How much is homeowners insurance in California?
Several factors can influence your home insurance costs, including your location and the type of home insurance policy you select. However, the state average is $237 per month.
“Location is critical to homeowners insurance costs in California,” says Steve Rivera, partner at California-based The Liberty Company Insurance Brokers. “Exposure to potential wildfire is a big part of it, but so is whether you’re located more than five miles from a paid fire station.”
Rivera also points to locations outside city limits, or in hard-to-reach places, as other ways prices could be influenced. He also says that different endorsements and additional coverage for various structures could result in higher rates.
How your policy choices affect home insurance rates in California
Your home insurance policy is affected by several different factors.
Your policy form
Your policy form specifies what types of perils are covered by your insurance. Perils are specific disasters that might affect your home. There are 16 recognized perils, but not all of them are covered by your policy form. The type of policy form you have determines which perils are covered.
Here are a few common policy forms:
HO-3 (special form): Covers all 16 perils named by the Insurance Information Institute (III)
HO-1 (basic form): Only covers 10 of the 16 listed perils
HO-2 (broad form): Covers more perils than HO-1, but fewer than HO-3
Unique forms are available for older homes (HO-8) and renters (HO-4), as well as a policy form for mobile homes (HO-7). No matter your policy form, earthquakes and flooding aren’t usually part of coverage. You generally need a separate flood insurance policy and earthquake insurance policy.
Learn More: Understanding the 8 Types of Homeowners Insurance
Your coverage level
The more coverage you get, the higher your premium. However, a higher coverage limit can ensure that you have enough support to cover your rebuilding costs, medical payments, additional living expenses, and other costs.
“A good place to start when determining coverage amount is to find out what contracts in the area charge to rebuild homes in your area,” Rivera says. “Compare like quality and finishes so you can get a better idea of the replacement cost.”
A deductible is the amount you pay out of your own pocket before your insurance kicks in. For example, if you have a deductible of $1,000 on your homeowners policy, your insurance company won’t pay out on any claim until you’ve paid $1,000 of your own money toward the expense.
If you have a higher deductible, your monthly premium is likely to be lower. However, your premiums don’t count toward your deductible and you have to pay your deductible with each new claim. That’s why it’s a good idea to set your deductible to a level you know you can afford.
How location affects home insurance rates in California
Different states — as well as different ZIP codes within a state — can yield different home insurance quotes. In California, the possibility that you’ll be subject to wildfires and earthquakes affects your quote. Additionally, whether you live in a ZIP code with a higher crime rate can affect your rate.
Here are some of the average monthly quotes for five cities in California:
|City||Average Monthly Quote|
Table data sourced from real-time quotes from Insurify’s partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer’s unique profile.