For many people, owning a home in California is a dream. Yet every dream requires a bit of struggle, even after the home has been bought and everyone has moved in.
Here are the three cheapest homeowners insurance providers operating in California:
The Three Cheapest Quotes:
California has a lot of area and many diverse environments, all of which insurers will consider differently when determining your rate. This on top of other factors which vary from person to person will mean that your rates might differ greatly from those listed below. As such, we ask you to consider the following not as an encyclopedia but as a general guide.
The number listed next to each provider is the average annual rate for a standard policy.
1) State Farm: $636
The cheapest option in California as well as the cheapest option for much of the country, State Farm is an insurance juggernaut that provides policies to millions, and you could be one of their customers with great ease. They offer a policy that is easier to understand to work with, an infrastructure that can handle anything California throws at it (and that says something), and online tools and services that keep everything as accessible as possible for you.
Yet while you likely won’t be paying too much, State Farm doesn’t offer so many extra policy options or potential discounts as its competitors, which mean if you know how to take advantage of such things then another company might be the best and possibly cheapest option.
You can expect the following working with State Farm:
- An excellent and highly accurate online quoting system so you can make quick comparisons.
- A large network of agents across the state to help you understand your policy and get you onboard.
- Financial stability that’s effectively unmatched in the industry.
2) Farmers: $868
A great option for new homeowners and those who value excellent customer service, Farmers might be a bit more expensive than State Farm but for many will offer a lot more. Known for its home insurance, you can rely on them to handle any issue that comes up as well as provide you with many options to reduce your annual rate, making them even more affordable than first appearances might imply.
Something you should know about Farmers, though, is that after signup some customers become unsatisfied with the coverage, whether that involves an issue with making a claim or a rate spike. You may want to ask about this or do some additional research to see if you should be concerned.
You can expect the following working with Farmers:
- Three different base insurance packages for your home, with at least the basic plan having plenty of customization options regarding coverage levels.
- Declining deductibles and claims forgiveness to those who make claims rarely.
- Discounts for things such as buying a new home, making certain renovations, not smoking, bundling policies, and installing certain preventative measures.
3) Liberty Mutual: $1,415
A bit more expensive on average than the other two main entries, Liberty Mutual is a provider that can give you a strong level of coverage all-around while remaining accessible. Happy to help you with a wide network of partners, you might be able to get deals, options, and access you wouldn’t get elsewhere.
Other than the higher cost, Liberty Mutual has some issues with customer satisfaction, especially when claims are concerned. Some say the response time is slow, and others state that getting a payout can be difficult. We recommend you consider these complaints and see if they might affect your top insurance priorities.
You can expect the following working with Liberty Mutual:
- Plenty of discounts available, including one for people who recently bought a home.
- Optional coverages for valuables, identity fraud expensive, and water damage.
- An inflation protection endorsement, allowing you to worry less about costs in the event of necessary repairs.
Other Notable California Homeowners Insurance Providers
In some cases getting an average rate was impossible or the data would be imprecise, so we opted to not include the average annual rate in our information. Nonetheless, we ask that you consider these excellent providers as well and see what rate you get.
AAA might be best known for what they do for drivers, but being heavily involved in insurance they can get you set up with a competitive homeowners insurance policy as well. With their very high financial stability scores and history catering to customers of all sorts, you should at the very least get a quote from them. Many people even report getting very affordable policies.
Unfortunately, AAA is a bit hard to read when it comes to finding consistent trends in their service, so you might need to do some additional digging and research in order to figure out if they’re the right pick for you. The main other downsides are that the customer service is a bit hit or miss and that there are usually better bundling options available if that’s your main concern.
You can expect the following working with AAA:
- Plenty of options to help yourself online, and a generally excellent online platform.
- All the benefits of being a AAA member, including a variety of discounts.
- A couple of different plans to choose from, with one having more advanced replacement cost coverage.
One of the largest insurance companies in the country if their market share says anything, Allstate can be a great choice if you’re looking specifically for their specialized coverages and features, or if you’re looking to bundle. They are also the best choice for older homes or homeowners that are looking for discount opportunities.
The downsides you must look forward to are relatively poor customer service and a few smaller issues such as questionable response times and pushy agents. You’ll have to decide whether the advantages are worth the potential headache of these issues.
You can expect the following working with Allstate:
- An excellent online experience, with helpful browser and mobile apps, to let you get what you need and move on quickly.
- Optional coverages including water backup, garden and landscaping, identity theft restoration, business property, scheduled personal property, and umbrella.
- Plenty of discounts and opportunities to lower your total annual rate.
With the risks in the state and the large area that comprises California, a lot of different factors can go into your choice, as well as what your annual rate might be. So we understand that this can be a confusing process, but we also know that with a bit of research you will be able to get a necessary policy to protect your home from fires, crime, earthquakes, and more. We hope that the above information has helped you get closer to making a decision, and encourage you to at least get a few quotes (there’s no commitment) today.