What is the most affordable home insurance in California?
Best affordable homeowners insurance in California: Travelers. The average cost of Travelers homeowners insurance in California is $995 a year, lower than the state average of $1,250. Travelers offers a robust online experience.
State Farm is the cheapest home insurance provider in 22% of states and Allstate is the cheapest provider in 18% of states. Use the map below to see which homeowners insurance provider offers the cheapest coverage in your state.
How much is homeowners insurance in California? The average cost of homeowners insurance in California is $1,383 per year, or roughly $115 a month, for an insurance policy with $300,000 in dwelling coverage.
- Hippo: Our pick for fast quotes.
- Liberty Mutual: Our pick for discounts.
- Farmers: Our pick for customizable coverage.
- Nationwide: Our pick for inclusive standard coverage.
- USAA: Our pick for club members.
Travelers and Nationwide are among the best home insurance companies in California. Sarah Schlichter is a NerdWallet authority on homeowners, renters and pet insurance. Prior to joining NerdWallet, she spent more than 15 years in digital media as a writer, editor and spokesperson.
The cheapest car insurance rate is $38 a month from Geico according to our research team's cost analysis of national average prices for minimum coverage. The top 10 cheapest car insurance companies are Nationwide, Geico, State Farm, Travelers, Progressive, AAA, Allstate, Chubb, Farmers and USAA.
Top 10 home insurance companies. State Farm is the largest provider of homeowners insurance in the U.S., with $19.7 billion in direct premiums written in 2020. That figure is double the amount of the second-largest insurer, Allstate.
| Provider | Star Rating | A.M. Best |
|---|---|---|
| Our Top Pick Allstate Get Quote | 4.8 | A+ |
| State Farm Learn More | 4.8 | A++ |
| American Family Learn More | 4.7 | A |
| Nationwide Learn More | 4.6 | A |
- Liberty Mutual: Our pick for discounts.
- Allstate: Our pick for extended coverage.
- Progressive: Our pick for bundling.
- Farmers: Our pick for customizable coverage.
- American Family: Our pick for online resources.
AAA Home Insurance discounts
Experienced AAA insurance agents are ready to customize your homeowners insurance coverage. Find AAA California locations.
Is State Farm leaving California?
The insurer plans to send non-renewal notices to 72,000 home and apartment policyholders starting this July. State Farm plans to stop renewing home and apartment insurance policies in California beginning July 3.
When it comes to insuring your home, the 80% rule is an important guideline to keep in mind. This rule suggests you should insure your home for at least 80% of its total replacement cost to avoid penalties for being underinsured.
State Farm, California's largest home insurance company, announced it would be discontinuing coverage for 72,000 homes and apartment policies in the state starting this summer. The insurer blamed inflation, regulatory costs, and the increasing risks from catastrophes for its decision to scale back in the blue state.
State Farm is the largest auto insurer in California as well as the largest property and casualty insurer in the United States overall, providing more than 87 million insurance policies.
As of October 1st of this year, Liberty Mutual will no longer be offering business owners' policies in California.
Erie Insurance, Amica, and Nationwide are the three best insurance companies for home insurance claims satisfaction in J.D. Power's 2023 Property Claims Satisfaction study, the most recent. Automobile Club of Southern California (AAA) and Homesite were ranked in the bottom two slots.
The vast majority of Blue California's customers say they would recommend it to friends and family and just about all those polled said they'd renew their policies. It's No. 12 on Insure.com's 2024 Best Health Insurance Companies list – earning 3.7 stars out of 5.
Called a comprehensive policy, an HO-5 policy offers the highest level of insurance coverage for houses and belongings. It covers your house and belongings under all circ*mstances except those listed as exclusions in the policy. The exclusions for HO-5 policies are the same as those under an HO-3.
Insurance products in California are offered through AAA Northern California Insurance Agency, License #0175868, in Montana by AAA Montana, Inc., License #9756, in Nevada by AAA Nevada and in Utah by AAA Utah.
For example, homes that are closer to a staffed fire station tend to have lower premiums because in the event of a fire, it will likely be put out in a timely manner, minimizing the overall damage and cost to your insurer.
What is the cheapest homeowners insurance for seniors?
Cheapest homeowners insurance for seniors
According to our research, Erie and Auto-Owners are the cheapest home insurance companies in the country for most people, including seniors. The national average cost of an Erie home insurance policy is $1,284 per year, while Auto-Owners' average policy is $1,406 per year.
Allstate announced in November 2022 that it would “pause new homeowners, condo and commercial insurance policies in California to protect current customers,” the Associated Press reported in June.
30, 2023: USAA announces it will begin to limit California home insurance coverage in March 2024. USAA plans to tighten its wildfire safety standards and only insure homes with a wildfire risk score below 12, with 32 being the highest possible.
Homeowners insurance premiums are generally not deductible on your personal income tax return.
How much will home insurance rates increase? The firm's Home Insurance Projection Report foresees a 6% rise in annual premiums in 2024. The increase will put the national average at $2,522 at the end of the year.
