California Homeowners Insurance Quotes

Everything You Need to Know About Home Insurance in California

The Golden State was named so in the mid-1800s, when prospectors flocked to the West in search of their fortunes. California’s nickname is also meant to represent the opportunity it has and continues to offer. Hollywood in Los Angeles, Disneyland in Anaheim, beaches along the coast, an abundance of sunshine, healthy living, and surf culture all come to mind when you think of this state, portraying an image of fun, health, and happiness.

California is vast in its geography, demographics, climate, and culture. The southeast and eastern parts of the state include the Mojave, Colorado, Sonoran, and Great Basin Deserts. Travel to the Sierra Nevada and the Cascade Range in the far north, and you can ski on its snowy mountains. Central, Salinas, and Imperial Valleys boast hundreds of miles of agriculture. Some of the best wines available are produced in Napa Valley and Sonoma County.

You can find rural, slow-paced living in towns and villages like Quincy, Ferndale, Solvang, Mariposa, and Julian. Live life in the fast lane in cities like Fresno or Sacramento, or surf it up in coastal areas like Santa Monica and Malibu. Protect your Golden State home from wildfires, earthquakes, floods, and even mudslides, which all occur here. Talk to an InsureOne agent to get the most affordable homeowners insurance in California.

How Much Is Homeowners Insurance in California?

It is impossible to give an exact number for how much home insurance coverage in California will cost because rates vary by zip code and are based on many factors insurers review to figure out your premiums. However, the average cost of property insurance in California is about $1,400 per year, which is significantly less than the national average of $2,600.

Why is home insurance so affordable in California? The low rates may be attributable to Proposition 108, which keeps prices in check. Known as the Reduction and Control of Insurance Rates Act, this law requires insurers to get approval before raising premiums.

Though regulators have not allowed many increases in the past, recent wildfires and other natural disasters have caused significant damage to homes, which led to a spike in claims. To keep up with these costs, insurers may have to start raising rates.

How To Find Home Insurance in California

It is not always easy to get a home policy in this state. Homeowners who cannot find a better plan often obtain a FAIR plan, a more costly government insurance program that provides limited dwelling coverage in California.

As mentioned, recent wildfires have devastated many homes in parts of California, and the state also has issues with other natural disasters, like earthquakes and flooding. While Proposition 108 has helped maintain low pricing for homeowners’ insurance, it is becoming increasingly difficult for insurers to remain profitable. As a result, several providers no longer operate in California, and others are not quick to insure homes if they feel their exposure to risk is very high.

So, if you need property insurance in Malibu, which was recently hit by a major wildfire, work on fireproofing your house as much as possible. Use fire-resistant roofing, keep your gutters free of leaves and debris, and make sure the immediate perimeter of your home is free of grass, brush, low tree branches, and any other flammable materials to help prevent your house from catching on fire and give firefighters a fire-free area to battle a potential blaze.

Your InsureOne agent works with many of the best homeowners insurance companies in California and will help you obtain a policy that will protect you financially at an affordable price.

How Do Home Insurance Deductibles Affect Rates in California?

Before your insurer pays for a financial loss you suffer through your policy, they first subtract your deductible, which is an amount you agree to pay every time you file a claim. This amount will sometimes be a percentage, or it might be a fixed dollar amount, depending on the type of hazard. A higher deductible means you pay less every time you file a claim, so your insurer charges you more for your policy. At the same time, you will get lower premiums if you have a higher deductible, since your insurer will pay less for your claims.

For example, earthquake coverage usually works with percentages. If you agree to a 15% deductible and an earthquake causes $40,000 worth of damage to your San Francisco home, you would have to pay $6,000, and your insurer would then pay the remaining $34,000. Wind event and wildfire deductibles are typically a flat rate. So, if your home in the San Fernando Valley area suffers $9,000 in damage from a wildfire, and you have a $3,000 deductible, your insurer would pay $6,000, and you would pay $3,000.

Is Bundling Auto and Home Insurance in California a Good Idea?

Bundling means getting more than one policy from the same insurer. When you bundle, your provider will typically give a discount of up to 25% on your policies, so it is always a good idea to try to bundle.

In a big city like Los Angeles, where there are many providers vying for your business, you can expect to get a bigger bundling discount because insurers have to work harder to get your business. In more remote areas like Redding, your discount may be lower in comparison.

Although insurers that operate in the state are not allowed to force you to bundle, you should strongly consider taking advantage of doing so. Your InsureOne agent will work diligently to compare bundling discounts and home insurance quotes in California with multiple providers to get you the best coverage with the lowest possible premiums.

Compare Home Insurance Rates by City in California

Where you live makes a huge difference in how much you will pay for coverage. The table below shows average premium amounts in various cities in the Golden State, though rates will vary significantly based on the cost of your home and various other factors:

City	Average Annual Insurance Cost
Anaheim	$1,420
Long Beach	$1,343
Los Angeles	$1,604
Sacramento	$1,219
San Francisco	$1,168

Is Home Insurance Tax Deductible in California?

Your premiums are typically not tax-deductible. However, you should discuss this with your accountant if you use a portion of your home for work. For example, if you have a home office or if you store work-related items in your basement, you may be able to deduct a portion of your premiums on your tax return. If you rent a home to tenants or to a business, that may also entitle you to a tax deduction.

Does California Have the 80% Homeowners Insurance Rule?

The 80% rule requires you to obtain at least 80% in replacement coverage. This means that if it costs $350,000 to replace your home after a fire or another type of natural disaster, then you have to obtain at least $280,000 in replacement cost coverage.

While this is an industry standard rather than a law, most insurers in California require policyholders to follow the 80% rule. You do not have to worry about figuring out the replacement cost of your home. Your InsureOne agent will help you calculate these numbers when you sign up for your policy.

What Factors Do Insurance Companies Consider When Setting Rates in California?

Insurers need to determine the likelihood of you filing claims and how much those claims might cost to determine your premium. To do so, they gather lots of information about you and your home, including the following factors:

• Your location
• Construction materials used to build the house
• The age of your home
• The distance to the nearest fire hydrant
• Your claims history

California insurers also look at these factors due to local conditions:

• Proximity to wildfire zones
• Earthquake fault lines
• Flood‑prone areas
• Coastal exposure to erosion
• Mudslides

What Are the Different Types of Home Insurance?

After reviewing your needs and preferences, your agent will choose one of eight types of homeowners insurance policies that fit your situation best. Each of these serves a unique purpose or provides a different level of coverage, as you can see from the chart below:

What Is the Most Common Homeowners Insurance in California?

Because of the balance between its cost and the level of coverage it provides, the HO-3 is the most common policy type. However, you may need special endorsements or separate policies for earthquakes, flooding, and some of the other natural disasters in this state.

It is highly recommended that, in addition to homeowners’ insurance in San Francisco, residents obtain an additional earthquake policy through the California Earthquake Authority. If you live in Stockton in the Central Valley, surrounded by levees and waterways that are vulnerable to heavy rain, you need to get a separate flood policy. Your InsureOne agent can help you determine what coverages you need based on the risks in your location.

California Homeowners Insurance FAQ

How Much Does Homeowners Insurance Cost in California?

The average yearly cost of a policy in the Golden State is around $1,400. Your premiums could be below that number or well above it, depending on various details about you and your home.

Does California Require Homeowners Insurance?

California law does not require you to purchase a homeowner’s policy. However, if you obtain financing when you buy your house, your lender will likely require you to get a policy to secure their investment in your home.

What Weather Risks in California Can Affect My Home Insurance Rates?

In different parts of California, homes can be damaged by perils such as wildfires, earthquakes, floods, and mudslides. Rates increase if there is a spike in these events and homeowners file claims beyond what insurers anticipated.

Does California Offer Any Discounts or Programs That Can Help Lower Home Insurance Costs?

Insurers that operate in California offer many discounts that policyholders can use to reduce their premiums, but the state itself does not offer any discounts.