California Homeowners Insurance

Residents in California pay an average of $82 per month or $986 per year in home insurance premiums. 

There are over 14 million homes in The Golden State, fifty-four percent of which are owner-occupied.

The average monthly cost for a homeowner with a mortgage in California is $2,157.

Shop around and save.

Compare insurers to find the cheapest rates around.

 

California Statistics

 39,536,653

Population

$409,300

Average value of owner-occupied housing units

12,807,387

Households

$63,783

Average household income

82%

Highschool grad or higher. percent of people age 25 years +

28

Average travel time to work

(minutes)


Protect your home in California

Compare multiple homeowners insurance quotes and find the best insurer near you.

California is a state with one of the most diverse landscapes. There are mountains, old growth forests, beaches and deserts. Due to such diversity, the area is prone to natural disasters such as wildfires, earthquakes, multi-slides and others. Therefore, anybody that owns a house in California should effectively get home insurance to shield their home from the damages that may occur from disastrous events. 


Homeowners insurance in California provide different types of protection. The most standard home insurance policy covers the home and its belongings and protection against injury. The types of insurance policy run from HO-1 to HO-8  depending on the market value of your property.


However, following the wide spread of wildfires in 2017, a handful of homeowners insurance companies in California refuse to insure homes in the prone areas. It is unfortunate that most insurers don’t cover earthquake related problems. In 2016 only 11% of homeowners in California were insured against earthquakes. However, you can always obtain earthquake insurance coverage from the California Earthquake Authority.

When buying a home, one of the things you will need to get is homeowners insurance. With homeowners insurance, you will have a policy that will protect you from having to spend large sums of money on repairs from catastrophic natural events. The State of California does not require homeowners to purchase insurance for their homes although the mortgage lender most likely will. Like any other insurance policy, there are a number of things that you will need to consider when looking for coverage. Some examples are finding out what type of coverage is suitable for your needs by considering the value and location of your house and comparing premiums to gauge what's fair market price. By focusing on these things, you will be in a great position to get the right coverage at the best price around.


California home insurance premiums versus nationwide


The good news is that California’s annual average premium of $986 is lower compared to the national average. This means Californians are paying $187 less yearly than the average american. Home insurance have increased steadily for the last 10 years in the US. The National Association of Insurance Commissioners (NAIC) conducted a study in January 2018 to determine the expenditure of insurance in the country. According to the study, insurance expenses started to rise in 2014 by 3.3% while in 2015 it rose by 3.6%. 


California property/casualty insurance companies wrote a total of $73 billion in direct premiums in 2016 alone. Devastating natural events swept the state causing property/casualty claims payouts, totalling $43 billion in the same year. Let's highlight that insurers paying their claims help the economy by guaranteeing a person's financial stability while sustaining local businesses. This may be the reason that the yearly average home insurance premiums in California continue to rank below the country's average. Certain areas in The Golden State are prone to wildfires and other disastrous natural events that make insuring your home inevitable, it seems. The strong performance in claims payout and the relatively low ranking of 30th out of all 51 states for average home insurance premiums project that there's nothing to worry about when it comes to home insurance in California.

Average California Home Insurance Premiums

 20142015
Monthly average$81$82
Annual Average$974$986
National annual average$1,132$1,173
Rank3130
Source: Insurance Information Institute

The best homeowners insurance companies in CA


We arrived at our best homeowners California insurance companies through reviewing homeowners insurance reviews and customer satisfaction. A company must display financial strength in order to be deemed trustworthy to be able to pay claims when time comes. First and foremost a company’s customer service rankings is looked at and also its financial stability. The various discounts rates and variety of coverage that customers can choose from are also considered. The following are our top homeowner insurance companies in California.


State Farm


State Farm lives up to its motto “Like a good neighbour, State Farm is there.” The company keeps a clean record in customer satisfaction and claims payout department while maintaining financial strength.


AM Best gave a rating of A++ (Superior) which is the highest rating possible. Standard and Poor’s also rated very high with AA. JD Power rated 3 (About average) in The US Home Insurance Study, which examined customer satisfaction. Satisfaction is calculated by closely looking at five factors: communication, policy offerings, billing process and policy information and claims. The JD Power study made up of of approximately 14 thousand homeowners and renters who were interviewed online during summer 2018. This study is important to mention as high satisfaction ratings could mean excellent claims payout history. Getting your home insured by State Farm means that you've picked a financially stable company with great customer service.


In this technology age, it’s important for insurance companies to have an online presence that’s useful to consumers. You can file a claim with State Farm 24/7 using their website or through phone. State Farm offers a calculator that will help you figure out how much insurance you need. In addition, they offers various discounts that will enable you to enjoy price reductions up to 22% i.e. the multi-policy discount.


Farmers 


Farmers has a market share of 16 percent in California. In June 2025, the Farmer’s Reward Visa Card was introduced to customers for them to redeem travel, statement credits and many more. The reward card is unique to Farmers; where you earn from your purchases and premiums. Customers who haven’t made claims for 6 years enjoy regulated rates with home insurance.


In addition, Farmers provide an interactive Home Insurance Map. The map comes with an awesome feature that shows a customer room to room that he/she is supposed to insure. The map assists a client to see the bigger picture of insuring their property.


Compared to other insurance companies in California, farmers scored an average score (3 stars) with JD Power scores meaning that the customer satisfaction is above average. Farmers insurance has an excellent system when it comes to saving. 


The discounts available at farmers include: high deductible, home smoker, update plumbing, home improvement, security device and home security discounts. According to weigh Rating, Farmers scored a B+ in its financial strength. The stronger financial scores assure policy holders of a long existence company thereby building trusts.


CSAA


CSAA remains in the top 10 home insurance companies in the US. They perform well in California, ranking 3rd only to State Farm and Farmers, with 6.6 percent of the market share. CSAA was affirmed its A+ (Superior) financial strength rating from AM Best and has maintained a rating of A or higher for more than 85 years. 


CSAA offers standard plans that are sufficient to protect your home. They offer a wide variety of discounts that help consumers save money. Installing a safety device and bundling multiple policies are some of the things you can do to earn savings from CSAA. Seniors of 50 years and older can enjoy a 12 percent discount. Fix your roof to resist fire and enjoy savings up to 13.5 percent. CSAA offers competitive rates with coverage that will protect your home.

Liberty Mutual


On financial stability, Liberty ranked a little lower than Allstate at an A+ rank by A.M Best. From JD Power, Liberty received very good ratings on consumer reports. It managed a 3 out of 5 stars meaning that most customers are satisfied with the way they handle claims. However, when it comes to discounts Allstate came before Liberty as it has slightly less options.


Liberty Mutual Insurance has an upper hand when it comes to availability of resources and educational tools. The company takes you through the home insurance policy. In addition, it also have two mobile apps where you can manage the policy and claims; the other one aids in managing home inventory. 


People who experienced multi slides and wildfires in 2017 and 2018 reported that not having a home inventory made the claim process very complicated. Therefore, the mobile App makes it easier for one to keep his or her inventory in one place.


Allstate


Allstate earns top industry ratings. It recently returned to California in 2016 after 9 years of absence. Allstate has a rating of A+ from AM Best meaning that it is stable financially. In addition, Allstate makes good payouts and has one of the best consumer rankings in best payment process and claims process. 


JD Power’s  customer satisfaction on Allstate is at 3 out of 5 stars with a handful insurance companies scoring above 3. Furthermore Allstate has a flexible insurance coverage. If you are looking to have an extra coverage you are granted. Such covers include; identity theft, sewer and water damage and liability of umbrella coverage. 


There are also numerous discounts such as reduced price on multi- line insurance policies. The most exciting part is that Allstate offers lower premiums for new and renovated homes. Lastly, Allstate is famous for having an online feature that lists claims by zip codes. 


For instance if you reside in LA 90004 zip code, the most costly claim is smoke damage while the most common claim is theft. One can use the feature to determine the type of insurance cover they need. Once you install features like a burglar alarm, you become eligible for discounts from Allstate company.

California home insurance companies: Market share and summary of ratings

RankCompanyMarket Share %AM BestS&PJ.D. Power
1State Farm20A++AA4
2USAA11.2AA3
3Farmers10.1AA3
4Liberty Mutual10AA3
5American Family9.9ANR3
6Allstate9.6A+AA3
7Travelers4.8AA3
8Chubb3A++AA3
9Nationwide Mutual2.3A+A+3
10Hartford Financial1.7AA3

NR: Not rated
Source: Insurance Information Institute

How to find the best rates around


California has the largest insurance market in the United Stated and ranks the sixth in the world. As a homeowner looking for home insurance, access to the best rates is invaluable. Shopping around and getting quotes from as many reliable companies as possible will ensure you that your home is covered at the most economic price around.


As a home insurance consumer, choosing the best homeowner insurance can be challenging. Most insurers advertise both online and on televisions and claim to be the best. Do your own research by reading reviews of your selected companies to be able to choose the best that suits your needs. Take a look at the insurance rating organizations' reports on financial strength, customer satisfaction and the types of claims service before making a choice.


What home insurance covers in CA


After buying a home and getting a California Homeowners insurance policy, you will want to know what it covers. Fortunately, a California home insurance policy covers a number of things that will ensure that you and your home are protected. Homeowner’s insurance policies protect a number of structures such as the home, the garage and the deck. It also provides coverage for other structures on the property such as the shed and any fences.


Along with covering a number of property structures, homeowner’s insurance policies cover your personal belongings. You will be able to get coverage for things such as furniture, electronics and collectibles As a result, you will be able to easily replace any items that are lost, stolen or damaged.

Homeowner’s insurance in California also covers natural disasters. In case your home is damaged in a mudslide or an earthquake, you will get compensation in order to pay for any damages. The policy will give you the funds to not only repair damaged property, but also replace structures that have been damaged as well.


Lastly, homeowner’s insurance provides liability coverage. Whenever a person gets injured in your home or on your property, you will have the ability to get compensation for it. For example, if someone who doesn’t live with you visits your home and gets injured, you won’t have to worry about paying any of their medical costs. You will also be protected from any potential lawsuits as well. Therefore, liability coverage is a very valuable part of any homeowner’s insurance policy in California.


Tips to save money


Since homeowners insurance in California can be costly, it is important to find ways to save money. One of the best ways to save money on homeowners insurance in California is to shop around. It will be a good idea to check out the premiums offered by a number of insurance companies and then compare them. You will also want to go over all of the available coverage in order to determine value. By following these steps, you will be in position to get the homeowners insurance you need at an affordable rate.


The easiest way to compare your options in California is to use our search tool at the top of this page. You need to enter your Zip and the system will provide you with the list of top insurers in your area.

California Department of Insurance

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