Jeffrey Wade
If you're looking to buy homeowners insurance in California, there are a variety of companies and policies to choose from. While homeowners insurance is not required in California, it's still a good idea to get one as your home is likely your most valuable asset. You can get quotes from insurance companies like Progressive, Wawanesa, Lemonade, Chubb, Nationwide, Travelers, and Liberty Mutual. You can also use tools like Progressive's HomeQuote Explorer® to instantly compare rates and coverages from multiple companies in the state. The California Department of Insurance (CDI) also provides guides, tips, and tools to help you understand your options and make the best decision.
| Characteristics | Values |
|---|---|
| Home Insurance Requirements | Homeowners insurance is not required in California, but mortgage lenders may require it as part of loan terms. |
| Average Annual Rates | The average annual rate in California is $995, with rates varying by city (e.g., Los Angeles: $1,570, San Jose: $1,090). |
| Coverage Options | Standard coverage includes fire, wildfire, and workers' compensation for occasional employees. Additional coverage options include earthquake, flood, umbrella policies, and more. |
| Discounts | Companies like Progressive, Amica, Liberty Mutual, and Travelers offer discounts for quoting in advance, installing security systems, bundling policies, early shopping, and eco-friendly measures. |
| Companies | Progressive, Wawanesa, Lemonade, Chubb, Nationwide, Travelers, Amica, Liberty Mutual, Allstate, State Farm, Farmers, and more. |
| Resources | The California Department of Insurance provides guides, tips, and tools to help understand home insurance. The California FAIR Plan assists high-risk properties in obtaining coverage. |
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What You'll Learn
Discounts for eco-friendly homeowners
Homeowners insurance is not required in California, but it is a good idea to have it to protect your property. The California Department of Insurance (CDI) provides guides, tips, and tools to help you understand home/residential insurance.
There are various companies that offer homeowners insurance in California, such as Progressive and Wawanesa. Progressive offers discounts on homeowners insurance for quoting in advance and installing a home security system. Wawanesa also offers several money-saving home insurance discounts, such as multi-policy, non-smokers, sprinkler system, and burglar alarm.
In addition to these discounts, eco-friendly homeowners in California can take advantage of various rebates and incentives offered by the state and utility companies to improve their home's energy efficiency and reduce their carbon footprint. Here are some examples:
- The solar panel tax credit, also known as the Investment Tax Credit, is available to homeowners who install solar panels. In 2025, the tax credit is worth 30% of the total solar installation costs.
- The Energy Efficient Home Improvement Tax Credit allows homeowners to claim up to $3,200 per year for qualifying home improvements until 2032.
- The TECH Clean California initiative offers rebates for single-family households that install heat pump HVAC systems and enroll in an electric utility demand response program.
- The Pay for Performance Program provides rebates for whole-home energy retrofits for Californians regardless of household income, with enhanced rebates for low-income households.
- Low-income Californians can receive free home upgrades to improve energy efficiency, such as no-cost rooftop solar installations or a 20% discount on clean energy if solar installations are not possible.
- California utility companies, including SMUD, PG&E, and SCE, offer rebates and incentives for energy efficiency upgrades such as heat pumps, energy-efficient appliances, thermostats, heating and cooling systems, and solar battery rebates.
These rebates and incentives not only help reduce the cost of home improvements but also contribute to fighting climate change and saving money on energy bills.
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Earthquake insurance
Homeowners insurance is not a legal requirement in California, but it is still a good idea to protect your property. Basic policies do not typically cover earthquake damage, so you may want to consider purchasing earthquake insurance to protect your property.
The California Earthquake Authority (CEA) provides most earthquake insurance in California. You cannot buy earthquake insurance directly from the CEA; instead, you buy it from insurance companies that are members of the CEA. The CEA offers earthquake policies for homeowners, mobile home owners, condo unit owners, and renters. You must have a residential property insurance policy in place to get a CEA earthquake policy, and you must purchase your CEA policy from the same insurance company that you have your residential policy with. The CEA offers deductibles of 5%, 10%, 15%, 20%, and 25%, with higher deductibles for homes valued at over $1 million or older homes that have not been seismically retrofitted. The cost of earthquake insurance is based on several factors, including the age and location of your home, with higher rates for homes in areas with higher seismic activity.
In some cases, your homeowners insurance may cover specific losses due to explosion, theft, or breaking glass caused by an earthquake, even without earthquake insurance. California law mandates that homeowners and renters insurance must cover fire damage caused by or following an earthquake.
You can also purchase earthquake insurance from AAA, which is available to renters and homeowners in California. The average policy costs approximately $850 per year. Earthquake insurance can help repair your home, replace damaged belongings, and cover some additional living expenses. It typically covers fixing cracks in walls and ceilings, as well as damage to the foundation of your home or garage, and can cover expenses such as hotel bills if you need to vacate your home. However, it usually does not cover fire damage caused by an earthquake or damage to vehicles.
Wawanesa also offers limited earthquake coverage on top of its customizable homeowners insurance coverage.
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Flood insurance
Homeowners in California are not legally required to have flood insurance. However, flooding is the nation's most common natural disaster, and California's unique geography and climate compound the risk. If you live in a high-risk flood zone, your mortgage lender may require you to have flood insurance as a stipulation of your loan. Even if your lender doesn't require it, flood insurance is an important consideration for financial protection.
Home insurance policies generally do not cover water damage caused by flooding, mudslides, or debris flow. Only around 4% of California homes are located in Special Flood Hazard Areas, but around 25% of all flood insurance claims come from moderate- to low-risk areas. The Federal Emergency Management Agency (FEMA) maps out flood zones, but these may underestimate the state's actual flood risk.
The National Flood Insurance Program (NFIP) is a federal program that enables property owners in participating communities to purchase flood insurance. The program is administered by FEMA and provides flood insurance protection to property owners, renters, and business owners. The average cost of NFIP flood insurance in California is $901 per year. Private flood insurance generally allows for higher coverage limits and additional perks like loss of use coverage and replacement cost coverage for personal belongings.
When considering flood insurance in California, it's important to shop around and compare insurance products. The California Department of Insurance (CDI) provides information guides, tips, and tools to help you understand your options. You can also use Progressive's HomeQuote Explorer® to instantly compare homeowners insurance rates and coverages from multiple companies in the state.
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The California FAIR Plan
The FAIR Plan is a private association whose day-to-day operations are controlled by insurance companies. It is regulated by the office of the California Insurance Commissioner, which exercises oversight to ensure the plan addresses the changing needs of Californians. As of 2020, the FAIR Plan covered less than 3% of residents, with 20.4% of the market share in ZIP codes at high risk from wildfires. Between 2020 and 2024, the number of homes covered by FAIR Plan policies more than doubled, while the total exposure nearly tripled.
The FAIR Plan only provides coverage for losses caused by fire, lightning, internal explosion, and smoke. For an additional premium, extended coverage can be added for windstorms, hail, riots, volcanic eruptions, and more. The FAIR Plan does not cover perils insured under a traditional homeowners' insurance policy, such as theft or liability, so a separate Differences in Conditions (DIC) policy may be needed in addition to the FAIR Plan policy.
To purchase a policy through the FAIR Plan, you must go through an agent or broker licensed to sell property insurance and registered with the California FAIR Plan. The FAIR Plan website has a tool to help locate an agent or broker, who can then assist in determining if the FAIR Plan is right for your needs.
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Online quotes
Homeowners insurance is not required in California, but it is a smart idea to have one as your home is likely your most valuable asset. You can get online quotes from several insurance companies, including Progressive, Wawanesa, Lemonade, Chubb, Nationwide, and Travelers.
Progressive offers a HomeQuote Explorer® tool that lets you instantly compare homeowners insurance rates and coverages from multiple companies in California. You can also get discounts for quoting in advance and installing a home security system.
Wawanesa provides customizable coverages, award-winning customer service, and 24/7 claim filing and handling. They also offer discounts for things like multi-policies, non-smokers, sprinkler systems, and burglar alarms.
Lemonade is a newcomer to the insurance industry, conducting all its business via app, online, or phone. Fire is among the 16 named perils in its standard home insurance policies, and you can elect extra coverage through a fire insurance policy.
Chubb serves affluent policyholders with high-value homes, offering coverage limits and perks. They cover water damage from backed-up sewers and drains and will pay to bring your home up to the latest building codes during reconstruction after a claim.
Nationwide offers a wide variety of coverage options, including ordinance or law coverage, which can help pay to bring your home up to current building codes after a covered claim. You can get a quote for homeowners insurance on their website or work with a local agent.
Travelers is the best cheap home insurance company in California, according to NerdWallet. They offer coverage options like extra coverage in case the dwelling limit isn't enough to rebuild after a disaster, and green home coverage, which pays extra for eco-friendly materials. You can get a quote, file and track claims, make payments, and learn about insurance basics on their website.
Additionally, the California Department of Insurance (CDI) provides information guides, tips, and tools to help you understand home/residential insurance and make the best decision. The California FAIR Plan is also an option for those who struggle to obtain coverage from traditional insurance companies. It covers losses caused by fire, lightning, internal explosion, and smoke, and you can add extended coverage for an additional premium.
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Frequently asked questions
Some companies that offer homeowners insurance in California include Lemonade, Chubb, Progressive, Wawanesa, Amica, Nationwide, and Travelers.
It's important to shop around and compare insurance products. The California Department of Insurance (CDI) provides guides, tips, and tools to help you understand your options. You should also consider the specific risks in your area, such as flooding or earthquakes, and whether you need additional coverage for these.
The cost of homeowners insurance in California varies depending on factors such as the location and value of your home. The average cost in Los Angeles is $1,570 per year, while in San Jose, it is $1,090 per year. You can get quotes from insurance companies to understand the cost for your specific situation.
