Homeowners Insurance in California 2021

Last modified: February 14, 2021

If you’re thinking of buying a home in California or you have already bought one, it is important to get homeowners insurance. Although it is not mandated by law, it is essential to buy home insurance in California to keep your home and your family protected. 

Homeowner insurance can cover your home and offer other benefits. The options depend on the coverage policy and the company you choose to go with. Therefore, to help you select the right policy here is a detailed review of the companies offering the best homeowners insurance in California

Read on to find out more.  

Is Homeowners Insurance Required in California?

As mentioned above, there are no mandatory California homeowners insurance laws. Still, it can be extremely beneficial for you to buy coverage, mainly because of the West Coast weather, which can be hard on homeowners in California. 

Also, most banks and lenders will require homeowners insurance as a mortgage condition if you plan on buying your home through a mortgage in California

Common Reasons for Home Insurance Losses in California

Though California offers a lot to its residents, from scenic beauty to good living conditions, the residents may suffer from significant losses due to natural disasters. The state of California is prone to various disasters such as excessive rain that can lead to flooding.

Most of the communities in and across the state are at high risk of flooding, with 20% being vulnerable because of the topography. Due to excessive rain, rivers flowing in and out of the valleys overflow. Flooding can also be a result of rapid snowmelt, levee breakage, and a dam collapse. 

Other common claims for California home insurance include severe storms (that come in the form of high winds) and earthquakes. But the most significant risk is wildfires. 

Did you know that damages caused by wildfires in the US in 2018 cost $24 billion, with about 18 billion dollars covered by the home insurance industry?

Thus, when it comes to risk management in California from such losses, it is advisable to buy the right policy with the best coverage possible.

Cheapest Homeowners Insurance in California

Here is a quick overview of the cheapest home insurance in California

City Average rate
San Jose $997
Long Beach $1,049
San Diego $1,067
San Francisco $1,076
Sacramento $1,094
Fresno $1,144
San Bernardino $1,211
Oakland $1,227
Los Angeles $1,285

Note: this is for $300,000 in dwelling and liability coverage and a $1,000 deductible.

Best Homeowners Insurance Companies in California

When it comes to shopping for the best homeowners insurance in California, here are the top 7 companies that we have shortlisted for you. The table includes the different coverage options, pricing, and the category of customers the company suits best. 

Company Best for Coverage Discounts Pricing
Amica Those who want

  • Flexible policies
  • Exceptional customer service 
  • A best-in-class claim process 
  • Replacement cost dwelling coverage
  • Other structures 
  • personal property coverage
  • Loss-of-use coverage
  • Personal liability coverage
  • Medical payments coverage
  • Multi-policy discount
  • Claim-free discount
  • Loyalty discount
  • E-discount
  • Auto-pay discount
  • Alarm system discount
  • Automatic detection devices discount
  • New/remodeled home discount
$1,939 per year
Erie Those who want:

  • Comprehensive coverage backed by high customer satisfaction rate
  • Guaranteed replacement cost
  • Cash and precious metals
  • Hard-to-replace items
  • Jewelry and other valuables
  • Pets. 
  • Theft

Coverage endorsements

  • Identity theft coverage 
  • Personal liability
  • Sewer or drain backup coverage
  • Service line coverage
  • Advanced quote discount 
  • Alarm systems and safety devices discount 
  • Multi-policy discount
$1,910 per year 
Allstate Those who are:

  • First-time home buyers/ new homeowners
  • Seeking economical pricing and big savings 
Basic

  • Dwelling coverage
  • Other structures 
  • Personal property 
  • Additional living expenses 
  • Personal liability 
  • Guest medical protection 

Standard

  • Everything in basic along with increased coverage for personal property, living expense, and other structures
  • Lower/occurrence deductible
  • Liability coverage of $300,000 

Enhanced

  • Everything in standard coverage with $500,000 in liability coverage
  • Multi-policy discount
  • Claim-free discount
  • Early signing discount
  • Easy pay discount
  • Homebuyer discount
  • Loyalty discount
  • Protective device discount
$1,680 per year
State Farm Those who want:

  • Affordable rates
Standard

  • Dwelling coverage 
  • Dwelling extension Personal property coverage 
  • Loss-of-use coverage 
  • Personal liability coverage 
  • Medical payments coverage 

Additional coverage

  • Backup of sewer or drain coverage 
  • Cyber event, identity restoration, and fraud loss coverage 
  • Jewelry, furs, silverware, goldware, and firearms 
  • Business property coverage 
  • Building ordinance or law coverage 
  • Fungus coverage 
  • Home systems protection 
  • Energy efficiency upgrade 
  • Service line coverage 
  • Multiple line discount  
  • Home alert protection discount 
  • Roofing discount 
  • Higher deductible discount 
$1,500 per year
Travelers Those looking for 

  • Cheap policies and have a limited budget
Silver

  • Standard coverage
  • Optional extended replacement cost home coverage
  • $1,500 sublimit for stolen jewelry and furs replacement
  • $2,500 sublimit for stolen silverware replacement

Gold

  • Everything in the Silver plan along with 25% to 50% extended replacement home cost coverage
  • 70% personal property coverage 

Platinum

  • Everything in the Gold plan with coverage for open perils to personal property
  • Water backup coverage
  • Trailer and watercraft replacement coverage 
  • Stolen silverware replacement coverage

Platinum Plus

  • Everything in the Platinum plan with guaranteed home replacement cost coverage
  • Personal injury, identity fraud coverage, and watercraft coverage 
  • Replacement coverage for stolen jewelry and silverware 
  • Protective devices discount  
  • Loss-free discount 
  • New home-buyer discount 
  • Green home discount 
  • Multi-policy discount 
$1,265 per year
Nationwide Those looking for:

  • Affordable and flexible policies
Standard

  • Replacement cost dwelling coverage 
  • Replacement cost personal property coverage
  • Loss-of-use 
  • Loss-assessment 
  • Ordinance or law 
  • Inflation protection

Protection Boost endorsement

  • 30% coverage for personal property 
  • $1,000 coverage for stolen or lost money
  • $10,000 coverage for lost or stolen jewelry or watches
  • $10,000 coverage for lost or stolen firearms
  • Protective device 
  • Loss-free discount 
  • New home purchase discount 
  • Multi-policy discount 
  • Roof rating discounts
  • Gated community discount 
$1,496 per year

 

Boosting an A+ rating from AM Best and BBB and a 5/5 JD Power score, Amica is one of the best homeowners insurance companies in California. The company offers two coverage tiers—standard and Platinum Choice. 

The standard policy includes coverage such as dwelling, personal property, personal liability, and medical payments.

The Platinum Choice coverage is more extensive. It includes all that the standard policy covers with additional coverage such as computers, extended valuable items, medical payments, water backup coverage, credit card coverage, and business property coverage. 

Amica offers impressive discounts along with the best and most comprehensive coverage options. 

In terms of pricing, the cost for homeowners insurance in California is slightly higher than in other companies. The insurance cost varies on different factors like the construction and age of your house. You can expect to pay approximately $1,939 per year with Amica for homeowners insurance in California.

With a perfect score from JD Powers 2019 US Home Insurance Study, Erie offers all the standard coverage options and numerous comprehensive policy options that distinguish them from their counterparts. Some coverage options that stand out is the 100% guaranteed replacement cost coverage if the house is destroyed and fully damaged.

Although the company offers good coverage and has an excellent customer satisfaction rate, some potential buyers for homeowners insurance in California may not be able to afford Erie because of its high cost. The company policies cost around $1,910 per year, which is slightly higher than the average cost of homeowners insurance in California.

Allstate is one of the top home insurance companies in California, best known for its affordable rates and discount opportunities. The company is an excellent choice for first-time homeowners. 

Allstate is a well-reputed, established, and the second-largest home insurance company. They give affordable home insurance quotes in California. Allstate’s homeowner insurance coverage is comprehensive with unique discount options, thereby helping policy buyers get a policy that meets their requirements while offering them good savings.

Other areas where Allstate takes the lead are its simple quoting tool and claim tracking service, online policy buying application, and excellent claims satisfaction rate. 

Thus, all this makes it a safe bet for new homeowners to buy a policy for the first-time.

Serving all 50 states, State Farm is the most popular and largest homeowners insurance service provider in the US. It has an industry-leading financial strength and offers an extensive range of coverage options at affordable rates.

With State Farm in California, you can customize your standard homeowners’ insurance with numerous additional coverage options as per your requirements. The company also offers multiple line discounts, which is excellent if you buy various types of insurance. 

If you have a fire alarm or burglar alarm installed in your house, you can get a discount on your home insurance. In comparison though, State Farm doesn’t offer as many discounts as its counterparts like Amica.

With State Farm, you can get an affordable policy for homeowners insurance in CaliforniaThe company’s homeowners insurance policy will cost you around $1,500 per year.

If you are looking for the lowest California home insurance rates, then Travelers should be your choice. They have the lowest rates for homeowners insurance policies in California. Their coverage is divided into four tiers and available at economical rates. However, their claims satisfaction rate is subpar 2/5, which raises a red flag.

Nationwide is yet another great option for those looking for flexible and economical policies. You can get one of the best homeowners insurance in California in terms of coverage, pricing, and discounts. They offer an endless array of add-ons and discounts, which helps policy buyers create a policy that best suits their needs while enjoying good savings.

Pros & Cons

The Pros

The Cons

Final Verdict

If you live in California and own a home, you must invest in the right homeowner’s insurance policy. Evaluate the options listed above to find the best homeowners insurance in California according to your budget and coverage requirements. With the right policy in hand, you can protect your investment, valuables, and family if and when disaster strikes.

FAQs

What percentage of California’s homeowners have earthquake insurance?

Only 13% of the homeowners in California have earthquake insurance.

Is homeowners insurance required in California?

No. Homeowners insurance is not mandatory in California, but it is good to invest in protecting yourself from significant financial losses if disaster strikes and damages your home. Also, banks may require you to buy a policy before they approve a mortgage.

What is the cheapest homeowners insurance in California?

Travelers offer the cheapest homeowners insurance in California at $1,265 per year.