- Best home insurance in California: State Farm
- Cheapest home insurance in California: Allstate
- Average home insurance cost in California
- PEOPLE ASK
- California home insurance trends
- Home insurance cost in California by city
- California homeowners insurance discounts
- Methodology
- Frequently asked questions
- Compare California homeowners insurance rates with other states
Best home insurance in California: State Farm
The best home insurance company in California for 2024 is State Farm. Allstate, Travelers, Nationwide, CSAA Insurance, and Farmers are among the top homeowners insurance companies in California based on price, NAIC complaints, and AM Best financial ratings.
The total Insurance.com score is calculated out of five using these factors.
| Company | AM Best | NAIC complaint ratio | Insurance.com score | Average annual rate |
|---|---|---|---|---|
| State Farm** | A++ | 0.83 | 4.15 | $1,552 |
| Allstate** | A+ | 1.46 | 3.64 | $886 |
| Travelers | A++ | 1.10 | 3.56 | $1,097 |
| Nationwide | A+ | 1.05 | 3.52 | $1,417 |
| CSAA Insurance (AAA) | A | 1.23 | 3.30 | $1,324 |
| Farmers | A | 0.67 | 3.09 | $1,715 |
** Currently not writing new policies in California
State Farm
State Farm remains the best choice for home insurance in California; although the company is not currently writing new policies, it had more than 21% of the homeowners insurance market share in the state as of 2022, per the California Department of Insurance, making it the biggest. Homeowners already with State Farm are with a financially stable company thanks to an A++ AM Best rating, and the company has a low complaint volume with the NAIC, and may want to stick with the company.
Allstate
Allstate has also suspended new policies in California, but current customers enjoy the cheapest rates among the companies we compared at an average of only $886 a year. Allstate is also financially stable with an A+ AM Best rating, so it's a good company to stay with.
Travelers
Travelers landed at No. 3 and is the only company among the top three that is currently offering new homeowners insurance in California. Rates are second-lowest at $1,097 a year, and it also has the top AM Best rating of A++.
Cheapest home insurance in California: Allstate
Based on our analysis, Allstate offers the cheapest home insurance for all five coverage levels, followed by Travelers and USAA, which is only available to military members. Below are California home insurance rates by company for five different levels of dwelling coverage, each with $300,000 in liability and a $1,000 deductible.
| Company | $200,000 | $300,000 | $400,000 | $600,000 | $1,000,000 |
|---|---|---|---|---|---|
| Allstate** | $654 | $886 | $1,121 | $1,601 | $2,586 |
| Travelers | $768 | $1,097 | $1,404 | $1,980 | $3,331 |
| USAA* | $1,055 | $1,305 | $1,531 | $2,130 | $3,532 |
| CSAA Insurance (AAA) | $919 | $1,324 | $1,706 | $2,419 | $3,693 |
| Auto Club Enterprises (AAA) | $886 | $1,325 | $1,775 | $2,734 | $4,746 |
| Mercury Insurance | $1,003 | $1,388 | $1,823 | $2,641 | $4,613 |
| Nationwide | $1,114 | $1,417 | $1,723 | $2,512 | $4,128 |
| State Farm** | $1,159 | $1,552 | $1,974 | $2,899 | $4,320 |
| Farmers | $1,212 | $1,715 | $2,246 | $3,439 | $5,718 |
* USAA only provides coverage to military members, veterans and their families.
** Currently not writing new policies in California
Average home insurance cost in California
The average cost of home insurance in California is $1,405 per year or $117 a month, making California the second-cheapest state in the country for home insurance. These rates are based on the following coverage amounts:
- $300,000 dwelling
- $300,000 liability
- $1,000 deductible
PEOPLE ASK
I live in a wildfire-prone area in California. Will it make it more difficult for me to get homeowners insurance?
Yes, it's more difficult to get homeowners insurance in wildfire-prone parts of California, and it will also be more expensive. You can increase your insurability and earn discounts with wildfire mitigation efforts in and around your home.
California homeowners insurance rates by ZIP code
Enter your ZIP code in the search box and choose the desired coverage level to see the average home insurance rate for that area. You will also see the highest and lowest premiums fielded from major insurers. Comparing home insurance rates will give you an idea of how much you can save.
Home insurance rates can vary widely depending on where the home is located. We compared home insurance rates by ZIP code in California to see which areas are the most and least expensive.
Home insurance calculator
Average home insurance rates in TexasMost & least expensive ZIP codes for homeowners insurance in Texas
Most expensive
| ZIP code | City | Highest rate |
|---|---|---|
| 77550 | Galveston | $10,164 |
| 77586 | El Lago | $9,906 |
| 77551 | Galveston | $9,536 |
| 77554 | Galveston | $9,358 |
Least expensive
| ZIP code | City | Lowest rate |
|---|---|---|
| 78559 | Iglesia Antigua | $1,956 |
| 78593 | Santa Rosa | $1,999 |
| 79915 | El Paso | $2,008 |
| 79905 | El Paso | $2,009 |
The California Insurance Department says...
In addition to the discounts and credits to the rate that may apply for each individual company, many insurers also apply a surcharge to the premium for homes located in areas with a comparably higher risk for wildfires.
- The California Insurance DepartmentThe most expensive ZIP codes in California for home insurance
California homeowners insurance rates are the most expensive for ZIP code 92325 with an average annual cost of $2,087.
| ZIP code | Annual annual rates |
|---|---|
| 92325 | $2,084 |
| 92549 | $2,061 |
| 92317 | $2,060 |
| 90290 | $2,051 |
| 92352 | $2,050 |
| 92382 | $2,044 |
The least expensive ZIP codes in California for home insurance
The cheapest ZIP code for home insurance in California is 95051 at $990 a year on average.
| ZIP code | Average annual rate |
|---|---|
| 95051 | $990 |
| 94087 | $991 |
| 94086 | $992 |
| 95054 | $995 |
| 94085 | $997 |
| 95053 | $998 |
California home insurance trends
What’s affecting home insurance in California? Here’s what you need to know.
- Home insurance companies have been pulling back from the California market, with some, including State Farm and Allstate, halting new policies altogether. At least eight companies have stopped writing new policies, with others nonrenewing policies to reduce risk.
- ABC7 reports that the California Department of Insurance is approving large rate increases for some home insurance companies in return for their agreement to write new policies. Allstate has been granted a 34% rate increase.
- The California Department of Insurance’s Sustainable Insurance Strategy is expected to complete reforms by the end of 2024; the strategy includes plans to make home insurance accessible, improve insurance company resilience and protect communities from the impact of climate change, including wildfires.
- Wildfires continue to drive price increases in California. Cal Fire reports 6,195 wildland fires as of September 16, 2024, with 995,837 acres burned. A total of 1,656 structures have been damaged or destroyed.
Home insurance cost in California by city
The cost of home insurance in California also depends on where you live. Some cities have higher average rates than others due to crime, wildfire prevalence, and home values. The table below includes the average cost of home insurance in California’s largest cities, based on the most recent Insurance.com data, for a policy with $300,000 in dwelling and liability coverage, with a $1,000 deductible.
| City | Average annual rate |
|---|---|
| Los Angeles | $1,604 |
| San Diego | $1,311 |
| San Jose | $1,103 |
| San Francisco | $1,168 |
| Fresno | $1,256 |
| Sacramento | $1,219 |
| Long Beach | $1,343 |
| Oakland | $1,317 |
| Bakersfield | $1,284 |
| Anaheim | $1,420 |
California homeowners insurance discounts
There are several ways to reduce your California home insurance costs. Here are some of the most common home insurance discounts that you may be able to qualify for:
- Installing smoke detectors, a burglar alarm or dead-bolt locks: 1% to 3%
- Installing a sprinkler system and a fire and burglar alarm: 3% to 7%
- Loyalty discounts: about 6% on average after three to five years and 9% for ten years or more
- Bundling a home and auto insurance policy: up to 16%.
- Disaster-proofing your home with fire-resistant materials: 7%.
- Paying your 6-month or 12-month premium in full: 7% on average.
ASK AN EXPERT We sought out questions from real people about accidents involving parked cars to provide expert answers. Have a question? Let us know.Expert answers to your questions
Leslie Kasperowicz
Executive editor.
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Methodology
Insurance.com compared homeowners insurance rates in 2023 provided by Quadrant Data Solutions for dwelling coverage ranging from $200,000 to $1,000,000 with liability limits of $300,000 and a deductible of $1,000 for all available ZIP codes. ZIP codes were ranked based on the average rates for dwelling coverage of $300,000, liability coverage of $300,000, and a $1,000 deductible. The content was updated in 2024.
Frequently asked questions
What are the common risks faced by California homeowners?
Wildfires are one of the biggest risks in California. Earthquakes, floods and mudslides are also risks.
Do home insurance rates increase in California after flood or earthquakes?
Since floods and earthquakes are not covered by standard home insurance, they don't generally impact rates. However, if you carry earthquake coverage as an endorsement on your home insurance policy, your rates might go up. Flood insurance polices are separate from home insurance, with most written by the National Flood Insurance Program (NFIP).
Which home insurance companies have pulled out of California?
Homeowners insurance companies that have pulled out of the California home insurance market include State Farm, Allstate, AIG, Chubb, Tokio Marine, AmGUARD, Falls Lake Insurance and Trans Pacific. Many of these companies are still operating in the state but have stopped writing new home insurance coverage and have nonrenewed policies in some areas.
Compare California homeowners insurance rates with other states
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