How much is homeowners insurance in California?
While home insurance rates vary based on where in California you live and what your coverage needs are, average California homeowners insurance rates come in at around $1,070 a year—roughly 35 percent less than the national average.
What affects homeowners insurance rates in California?
There are various property-related factors that insurance companies look at to determine rates. In California, some examples include:
- Construction: The age, construction (including recent upgrades or repairs), and condition of the home may affect your rate.
- Replacement cost: The cost of fully rebuilding the same house, which is usually determined by an appraiser, is taken into consideration.
- Swimming pools: If the home has a pool, you may need more liability coverage to cover potential injuries.
- Home-based businesses: If you run a business from home, your premium may be higher to cover business-related expenses such as inventory and equipment.
What does home insurance cover in California?
Homeowners insurance covers damage to your home and belongings in the event of a fire, lightning, smoke, theft, vandalism, water, wind, and more.
A standard home insurance policy protects:
- Your home: Your policy’s dwelling coverage reimburses you for the costs of repairing or rebuilding your home when it’s damaged in a fire or any other disaster listed in your policy. Dwelling coverage generally covers the structure of your home and its built-in appliances.
- Other structures: If structures on your property that aren’t connected to your home are damaged—like a fence, shed, greenhouse, swimming pool, or detached garage—standard home insurance coverage comes to the rescue.
- Your belongings: If a water pipe bursts or fire damages your home, then your belongings (e.g., clothing, furniture, and portable electronics) may get damaged too. Your policy’s personal property coverage will help reimburse you for the damage. Keep in mind that most policies have limits on rare or valuable items like jewelry or antiques; so if you want to protect your vintage vinyl collection, talk to your agent about additional special coverage.
- Housing expenses if you need to vacate: If you need to live elsewhere while your home is being repaired or rebuilt, loss of use coverage, also called additional living expenses coverage, pays for your living expenses in your temporary home. This might include the cost of a hotel or temporary rental, as well as things like fuel costs (if you need to flee the area) and pet boarding expenses.
- Medical bills if someone gets hurt on your property: If a guest slips in your home and breaks her hip, your policy’s personal liability coverage may pay for her medical bills, lost wages, and certain other expenses. And if she takes you to court, the policy may handle the defense. Personal liability also swings into action if you’re visiting friends and damage their home, like if you accidentally knock over a candelabra and set the carpet on fire.
