Homeowners Insurance Quotes in Sacramento, CA

What You Should Know About Home Insurance in Sacramento

Sacramento is the capital of the state of California. The city sits where the Sacramento and American rivers meet, and it is the center of the fourth-largest metropolitan area in California. The city is roughly 85 miles northeast of San Francisco and Oakland.

The city is one of the fastest-growing in California thanks to booming enrollment at schools like California State University branches in Sacramento and Davis. It is also a major tourist destination thanks to a large number of museums, convention centers, and state parks.

As a Sacramento resident, you deserve protection if your home is damaged or destroyed in a catastrophic event. The expert agents with InsureOne can provide answers on how to find high-quality California homeowners insurance and offer quotes within your budget.

How Much Does a Homeowners Insurance Policy Typically Cost in Sacramento?

The value of your property is one of the most important factors in determining the cost of your homeowners insurance premiums. The average premium for a policy for a $300,000 residence in California is $115 per month or $1,383 per year.

The following table contains the average premium prices for different kinds of houses in California.

Type of Home in California	Average Annual Cost in California	Average Annual Cost Nationwide
Homes $300K-$700K	$1,403	$1,358
Co-ops and Condos	$576	$730
High-end Homes	$2,268	$1,110

How Do Home Insurance Deductibles Change Insurance Rates in Sacramento?

The amount of your deductible is another critical factor in deciding how much you pay each month for your insurance. Those monthly payments — known as premiums — are directly connected to the size of your deductible.

The deductible is the amount of money you must pay out of your own pocket when you file a claim before the insurance company pays. If your deductible is high, you assume more of the risk in case something happens. If your deductible is low, the insurance will pay a larger portion of the claim.

The tradeoff is that carriers charge higher premiums for low deductibles. This leaves you with a decision to pay less each month but absorb some of the risk or be covered but pay more monthly. This is a complex question that an experienced insurance agent could help you resolve.

Compare Home Insurance Rates in Sacramento

The expert insurance agents of InsureOne offer many policy choices that meet your needs. Each plan is customizable, ensuring you get the right policy for a price that you can afford.

The following chart contains the average annual cost of coverage in California based on home value.

Home Value	Average Annual Home Insurance Rates in CA
$300,000	$1,383
$400,000	$1,773
$500,000	$2,174
$600,000	$2,449
$700,000	$2,789

At InsureOne, our agents can make certain you secure the best homeowners insurance coverage possible, customized to your needs.

Is Home Insurance Tax Deductible in Sacramento?

Unfortunately, California law does not allow most people to deduct the cost of their monthly homeowners insurance premiums from their income taxes. However, there are a few exceptions to this rule.

First and foremost, you can deduct the cost of a policy you have on rental property you own. This is because any money you spend on your rental property is treated as a business expense. This can have a notable impact on your tax bill.

The second exception applies to a taxpayer’s primary residence. If you work from home and have a dedicated space used only for work purposes, deducting some of your insurance costs is possible. However, you can only deduct a portion based on the part of your home used exclusively for your business.

Does Sacramento Have the 80% Homeowners Insurance Rule?

Whether or not you will need to comply with the “80% rule” depends on your insurance company. This is because this rule is not a law or regulation but simply an industry standard adopted through most of the state.

Under this rule, insurance companies require homeowners to purchase policies that will pay out at least 80% of the replacement value of their home. This standard aims to ensure you can rebuild after a catastrophic loss. For example, insurance companies would require a property worth $200,000 to have at least $160,000 in coverage.

One of the issues with this rule is that determining the replacement value of your home is not an exact science. The concierge insurance agents of InsureOne can help you with this process.

What Factors Do Insurance Companies Consider When Setting Rates?

Insurance companies take into account many factors when determining rates. This is known as underwriting, and it involves taking into account the risks of insuring a home and setting the monthly premiums based on those hazards. Some examples include:

• Age of the home. The older a home is, the more it will likely cost to insure.
• Square footage. Larger homes cost more to insure since the scope of their repairs is much greater.
• Proximity to danger. Homes that are closer to hazards like fault lines will generally cost more to insure.

What Are the Different Types of Homeowners Coverage Offered in Sacramento?

Not all homeowners policies are exactly the same. You have options when you purchase your policy, with some providing more comprehensive coverage than others. In total, there are eight types of policies from which to choose. Some popular examples include the following:

• HO-1 coverage is as basic as it gets. It provides benefits for losses caused by 10 specific hazards, including fire or hail damage. Anything outside of this list is not covered.
• HO-3 policies are popular because they cover a much wider spectrum of losses. Instead of having specific hazards they cover, these policies pay for any loss unless it is specifically excluded.
• An HO-4 policy is commonly known as renters insurance. Instead of covering damage to a home’s structure, these policies are intended to cover possessions. They are ideal for someone living in a rental, as the homeowner is responsible for the building itself.
• An HO-6 policy covers only condominiums and co-ops. It is informally known as “walls-in coverage” because it covers everything inside the apartment, including walls, floors, and ceilings.

Which Common Natural Disasters Are Covered by Home Insurance in Sacramento?

Sacramento faces a number of potential natural hazards. Like the rest of Northern California, there is a continuing risk of wildfire losses, particularly in the summertime. That said, the risk of fires in the capital is generally lower than in many other parts of the state.

The most common cause for a state of emergency in Sacramento is a severe storm. In addition to the risks of storm damage local property owners face, the proximity to two rivers increases the odds of flooding.