Finding reliable home insurance providers in California has become increasingly challenging due to wildfires, insurer pullbacks, and rising premiums. But homeowners still have options—ranging from major private carriers to state‑backed plans. In this guide, we explore who offers home insurance in California in 2025, what each plan includes, and how to find the best provider for your needs.
Why California’s Home Insurance Market Is Different
Growing wildfire threats have forced several insurers to stop issuing new policies in high-risk areas like the Pacific Palisades, Santa Monica, and Paradise. That volatility means coverage isn’t uniform across the state; availability depends heavily on ZIP code and fire risk. Despite this, several well-known insurers continue to offer coverage—alongside the California FAIR Plan, the state’s last‑resort option.
Top Private Home Insurance Companies in California
Here are the most relevant home insurance companies in California, listed with their strengths and current availability:
1. State Farm
- Market leader with ~21% share
- Suspending new policies in some regions due to financial strain—requesting emergency rate increases up to +38%
- Great for loyal existing customers; proceed carefully if seeking new coverage
2. Farmers Insurance
- Holds ~16% market share
- Has capped new policies in high-risk zones, but recently resumed issuing under new regulations
- Offers discounts via multi-policy bundling and home upgrades, including earthquake add-ons☑️
3. Mercury Insurance
- Serves CA since 1972; offers affordable rates
- Focused on budget-friendly homeowners and auto bundles
4. Allstate
- Once big in CA, now limiting new policies while supporting existing ones
- Known for tech-forward tools and a variety of discounts
5. AAA (CSAA)
- Available to members statewide with solid service
- Offers bundling savings and roadside perks
6. Nationwide
- Offers strong coverage but is starting to limit CA offerings
- Known for extras like identity theft protection and Brand New Belongings®
7. Amica Mutual
- High customer satisfaction, mutual company with dividend returns
8. Chubb
- Ideal for high-value homes, offers luxury-level protection
9. Lemonade
- App-based, AI-driven insurance, available in 29 states
- Quick digital quotes and charitable premium returns
10. Wawanesa
- Offers customizable plans and California-specific discounts (e.g., sprinkler systems)
The California FAIR Plan: Last-Resort Coverage
If no private insurer will insure your home locally, the California FAIR Plan may be your only option. It provides fire-only coverage for high-risk areas, but:
- Premiums can range from $91 to over $21,000 depending on ZIP code
- Requires supplemental coverage to protect against theft, liability, and other perils
FAIR Plan participation jumped 123% from 2020 to 2024, often at much higher cost.
How to Find the Best Home Insurance in California
✅ 1. Check Coverage Options
Look for plans that include structure, personal property, liability, loss of use, and consider earthquake or fire impact add-ons.
✅ 2. Compare Quotes
Use comparison tools for home insurance quotes from different companies:
✅ 3. Explore Discounts
Save via bundle discounts, security upgrades, claims-free credits, and multi-policy savings.
✅ 4. Factor in ZIP Code Risk
Wildfire-prone areas might lead to higher rates or policy denials. Calculate the cost of FAIR Plan vs. private insurer.
✅ 5. Review Financial Strength & Complaints
Use AM Best, J.D. Power, and NAIC Complaint Index to assess insurer reliability and customer service.
Average Home Insurance Cost in California
- State average: approx. $1,260/year (~$105/month)
- Best deals:
- Travelers: ~$901/year
- USAA (military only): ~$799/year
- Nationwide, AAA, Mercury usually fall between $1,100–1,400 annually
What California Homeowners Should Do Now
- Identify available insurers in your ZIP code using state resources.
- Request personalized quotes, especially if in wildfire-prone zones.
- Consider FAIR Plan backup but expect higher premiums and limited coverage.
- Review add‑ons like earthquake or green home endorsements—essential in CA.
- Plan for annual policy reviews—keep cost and your home’s value current.
Final Thoughts
In California’s challenging insurance market, providers like State Farm, Farmers, Mercury, Allstate, Nationwide, Amica, Chubb, AAA/CSAA, Lemonade, and Wawanesa still offer valuable coverage—though availability fluctuates by region. For homeowners in high-risk areas, the California FAIR Plan acts as a safety net, albeit with limitations and higher costs.
To ensure you’re getting solid, affordable coverage:
- Compare quotes
- Check financial ratings
- Explore discounts and add-ons
- Stay aware of policy availability year to year
