California Home Insurance

If you own a home in California, you might be wondering what kind of insurance you need to protect your property and belongings. Unlike some other states, California does not require homeowners insurance by law. However, if you have a mortgage or belong to a condo association, you might be contractually obligated to carry some level of coverage. Even if you are not required to have insurance, it is a good idea to consider it, as California faces many natural disasters that can damage your home.

Homeowners insurance policies in California typically cover the following perils: fire, lightning, internal explosion and smoke. These are the same perils that are covered by the California FAIR Plan, which is a basic fire insurance policy for high-risk homeowners who cannot get insurance through a standard insurer. The FAIR Plan is a last resort option and should only be considered after exhausting all other possibilities.

Besides these perils, homeowners insurance policies may also cover theft, vandalism, windstorm, hail, water damage (not from flooding), falling objects and more. The exact coverage and limits depend on the type of policy you choose and the endorsements you add. Some common endorsements that California homeowners may want to consider are earthquake insurance and flood insurance, as these are not covered by standard policies or the FAIR Plan.

The cost of homeowners insurance in California varies depending on several factors, such as your home's location, age, condition, size, construction, security features and replacement value. Your personal credit history, claims history and coverage choices also affect your premium. According to the Insurance Information Institute, the average annual premium for homeowners insurance in California was $1,008 in 2018, which was lower than the national average of $1,211.

The best homeowners insurance company for you depends on your needs and preferences. You should compare quotes from multiple insurers and look at their coverage options, discounts, customer service ratings and financial strength. Some of the most popular homeowners insurance companies in California are State Farm, Farmers, Allstate, USAA and Mercury.