How Much Is Home Insurance In California? 2025
The average cost of a home insurance policy in California is $1,324 per year.
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Home insurance is becoming more difficult to find, especially in California, where many homeowners are facing higher rates and policy cancellations due to the risk of wildfires.
Recently, the California Department of Insurance approved Allstate’s request for a significant rate increase, marking the largest hike in the past three years. On average, homeowners’ insurance premiums will rise by 34%. The actual increase varies depending on the area where you live. So, with these rising costs, what can consumers expect to pay for home insurance in California?
Having worked in the industry for over 20 years, I can confirm that home insurance rates have reached unprecedented highs. However, with some careful planning and research, it is still possible to find affordable coverage. Here’s what you need to know about the current home insurance market in California.
Key Takeaways
The average cost of homeowners insurance in California is $1,324 annually, which is 34% lower than the national average of $2,015.
Home insurance premiums in California can vary greatly between different insurers, even for the same coverage levels.
The type of roofing on your home can affect your insurance premium. In California, roofs made of materials like composition tend to result in slightly lower premiums, compared to shake-treated roofs.
To find out how much you’ll pay for home insurance in California, it’s best to get quotes from several different insurance companies.
Keep in mind that standard home insurance does not cover earthquakes or floods.
How Much Is Homeowners Insurance In California?
Finding home insurance is becoming more challenging in California. The increasing risk of wildfires has led more than half of the state’s top insurers to pause or limit coverage, with some raising rates by as much as 10 times or more. Homeowners in certain zip codes or those with past claims may also face higher premiums than the state average.
Despite these challenges, the average cost of homeowners insurance in California is still $1,324 per year, which is lower than the national average. Companies like Travelers, and Progressive offer some of the most affordable premiums, with rates well below the state average.
Average Home Insurance Cost In California By Insurance Carrier
The average cost of homeowners insurance in California can vary significantly depending on the insurance carrier. Major companies like State Farm, Allstate, and Farmers tend to offer competitive rates, with premiums typically ranging from $1,100 to $1,500 annually for standard coverage.
More affordable options, such as Travelers, and Progressive, may offer premiums below the state average, often starting around $1,000 per year. However, rates can fluctuate based on factors like the home’s location, age, and construction type.
| Insurance Carrier | Average Annual Premium |
| Allstate | $750 |
| Travelers | $880 |
| Nationwide | $1,116 |
| State Farm | $1,094 |
| Farmers | $1,184 |
| USAA | $1,184 |
| Chubb | $1,852 |
Note: Nearly 60% of California homeowners face higher insurance premiums due to the increasing risk of wildfires, with some areas seeing rate hikes of up to 30% in recent years. This has made it more important than ever for homeowners to shop around and compare insurance providers to find the best rates.
Average Home Insurance Cost In California By Claims History
The average cost of homeowners insurance in California can be significantly affected by a homeowner’s claims history. If you have a history of filing multiple claims, especially for major incidents like fire or water damage, your premiums are likely to be higher. Insurers view previous claims as an indicator of future risk, which can lead to increased rates.
| Number of Claims | Average Annual Premium |
| None | $1,324 |
| 1 | $1,452 |
| 2 | $1,864 |
Average Home Insurance Cost In California By Credit Score
Credit-based insurance scores are not used in every state to determine home insurance rates. In California, however, the use of credit scores is banned when setting home insurance premiums, so your credit rating cannot influence how much you pay for homeowners insurance.
| Credit Score | Annual Average Premium |
| Poor (300-579) | $1,324 |
| Fair (580-669) | $1,324 |
| Good (670-739) | $1,324 |
| Very Good (740-799) | $1,324 |
| Excellent (800-850) | $1,324 |
Average Home Insurance Cost For New Homes In California
Insuring a newly constructed home in California typically costs an average of $669 per year, significantly lower than the $1,142 average annual premium for older, existing homes. The reduced insurance rates for new homes can be attributed to several factors, including the use of modern construction materials, which are designed to be more durable and resistant to damage from natural disasters such as wildfires, earthquakes, and flooding.
| Age of Home | Average Annual Premium |
| New | $669 |
| 10 | $1,142 |
| 20 | $1,410 |
| 30 | $1,601 |
Average Home Insurance Cost In California By Coverage Amount
The average home insurance cost in California varies significantly depending on the coverage amount. For a basic policy with $100,000 in dwelling coverage, homeowners can expect to pay between $600 and $800 annually. For homes with more typical coverage, such as $250,000 in dwelling coverage, premiums generally range from $1,000 to $1,300 per year.
| Coverage Limit | Average Annual Premium |
| $100,000 | $690 |
| $250,000 | $1,324 |
| $500,000 | $2,084 |
| $750,000 | $3,082 |
| $1,000,000 | $3,550 |
| $2,000,000 | $5,121 |
| $3,000,000 | $6,974 |
Average Home Insurance Cost For Different Cities In California
The average cost of home insurance in California varies by city due to factors such as local risks (wildfires, floods, earthquakes), property values, and the overall cost of living. For example, with its high property values and risk of earthquakes, home insurance premiums in San Francisco are relatively high.
Coastal areas and older homes also contribute to the increased costs. In contrast, San Diego’s coastal location means a moderate risk of wildfires, but the overall cost of home insurance tends to be lower than in more disaster-prone areas like Los Angeles or the Bay Area. Below are a few examples of rates you can expect in various cities within California.
| City | Average Annual Premium |
| Berkeley | $1,083 |
| Chula Vista | $1,102 |
| Downey | $1,332 |
| Fremont | $947 |
| Dallas | $4,686 |
| Glendale | $1,293 |
| Lancaster | $1,517 |
| Los Angeles | $1,424 |
| Murrieta | $1,272 |
| Oakland | $1,165 |
| Palmdale | $1,533 |
| Richmond | $994 |
| San Francisco | $1,055 |
| Simi Valley | $1,091 |
| Victorville | $1,313 |
How To Estimate Your Homeowners Insurance Policy Cost
Homeowners’ insurance carriers base the price of your policy on a few different factors. While almost all companies use the same factors, they each weigh them differently. Therefore, it’s difficult, if not impossible, to determine the price of your home insurance policy without getting a quote from the company directly.
Home Value and Rebuilding Costs: The primary factor influencing the cost is the replacement cost of your home, or how much it would cost to rebuild it in case of a total loss. You should consider the value of the property, its size, age, and construction type (brick, wood, etc.).
Coverage Type: The type and amount of coverage you choose impact the price. Standard homeowners policies usually cover:
- Dwelling Coverage: The structure of your home.
- Personal Property: Your belongings inside the house.
- Liability: Protection against lawsuits.
- Loss of Use: If your home becomes uninhabitable, this covers temporary living expenses.
Location: Insurance costs are affected by the location of your home. Homes in areas prone to natural disasters (floods, earthquakes, hurricanes, wildfires) typically have higher premiums.
Claims History: If you’ve had prior claims (either for your home or personal property), your premium may increase as the insurer sees you as a higher risk.
Deductible: The deductible is the amount you pay out-of-pocket before your insurance kicks in. A higher deductible can lower your premium, but you’ll pay more if you file a claim.
Safety and Security Features: Homes with security systems, smoke detectors, fire extinguishers, and deadbolt locks may receive discounts on premiums.
Note: Life circumstances change over time, and these changes should be reflected in your homeowners insurance. Regularly review your policy to ensure it still meets your needs.
How To Buy Home Insurance In California
Assess Your Coverage Needs
Before purchasing home insurance, evaluate the value of your home, your personal property, and your financial situation. Consider the amount of dwelling coverage needed to rebuild your home and the cost of replacing personal belongings in case of loss or damage.
Additionally, think about liability coverage to protect against accidents on your property and additional coverage like earthquake or flood insurance, as standard policies in California may not include these risks.
Research Insurance Providers
Start by researching home insurance companies that offer policies in California. Look for reputable providers with strong customer service ratings, financial stability, and experience in the state’s unique risk factors, such as wildfires, earthquakes, and flooding. Online reviews, state insurance department resources, and recommendations from friends or family can help guide your decision.
Compare Quotes from Multiple Insurers
Get quotes from at least three to five different insurance companies to compare rates and coverage options. This will help you understand the average cost for the coverage you need and identify any potential differences in premiums, deductibles, and policy terms.
Understand the Policy Types
California homeowners’ insurance policies typically offer different levels of coverage, such as HO-3 (the most common), HO-5 (broader coverage), or policies that include earthquake or flood coverage. Understand the specifics of each policy type, such as what is covered and what is excluded.
Review Discounts and Savings Opportunities
Insurance companies may offer discounts that can lower your premium. These might include bundling home and auto insurance, installing home security systems, or maintaining a good credit score. Ask about available discounts to reduce costs while maintaining adequate coverage.
Finalize Your Policy
Once you’ve compared options and selected an insurance provider, you’ll need to finalize the policy by providing necessary documentation, such as proof of ownership, home value, and any requested inspections. Review the policy terms carefully before signing, ensuring that all details match what was quoted, including coverage limits, exclusions, and deductibles.
Review Annually
Once your policy is in place, make it a habit to review it annually or after major life events (such as home renovations or acquiring valuable property). This ensures your coverage keeps pace with changes in your home’s value or personal needs.
Note: Be mindful of exclusions, such as coverage for floods or earthquakes, which may require separate policies.
FAQs
Why is homeowners insurance in California so expensive?:
Homeowners insurance in California is expensive due to high risks from wildfires, earthquakes, and other natural disasters. The state’s high property values and rebuilding costs, combined with climate change impacts, also contribute to higher premiums. Additionally, limited insurance options in high-risk areas and strict regulations add to the cost.
How much is homeowners insurance per month in California?
The average cost of homeowners insurance in California is typically between $100 and $200 per month. This can vary based on factors such as location, home value, coverage amount, deductible, and risk factors like wildfire or earthquake exposure.
