Best homeowners insurance companies in California in 2026

In 2025, a homeowners insurance policy in California averaged about $1,674 a year. That's significantly less than the $2,692 national average, but still a 20% increase from 2024.

In addition, owners in wildfire-prone areas of the Golden State are being hit with rate increases and some carriers have stopped or paused writing new policies altogether.

Whether you're getting coverage for a new home or shopping for a replacement policy, it's still possible to find solid coverage.

CNBC Select has picked the top homeowners insurance companies in California for a variety of categories. (See our methodology for more information on how we made this list.)

Who's this for? Mercury has some of the lowest rates of any California provider we reviewed, plus there are more than a dozen discounts, including for owning a new home, installing fire protective and theft prevention devices, instituting wildfire mitigation efforts and going at least three years without a claim. Bundle auto, home and earthquake insurance with Mercury and you can earn a reduction of up to 17.9%.

Standout benefits: Mercury offers add-ons like replacement cost coverage, service line coverage, identity management and a limited home warranty.

Who's this for? AAA homeowners policies in California are underwritten by the Automobile Club of Southern California and the CSAA Insurance Group, both of which are ranked highly on J.D. Power's customer satisfaction surveys, have top grades from the Better Business Bureau and low complaint volumes recorded by the NAIC.

Standout features: For less than $70 a month, AAA membership unlocks a host of benefits beyond insurance — including free roadside assistance, locksmith calls and identity theft protection.

Who's this for? Like to get a quote, apply and file claims online? Lemonade's AI-driven platform has sped up the process so you can resolve your claim in just minutes without dealing with an agent.

Standout benefits: You can pay for your policy through an escrow account or credit card. Lemonade also offers pet, auto and life insurance, making it easy to bundle and save up to 10% on each plan.

Who's this for? Travelers' green home coverage helps pay to repair, replace or rebuild with eco-friendly materials. The company also offers a 5% discount for LEED-certified homes.

Standout benefits: California homeowners can save up to 10% on their premiums if they bought a newly built home in the last 12 months. For policyholders impacted by California wildfires and other emergency conditions, Travelers offers a 60-day grace period on premiums after the emergency has ended.

Who's this for? Chubb caters to clients with unique or high-value homes, covering swimming pools and offering property management services to keep an eye on your seasonal abode.

Standout benefits: In the event of a total loss, if you decide not to rebuild after a covered total loss, or want to rebuild somewhere else, Chubb offers a cash settlement option.

Who's this for? USAA has lower-than-average rates for current and retired military and their families, with no deductibles for military gear or uniforms and up to $10,000 coverage for belongings destroyed by war.

Standout benefits: Replacement cost coverage for lost or damaged goods comes standard with USAA, while other providers offer actual cash value, which subtracts depreciation.

The average homeowners insurance policy in California costs about $1,439 per year, or roughly $120 a month.

Individual rates can vary greatly, depending on the location, age and condition of the home, as well as the coverage you choose, your claims history and other factors.

In California, homeowners insurance covers what it typically does in other states:

• Dwelling coverage: Pays to rebuild or repair the home, including its structure, permanent fixtures, appliances and attached structures.
  
• Personal property coverage: Repairs or replaces items damaged in a covered event, like a fire.
  
• Liability coverage: Can cover lawyers' fees and other costs if you're found responsible for causing damage to someone else.
  
• Additional living expenses coverage:  Pay for a place lodging, meals and other benefits if your home is unlivable after a covered incident.

A standard homeowners insurance policy covers a lot, but it may not cover every situation you may face in California:

Earthquakes

Earthquake coverage is not usually covered by homeowners insurance, but you can get a separate policy, either as a rider on your homeowners insurance policy or with a separate plan.

Floods

Homeowners insurance doesn't cover flooding: You can opt for flood insurance coverage through FEMA's National Flood Insurance Program. Private flood insurance companies are also an option and can offer higher limits and coverage options.

To get the best possible rate on homeowners insurance in California, follow these steps:

Step 1: Shop around

Get three to five quotes from insurers who operate in your state, choosing the same coverage amount and deductibles to get a fair comparison.

Step 2: Raise your deductible

Your deductible is the amount you're going to have to shell out before your insurer gets involved. You can have more than one deductible, depending on the coverage types, but raising them will almost always result in a lower monthly premium.

The trick, of course, is making sure you can afford that higher, new deductible if you have to file a claim.

Step 3: Bundle home and auto

Practically every insurance company will cut you a deal for buying more than one policy. Bundling home and auto can save you as much as 30%, with other discounts for tying in life and even pet insurance.

Step 4: Add wildfire-mitigation features

If you live in an area of California that's prone to wildfires, taking some mitigation steps could keep your rates down — or at least ensure you're renewed. Updating HVAC and electrical systems can help, as can adding fire and smoke detectors and a sprinkler system.

Since selling its first home policy in 1972, Los Angeles-based Mercury Insurance has spread from California to the Midwest, South and Mid-Atlantic. While it offers fewer endorsements than some larger competitors, that's enabled Mercury to keep costs down.

Availability: Mercury homeowners insurance is available in Arizona, California, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas and Virginia.

J.D. Power customer satisfaction ranking: Below average

NAIC complaint index: More complaints than expected

A.M. Best financial strength rating: A (Excellent)

AAA is known for its roadside assistance services but the American Automobile Association also offers car, home, travel and life insurance and other products to its more than 57 million members.

Availability: AAA home insurance is available in all 50 U.S. states (through various clubs)

J.D. Power customer satisfaction ranking: Above average

NAIC complaint index: Fewer complaints than expected

A.M. Best financial strength rating: A (Excellent)

Digital-first Lemonade quickly processes claims filed through its mobile app thanks to an algorithm-driven platform. Unused premiums are donated to nonprofits chosen by policyholders, including the Malala Fund and Lady Gaga's Born This Way Foundation.

Availability: Lemonade homeowners insurance is available in 29 states and Washington, D.C.

J.D. Power customer satisfaction ranking: Not rated

NAIC complaint index: More complaints than expected

A.M. Best financial strength rating: Not rated

English stone mason James G. Batterson introduced accident insurance policies for travelers back in 1853. Today, The Travel Insurance Company issues homeowners, auto, travel and flood insurance across the U.S. In 2025, Travelers announced it was raising premiums for 320,000 California homeowners by over 15% to deal with increased wildfire risks and construction costs.

Availability: Travelers homeowners insurance is available in all 50 U.S. states and Washington, D.C. (Online quotes not available in California)

J.D. Power customer satisfaction ranking: Below average

NAIC complaint index: Fewer complaints than expected

A.M. Best financial strength rating: A++ (Superior)

Dating to 1792, Chubb specializes in providing high-quality coverage and service for expensive, high-end properties. In addition to homeowners policies, it sells condo, renters, auto, boat and jewelry insurance, as well as private flood insurance. However, it's added some limits on homeowners insurance policies in California.

Availability: Available in all 50 U.S. states and Washington, D.C.

J.D. Power customer satisfaction ranking: Above average

NAICP complete index: Far fewer complaints than expected

A.M. Best rating: A++ (Superior)

Founded by Army officers in 1922, USAA only offers insurance, banking and financial services to current or former military and their families. If you're eligible, though, there's a wide variety of insurance coverage at affordable prices, including auto policies and renters insurance.

Availability: USAA homeowners insurance is available to members in all 50 U.S. states

J.D. Power customer satisfaction ranking: Above average

NAIC complaint index: Fewer complaints than expected

A.M. Best financial strength rating: A++ (Superior)

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. To research the best homeowners insurance companies in California, we compiled over 100 data points on 19 insurance companies. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

CNBC Select analyzed more than two dozen insurance companies that issue homeowners policies in California, focusing on cost, coverage limits, deductibles, endorsements, online experience and discounts available to California residents.

Sample rates were taken from the California Department of Insurance (CDI) and we incorporated customer satisfaction ratings from J.D. Power's home insurance survey, the National Association of Insurance Commissioners' complaint index and the CDI's Homeowners Complaint Composite Report. 

We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.

Based on this criteria, our selections for the best homeowners insurance in California are:

• Best for affordability: Mercury
• Best for customer service: AAA
• Best for applying online: Lemonade
• Best for green homes: Travelers
• Best for high-value homes: Chubb
• Best for military members and veterans: USAA

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