Best and Cheapest Home Insurance in California (2024)
Mercury is the best home insurance company for most people in California. It’s the cheapest widely-available option and has dependable service.
Find Cheap Home Insurance Quotes in California
Best Cheap Home Insurance in CA
ValuePenguin compiled thousands of quotes from the largest insurers in California to determine the best insurance for most homeowners.
Our experts compared cost, customer service, reliability and coverage benefits to find the best insurance companies in California.
Best home insurance companies in California
Mercury has the cheapest home insurance rates in California.
Mercury offers rates averaging $971 per year for $350,000 of coverage. The company offers good coverage options and dependable service, too.
California homeowners can also find cheap quotes from AAA, where a policy costs $1,048 in SoCal or $1,163 in NorCal.
Find Cheap Homeowners Insurance Quotes in Your Area
If you have an expensive home, Chubb is a great option that specializes in high-end property. However, Chubb requires homeowners to get a minimum amount of dwelling coverage, so it's not an option for everyone.
USAA has affordable rates and top-notch customer service, making it a great choice if you're eligible. But USAA home insurance is only available to military members, veterans and their families.
Cheap home insurance quotes in California
$200,000
$350,000
$500,000
$1 million
Company | Annual rate | ||
|---|---|---|---|
| AAA SoCal | $621 | |
|
| AAA NorCal | $770 | |
| Mercury | $802 | |
| Pacific Specialty | $804 | ||
| USAA | $1,006 | |
$200,000
Company | Annual rate | ||
|---|---|---|---|
|
| AAA SoCal | $621 | |
|
| AAA NorCal | $770 | |
|
| Mercury | $802 | |
| Pacific Specialty | $804 | ||
|
| USAA | $1,006 | |
$350,000
Company | Annual rate | ||
|---|---|---|---|
|
| Mercury | $971 | |
|
| AAA SoCal | $1,048 | |
|
| USAA | $1,113 | |
|
| AAA NorCal | $1,163 | |
| Pacific Specialty | $1,216 | ||
$500,000
Company | Annual rate | ||
|---|---|---|---|
|
| Mercury | $1,274 | |
|
| USAA | $1,369 | |
|
| AAA SoCal | $1,490 | |
|
| AAA NorCal | $1,524 | |
| Pacific Specialty | $1,633 | ||
$1 million
Company | Annual rate | ||
|---|---|---|---|
|
| Mercury | $2,443 | |
|
| USAA | $2,569 | |
|
| AAA NorCal | $2,657 | |
|
| AAA SoCal | $3,071 | |
| Pacific Specialty | $3,406 | ||
What companies have stopped selling insurance in CA?
Starting in 2023, some of the largest insurance companies in California stopped offering home insurance, including Allstate, AIG, State Farm and The Hartford.
Companies like USAA, Travelers and Nationwide are becoming more selective about which homes they'll insure.
That's partially because natural disasters, like wildfires and earthquakes, are so common across the state. These companies may try to raise rates for their existing customers in the near future. If your rates are going to increase, you should be notified when your plan renews. That's a good time to shop around to see if you can find cheaper coverage from a different company.
The state insurance commission is pushing back to give homeowners more options to find coverage. For example, homes near the Smith River and Happy Camp Complex wildfires won't face cancellations or nonrenewals for a year. But it's still tough to get affordable home insurance in California right now.
Most affordable home insurance in CA: Mercury
Editor rating
-
Cost: $971/yr
Mercury has the best prices in California, plus earthquake coverage and good discounts.
Pros:
-
Affordable quotes
-
Offers earthquake coverage
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Discounts for green homes
Cons:
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Can't compare home insurance quotes online
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Reports of claim delays
Mercury offers California homeowners the best combination of cheap rates, reliable service and useful protection.[/pullquote
The average cost of home insurance from Mercury is $971 in California. That's 40% cheaper than the state average. But you can't get a quote for Mercury home insurance online, so you'll have to contact an agent to compare rates.
Mercury also offers lots of ways for homeowners to save money. You can save with standard discounts, like a home and auto insurance bundle. The company has some unique discounts as well, like a 5% savings for using green building materials. You can save up to 10% on wind and water coverage by making updates to an older home, like replacing your roof or HVAC system.
There are lots of ways for California homeowners to add extra protection to their Mercury policy.
Mercury offers earthquake coverage through the California Earthquake Authority (CEA), which can help protect California homeowners from damage due to earth movement.For example, your TV could fall off the wall during a tremor, or your home could be damaged by a mudslide that was caused by an earthquake.
Mercury also has some unique coverage options for Californians, including:
- Hidden water leak coverage, which pays to repair damage caused by a leak hidden within your walls, ceiling or crawl space. Most companies place a time limit on hidden water leaks. So if you don't find out about the leak for a few months, you'll have to pay for any damage it caused.
- Matching siding or roofing coverage will make your house look as good as new if only a portion of your home's siding or roof is damaged. Instead of only replacing the damaged section, this coverage will help pay to replace undamaged sections so that your home's building materials match.
- Green home coverage will pay up to 10% extra for you to replace damaged materials, like windows or appliances, with environmentally friendly alternatives.
It's worth noting that Mercury has received a high number of complaints when compared to other home insurers over the last few years — about twice as many as a typical company nationwide. The primary reason for these complaints is delays after wildfire claims. However, other home insurance companies in California have issues paying out claims after huge wildfires, so it's still worth considering as a great option.
Best CA home insurance customer service: AAA
-
Editor's rating
- Cost: $1,048 (SoCal)/$1,163 (NorCal)
AAA has highly rated customer service alongside affordable home insurance rates.
Pros:
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Highly rated customer service
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Affordable rates
Cons:
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Limited coverage options in SoCal
AAA has great customer service for home insurance in California, alongside affordable rates.
Two AAA companies sell home insurance in California — one in Northern California, the other in Southern California.
AAA SoCal costs an average of $1,048 per year for $350,000 of dwelling, while AAA NorCal is $1,163 per year. They're both more than 28% cheaper than the average statewide.
Customers of both companies tend to be happy with the service they receive. In California, both AAA companies received either fewer complaints or similar levels of complaints compared to their competitors that are currently selling home insurance in California. This suggests AAA home insurance customers are generally satisfied with the service.
AAA NorCal offers lots of useful home insurance coverages, including earthquake, flood and umbrella coverage. But AAA SoCal's coverage options are much more limited — it offers only the basics you'd find at any insurance company.
AAA NorCal | AAA SoCal | |
|---|---|---|
| Extra coverages | ||
| Earthquake | ||
| Valuables protection | ||
| Umbrella | ||
| Flood | ||
| Standard coverages | ||
Best CA home insurance for high-value homes: Chubb
-
Editor's rating
-
Cost: $2,792/yr
Chubb is the best insurance company for high-value homeowners, with extra coverage options and top-tier service.
Pros:
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Coverage tailored to valuable homes
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Excellent customer service
Cons:
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High rates
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Only available for expensive homes
-
Can't compare quotes online
Chubb specializes in providing coverage for expensive and custom homes. The company will pay to repair or replace your home or belongings, even if it costs more than the current value. Policies with the Masterpiece package also include unique extras like cash settlement, which gives you the option to take a cash payout if your home is destroyed and you decide not to rebuild it.
California homeowners can also benefit from Chubb's wildfire defense services.
The company can send a risk consultant to your home to give you recommendations on how to protect your property from wildfires. If a wildfire is burning in your area, Chubb will send certified fire professionals to your home to help minimize the damage. It also offers earthquake and flood insurance, so Californians can protect their home from the state's most common natural disasters.
However, Chubb has much higher prices than other California companies. Chubb doesn't offer online quotes, so you'll have to get in touch with an agent to compare rates. Its average price for $500,000 of coverage is $2,792 per year, or 36% higher than average. And $1mm of coverage is $4,544, or 23% higher.
The company also usually requires that you buy a certain amount of dwelling coverage. The minimum amount depends on where you live and whether you plan to bundle your home and auto insurance. But Chubb is probably not the best choice for homeowners who need less than $500,000 of dwelling coverage.
Average home insurance cost in California
The average cost of homeowners insurance in California is $1,623 per year.
That's 25% cheaper than the national average of $2,151 per year.
Average cost of home insurance in CA by dwelling coverage amount
Dwelling coverage | Annual cost |
|---|---|
| $200,000 | $1,201 |
| $350,000 | $1,623 |
| $500,000 | $2,048 |
| $1,000,000 | $3,699 |
Despite recent big shifts in the California home insurance market, the cost of coverage in California is cheaper than in neighboring Arizona, where a policy costs around $1,993 per year.
Cost of insurance by city in California
Homeowners in Los Osos, on the Central Coast, pay the lowest home insurance rate in California — $1,265 per year.
Elizabeth Lake, north of Los Angeles, has the highest home insurance rate in the state, $2,273 per year.
In California's largest city, Los Angeles, home insurance rates are 21% higher than the state average.
Cost of California home insurance by city
City | Annual rate | % from avg. |
|---|---|---|
| Acalanes Ridge | $1,482 | -9% |
| Acampo | $1,525 | -6% |
| Acton | $2,273 | 40% |
| Adelanto | $1,902 | 17% |
| Adin | $1,960 | 21% |
Rates are for a policy with $350,000 of dwelling coverage.
Best-rated California home insurance companies
USAA and Cincinnati have the best customer service for home insurance in California.
USAA earned top marks from our editors for combining cheap quotes, good coverage options and highly rated customer support. However, USAA is only available to military members, veterans and their families.
Cincinnati is more widely available, though its rates are not as competitive as USAA's.
California home insurance company reviews
Company |
Rating
|
Complaints
|
|---|---|---|
| USAA | High | |
| Cincinnati | Low | |
| California Casualty | High | |
| Chubb | Low | |
| Mercury | High |
When shopping for the best homeowners insurance in California, it's important to consider customer service reviews along with price.
What home insurance do I need in California?
It's important that California homeowners have the proper coverage in place to protect themselves against common hazards like wildfires, earthquakes and flooding.
Fire insurance in California
Fire damage is almost always covered by a standard homeowners insurance policy. You don't need to buy a separate fire insurance policy.
You should make sure that your home insurance policy will cover the full value of your home if it's completely destroyed by a fire. In the November 2018 wildfires, around 40% of claims came from homeowners who had experienced a total loss.
It's important to choose dwelling coverage limits at or above the replacement cost of your home so that you're fully covered in a worst-case scenario.
Wildfires are a major threat to homes throughout California. Seven of the 10 worst wildfires in California have occurred in the last decade.
Top 10 most destructive California wildfires
Fire name | Structures destroyed | Year |
|---|---|---|
| Camp Fire | 18,804 | 2018 |
| Tubbs | 5,636 | 2017 |
| Tunnel | 2,900 | 1991 |
| Cedar | 2,820 | 2003 |
| North Complex | 2,352 | 2020 |
A number of insurance companies have stopped offering policies in areas considered to be at a high risk for fires.
If you're unable to get a homeowners insurance quote from a typical insurance company because you're located in a high-risk area:
- Talk to an independent insurance agent who can help you find specialized insurance companies that provide coverage in high-risk zones.
- Consider the California FAIR Plan Association for fire insurance coverage, which is usually a last resort for coverage because it is more expensive than private home insurance.
Homeowners insurance can be expensive in wildfire-prone areas. However, many homeowners can earn a discount for fire prevention home improvements like:
- Installing a Class-A fire-rated roof
- Maintaining a 5-foot ember-resistant zone around your home
- Upgrading to double-pane windows or adding shutters
- Enclosing eaves
- Clearing vegetation and debris
- Removing flammable sheds and other outbuildings
Many home insurance companies in California also offer discounts to people living in areas with community-wide fire mitigation systems. For example, a Firewise or Shelter-in-Place community.
Earthquake insurance in California
Earthquake damage generally won't be covered by homeowners insurance in California. You will need a separate insurance policy.
Homeowners can get earthquake insurance through the California Earthquake Authority (CEA). It sells publicly supported earthquake policies and insurance through private companies. There are a couple of requirements to get CEA earthquake coverage:
- You must already have a residential property insurance policy (homeowners, renters or condo insurance).
- If your current insurance provider participates in the CEA, then you must get your CEA earthquake insurance from that same provider.
Earthquake insurance is not required by mortgage companies, and it can be expensive. But homeowners in California who do not have coverage will have to pay the full cost of home repairs after an earthquake.
Earthquake insurance in California costs an average of $1,770 per year for a single-family home with $500,000 of replacement cost coverage. To make earthquake insurance more affordable, use a cheap company like Cincinnati or Tokio Marine. You should also look for discounts based on your home's structure, which can save you up to 25%.
Flood and mudslide insurance in California
Homeowners insurance policies do not cover flood damage. You'll need a separate flood insurance policy.
Though California is a coastal state, most flood damage is due to rainfall, not the ocean. So homeowners closer to rivers are at the highest risk.
Homeowners looking for flood insurance in California can get it from the National Flood Insurance Program, which is sponsored by the federal government, or a private flood insurance company, which has the potential to offer cheaper rates and higher coverage limits.
Mudslide damage is typically not covered by home insurance. But homeowners may be covered if the mudslide was caused by a covered event.
This was the case in the Montecito mudslides of 2018. Wildfires destroyed vegetation in the area, making it more susceptible. Since fires are covered by homeowners insurance, and the mudslide was ultimately attributed to the fires, insurance companies largely agreed to cover the damage.
Following this incident, the California legislature passed a law requiring home insurance companies to pay for damage if the initial cause of an event is covered. The Montecito incident shows why California homeowners should understand what their insurance policies will and will not cover.
Cost of California home insurance over time
Home insurance costs have increased by 49% in California over the last five years.
California homeowners have seen an average rate increase of 7% each year since 2019, with no sign of slowing down — 2023 and 2024 (through the end of May) have seen the largest increases of 10% and 11%, respectively.
Among top insurers, the biggest increases over the last five years have been at AAA NorCal (94%), State Farm (58%) and Mercury (58%).
The smallest increases over that time have been at AAA SoCal (16%), Allstate (23%) and USAA (23%).
Frequently asked questions
How much is home insurance in California?
Homeowners insurance in California costs $1,623 per year for $350,000 of dwelling coverage. However, rates fluctuate between $1,265 and $2,273 depending on where you live in the state.
Is State Farm selling home insurance in California?
State Farm is the largest home insurance company in California, but it's not selling new policies right now. Instead, homeowners should look at companies like AAA or Mercury Insurance.
How much is homeowners insurance in San Diego?
Home insurance in San Diego costs $1,435 per year, which is 12% cheaper than the state average.
Methodology
Homeowners insurance rates in California are based on quotes from every ZIP code in the state. The sample property was built in 1975 and insured to the current median value of a home in California, $505,000. Quotes for this home are from 10 of the largest home insurance companies in California.
- AAA NorCal (CSAA)
- AAA SoCal (Auto Club Interinsurance Exchange)
- California Casualty
- Chubb
- Cincinnati
- Mercury
- Pacific Specialty
- Progressive
- Universal
- USAA
ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only. Your own quotes may be different.
Other sources include California census data and Cal Fire.
Home insurance rate change data was compiled using RateWatch from S&P Global, which uses information from the National Association of Insurance Commissioners (NAIC).
Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.