The average homeowners insurance cost in California is $2,160 per year, or roughly $180 per month. Companies like Travelers, Hippo, Stillwater, and Bamboo offer some of the cheapest home insurance premiums for California homeowners, with rates well below the state average. But home insurance is getting harder to find.

Increasing wildfire risk has led more than half of the state’s top home insurers to pause or restrict coverage, and some have rate increases of 10x or more.1 Fire-hardened homes could qualify for discounts, but you’ll still need a separate policy to protect against earthquakes and floods. Given the state’s susceptibility to natural disasters, understanding your coverage is crucial.

Best home insurance companies in California

You’re no stranger to rising home insurance rates if you live in California. While finding affordable premiums is challenging, getting quality homeowners insurance coverage is possible. Remember that many types of home insurance are available, and the best choice depends on your financial situation and coverage needs.

Cheapest rates: Travelers

Best insurer for floods and earthquakes: Hippo

Best insurer for wildfire coverage: Bamboo

Best insurer for higher policy limits: Stillwater

Cheapest home insurance in California

Farmers is the cheapest homeowners insurance company in California. Policyholders pay rates well below the state average, making it a financially savvy option for many homeowners. A policy from Farmers with dwelling coverage of $300,000 costs $86 per month, compared to the state average of $180 for a policy with the same limits.

Policies protect against common risks, like fire, windstorms, hail, and lightning, and include personal belongings and liability coverage. But remember that earthquakes and floods typically require additional coverage. Your standard policy may not be enough for complete protection.

Cost of homeowners insurance in California

California homeowners spend an average of around $2,160 each year on home insurance, although costs can fluctuate based on several factors. Location is a key consideration — if you’re in an area prone to natural disasters, like wildfires or earthquakes, you’ll likely have a high premium.

The age, size, and structure of your home also influence rates, with insurers offering lower prices for newer, well-constructed homes. Your chosen coverage types and policy limits also directly affect your insurance costs.

Cost of homeowners insurance by dwelling coverage amount

The dwelling coverage amount you choose plays a significant role in home insurance quotes. Higher coverage levels result in high costs because they offer greater protection and increase the insurer’s risk. For example, a policy covering up to $500,000 in damages will have a higher price than one with a $250,000 limit, as it places greater financial responsibility on the insurer.

Cost of homeowners insurance by deductible

Your home insurance deductible is the initial amount you must cover before your insurance steps in to contribute to a claim. Balancing the deductible amount with premium cost is an important factor in customizing your home insurance policy.

Opting for a low deductible leads to higher premiums since it shifts more of the financial burden to the insurer during a claim. A higher deductible usually means a lower home insurance bill because you’re accepting a larger portion of potential claims. The table below highlights how different deductibles can affect the cost of a $300,000 dwelling policy.

How to get cheap homeowners insurance in California

Affordable home insurance in the Golden State isn’t the easiest to find, especially with major insurers like Allstate, State Farm, and Farmers stepping back from offering new home insurance policies.4 Other California home insurers are limiting their coverage focus, concentrating on renters or condo insurance only.5

Despite these hurdles, several strategies can help you save on home insurance:

California homeowners insurance rates by city

Homeowners insurance rates swing high and low from state to state and even between cities within the same state. Factors like local weather conditions are mostly responsible, leading insurers to charge more in neighborhoods prone to wildfires, earthquakes, or floods. Areas with a history of vandalism or theft may also experience higher costs.

It’s worth noting that proximity to essential services, like fire stations, also plays a role. If your home is close to these types of facilities, you’ll typically pay lower home insurance rates. The table below highlights how much home insurance premiums can vary between California cities for a $300,000 dwelling policy.

How much homeowners insurance do you need in California?

Home insurance is essential for homeowners, especially if you use a mortgage to purchase the property. Mortgage companies typically require insurance coverage as part of the lending agreement to protect the lender’s investment from potential damages or losses.

But homeowners insurance is about more than meeting your lender’s requirements — it’s critical financial protection for you. Policies can vary significantly, so make sure you understand your coverage and what your policy does (and doesn’t) cover.

And remember that a standard policy doesn’t safeguard your home against all types of damage and risks. Especially in states like California, where natural disasters like wildfires and earthquakes are common, considering additional coverage for these events might be necessary. Peace of mind and financial security might make the additional premium worthwhile. $169

What are some of the biggest risks when owning a home in California?

Californians face unique challenges thanks to climate change and the state’s geography. Three of the most common risks are wildfires, earthquakes, and floods. The increasing frequency and intensity of these natural disasters have caused traditional insurance companies to pause or limit new policies.7

The shrinking pool of home insurance companies makes understanding what your homeowners insurance covers even more critical. It also makes it more difficult to get essential coverage against the state’s most common risks: