If you’re looking to purchase homeowners insurance in California and want more than just industry-standard coverage, you’ll have a wide range of options among potential providers. Because of the state’s susceptibility to natural disasters, you’ll want the best home insurance policy that protects your home from all possible perils.
6 Best Homeowners Insurance Companies in California
The highest-rated home insurance companies in California are:
- Lemonade: Best Overall
- Liberty Mutual: Best Discounts
- Allstate: Best Coverage Options
- Farmers: Most Customizable Coverage
- State Farm: Best Endorsements
- USAA: Best Membership Perks
With affordable rates, Lemonade home insurance is worth considering for any homeowner, and it might be the best option for those seeking speedy sign-up and claims processes.
Through its handy mobile app, Lemonade allows customers to sign up for insurance in as few as 90 seconds, and it handles 30% of claims instantly. The company is also known for its responsive customer service team. Get your free Lemonade quote here.
Top Benefits of Lemonade Home Insurance:
✔ Has a user-friendly mobile app
✔ Offers affordable rates
✔ Features a charitable giveback program
Learn More: Lemonade Home Insurance Review
Liberty Mutual has close to 110 years of experience in the home insurance industry. While you receive comprehensive coverage for dwelling, other structures, personal property, loss of use, liability, and medical payments to others, Liberty Mutual premiums stay low because of 10 different discounts, like ones for having a new roof or safety features in the home. Get your free Liberty Mutual quote here.
Top Benefits of Liberty Mutual Home Insurance:
✔ Claims center that’s open 24/7
✔ Up to $1 million of liability coverage
✔ Earthquake add-on for earthquake-prone areas of California
Learn More: Liberty Mutual Homeowners Insurance Review
While Liberty Mutual and Farmers have 24/7 representatives only in their claims centers, Allstate allows you to contact them any time for any reason, whether it’s regarding claims, sales, billing, or policies. Additionally, you can review your policy or open claims within the customer portal and mobile app. Get your free Allstate quote here.
Top Benefits of Allstate Home Insurance:
✔ Nine discounts, including ones for being a new customer or for being retired
✔ Choice of 60% or 75% of dwelling for personal property coverage
✔Protection for valuable items like musical instruments, scheduled personal property, and extended coverage on jewelry, watches, and furs
Learn More: Allstate Home Insurance Review
Farmers offers customizable coverage for other structures, personal property, and additional living expenses, unlike Liberty Mutual and Allstate which offer a set amount based on dwelling coverage. While Farmers protection is based on dwelling coverage, you can purchase up to 200% of dwelling coverage for other structures and personal property and up to 30% for loss of use.
Top Benefits of Farmers Home Insurance:
✔ Offers up to $2 million of liability protection
✔ Deductibles are split by peril
✔ Provides an ordinance or law endorsement, which isn’t usually covered under home insurance
Learn More: Farmers Home Insurance Review
State Farm is a popular homeowners insurance company in California that offers some of the best policies in the state. In addition to offering customers the option to customize coverage, State Farm provides additional coverage options, such as an earthquake insurance policy from the California Earthquake Authority (CEA), water back-up coverage, and identity restoration. Some local agents offer even more add-on options, such as daycare coverage or business property coverage, that can be purchased directly from them.
Top Benefits of State Farm Home Insurance:
✔ Connects customers to a local insurance agent for sign-up and policy management
✔ Provides personal property coverage for firearms and silverware
✔ Features bundling discounts that significantly decrease monthly insurance premiums
Learn More: State Farm Home Insurance Review
Military members and their families can qualify for a membership with USAA and receive access to quality financial products, including homeowners insurance. This insurer offers home insurance policies for service members who work on the 32 military bases in California. We also recommend this provider for its affordable premiums, endorsements that help policyholders fine-tune their coverage, and unique membership perks.
Top Benefits of USAA Home Insurance:
✔ Has an additional coverage option for military uniform protection
✔ Offers flood insurance coverage through the National Flood Insurance Program (NFIP)
✔ Features benefits, such as discount car rentals and local shopping deals
Learn More: USAA Home Insurance Review
Compare Top Home Insurance Providers in CA
Compare the best home insurance companies in California at a glance to see how they stack up:
Comparing Home Insurance Companies
|Unique add-ons||Water backup, sump overflow, hurricane||Musical instruments, yard and garden||Building ordinance or law, marring to metal roof materials|
|Customer service||24/7 for claims; limited for sales and service||24/7||24/7 for claims; limited for sales and service|
*Based on sample quotes our team received
California Homeowners Insurance Coverage
There are six parts to a standard home insurance policy:
- Dwelling—This covers all of the built-in parts of your home, like the cabinetry, foundation, and heating and cooling systems. If an event were to destroy your home, this part of your policy would pay to rebuild it.
- Other structures—This covers the structures on your property that aren’t attached to the home, like fences and sheds. Most companies give you 10% of dwelling coverage for other structures coverage.
- Personal property—If a covered event damages your belongings, your provider will pay to replace them. This part of your policy not only covers your items while they’re in your home, but it also covers your items if you go on a trip or leave them in your car.
- Loss of use—Your insurance company will reimburse you for living expenses incurred if you have to live elsewhere during home repairs. This typically includes the cost of a hotel room, the cost of eating out for every meal, and the cost of doing laundry. Loss of use coverage is usually 20% of dwelling coverage.
- Liability—If you cause bodily injury or property damage, your insurance provider will cover the medical bills and replacement costs, along with any legal fees if you’re sued. While most companies offer as little as $100,0000 for this protection, we recommend purchasing at least $300,000.
- Medical payments to others—When a guest is injured in your home, your policy will cover some of their medical fees. A typical amount of this coverage is $1,000 per person.
How Much Does a Homeowners Insurance Policy Cost in California?
California homeowners insurance cost around $89 per month in 2018, according to the Insurance Information Institute. This price was lower than the national average, and California one of the least expensive states for home insurance in the country.
Factors to Consider Before Buying Homeowners Insurance
Consider these factors when looking for a home insurance policy:
- Natural disasters—California is susceptible to a variety of natural disasters, but two of the biggest ones are earthquakes and wildfires. Fire is usually listed as a covered peril on a home insurance policy, but earthquakes are not. If you live along a fault line, consider buying an earthquake endorsement from Liberty Mutual, Lemonade, Geico, or Amica®. If you want more comprehensive earthquake coverage, you can purchase a separate earthquake insurance policy from an insurance company like State Farm.
- ACV vs. RCV—Personal property coverage is either considered actual cash value (ACV) or replacement cash value (RCV). ACV policies will replace your items with items of a similar value, while an RCV policy replaces your items with new ones. Most home insurance policies start out as ACV policies, but you can change them to RCV for an additional cost.
- Dogs—If your dog is a certain breed, like a German Shepherd, or it has a history of biting people, an insurance company will either charge you more for liability coverage or deny you coverage altogether. If the latter happens, you’ll have to buy a separate pet insurance policy.
- Condition of home—How well you maintain your home plays a role in how much your insurance rate costs. If your home is in poor condition and has an old plumbing system, leaky roof, or other faulty element, an insurance company will consider your home more risky to insure and increase your premium.
California Homeowners Insurance FAQs
Will a new roof lower my homeowners insurance?
Yes. A new roof lowers the risk of water damage caused by a leaky roof, which decreases the likelihood that your insurance company will have to pay a claim. Some companies, like Liberty Mutual, may even offer you a new roof discount on top of your already low premium.
Who has the most affordable home insurance in California?
Amica, AAA, and Lemonade all gave our team members quotes that were lower than the industry average of $101 per month. However, your insurance rate could be higher depending on property features, like the age of your home and its proximity to a fire station, and personal information like your credit score and claims history.
To get a free quote from Lemonade, visit the company’s website.
Do I need homeowners insurance if my home is paid off?
No. The only time home insurance is mandatory is if your lending institution requires it. However, we recommend buying homeowners insurance because it will protect you from structural and property damage and liability claims.
What is the average cost of California home insurance?
According to data from the Insurance Information Institute (III), California insurance premiums have an average cost of $1,073 per year or $89.42 per month. However, homeowners insurance premiums are based on factors such as your ZIP code, claims history, and credit score, in addition to details about your house, such as its size, age, material, design, and more. The best way to get the most accurate pricing is by requesting a few quotes from different home insurance providers.
How do I purchase a flood insurance policy in California?
Homeowners in California have access to flood insurance policies offered through the NFIP, which is run by the Federal Emergency Management Agency (FEMA). Some home insurance companies, such as Allstate and State Farm, sell underwritten flood insurance policies to California residents as an additional coverage option on your home insurance policy. Check with your insurer when getting a quote to see if flood insurance is available in your area.
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