California Homeowners Insurance: Get a Quote (2024)

FAQs

What is the average homeowners insurance cost in California? ›

In 2021, the average Florida homeowner paid $2,437 for home insurance, according to the latest data available from the National Association of Insurance Commissioners. In California, the average homeowner paid $1,403, just under the national average of $1,411.

The companies are blaming wildfires, inflation that raised reconstruction costs, higher prices for reinsurance they buy to boost their balance sheets and protect themselves from catastrophes, as well as outdated state regulations — claims disputed by some consumer advocates.

When it comes to insuring your home, the 80% rule is an important guideline to keep in mind. This rule suggests you should insure your home for at least 80% of its total replacement cost to avoid penalties for being underinsured.

Auto-Owners is the cheapest homeowners insurance company at $113 per month on average according to premium data collected across over 15,000 zip-codes by Quadrant Information Services. The average cost of a homeowners insurance policy is $2,728 annually or $227 per month.

Insurance products in California are offered through AAA Northern California Insurance Agency, License #0175868, in Montana by AAA Montana, Inc., License #9756, in Nevada by AAA Nevada and in Utah by AAA Utah.

State Farm, California's largest property and casualty insurer with an 8.7% market share, hasn't offered new home policies since May 2023.

Last month, State Farm issued a written statement explaining its decision to no longer write new policies for new California homes and to end coverage for about 50,000 existing California customers.

When will the change take effect? Starting in July 2024, State Farm will stop insuring more than 30,000 residential homes in California, and starting in August, will discontinue coverage on 42,000 commercial apartment properties.

Is California getting rid of home insurance? ›

Will more home insurers pull out of California? To clarify, State Farm, Allstate Farmers USAA, Travelers, Nationwide and Chubb are still active in California, they have just either limited or stopped writing new home insurance policies. Current home insurance policies with these providers are still being honored.

Allstate stopped issuing new insurance policies for all business and personal property in California back in 2022. Since then, companies like State Farm, Farmers Insurance and The Hartford have made similar business moves.

Request multiple quotes from at least three providers to ensure you have the best rate and coverage for your needs. Consider the challenges of your geographic location and review your policy to confirm you have the right coverage for situations such as fallen trees, earthquakes, and floods.

An HO-3 insures the contents of your house only for specific problems named in the policy, such as fire and wind. An HO-5 policy insures your belongings against all causes of damage that aren't excluded. Another key difference: HO-5 policies automatically include replacement cost coverage—HO-3 policies might not.

Replacement cost homeowners insurance may be worth considering for the contents of your home if you want to replace older items with newer ones. Like dwelling replacement cost, contents replacement cost usually has a coverage limit maximum as defined in your home insurance policy.

Contrary to popular belief, the CA FAIR Plan is not a government-backed program: it is financially supported by California's private home insurance companies, not taxpayers. Recent turmoil in the California home insurance market has left the FAIR Plan overburdened, strained and increasingly expensive.

The average home insurance cost by state varies with the nationwide average coming in at $2,601 a year. The cheapest state for home insurance is Hawaii at $613 a year, and the most expensive state is Oklahoma at $5,858 a year.

The average annual cost to insure a home in the United States is $1,602 in 2024. That's a 2% increase over the previous year, but an 18% increase from five years ago.

The report blames severe weather, inflation and rising homebuilding costs. The average insurance rate is $2,377 annually, but homeowners nationwide are expected to see a 6% uptick in average premiums by the end of the year. That's on top of a 20% increase over the two years prior.