8 Best Homeowners Insurance Companies in California of 2023

In California, homeowners insurance is crucial for safeguarding your home and personal belongings from destruction by fire, burglary, or natural disasters. While not mandated by state law, it is vital for Californians due to the prevalent risks of wildfires, earthquakes, and hurricanes.

The average cost of homeowners insurance in California is $1,565 per year or $130 per month.

Choosing the right insurance policy requires thorough research. Comparing coverage, discounts, add-ons, and customer service is crucial in finding the perfect plan for your needs.

PropertyNest has taken the initiative to do the legwork for you. Our team has meticulously evaluated the top insurance providers in California based on these criteria and compiled an extensive list of the best homeowners insurance options.

With our expertly curated list, you can confidently compare coverage and costs to make an informed decision that aligns with your budget and preferences.

The Best Homeowners Insurance in California

• Allstate: Best for Affordable Rates
• Liberty Mutual: Best for Convenient Website and App
• Amica: Best for Optional Comprehensive Plan
• Farmers: Best for Offering Policies for Every Budget
• Progressive: Best for Discounts
• Travelers: Best for Add-Ons
• State Farm: Best for Optional Coverages
• Nationwide: Best for Extra Coverage That Comes Standard

Allstate: Best Homeowners Insurance for Affordable Rates

Allstate is the leader when it comes to insurance products. Its large size means your claims will be processed faster, and you’ll get reimbursed promptly.

In California, Allstate offers the most affordable rates.

For Allstate, the average annual premium in California is $720 per year or $60 per month.

However, remember that Allstate’s affordability is based on many rating factors. These include:

• The materials your home is made of.
• The age of your home.
• The cost to rebuild your home.
• Your personal claims history.
• The claims history of your location.
• The fire rating of your location.
• The coverage amount and policy limits.
• Your deductible amount.

No two insurers look alike. That’s due to which factors are applied to you.

If you have an old house, you’ll pay more. That’s because insurers assume that your systems (like electrical or plumbing fixtures) and appliances (like refrigerators and washing machines) aren’t up to date.

But you’ll pay less for Allstate’s policy if you have a new home.

Read a full Allstate homeowners insurance review.

What Discounts are Available Through Allstate?

• Save up to 25% by bundling home and auto.
• Save up to 5% by signing up for automatic premium payments.
• Being claims free.
• If home has alarm system or surveillance camera.
• New customers can save up to 10% annually by switching from another insurer.
• If home is newly constructed.
• Paying on time or in full.

Liberty Mutual: Best Homeowners Insurance for Convenient Website and App

Nationally recognized Liberty Mutual is a good option if you want to manage your policy online or through its mobile app.

The insurer’s online quote tool is clean, quick, and easy to use, with helpful automatic quote defaults.

The website allows you to do several things:

• Get quotes for home, auto, and other insurance products.
• Tailor your coverage to fit your needs.
• Get quotes for bundling auto with home, condo, or renters insurance.
• File and manage claims.
• View policy documents.
• Set up automatic bill pay.
• Get digital insurance cards.
• Find local agents.
• Rate calculator.
• Household inventory tool.
• The mobile app (for iOS and Android)

Has the same functions as the website. But one thing that makes the mobile app unique is that you can sign documents electronically, which can save you a lot of time.

Even though the website and mobile app are comprehensive and easy to navigate, Liberty Mutual allows you to speak with an agent if that’s what you need.

Read a full Liberty Mutual home insurance review.

What Discounts Are Available Through Liberty Mutual?

• If you insure up to 100% of the cost to replace your home as opposed to the home’s market value or sale price.
• Multi-policy (bundle home and auto).
• Going paperless. 
• Being claims-free. 
• Not filing a claim in three years.
• Safety measures like home surveillance cameras and burglar alarms.
• If you purchase a new home.
• Substantially renovating your home.
• New roof. 

Amica: Best Homeowners Insurance for Optional Comprehensive Plan

Amica started in 1908 and began issuing insurance in 1956. Today, the company has the most insurance policies compared to similar insurers, including auto, home, life, renters, condos, boats, and motorcycle insurance.

The basic or standard homeowners insurance plan will only pay you up to its policy limits.

As such, many people seeking insurance need additional coverage to protect themselves. But picking the coverages you need and piecing them together to make your policy more comprehensive can be arduous for those who lack the time.

That’s why Amica offers an insurance plan called Platinum Choice.

It covers the basic policy and adds the best optional coverages many people need.

Amica Optional Homeowners Insurance Coverage

Dwelling replacement cost coverage

• Increases dwelling coverage up to an additional 30%.
• Personal property replacement coverage. 
• Pays to replace your personal belongings using replacement cost value. So, you’ll be paid for your damaged laptop at today’s prices, not the depreciated price.
• Valuable items coverage.
• Additional protection for high-value items like fine art or jewelry.

Home business coverage

Protects your belongings if you run a business out of your home or work from home.

Water Backup / Sump Overflow

This covers repairs following a septic system backup or sump pump failure that is not covered by a standard policy.

Special computer coverage

Broader coverage for phones, laptops, tablets, TVs, and other smart devices against damage from power surges, water damage, and heat warping.

What Discounts Are Available Through Amica?

• Installing security such as a camera, burglar alarm, and fire alarm.
• If your home can monitor temperature, gas, or water leaks.
• If you buy new home equipment such as an appliance.
• If you don’t make a claim in three years.
• If you bundle home with auto insurance or other policies.

Farmers: Best Homeowners Insurance for Offering Policies for Every Budget

Farmers is one of the best-known home insurance names in the country. The insurer offers three different types of home insurance coverage. There’s one for every budget and one with the most protection you can get.

The three tiers help you save money since you only buy the necessary insurance.

• The standard or basic policy
• Enhanced Package - Higher policy limits than the standard and covers the cost of replacing your roof or belongings with brand-new versions and without depreciation.
• Premier Package - Offers even higher limits on property coverage than the enhanced policy. In some states, this package has guaranteed RCV, which will fully reimburse you for rebuilding your home regardless of your policy limits.

Read a full Farmers homeowners insurance review.

What Discounts Are Available Through Farmers?

• Being claims-free for three consecutive years.
• Non-smoking.
• Multi-Policy.
• Home security and protective devices
• Home less than one year old.
• If roof is made of impact-resistant materials.

Progressive: Best Homeowners Insurance for Discounts

Progressive has been in the insurance business since the 1930s and has many insurance policy options, including car insurance for a wide range of vehicles and mobile home insurance, usually excluded from similar insurance companies.

Progressive doesn’t have the cheapest rates, but when customers take advantage of its discounts, your premium will be competitively priced.

What Discounts Are Available Through Progressive

Here are just some of the most popular discounts:

• Multi-Policy Discount - If you bundle home and auto or home and boat, or home and RV.
• Safety and Alarm - Installing security measures like video surveillance cameras, burglar and fire alarms, and deadbolts.
• Quote in Advance - If you get a quote at least ten days before your policy begins.
• New Purchase - If you purchase a new home (it doesn’t have to be newly built).
• New Home Construction - The newer your home, the larger the discount you could earn.
• Receive Documents Electronically

Travelers: Best Homeowners Insurance for Add-Ons

Founded in 1864, Travelers offers solid coverage, reliability, and fewer than-expected consumer complaints.

Plus, what makes Travelers unique is that it has several add-ons that you can purchase separately.

Having add-ons means you only buy coverage for what you need.

The best add-ons include:

• Special Personal Property Coverage - A standard policy doesn’t cover in full your personal belongings after a covered peril. This add-on increases your coverage so you can pay for replacements or repairs.
• Replacement Cost Value RCV) - This is the most essential add-on every homeowner should buy. Your belongings will be replaced using today’s prices rather than the depreciated value.
• Additional Replacement Cost Coverage - What if rebuilding your home is more than your dwelling coverage limit? This add-on is needed to get more funds to fully pay your damaged home.
• Identity Fraud - Covers identity fraud or if your personal information is compromised.

What Discounts Are Available Through Travelers?

• If you bundle home with auto or other insurance policy.
• If you don’t make a claim for a certain period.
• If you bought a new home within last 12 months.
• If you install home security systems or protective devices.

State Farm: Best Homeowners Insurance for Optional Coverages

State Farm is America’s most significant homeowners insurance company. You can do many things on the insurer’s website and app, such as get a quote, buy a policy, and manage your insurance.

You're in luck if you prefer to talk to a live agent. There are over 20,000 agents nationwide, so you’ll have an easier time reaching customer support.

State Farm blows the competition away when it comes to optional coverages. Some are unique to State Farm, and some may be necessities for you.

Read a full State Farm homeowners insurance review.

State Farm Homeowners Insurance Coverage Options

Here are the coverage options:

• Energy efficiency upgrade coverage - If your HVAC system or water heater experiences damage due to a covered loss, State Farm will provide more energy-efficient models.
• Increased Dwelling Limit - Automatically extends replacement coverage up to 20%. You are covered if you’ve insured your home at least up to its estimated replacement cost.
• Backup of sewer or drain coverage.
• Earthquake coverage as an add-on. This is the most popular coverage in California due to the state being continually exposed to earthquakes.
• Liability coverage for nurses and those providing in-home child or adult care.
• Coverage for structures outside your home, such as a detached garage.
• Coverage for homes that are rented out more than 30 nights a year.
• Liability coverage for libel and slander.
• Service line coverage for underground utility lines that have been damaged.
• Coverage to replace a damaged water heater, air conditioner, or heating unit with more energy-efficient models.
• Coverage for theft or vandalism if a home is left vacant for more than 30 days.

What Discounts are Available Through State Farm?

• Multi-policy discount.
• Security features: if you have a home security system, a smoke detector, and a fire alarm, for example.
• Being claims-free.
• Lower your premium by selecting higher deductibles.

Nationwide: Best Homeowners Insurance for Extra Coverage That Comes Standard

Nationwide is a trusted name in the insurance industry and is one of America's oldest insurers.

The company has many coverages, most of which are optional.

However, its basic policy includes coverages you don’t have to pay extra for.

Optional Nationwide Homeowners Insurance Coverage

Besides coverage options for new roof replacements, Nationwide’s basic policy includes:

Ordinance or law insurance

This pays for any additional costs of bringing your home up to current building code standards after your home is destroyed or damaged in a covered loss.

Loss of use

If your home is uninhabitable after a covered loss or you can’t live in it while repairs and reconstructions are being made, loss of use will pay for your living expenses, including meals, hotel stays, and other necessities. Loss of use comes standard in a basic insurance policy, but the payments aren’t capped with Nationwide.

Credit card coverage

This pays for unauthorized transactions or fraud on your credit card or bank account.

What Discounts Are Available Through Nationwide?

• Multi-policy.
• If you have protective devices such as smoke detectors and alarm systems.
• If you are claims-free.
• If you have new plumbing and heating, cooling, or electrical systems.
• If your roof is new.
• If you purchased your home within the past 12 months.
• If you live in a gated community protected by security guards.

How We Ranked and Picked the Best Homeowners Insurance Companies in California

We looked at several factors to determine the best homeowners insurance companies. These are:

Discounts

We narrowed down our focus to those companies that had the most discounts. Discounts can lower your premium and allow customers to get the lowest possible rate.

Coverage

We looked at homeowners insurance policies based on how much coverage they offered.

A range of coverages is important for a company because it can customize or tailor a policy to a customer’s need. Coverage can also offset policy limits so that you will be reimbursed in full when you make a claim.

Technology

If a company’s website and app allow you to manage most of your insurance needs electronically or if both are easy to use even for the technophobe, then that’s a company we considered.

Customer Reviews

We looked at many insurance review sites offering vetted customer reviews to narrow our options. The ones with the most positive reviews were more favorable to us.

In particular, we looked at scores offered by JD Powers and AM Best to back up what consumers are saying about their insurers.

Price

Homeowners insurance shouldn’t break the bank. Pricing needs to be fair and competitive, and a company should also have enough discounts to make a policy affordable to most people.

If the insurance company had a rate below the national average or below the state average, we put that company on our list.

Location

We've compared the average homeowners insurance rates in California's largest cities, such as Los Angeles, San Diego, San Jose, San Francisco, Fresno, Sacramento, Long Beach, and Oakland.

How Does Homeowners Insurance Work?

Homeowners insurance is a type of property insurance that pays for losses or damages to your home and its contents in the event of a covered peril.

If you don’t have homeowners insurance, you must pay out-of-pocket for your damaged house or destroyed belongings.

Is It Mandatory to Buy Homeowners Insurance in California?

The state of California does not require homeowners insurance.

However, if you have a mortgage, most lenders will require you to purchase it as a condition of your loan and to protect their investment.

What is a Covered Peril?

A covered peril is when your insurer agrees to reimburse you if you file a claim.

Covered perils include:

• Fire, wildfire, and smoke damage.
• Weather conditions like lightning, hurricanes, windstorms, hail, and the weight of ice, snow, or sleet.
• Explosions.
• Theft, vandalism, and malicious mischief.
• Damage from an aircraft, a car, or another type of vehicle.
• Water damage unrelated to natural floods.

What is Covered in Homeowners Insurance?

A standard policy covers the following:

Dwelling

If your house is damaged or destroyed due to a fire, a natural disaster, or a covered event that you could not have foreseen, your insurer will cover the cost of rebuilding your home.

Liability

If you cause bodily injury or property damage to another person unintentionally or through neglect, your insurance will pay for any medical bills the injured person needs, as well as any legal fees and legal representation if you’re sued.

Medical

This policy pays if someone is injured on your property and needs medical treatment, regardless of who’s at fault. It also pays if you, a family member, or a pet like a dog injures someone elsewhere.

Personal Property

This pays to repair or replace personal belongings stolen or damaged in a covered peril, whether in your home or on a trip.

Loss of Use

If your home is destroyed or damaged and you can’t possibly live there for health reasons or because it’s unhabitable or being rebuilt, loss of use pays for hotel stays, restaurant meals, and other necessities.

What Natural Disasters are Not Covered in a Standard Homeowners Insurance Policy?

The two most common exemptions are floods and earthquakes.

All homeowners insurance policies exclude floods, earthquakes, and other natural movements of the earth.

What Natural Disasters Will Affect Your Premium?

California experiences several natural disasters, such as fires, wildfires, severe storms, floods, and earthquakes.

Wildfires

Fire is California's most common natural disaster, with over 250 incidents in the last 65 years.

Earthquakes

According to the US Geological Survey, California has more damaging earthquakes than any other state, with around 200 potentially dangerous faults.

Since earthquakes happen frequently, it’s extremely important to get earthquake coverage as an add-on or as a separate policy to your homeowners insurance.

Flood

California also experiences extreme storms.

While an insurer may cover water damage if your roof leaks due to a hurricane or a plumbing failure like leaking pipes, it won’t cover flood damage from the same hurricane.

So, if you experience a property loss due to water damage caused by flooding, you will not be covered.

To be on the safe side, Californians may want to buy their own flood insurance policy through private insurance. 

Insurance is needed for natural disasters where damage or loss is likely too expensive to cover out-of-pocket.

If you live on a fault line or if a wildfire breaks out, your insurer will consider your house an at-risk zone and give you a high premium.

Still, homeowners living in high-risk areas can purchase supplemental insurance to cover natural disasters. This specialty insurance will cost more because of the increased risk.

However, due to the increasing devastation of wildfires in California, some insurance companies are no longer offering home insurance.

Homeowners can get coverage for their homes in high-risk areas through the Fair Access to Insurance Requirement (FAIR) plan. This provides coverage for such homes.

But this is only a temporary plan. It is intended to allow owners to find a more traditional insurance policy that covers high-risk homes.

Why Are Earthquake and Flood Insurance So High?

Earthquakes and flood deductibles are high because the damage from them tends to be catastrophic, making them a higher risk for insurers.

To cover costs, insurers need to make deductibles high.

What Factors Determine My Premium?

Several factors determine your premium, which, in some cases, you can’t control. Your home and your personal information are how insurers assess your premium.

Location

If you live in a safe neighborhood, you are not prone to constant serious natural disasters.

Age of Home 

Older homes are more likely to need improvements. You’ll pay a higher rate if your systems and appliances are outdated and have never updated your HVAC and plumbing systems.

Deductible

Your deductible is the amount you agree to pay out of pocket if you file a claim. If you choose a higher deductible, this will decrease your premium.

Doing so means that your insurer will pay less if you file a claim, which can lead to a lower premium.

Coverage Options

Add-ons, endorsements, and increasing personal property limits can help if your precious artwork was stolen during a burglary. However, every coverage you add to your standard policy will cause your rate to rise.

Credit Score

If you have a high credit score, the insurer will assume that you are more likely to pay your premium on time each month and that you won’t file a claim. A poor credit score will see your rates increase.

Claims

If you file a claim, the insurer will believe you are more likely to make another claim and will increase your rates to keep costs down.

What Are the Types of Homeowners Insurance?

There are two policies you can choose: actual cash value (ACV) or replacement cost value (RCV)

Replacement cost value (RCV) is about getting full coverage.

RCV will pay for your belongings in full and at today’s prices if your personal belongings get damaged.

Replacement cost will pay the actual cost of rebuilding your home after it is damaged, even if there are increases in labor and building materials, to name a few.

For actual cost value, if your possessions are stolen or destroyed, this insurance will not replace them at their full cost but rather at their depreciated value.

In short, RCV will pay you in full, while ACV will pay you a depreciated cost.

Do You Need to Purchase Extra Coverage?

If you have expensive items like a diamond ring that needs coverage, the standard insurance will not give you a reimbursement up to the full value of your most prized possession or will only cover you up to the policy’s limit.

The best way to get fully protected is to add an endorsement (also called a rider) to your personal property coverage.

An endorsement allows customers to increase the overall coverage of their home insurance for particular categories.

For example, if your diamond ring costs $5,000, you can set your rider with a limit of at least $5,000 to ensure you will be paid in full if your ring gets damaged, destroyed, or stolen.

Keep in mind that it is wise to select coverage limits that are high enough to protect your belongings in full.

If you want full and complete protection from anything that could happen to your high-priced items, then purchasing an endorsement is a must.

Lower coverage limits might save you money on your premium, but they might also leave you with insufficient coverage when you need to make a claim.

How Can You Lower Homeowners Insurance Premium?

The two most popular ways are to get quotes from different insurers and apply for discounts.

Shop Around

Get quotes from as many insurers as you can.

A quote is an estimate of your premium cost. If you compare multiple quotes for the same coverage from different companies, you may likely find the best insurer for you.

You can get home insurance quotes online or over the phone.

Discounts

Many insurers offer discounts. If you can take advantage of many of them, your premium will drop.

The most important discount is the multi-policy discount, which takes a good percentage off your premium. So, if you bundle home with auto, for example, you’ll see your rates dip.

Other discounts include making your home safe (setting up surveillance cameras, burglar alarms, and fire alarms), buying new appliances such as a refrigerator, getting new plumbing, heating, cooling, or other electrical systems, and purchasing a more environmentally friendly new roof.

How to Buy Homeowners Insurance

Coverage

Determine how much coverage you need.  Once you find a company you like, research it thoroughly to see what coverage it has, what it doesn’t have, and what coverage you need.

Home Inventory

To ensure sufficient personal property coverage, take stock of your belongings. Don’t just include your high-value items. Include everyday items like furniture, clothing, and household items.

You’ll arrive with a cost for all your belongings once you price each item out using receipts, estimates, and comparisons you may find online.

Make a Fair Comparison

When evaluating rates, ensure each insurer offers the same limits and deductibles.

Check Consumer Complaints

Use vetted customer reviews from insurance review sites to see how many consumer complaints each insurer has before you choose a policy.

Website and Mobile App

Choose a company that has a useful and easy-to-use website and mobile app. If you can do much of your insurance business online, from buying a policy to submitting and tracking a claim, you can save time and don’t have to be on hold while attempting to contact an agent.