Many people cannot afford to buy a home because of the high cost of Los Angeles real estate. In fact, fewer than 40% of Los Angelenos own their home. Additionally, in 2018, California suffered more than $1.5 billion in losses due to fires. Los Angeles homeowners have seen their insurance rates rise significantly due to such catastrophic losses.
Los Angeles’s best home insurance companies
We analyzed data on customer satisfaction, different options offered by each carrier, and overall costs. This information was based on average 2021 rates from Quadrant Information Service and J.D. Power’s annual study of the home insurance industry.
AAA
AAA is most well-known for its auto coverage and roadside assistance, but some people find that it also offers home insurance. AAA offers exceptional pricing and significant discounts to eligible policyholders.
Allstate
Allstate offers a variety of coverage options for homeowners policies, including water backup, business property, and HostAdvantage, which is available to people who list their home with sites like AirBnB. Although Allstate isn’t the most expensive insurance provider, rates can be very different depending on many factors such as where you live and how much your home has been replaced.
State Farm
State Farm offers comprehensive coverage with many discounts that can be used to reduce premiums. State Farm’s prices are comparable to similar carriers, in terms of price, discounts, and coverage options.
Travelers
Reviews of Travelers highlight the excellent metrics such as overage, availability, and customer service. Travelers’ prices are very competitive. They offer several discounts, such as driver training, early quotes, continuous coverage, or the use of their telematics program.
USAA
USAA is a respected company with a strong client base. USAA has been serving military families since its inception. They are customer-friendly, focused, and responsive. USAA members enjoy many benefits beyond insurance, including competitive premiums.
Los Angeles homeowners insurance average cost
Los Angeles’ average annual home insurance premium is $1,240. This is a relatively low amount considering Los Angeles’ median home value of $752,508. The average homeowners insurance premium for Los Angeles is just slightly lower than that of the entire state, which is $1,101.
California’s average homeowners insurance premium is lower than the $1,211 national average. California also ranks in the lower half for average homeowner insurance premiums. Higher average annual rates are found in states that experience more than average natural catastrophes during a given year.
California’s annual average premiums are lower than those in neighboring states to the north that have had similar experiences with forest fires. The average homeowners insurance premium in Oregon is $776. The average Washington homeowners insurance premium is $975. It isn’t surprising, however, when you consider the vast differences in home values between California’s two neighboring states to the north.
In terms of homeowners insurance costs, California and Los Angeles compare very favorably with the rest.
Los Angeles Home Insurance Considerations
The specific features of each area will affect the cost of homeowner’s insurance. This also includes natural disasters that are common in different areas.
Los Angeles’ most common causes of death
Los Angeles homeowners insurance has seen a dramatic increase in cost due to a number of fires and earthquakes.
- In 2017, major insurance companies wrote $7.8 billion worth of California homeowners policies but suffered a 201.17% loss rate, according to the California Department of Insurance.
- Companies wrote policies worth $8.3B in 2018 and experienced a 170.08% loss.
- According to an August 2019 report in The Los Angeles Times, some California homeowners have incurred home insurance rate increases of over 420%.
- According to a CDI report, 10% of homeowners in affected areas received non-renewal notices from their insurance companies between 2015 and 2017.
- The California Earthquake Authority states that the Golden State has over 500 active faults. According to III statistics, the 2010 Baja California earthquake resulted in $100 million of losses.
California has made arrangements to help homeowners get coverage in the event of such disasters. To help protect California homeowners, the California Earthquake Authority offers dwelling home insurance that covers earthquake damage. Qualified Los Angeles homeowners who cannot find a private insurance company willing to cover their houses can purchase home insurance through the California FAIR Plan. FAIR offers insurance policies for fire damage that covers internal explosions, smoke, and lightning.
Los Angeles home insurance options
Homeowners have the option to select from a variety of coverages that address specific causes of loss in order to protect their home. In California and Los Angeles, with its particular natural disaster challenges, Homeowners coverages can include:
- Dwelling Insurance: This protects your home and any attached structures, such as a garage.
- Earthquake insurance: This insurance covers the damage to your house caused by an earthquake. Although earthquake damage is not covered by most dwelling policies, it can often be added to your policy.
- Insurance for loss of use: This policy pays your living expenses in the event that your home is damaged by a covered calamity like storm damage.
- Personal property insurance: This covers your personal property, which includes clothing, electronics, and furniture.
Los Angeles Home Insurance Discounts
There are several home insurance discounts that may help you save money on your Los Angeles home insurance:
- You could save even more if you buy a new home, or a home you just built.
- Bundle: You can save money by bundling your auto insurance with other types insurance from the same provider.
- Renovations: Many home insurance companies will offer lower premiums for homeowners who have recently renovated their homes.
- Payment: Insurance companies often offer special savings if you pay your premium in full or renew your policy before the due date.
- Roof: A roofing discount could help you save money on a new roof.
- Loyalty: You could save money if you’ve been with the same insurance company for a long time.
You should check the discounts available to you to reduce your premiums before you buy a new policy for home insurance.
Questions frequently asked
What is the cheapest homeowners insurance in Los Angeles?
Insurance rates vary depending on where you live and what your personal factors are. Get multiple quotes to find the best deal and the right coverage for you.
Los Angeles homeowners insurance: How can I obtain it?
Los Angeles property policies are covered by many major homeowners insurance companies. The California Earthquake Authority also offers home insurance.
Is it possible for insurance companies to raise my Los Angeles homeowner’s insurance rate after a natural catastrophe?
Yes. Insurance companies have increased rates for policyholders living in areas affected by recent fires. California is not the only state that has this practice.
Does dwelling insurance cover earthquake damage?
Many dwelling policies don’t cover earthquake damage. Many insurance companies sell separate earthquake policies. The California Earthquake Authority also offers dwelling insurance policies that include earthquake coverage.
