extensive repair costs earthquake damage can cause to a home.
• Flood insurance: Like earthquakes, most home insurance policies exclude coverage for flood damage. San Jose does experience flooding, and a flood insurance policy may provide added peace of mind.
• Dwelling extended replacement cost coverage: Dwelling extended replacement cost coverage is an optional endorsement offered by most home insurance companies. If your home is completely destroyed by a covered event, the additional dwelling coverage will help rebuild your home, even if the cost is greater than your dwelling insurance policy limit listed on your declarations page.

Home insurance discounts in San Jose

Most home insurance companies in San Jose offer discounts to help homeowners get a lower rate. The more discounts you can qualify for, the more money you can save off your premium. Below are popular home insurance discounts available in San Jose:

• Pay in full discount: Homeowners who pay their annual premium upfront, in full and not through an escrow payment may usually qualify for a discount on their policy.
• Security system discount: If your home is equipped with a security system, you might save money on your policy due to the decreased risk of theft.
• Claims-free discount: Homeowners who have no insurance claims on their record within the last several years can often save money.
• Policy bundling discount: Many insurance companies offer a discount to policyholders who insure their home and vehicle with the same provider.

Almost everyone can benefit from discounts, but some discounts are particularly impactful. One of the best ways — and easiest  — is to combine your homeowners insurance policy with another policy from the same carrier. Some insurance providers offer significant bundle discounts.

Frequently asked questions

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    What is the best home insurance company?

    The best home insurance company is different for everyone because it depends on factors like where you live, how much coverage you need, what type of coverage you need, what discounts you qualify for and more. Homeowners should shop around and get multiple quotes to see which provider can offer the best rate for the coverage they need.

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    How much does home insurance in San Jose cost?

    The average cost of home insurance in San Jose, California, is $867 per year for a policy with $250K in dwelling coverage. However, home insurance rates are personalized, and you might pay more or less than the average city rate based on your coverage amounts, home characteristics and claims history.

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 (if applicable in the state) 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 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.