Average Costs and Cheapest Homeowners Insurance Companies in California

Home insurance costs can change depending on your needs. For those with new or expensive homes, the cheapest insurer is ASI, while those with a pool can turn to Allstate for the cheapest policies. To calculate and provide you with low cost homeowners insurance options in California, MoneyGeek gathered thousands of quotes from different providers.

If you’re looking to balance affordability with a strong service experience, MoneyGeek also scored the best home insurance companies in California.

To find the most affordable homeowners insurance in California, MoneyGeek examined thousands of quotes from various providers for different dwelling coverages. Among the insurers analyzed, Allstate is found to have the most affordable policies with a baseline dwelling coverage of $500,000, costing an average of $1,333 per year.

The cheapest home insurance companies by dwelling coverage in California are:

• Cheapest for $100,000: Allstate
• Cheapest for $250,000: Allstate
• Cheapest for $500,000: Allstate

How much dwelling coverage you need will depend on the replacement cost of your home. The more expensive your home is, the more coverage you will need. To see the varying costs for different dwelling coverage levels, toggle the table below.

Home insurance costs can change significantly depending on your desired dwelling coverage. This is because the higher the cost to replace your home, the more you need to get in coverage and the more you need to pay.

In California, the lowest dwelling coverage amount of $100,000 costs an average of $548 per year. The highest dwelling coverage amount of $3 million costs roughly $12,397 annually.

There are many factors that impact your homeowners insurance rates. Some are common sense, such as the value of your dwelling and the age of your home. Other factors might not seem so obvious, such as your proximity to a fire department or the amount of personal property you will need to have covered under your policy.

You can adjust your dwelling coverage limits, deductible and other limits to see how the average cost of homeowners insurance in California can change.

To find the cheapest homeowners insurance in California, MoneyGeek gathered thousands of quotes from different providers for different coverage limits.

For homeowners that need $2 million in dwelling coverage, the most affordable home insurance providers in California are, on average:

• ASI: $3,991 per year
• Allstate: $5,428 per year

If you own an expensive home, note that rates can vary greatly depending on your dwelling coverage limits. To find the cheapest option for your needs, make sure to shop around and compare quotes from different providers.

Newer homes are cheaper to insure, as the cost to replace materials is often lower. Using a sample profile of a homeowner that needs $250,000 in dwelling coverage and has a home built in 2015, MoneyGeek found that, on average, the most affordable homeowners insurance in California are from:

• ASI: $442 per year
• Travelers: $521 per year

The age of your home plays a role in your premiums. Homes built in 2015 are, on average, $243 cheaper to insure compared to homes built in 2000.

Note, however, that the numbers for homes built in 2000 differ from the first section due to a different ZIP code collection process.

On average, newer homes in California cost $820 per year to insure, while those built in 2000 cost $1,062 per year. Older homes are harder to replace and carry more risk because they use older materials that are less resistant to the weather. Years of wear and tear also increase the risk of events like a burst pipe or fire and make you more likely to file a claim, which is why insurance providers charge you higher premiums upfront.

Having a pool increases the value of your home, which subsequently increases your insurance costs.

On average, the cheapest homeowners insurance providers in California for those with a pool are:

• Allstate: $659 per year
• ASI: $688 per year

Pools are considered an additional “structure” in your home, and any additional structure can increase the value of your home and make it more costly to replace. However, keep in mind that not all insurers may cover your pool in your typical dwelling coverage limit, as some may consider it a different structure that requires additional coverage.

Home insurance costs for homeowners with a pool average $1,082 per year for $250,000 in dwelling coverage limits. However, without a pool, the same coverage limit costs an average of $1,090 per year. Keep in mind that costs can vary based on other factors, such as your dwelling coverage limits, location and more.

In most states, your credit score can be used to help determine your insurance premium. This is because, traditionally, people with lower credit are more likely to file a claim than people with higher credit scores. However, California is one of three states that does not allow insurance companies to use your credit score when determining your rates.

According to the California Code of Regulations, insurance companies in the state are prohibited from using your FICO score and credit score to determine your premium amounts, which helps prevent people with the lowest credit scores from bearing the brunt of the cost of insurance.

Beyond your dwelling coverage limit, where you live specifically also plays a role in your insurance costs. Among the 23 cities in California that MoneyGeek analyzed, Los Angeles has the most expensive average rates of $2,610 per year, while Santa Rosa has the most affordable at $1,551 per year.

Across the state, Allstate, Travelers, ASI, AAA and Universal North America offer the cheapest policies, depending on the city. Click on your city to learn more about the different costs for home insurance policies that suit your needs.

When you’re ready to begin searching for the best homeowners insurance in California, you’ll need to make sure you have all of the information necessary to receive a binding home insurance quote from your desired provider.

You will need to know the square footage of your home, the year your home was built, when any major improvements, construction details, the age of your roof, how long your home has been insured, your liability coverage needs, details about any claims that were filed in the past five years and details about potential dangers in your home such as swimming pools or pets.

You can also get an anonymous home insurance estimate using MoneyGeek’s California home insurance calculator, which compiles thousands of quotes from different providers.

MoneyGeek analyzed homeowners insurance premiums from 13 of the top insurance companies in California that were provided in partnership with Quadrant. Our analysis includes quotes from ZIP codes across California. Quotes were gathered with an average home profile of 2,500 square feet, built in 2000, with an average dwelling coverage value of $500,000, liability coverage of $100,000 and personal property coverage of $100,000.