Best cheap home insurance in Los Angeles in 2024

The best home insurance companies in Los Angeles

Bankrate’s insurance editorial team is paying close attention to the difficulties California homeowners face as many insurance providers place a moratorium on writing new business in the state. Since 2022, seven of the 12 largest California home insurance companies have either paused or restricted writing new policies in the state. Those companies include State Farm, Allstate, Farmers, USAA, Travelers, Nationwide and Chubb. Los Angelinos may have an even more difficult time finding a policy, given the county’s high wildfire risk. However, according to Bankrate’s research, Mercury, MAPFRE, AAA and Grange Insurance Association may be some of the best choices for Los Angeles home insurance.

The cheapest home insurance companies in Los Angeles

According to Bankrate’s research, USAA, Armed Forces and Mercury offer the cheapest home insurance in Los Angeles for a $300K dwelling policy. Keep in mind that the higher dwelling coverage you need, the more you will likely need to pay for your policy. Our analysis of average rate data from Quadrant Information Services shows that a home insurance policy with a $750K dwelling limit costs 114 percent more than a $300K policy in Los Angeles.

How much is home insurance in Los Angeles, California?

On average, home insurance in Los Angeles costs $1,851 per year — or $154 per month — for a policy with a $300,000 dwelling coverage limit. However, this is just an average figure for comparison purposes. Exactly what you pay for home insurance in Los Angeles will depend on several personal rating factors, like the age of your home and the deductible you choose.

Los Angeles rates by home age

Los Angeles has a good mix of older homes and newer construction, with the median age of a home being 56 years old. Most insurers charge higher premiums to older homes, as it could cost more money to get an older building up to current building codes if it is damaged in a covered loss. The table below shows the top five cheapest home insurance companies in Los Angeles and how rates vary based on construction year.

Los Angeles rates by deductible

Choosing a high deductible for your home insurance policy usually helps to lower your premium. By taking on more of the financial responsibility after filing a claim, you could be rewarded with a cheaper rate. Just be careful not to raise your deductible to a level you cannot realistically afford. Below, you can see how annual premiums for the cheapest home insurance companies change based on deductible level.

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze July 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on married male and female homeowners with a clean claim history, good credit and the following coverage limits:

• Coverage A, Dwelling: $150,000, $300,000, $350,000, $450,000, $750,000
• Coverage B, Other Structures: $15,000, $30,000, $35,000, $45,000, $75,000
• Coverage C, Personal Property: $75,000, $150,000, $175,000, $225,000, $375,000
• Coverage D, Loss of Use: $30,000, $60,000, $70,000, $90,000, $150,000
• Coverage E, Liability: $500,000
• Coverage F, Medical Payments: $1,000

The homeowners also have a $1,000 deductible, a $500 hail deductible and a 2 percent hurricane deductible (or the next closest deductible amounts that are available) where separate deductibles apply.

These are sample rates and should be used for comparative purposes only. Your quotes will differ.

Year built: Rates were calculated based on the following years built for homes and assigned to our homeowners: “1959, 1982, 1992, 2010, 2016 (base) and 2020.”

Bankrate Scores

Our 2024 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.

• Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, average quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best, Demotech and the NAIC, were analyzed.
• Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
• Tier 3 (Support): To encompass the many ways a home insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.