What is the average cost of homeowners insurance in California

If we look at dwelling coverage of $250,000 and an average homeowners insurance premium of all the cities and towns within California, we would be looking at a State average of $1,280 annually. The national average per year for homeowners insurance is $1,630. Please keep in mind, home insurance rates will vary from homeowners insurance company to homeowners insurance company. In addition, every zip code will come with different premiums as well.

What factors influence homeowners insurance rates

There are multiple factors that will help a home insurance provider determine the rate you’ll receive on your homeowners insurance policy. Two of the most important may be the location you live in and the cost to rebuild your home. 

Every homeowner should have home insurance. Although, homeowners insurance is not a state requirement in California. Unless you have a mortgage on the home, in this case there’s a good chance your lender will want you to have coverage before they close on your loan. Homeowners insurance will protect the structure of your home, the contents inside it and liability if someone gets hurt on your property. 

Common factors that will help your home insurance provider determine the rate you get on your homeowners insurance:

The location of your home:

The zip code of your home will play a major role in determining the rate you get on homeowners insurance in Sacramento California. Potentially having the most impact on home insurance premiums, location is important when it comes to how much you’ll end up paying. Your zip code may be in an area that is prone to earthquakes, flooding or another natural disaster. It could also have a higher crime rate than normal, or the area you live in may just have a high number of claims. All of these could create higher home insurance premiums for you. 

If you live in an area prone to wildfires you have difficulty finding a homeowners insurance provider willing to insure you. In a situation like this we suggest you contact us so we can walk you through the process of applying for the California FAIR Plan. The FAIR Plan was started to help homeowners in high brush areas that may have trouble finding coverage. 

The cost to rebuild your home / Materials and local construction costs:

The price of your home and the costs involved with rebuilding it, it both play a significant role in the calculation of your homeowners insurance rate. If you have a very expensive home, you can expect to pay a higher premium than someone with a lower priced home than yours. 

If your home is built with materials that are very expensive it may make your homeowners insurance more expensive. Although, if you have items installed for safety or weather resistant roof, there is a good chance that will help to lower your rate. 

Coverage costs:

Standard homeowners insurance policies will include 3 types of coverage:

• Personal belongings such as furniture, clothing & equipment.
• Liability against lawsuits or other costs
• Additional living expenses

This is what a typical home insurance policy will cover. Please keep in mind, earthquakes and flooding are not included in a standard homeowners insurance policy. If you needed coverage for these items it would be wise to look into flood insurance and earthquake insurance.

The condition of your roof and the age of your home:

Newer homes usually have new plumbing, fixtures and a new roof. They will also come with less wear and tear. Due to this it is more affordable to cover newer homes than it is to insurance an older home that may have more risk involved. 

Security features and safety:

Home insurance companies love clients that come with less risk. By installing safety features such as burglar alarms, fire sprinklers, and other alarm and security systems you may experience lower homeowners insurance premiums. 

The home insurance deductible:

Your deductible will play a major factor in determining what your homeowners insurance premium may be. The higher your deductible is, the lower your home insurance premium will be. The lower your deductible is, the higher your premium will be. 

A lot goes into determining what your homeowners insurance rate will end up being. That’s why it’s so important to speak with a local agent to discuss your options. Our agents have access to the top home insurance providers in the industry and firsthand knowledge of the best homeowners insurance discounts available. This makes it easy for them to get you the best rate on the best coverage for your situation.

For a custom, free homeowners insurance quote, please give us a call today at 916 313 6100