Homeowners insurance is essential, but it can be expensive. In California, there are a number of factors that lead to higher homeowners insurance rates. So how can you make sure that you’re getting the best homeowners insurance policy from the best company?
Despite the natural disasters, such as wildfires, that can raise California home insurance costs, you can find the best rates if you know where and how to look. Above all else, you should always look for the personal property coverage and other coverage you need first. Then you can compare pricing with this in mind. Once you have a baseline, you can also compare the cost of additional coverage to see what you're willing to pay for.
This blog covers the following topics:
- Tips for Shopping for California Homeowners Insurance
- The Top 3 California Home Insurance Companies, According to Customers’ Insurance Ratings
- The top 3 California home insurance companies based on customer price rating
Before you read our guide, get California homeowners insurance quotes to see what it available. Use our free tool below to compare home insurance rates and options.
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In California, many homes are at risk of damaging natural disasters, including wildfires and earthquakes. Over the past few years, wildfires have destroyed thousands of acres, resulting in millions of dollars of property losses. This has caused insurance rates to rise dramatically across the state with some companies canceling California homeowners policies entirely.
When shopping for California home insurance, it’s important to keep in mind that you may not always want to go with the cheapest option. Insurance companies often advertise low rates, but customers need to keep in mind that purchasing the cheapest insurance isn’t always the right answer. Your mortgage lender (if you have one) will set minimum requirements to protect their investment. It's equally important to make sure your interests are protected as well.
For example, a cheap policy might offer coverage that looks great initially. If you dig a bit deeper, though, they may exclude wildfires in the state of California. A good insurance agent can help you weed through the junk to find a policy that makes sense for you.
Other factors, including a range of coverage options or payment methods, might turn out to be more important to you than price. After all, California homeowners need to consider options such as earthquake insurance and wildfire coverage because that type of coverage is frequently excluded from basic California home insurance policies. You may also value helpful customer service or an easy-to-use website.
You won’t always be able to find information about the experience with a particular carrier on a carrier’s website. That’s why reviewing feedback from customers is such an effective way of doing research, so that’s where you should start when shopping for home insurance.
Here are some tips for shopping for California home insurance:
1. Get Home Insurance Quotes From Multiple Companies
Search for rates from multiple companies is time-consuming, but worth undertaking. It’s the best way for you to get the best rate for the coverage that you need. Remember, it’s important to research more than just cost alone because there are many factors that you should keep in mind to find the best insurance.
Consider getting California home insurance quotes from three or more companies. Getting multiple quotes can help you find the best deal. You can also clearly see if one company offers additional living expenses while another tries to skate by without including it among other things. Other differences in policies like extra coverage or the type of replacement costs they cover may not be obvious unless you're working with an expert.
When comparing the carriers’ policies, make sure to compare the price, the coverage included on the policy, features available (example: a mobile app), and the companies’ scores on Clearsurance.
2. Check for the Opportunity To Bundle Policies
Bundling your policies means consolidating the different insurance policy types that you have with one carrier. For example, you might be able to get a better rate on your policies if you have both your home and auto policies with one insurance company in California.
3. Do a Home Inventory
The best way to make sure that you are getting the coverage you need is by having an accurate, up-to-date list of your home’s contents. Do this before you start researching quotes, because the value of your possessions will affect your rate.
4. Consider a Higher Deductible To Save Money
Your deductible is the amount that you would need to pay out of pocket before an insurer will pay out on a claim. The higher your deductible is, the more you would pay out of pocket first. So, a higher deductible can lead to a lower premium cost.
If you want to save money on your premium, increasing your deductible will most likely lower your rate. Use caution when doing this, however. Only increase the amount of the deductible to a level that you are reasonably certain you would be able to afford.
For example, if you cannot afford to pay $4,000 out of pocket to repair your roof if the wind rips shingles off in a storm, don’t raise your deductible to that level.
Clearsurance has identified the three best California home insurance companies, according to customer reviews as of June 2020.
Below are the best companies for homeowners insurance in California offering quotes on Clearsurance.com, as rated by customers. This includes an analysis of common trends found in reviews of what customers tend to like and don’t like about the companies.
Please note: In order to qualify for the list, companies must sell homeowners insurance in California, have at least 25 homeowners insurance reviews, and they must be a Clearsurance.com affiliate and offer quotes on the site. For a complete and updated list of the top-rated companies in California, you can visit the California home insurance rankings page. On this page, you can also get insurance recommendations based on your specific requirements and zip code.
1. Lemonade Insurance for California Home Insurance
Lemonade is the best California home insurance company, according to customer reviews on Clearsurance.com. With the use of artificial intelligence, Lemonade offers customers the flexibility of handling everything online or through the Lemonade app.
Customers tend to rate Lemonade highly on Clearsurance. Its overall score is 4.84 out of 5.00 stars for homeowners insurance.
Pros: Some of the “pros” listed by customers on Clearsurance about Lemonade were its easy-to-use website and transparent pricing. Customers in California should be pleased to learn that Lemonade customers also like the company’s variety of coverage options. They also offer flexible billing options.
Cons: The only recurring “con” that emerged from reviews is that Lemonade doesn’t reward loyal customers.
You can see the positive feedback Lemonade has received on Clearsurance.com in the following data points which were pulled from Clearsurance reviews.
- 92% of Lemonade customers are likely to renew,
- 94% of Lemonade customers would recommend the insurance to a friend, and
- 95% of Lemonade customers rate their claims experience positively.
Among all Lemonade reviews on Clearsurance, we found one review from a California home insurance customer that said, “Super easy to buy policy and claim! Don't need to wait on the phone to speak to a representative! Just do everything online! I love it!!!”
Read all Lemonade Insurance reviews on Clearsurance.com.
2. Allstate Insurance for California Home Insurance
Allstate is a nationally known and very recognizable insurance provider, and their homeowners insurance has loyal customers. Allstate is one of the most popular and highest rated home insurance companies in California. The company earned a score of 3.99 out of 5.00 stars on Clearsurance.com for homeowners insurance.
Pros: Customers on Clearsurance like Allstate’s transparent pricing, flexible billing options, and that they explain coverage well. As a large insurance company, it’s no surprise that another positive listed by customers is a wide variety of coverage options.
Cons: An analysis of reviews did not reveal any consistent faults with Allstate’s insurance, so no clear pattern of “cons” was found.
With no consistent “cons” and a long list of positive attributes, it’s no wonder that the customers rate Allstate highly.
- 80% of Allstate customers are likely to renew,
- 78% of Allstate customers would recommend the insurance to a friend, and
- 77% of Allstate customers rate their claims experience positively.
In a Clearsurance Allstate review, this California customer praised Allstate by saying, “A very good and [trustworthy] insurance company. Nothing to complain about. The online was very easy and fast.”
Read all Allstate Insurance reviews on Clearsurance.com.
3. Liberty Mutual for California Home Insurance
Liberty Mutual is another popular insurance company and one of the best for California home insurance, according to customers. On Clearsurance.com, Liberty Mutual earned a score of 3.93 out of 5.00 stars for home insurance. You can see common trends in Liberty Mutual reviews below.
Pros: Customers of Liberty Mutual report being pleased with the breadth of coverage options, transparent pricing, and that the company takes the time to explain coverage well. An easy-to-use website and flexible billing options are also well-regarded.
Cons: The only recurring negative was the lack of rewards for loyal customers.
Overall, customers reviewing Liberty Mutual are pleased with the service they receive, as you can see in the following data points from reviews.
- 77% of Liberty Mutual customers are likely to renew,
- 77% of Liberty Mutual customers would recommend the insurance to a friend, and
- 74% of Liberty Mutual customers rate their claims experience positively.
Among the many positive Liberty Mutual reviews, we found one written by a California homeowner that stands out. In the review, the customer said, “Overall, I am satisfied with Liberty Mutual Insurance for my homeowners insurance. Rates are reasonable, [it's] easy to get in touch with them, they stay in touch with me yearly to update my account/policy. [It's] reasonable, and the staff working there are pleasant. I like this company for insurance.”
Read all Liberty Mutual reviews on Clearsurance.com.
Although there are many factors to consider when shopping for California home insurance, one of the most important factors to most homeowners is price. Clearsurance analyzed California companies and how customers rated the company for the price of their policy.
Below you can find the top 3 California home insurance companies rated by customers for their perceptions of price. Please note: for this ranking, we looked at all homeowners insurance companies in California that had at least 50 reviews that included a rating on price. The ratings displayed are shown out of a 5-star scale.
- AAA Insurance: Price rating of 4.02
- GEICO Insurance: Price rating of 3.98
- Allstate Insurance: Price rating of 3.79
If you follow these shopping for home insurance tips and take a look at these top-rated companies, you’re sure to find the right insurance at an affordable price. In California, finding good insurance at a great price means doing some research. However, it’s worth it when you find the company that best meets your insurance needs.
You can find California home insurance by using our free insurance quote comparison tool below. By comparing multiple quotes, you can find the best coverage for the best rate.
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