Life in the capital of Silicon Valley is full of perks: perfect weather, bustling city life, peaceful beaches, and some seriously wealthy neighbors. It’s no surprise that the home of tech giants like Apple, Google, and Facebook would be one of the most expensive cities in the U.S. But many technology and business professionals come to San Jose to escape the even more expensive cost of living in San Francisco, San Jose’s northern neighbor.

But San Jose’s rising housing costs and increasingly dangerous natural disasters leave the city’s homeowners seeking more protection—and savings—than ever before.

Whether you’re looking for more coverage, cheaper premiums, or your first home insurance policy ever, Insurify can help. Use Insurify’s home insurance comparison tools to see your insurance options side by side. You can compare insurance companies, coverage options, and insurance quotes to find the best San Jose home insurance policy in just a few minutes. 

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How to Find Cheap Home Insurance in San Jose

Homes in San Jose cost roughly five times more than the national average. That leaves residents paying nearly $1 million for their houses. According to the National Association of Realtors, prospective buyers need to make over $200,000 annually to even qualify for a mortgage with 20 percent down.

With an investment this expensive, you’re going to want to protect it from Bay Area perils like wildfires, earthquakes, and flash flooding.

The first step to protecting your property is homeowners insurance. Though not required by law, home insurance provides financial liability for your property and belongings from natural disasters or vandalism. Different coverage levels are available for different property types, locations, and other factors so you can cater your property insurance to your specific insurance needs

Keep reading for a full guide on San Jose home insurance. 

For general information on California home insurance, check out our guide to the best home insurance in California. For more city-specific information, here are our guides to San Francisco homeowners insuranceLos Angeles homeowners insurance, Sacramento homeowners insurance, Oakland homeowners insurance, and Anaheim homeowners insurance.

Cheapest Home Insurance in San Jose by Company

Homeowners insurance rates aren’t always designed with savings in mind. That’s where Insurify comes in.

As of 2021, the average home insurance premium in San Jose costs $1,240 annually, and the median home value is $1,063,519.

Compared to home costs, the average San Jose insurance premium may seem pretty cheap. But getting free quotes from multiple some of the best home insurance providers could help you pay even less for your insurance services. Check out the average San Jose home insurance premiums with companies like Allstate, State Farm, and GEICO. 

Average Home Cost in San Jose Average Annual Insurance Premium in San Jose
$1,063,519 $1,240

Cheapest ZIP Codes in San Jose for Home Insurance

San Jose’s wealth isn’t equally distributed across the city, and neither are home insurance rates

This is because, like property costs, home insurance varies in price from neighborhood to neighborhood. Pricing is determined by ZIP code–specific variables, such as the volume of claims filed nearby, crime rates, and property costs, and risk variables, such as natural disaster frequency. 

This is why homeowners in East San Jose pay more for their home insurance than homeowners in West San Jose.

Rates in San Jose are relatively low compared to the national average, but your specific rate depends on which area you live in. Here are the most and least expensive ZIP codes in San Jose for home insurance.

Most Expensive Real Estate in San Jose Cheapest Real Estate in San Jose
Almaden Valley $1,513,333 East San Jose $813,242
Berryessa $1,177,753 Edenvale – Seven Trees $833,837
Evergreen $1,150,036 North San Jose $935,910
Home value data from 

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Home Insurance Coverage Types in San Jose

There are several types of home insurance. Specific terms of insurance policies may vary by city, but in general, the standard policy types are as follows:



  • The simplest and least comprehensive type of homeowners insurance
  • Provides coverage for a handful of potential problems, including
    • Dwelling coverage for damages from some natural disasters (storms, fires, wind, lightning, volcanic eruption), 
    • explosions, 
    • theft, 
    • damage from vehicles, 
    • or civil commotion. 

Broad Form

  • Broad form homeowners insurance policies include all basic form coverage, plus protection from:
    • falling objects, 
    • damage from the weight of ice, snow, or sleet, 
    • freezing of household systems including HVAC and pipes, 
    • sudden and accidental damage to pipes and other household systems from artificially generated electrical current, 
    • accidental discharge or overflow of water or steam,
    • sudden and accidental damage. 
  • HO-2 policies typically cover both dwelling protection and personal property.
  • In some cases, broad form coverage may also include liability coverage. However, it still only covers the specific damages listed in the policy.

Special Form

  • The most common form of homeowners insurance is known as a “special form” policy.
  • While HO-1 and HO-2 policies are “named peril” policies (meaning they only cover dangers that are specifically listed in the policy), HO-3 policies are “open peril” policies meaning they’ll cover all dangers except those specifically excluded in the policy documents.

Tenant’s Form

  • HO-4 policies, also known as renters insurance, are for people who lease rather than own their homes. 
  • Tenant’s form policies typically cover all the same dangers as HO-2 policies. 
  • These policies include personal property coverage and liability coverage but don’t cover the physical structure of the house. 
  • Some HO-4 policies may also include loss of use coverage for the tenants.


  • Comprehensive form policies are usually the broadest and provide the highest level of coverage; not surprisingly, they also tend to be the most expensive type of homeowners insurance policies.
  • The biggest difference between HO-3 and HO-5 policies is that most HO-3 policies are “actual cash value” policies, whereas typically HO-5 policies are “replacement cost value” policies.
  • An actual cash value policy will only reimburse you for the actual value of a damaged or destroyed item, while a replacement cost value policy will reimburse you for however much it would cost to completely replace or repair the damaged or destroyed item (up to the coverage limits on the policy). 
  • HO-5 policies also provide personal property coverage against a wider range of dangers than the typical HO-3 policy. Many HO-5 policies also have extra coverage for high-value personal property, such as jewelry and artwork.

Condo Form

  • Not surprisingly, condo form insurance is for condominium owners. HO-6 policies generally protect against the same types of dangers as HO-3 policies. 
  • Condo insurance provides dwelling protection coverage with a twist: HO-6 policies cover the walls, floors, and ceiling of the condo unit but not the rest of the building. 
  • These policies also include personal property and liability coverage and may include loss of use coverage.

Mobile Home Form

  • If you own a mobile home or manufactured home, you likely have an HO-7 policy. 
  • Mobile home form policies are typically identical to HO-3 policies, except they’re designed specifically for mobile and manufactured homes.
  • Like HO-3 policies, they provide dwelling protection coverage, other structures coverage, personal property coverage, liability coverage, and possibly loss of use coverage as well. 
  • HO-7 policies generally only protect the home when it’s stationary; if you plan to move your mobile or manufactured home, you’ll need to get a special policy to cover it while it’s in transit.

Older Home

  • Older homes have generally been built to less stringent code standards than recently built homes, and so insurers have designed a specialized type of homeowners insurance policy for them. 
  • HO-8 policies often only cover the basic perils listed in HO-1 policies and generally apply to homes that are registered landmarks or otherwise deemed historic homes. 
  • Owners of registered landmarks are typically forbidden from making the updates to HVAC, electrical, and other parts of the home that would enable them to qualify for a standard HO-3 policy, so an HO-8 policy is often the only option for them.

Earthquake Insurance in San Jose

San Jose is the largest city on the San Andreas fault, and the U.S. Geological Survey estimated that there’s a 63 percent chance of a magnitude 6.7 or higher earthquake hitting the Bay Area within the next 30 years. An earthquake of that magnitude would cause serious home damage and could displace hundreds of thousands of residents from their homes entirely, according to the Association of Bay Area Governments.

But your home insurance policy alone won’t cover earthquake damage. The only way to make sure your home and property are covered in case of ground movement is with an earthquake insurance policy.

Because San Jose is at such high risk for earthquakes, an earthquake insurance policy will cost you. But just like your home insurance coverage, your earthquake insurance is catered to your specific needs. So while you might think skipping out on earthquake insurance will help you save a few bucks, you’ll be better off paying for the protection you need now rather than covering repair costs out of pocket later.  

Protecting Your Home from Wildfires

San Jose sits in the Santa Clara Valley in between the Diablo and Santa Cruz Mountains. While the mountain ranges offer beautiful views and peaceful hiking trails, they also leave the city at risk for wildfires, which have burned over 300 acres around San Jose this year.

Home insurance covers damages caused by fire, but it’s important to check whether your policy includes coverage for wildfire damage and what the coverage includes. If you’re looking for more protection, a separate fire insurance policy can help you make sure your property and personal belongings are covered. 

Alternatively, if you’re unable to find insurance because of your home’s wildfire risk, California’s FAIR Plan offers insurance coverage for California homeowners who can’t secure homeowners insurance. The FAIR Plan doesn’t offer the same options (like umbrella insurance or liability insurance) as a homeowners policy from a private insurance company, but it’s a great last-resort option if you don’t otherwise qualify for home insurance.

Buying a home is stressful enough—don’t let insuring it get in the way of enjoying your new property.

Frequently Asked Questions - San Jose Homeowners Insurance

Does my home insurance in San Jose cover flood damage? 

No, your San Jose home insurance alone will not cover water damage. Since the city is prone to flooding during storms, you should consider purchasing a flood insurance policy. San Jose is part of the National Flood Insurance Program, so you can purchase a flood policy through the NFIP or your private insurance carrier. 

Is home insurance in San Jose required by law or just a recommended safety precaution?

Home insurance is not required by law, but your mortgage lender will probably require you to purchase a policy. Even if you aren’t required to have home insurance, you should still insure your home. San Jose faces natural disasters like floods, fires, and earthquakes, which can cause expensive damage that insurance can help cover.

Can I bundle my car insurance and home insurance in San Jose?

Yes, bundling your insurance products like car, home, and even life insurance can help you save on your annual premiums. Homeowners who bundle their home and auto insurance policies can save nearly 20 percent on their policies, so talk to your insurance agent about how much bundling can help you save. 

Conclusion: How to Find the Cheapest Home Insurance in San Jose

Living in San Jose is expensive, but insuring your San Jose home doesn’t need to be. Insurify is here to help you navigate your insurance options to find the best home insurance in San Jose. So what are you waiting for?

Use Insurify to compare home insurance premiums for your property in San Jose

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Updated January 13, 2021

Jacklyn Walters is a freelance writer for Insurify. Jacklyn has a background in journalism and is passionate about informing and serving others through writing. In her spare time, Jacklyn enjoys running, practicing yoga, and writing music.