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.
Overpaying for San Jose home insurance?
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.
MORE ON CALIFORNIA 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 insurance, Los 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|
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 zillow.com
Cut San Jose Home Insurance Costs
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:
Mobile Home Form
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.
Compare San Jose, California Home Insurance Quotes in Two Minutes