Life in Cali is pretty amazing. California ranks among the top states to live for its booming economy, great healthcare and natural resources.But living in the Golden State has many challenges, mainly because of high risks of natural disasters such as wildfires and earthquakes.
The best home insurance companies in California protect your property from damages related to natural disasters but also provide flexible policies, discounts, online resources, among other perks. Our list includes big national names such as Allstate, State Farm and USAA, but also local player Mercury Insurance. Some of these companies also made it to our national list of best homeowners insurance companies.
The 4 Best Homeowners Insurance Companies in California
- Allstate: Most customizable
- USAA: Best for military families
- State Farm: Best web experience
- Mercury Insurance: Best local company in California
| Reviews.com Score | Average Price | AM Best AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim. | J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality. | ||
|---|---|---|---|---|---|
| Pin Allstate | 4 | $416 | A+ | 814 | Show Details PROS
CONS
|
| Pin USAA | 4 | $537 | A++ | 878 | Show Details PROS
CONS
|
| Pin State Farm | 3.75 | $537 | A++ | 831 | Show Details PROS
CONS
|
| Pin Mercury Insurance | N/A | $405 | A+ | 837 | Show Details PROS CONS |
Information as of 09/02/2020
Allstate
Allstate’s strength is in the diversity of its offerings and discounts, which allow you to pick and choose the coverage that works best for your circumstances. It has a great website, with tons of useful information.
Allstate is uniquely suited to California because of its focus on green materials. The company covers the additional cost of replacing damaged or destroyed items with a green alternative. In a state like California that’s ahead of the curve in sustainability, this coverage option might be particularly attractive to homeowners in the state.
Another perk unique to Allstate’s service is the price. The company offers below-average rates to California homeowners without sacrificing coverage and service. This allows customers to keep costs down while maintaining enough coverage to protect their home.
Allstate also combines the perks of a national carrier with the personal touch of a local company. The company has top-notch digital tools, discounts, and coverage options at great rates, largely because of the resources the company has at its disposal. But California customers have access to local agents no matter where they live, providing a level of service that competes with local carriers.
Most Customizable
Why we chose it
Why we chose it
Pros
- Diverse discount opportunities
- Informative website and digital tools
- Above-average customer service
Cons
- NAIC complaint index high
- Financial strength ratings good, but not great
Discounts available
- Early signing discount
- Home buyer discount
- Hail-resistant roof discount
Unique features
Allstate’s discount list is longer than most national insurers. You could save up to 10% on your premiums if you sign up for your new policy at least 7 days before the current one expires.
*J.D. Power 2019 Home Insurance Customer Satisfaction Survey, based on a 1,000-point scale
Further Reading on Allstate:
USAA
Like Amica, USAA appears at the top of rating lists for its excellent customer service, comprehensive policies, and fair prices. The only catch is that you must be a current or former member of the military community to purchase a policy — but if you are, the company should be your first stop.
Something that makes USAA particularly unique is the variety of services it provides to customers. In addition to insurance coverage, the company also offers banking, investment products, and financial advice unique to military customers’ needs.
Because USAA coverage is only available to current and former military members and their families, it’s often not one of the top insurers in the state by market share. But USAA provides homeowners insurance to more than half a million California homeowners, more than 5% of the market share.
Because it’s a national carrier rather than a local one, USAA customers may not provide quite the personal touch you might find elsewhere. Additionally, because it doesn’t serve as many customers as some of its competitors, you’re less likely to find a local agent near you.
Best for Military Families
Why we chose it
Why we chose it
Pros
- Outstanding customer service
- Policies tailored to military family needs
- Competitive pricing
Cons
- Only available to current and former military members and their families
- Limited discounts
Discounts available
- Save 10% if you bundle with auto
- Claims-free 10% discount
- Home security system discount
Unique features
USAA’s policies are written with service men and women in mind. This means they have details that anyone in the military can appreciate, such as full coverage for uniforms for active duty or deployed members.
*J.D. Power 2019 Home Insurance Customer Satisfaction Survey, based on a 1,000-point scale
Further Reading on USAA:
State Farm
State Farm offers above-average customer support along with competitive pricing and solid coverage options. For those new to home ownership, its Simple Insights blog can tell you everything you need to know about homeownership in general.
Another way that State Farm really stands out compared to other California insurers is the sheer number of policies available, and the perks you get when you bundle them. The company offers more than 30 different policy options, including unique coverages for different types of homes such as condos, manufactured homes, and farms & ranches.
Customers can also combine each of their State Farm policies onto a single bill, resulting in one monthly payment instead of several. Additionally, you can select your own payment date, and choose between monthly, annual, or biannual payments.
Through State Farm, California customers get the unique benefits of a national carrier with the personal touch of a local company. The company has many resources at its disposal, meaning customers have access to the best rates and digital tools. On the other hand, State Farm has local agents in more than 300 California cities. So no matter where you are, you can find local service through State Farm.
Best for Web Experience
Why we chose it
Why we chose it
Pros
- Financially strong
- Excellent web presence
- 19,000+ agents nationally
- Informative blog
Cons
- Limited discounts
- Higher premiums
Discounts available
- Multiple policy discount
- Fire, smoke, or burglar alarms discount
- Impact-resistant roof discount
Unique features
State Farm’s comprehensive website makes it easy to get a detailed quote in minutes. You can also pay your bill, file and manage a claim, and handle most maintenance tasks either online or via the company’s app.
*J.D. Power 2019 Home Insurance Customer Satisfaction Survey, based on a 1,000-point scale
Further Reading on State Farm:
Mercury Insurance
Mercury Insurance has served the local community of California for over 50 years. Their homeowners insurance policy includes the traditional coverages, but you can also add coverages for modern-day problems such as damaged home equipment, identity theft and cyber attacks.
Mercury also stands out from its competitors in the number of discounts it offers. While many insurers have just a couple of ways to save on your homeowners insurance, Mercy offers a surprising number.
Like most companies, Mercury offers a discount for bundling home and auto policies. But you can also save by having fire-resistant construction materials, buying a newer home, living in a gated community, or protecting your home with smoke alarms, deadbolts, burglar alarms, and more.
Mercury Insurance was founded in 1961 in Los Angeles, California, and got its start by serving customers in the state. Even today, as a national insurance carrier, the company only serves customers in 11 states. As a result, its customers get a far more personal level of service. Additionally, California customers benefit even more because they have the most types of Mercury Insurance coverages available to them.
Best Local Company in California
Why we chose it
Why we chose it
Pros
- Great local service
- Ride-share coverage
Cons
- Must call to file a claim
- Earthquake insurance and flood insurance is an add-on
Discounts available
- Autopay
- Multi Policy
- Protective device discount
Unique features
Mercury Insurance offers an extended replacement cost policy that provides additional coverage up to 150% of its dwelling protection. It also has additional living expenses coverage if your home becomes uninhabitable due to a covered loss. Feel free to invite people over, because if they get injured, they will be protected with its guest medical protection.
**Some regional companies don’t have enough third party ratings to calculate a score.
Further Reading on Mercury:
- Mercury Auto Insurance Review
- Mercury Insurance Ends Legal Battle For $41 Million. Are You Being Charged Illegal Fees?
Average Cost of Homeowners Insurance in California
Even if California is a state prone to natural disasters, the average homeowner insurance premiums are $1,008, surprisingly about $200 below the national average, per the NAIC. Since 2017, this state has declared at least three natural disasters per year, with six in 2017, three declared in 2018, and five in 2019. A catastrophic loss or impact in each state might increase the rates on the average premiums, but it will vary depending on where in the state you live. There are other community and individual elements that incide in the cost of your premium, like crime rate in the neighborhood, the age of the house you live in, your age and even your credit score. So the cheapest homeowners insurance company for you might be different from what we found for this article.
Top 3 Cheapest Homeowners Insurance Companies in California
- Progressive – $434 average annual premium
- USAA – $590 average annual premium
- Grange – $757 average annual premium
Average Premium from Homeowners Insurance Companies in California
Using Quadrant Information Services data, we analyzed home insurance companies in the United States and compared the best homeowners insurance rates in California. We found that the average premium for home insurance in California is $1,273. However, homeowners may be able to find cheap home insurance rates, like $434 a year with Progressive.
These are sample rates and should be used for comparative purposes only. Your quotes may be different.
The coverage limits in our methodology are these:
- Coverage A, Dwelling: $200,000
- Coverage B, Other Structures: $0
- Coverage C, Personal Property: $100,000
- Coverage D, Loss of Use: $40,000
- Coverage E, Liability: $250,000
- Coverage F, Medical Payments: $1,500
The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).
| Carrier | Yearly Average Premium | Montly Average Prremium |
| PURE | $4,045.60 | $337.13 |
| Chubb | $2,620.00 | $218.33 |
| The Hartford | $1,974.68 | $164.56 |
| CSE | $1,492.49 | $124.37 |
| MetLife | $1,462.19 | $121.85 |
| Allstate | $1,383.76 | $115.31 |
| Farmers | $1,177.01 | $98.08 |
| UNIVERSAL Ins CO Grp | $1,137.32 | $94.78 |
| MAPFRE Ins Grp | $1,116.88 | $93.07 |
| American Intl Grp | $1,104.38 | $92.03 |
| FIRST AMER TITLE Grp | $1,085.25 | $90.44 |
| Cincinnati Insurance | $1,074.81 | $89.57 |
| Travelers | $1,073.93 | $89.49 |
| AAA | $1,073.54 | $89.46 |
| Nationwide | $1,064.95 | $88.75 |
| AEGIS Grp | $995.02 | $82.92 |
| Capital | $990.72 | $82.56 |
| Armed Forces Ins Exch | $911.19 | $75.93 |
| Mercury | $893.62 | $74.47 |
| State Farm | $833.19 | $69.43 |
| Grange | $757.16 | $63.10 |
| USAA | $590.47 | $49.21 |
| Progressive | $434.54 | $36.21 |
Source: Coverage.com
Largest Companies by Market Share in California
| Largest Companies by Market Share in California |
| Mercury Insurance |
| Progressive |
| Allstate |
| Armed Forces Ins Exch |
| Garrison Prop & Cas Ins Co |
| State Farm |
| USAA |
| Travelers |
| Interins Exch Of The Automobile Club |
| Universal N Amer Ins Co |
| Aegis Security Ins Co |
| CSE Safeguard Ins Co |
| Grange Ins Assn |
| Safeco |
| Nationwide |
| Eagle W Ins Co |
| Farmers Insurance |
| Metropolitan Insurance |
| First Amer Prop & Cas Ins Co |
| MAPFRE |
| The Hartford |
| Twin City Fire Ins Co |
| Sentinel Ins Co Ltd |
| Trumbull Insurance |
| Cincinnati Ins Co |
| AIG Prop Cas Co |
| Chubb |
| Encompass |
| Privilege Underwriters Recp Exch |
Cost of Homeowners Insurance by Age of Home
| Age of Home (years) | Sample Annual Premium |
| 5 | $1,063 |
| 20 | $1,372 |
| 35 | $1,441 |
| 50 | $1,425 |
The 4 Most Expensive Homeowners Insurance Companies in California
- PURE Insurance – $4,045 average annual premium
- Chubb – $2,620 average annual premium
- The Hartford $1,974 average annual premium
Home Insurance Add-Ons That Will Further Protect You
When deciding which is the best California homeowners insurance for you, consider your home location’s risks and find a policy that goes accordingly to protect your house and belongings. California specifically is prone to earthquakes, flooding, wildfires, landslides and mudslides.
Policy add-ons for events so unpredictable, such as coverage for floods or earthquakes, must be purchased separately. Without these add-ons, you can’t submit a claim to your insurance company and will end up paying for damages out of pocket. So make sure that your policy covers all the possible hazards in your area, because it could save you money in the long run.
Helpful Resources for California Homeowners
Knowing the ins and outs and your rights as a consumer is key to getting the most value out of your homeowner’s policy. The California Department of Insurance has a website with useful content to help residents understand how residential insurance works and which insurance best protects your family, your home, and your possessions.
United Policyholders also created a helpful guide of legal rights you have when purchasing insurance in California. And if your insurer drops your coverage, this nonprofit has a step-by-step plan on where to go for help.
Homeowners Insurance FAQ
Is Homeowners Insurance Required in California?
Homeowner insurance is not required by California law. But if you have a mortgage, your lender might require you to have one, as properties in California might be considered a higher risk.
How Can I Lower my Homeowners Insurance in California?
Some companies are willing to give discounts to decrease your premium payment. Factors such as construction materials, age of the property, and disaster-prone areas could increase the price in California. But if you are looking to lower the cost, you can install protective devices, such as burglar alarms, smoke alarms and detectors and fire extinguishers. If you look for multi policies, you might get a discount for having your car or other types of insurance with the same company.
Methodology
We evaluated the companies based on their customer rating and experience, financial stability, and coverage to determine the best providers. To compare home insurance companies across the board, we then calculated a Reviews.com score based on the following:
- Customer Ratings — Customer ratings are an indication of satisfaction with the process of filing a claim. We measured this using J.D. Power Homeowners Satisfaction ratings.
- Coverage — As there isn’t one company to fit everyone’s needs, we evaluated companies by the amount of coverage options and add-ons available.
- Confidence — It is extremely important for insurance companies to fulfill customers’ claims. Companies with sound financial strength will not have issues paying out claims, regardless of the amount. However, companies with weak financial strength might not be able to pay out claims. We measured this using AM Best’s ratings, which specializes in assessing the financial strength of insurance companies.
- Customer Experience — The amount of complaints a company receives is an indicator of the overall customer experience as it expresses dissatisfaction. We have based this measure on the NAIC National Complaint Index.
About the Authors
Nina Rodríguez-Quirós is a feature writer for Reviews.com. Over the last year, she has covered insurance providers, claims handling, coverage and more. She has been featured in Allconnect.com and holds a Master’s Degree in Theory and Research of Communications from the University of Puerto Rico. Her favorite review is Millennials and Auto Insurance.
