Why is home insurance so expensive in Los Angeles?

Home insurance policies can be expensive throughout Los Angeles. That’s because of the high risk of natural disasters, relatively high vandalism rates, and expensive real estate costs in the city. But searching for the cheapest policy doesn’t mean you have to sacrifice the best homeowners insurance. Compare coverage options and choose the perfect option for you and your lifestyle.

Is damage from earthquakes covered by Los Angeles home insurance?

You may need special home insurance coverage to guarantee you’re protected from damage caused by earthquakes in or near Los Angeles. Standard home insurance costs generally protect against specific perils. Unless otherwise noted, earthquake protection is usually a special supplemental package. Check with your home insurance company to see if you’re covered.

Is my house protected from wildfires?

You may need special home insurance coverage to guarantee you’re protected from damage caused by wildfires in or near Los Angeles. Standard home insurance costs generally protect against specific perils. Unless otherwise noted, wildfire protection is usually a special supplemental package. Check with your home insurance company to see if you’re covered.

Los Angeles, CA Homeowners Insurance Quotes (2023)

Los Angeles, CA Homeowners Insurance

Southern California. Sunny. Beautiful. Expensive!

Home to nearly 4 million residents, Los Angeles and surrounding cities have some of the most expensive real estate in the nation. As one of the largest individual insurance markets in the country, shopping for homeowners insurance in the south of the Golden State can be a headache-inducing mirage of constant radio and television ads. Let’s clear up a few things about home insurance in Los Angeles.

Insurify can help you get the best and cheapest homeowners insurance in your area in just a few minutes, no matter your background, profile, or insurance needs.

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Cheapest Home Insurance Companies in Los Angeles

For homeowners in Los Angeles, it's important that you evaluate all of your potential insurance options to ensure you are finding the best rate. Comparing the right insurance companies will allow you to get the best possible insurance rate for your home.

To simplify comparing companies, Insurify has analyzed rates from top insurance providers in Los Angeles. The following are the best insurance rates from carriers that offer homeowners insurance in Los Angeles.

Cheapest Companies	Quotes The car insurance quotes, statistics, and data visualizations on this page are derived from Insurify’s proprietary database of over 4 million car insurance applications from ZIP codes across the United States. Insurify’s data science team performs a comprehensive analysis of the various factors car insurance providers take into account while setting rates to provide readers insight into how car insurance quotes are priced.
Tokio	$463
Allstate	$492
USAA	$875
Mercury	$990
Nationwide	$1,036

How to Find Cheap Home Insurance in Los Angeles

Buying a home may be one of the largest financial investments of your lifetime. With investment, inevitably, comes risk. However, there are steps homeowners can take to minimize risk and protect their investment.

The first step to protecting your property is homeowners insurance. Though not required by law, home insurance provides financial liability for your property and belongings from natural disasters or theft. Different coverage levels are available for different property types, locations, and other factors. By comparing quotes from different insurance companies, you can have peace of mind knowing you’re getting the best deal for your desired coverage options. Compare home insurance rates before committing to the first quote you see.

Keep reading for a full guide on Los Angeles home insurance.

Cheapest Home Insurance in Los Angeles by Company

Homeowners insurance rates aren’t always designed with savings in mind. That’s where Insurify comes in. Our free home insurance comparison tool allows you to find the best policy for the best rate fast. And your information stays private and protected.

As of 2021, the average home insurance premium in the Los Angeles area costs $1,016 annually, and the median home value is $752,508. Since home value and insurance rates always correspond, the pricier the property, the more you’ll be shelling out in home insurance premiums each year.

That’s a pretty penny. How can you be expected to pay all of these costs (vital as they are) and still provide for you and your family?

Average Home Cost in Los Angeles The car insurance quotes, statistics, and data visualizations on this page are derived from Insurify’s proprietary database of over 4 million car insurance applications from ZIP codes across the United States. Insurify’s data science team performs a comprehensive analysis of the various factors car insurance providers take into account while setting rates to provide readers insight into how car insurance quotes are priced.	Average Annual Insurance Premium in Los Angeles The car insurance quotes, statistics, and data visualizations on this page are derived from Insurify’s proprietary database of over 4 million car insurance applications from ZIP codes across the United States. Insurify’s data science team performs a comprehensive analysis of the various factors car insurance providers take into account while setting rates to provide readers insight into how car insurance quotes are priced.
$752,508	$1,016

Average Home Cost in Los Angeles

Average Annual Insurance Premium in Los Angeles

$752,508

$1,016

Average Annual Home Insurance Premium in Los Angeles by Company

Average prices for standard homeowners insurance for a 7-15 year old home, $200,000 in coverage

Tokio

$463

Allstate

$492

USAA

$875

Mercury

$990

Nationwide

$1,036

Amica

$1,063

Farmers

$1,226

Stillwater

$1,656

Home Insurance by Neighborhood in Los Angeles

Like property costs, home insurance varies in price from city to city. Pricing is determined on ZIP code-specific variables such as the volume of claims filed nearby, crime rates, property costs, and risk variables such as natural disaster frequency. Even your specific neighborhood may determine if you pay more or less on our annual premiums.

Rates in Los Angeles can be relatively high or low compared to the national average; it all depends on which town you live in.

Home Insurance Coverage Types in Los Angeles

There are several types of home insurance. Specific terms of insurance policies may vary by city, but in general, the standard policy types are as follows:

The simplest and least comprehensive type of homeowners insurance

Provides coverage for a handful of potential problems including
- natural disasters (storms, fires, wind lightning, volcanic eruption),
- explosions,
- theft,
- damage from vehicles,
- or civil commotion.
Broad form homeowners insurance policies includes all basic form coverage, plus
- protection from falling objects,
- damage from weight of ice, snow, or sleet,
- freezing of household systems including HVAC and pipes,
- sudden and accidental damage to pipes and other household systems or from artificially generated electrical current,
- accidental discharge or overflow of water or steam,
- sudden and accidental damage
HO-2 policies typically cover both dwelling protection and personal property

In some cases, Broad Form coverage may also include liability coverage. However, they still only cover the specific damages listed in the policy
The most common form of homeowners insurance is known as “special form” policies

While HO-1 and HO-2 policies are “named peril” policies (meaning they only cover dangers that are specifically listed in the policy) HO3 policies are “open peril” policies meaning they’ll cover all dangers except those specifically excluded in the policy documents
HO-4 policies, also known as renters insurance, are for people who lease rather than own their homes.

Tenant’s form policies typically cover all the same dangers as HO-2 policies.

These policies include personal property coverage and liability coverage, but don’t cover the physical structure of the house.

Some HO-4 policies may also include loss of use coverage for the tenants.
Comprehensive form policies are usually the broadest and provide the highest level of coverage; not surprisingly, they also tend to be the most expensive type of homeowners insurance policy.

The biggest difference between HO-3 and HO-5 policies is that most HO3 policies are “actual cash value” policies, whereas typically HO-5 policies are “ replacement cost value” policies.

An actual cash value policy will only reimburse you for the actual value of a damaged or destroyed item, while a replacement cost value policy will reimburse you for however much it would cost to completely replace or repair the damaged or destroyed item (up to the coverage limits on the policy).

HO-5 policies also provide personal property coverage against a wider range of dangers than the typical HO-3 policy. Many HO-5 policies also have extra coverage for high-value personal property such as jewelry and artwork.
Not surprisingly, condo form insurance is for condominium owners. HO-6 policies generally protect against the same types of dangers as HO-3 policies.

They provide dwelling protection coverage with a twist: HO-6 policies cover the walls, floors, and ceiling of the condo unit but not the rest of the building.

These policies also include personal property and liability coverage and may include loss of use coverage.
If you own a mobile home or manufactured home, you likely have an HO-7 policy.

Mobile home form policies are typically identical to HO-3 policies, except they’re designed specifically for mobile and manufactured homes.

Like HO-3 policies, they provide dwelling protection coverage, other structures coverage, personal property coverage, liability coverage, and possibly loss of use coverage as well.

HO-7 policies generally only protect the home when it’s stationary; if you plan to move your mobile or manufactured home, you’ll need to get a special policy to cover it while it’s in transit.
Older homes have generally been built to less stringent code standards than recently built homes, and so insurers have designed a specialized type of homeowners insurance policy for them.

HO-8 policies often only cover the basic perils listed in HO-1 policies and generally apply to homes that are registered landmarks or otherwise deemed historic homes.

Owners of registered landmarks are typically forbidden from updating HVAC, electrical and other parts of the home to enable them to qualify for a standard HO-3 policy, so an HO-8 policy is often the only option for them.

For more detailed California city level guides, check out these below.

Wildfires and Home Insurance in Los Angeles

Southern Californians know all too well they’re at a higher risk of wildfires than other localities throughout the country. Because of the high risk of fire in this area, homeowners insurance companies generally charge higher premiums for homeowners policies to take this risk into account. Homeowners should consider adding fire insurance to their California homeowners insurance as an extra level of precaution. Preselected coverage amounts should reflect the perceived risk in any given area. The best home insurance for Los Angeles will likely include dwelling coverage protected from fires.

Earthquakes and Home Insurance in Los Angeles

Earthquake insurance is another supplemental insurance product homeowners in the Los Angeles area should consider. The California Department of Insurance encourages this add-on homeowners insurance coverage to protect against these natural disasters and associated problems, like mudslide and flood insurance protection.

Bundling Options for Los Angles Homeowners

All these supplemental insurance services adding up? There are still ways to save on homeowners insurance even with all this additional coverage. Home insurance companies will often offer policyholders bundling discounts if they opt to combine different insurance products into single policies with the same insurance company. For example, you may discuss with your insurance agent if you can combine your home policy with life insurance or auto insurance. Living expenses can be high in SoCal, cut costs by bundling home and car insurance to get the best rate without sacrificing quality.

How to Find the Cheapest Home Insurance in Los Angeles

Southern Californians already have high bills. Cut costs by comparing home insurance policies before pressing “buy” on the first policy you’re offered.
Use Insurify to compare som for your property in Los Angeles.

Frequently Asked Questions

Home insurance policies can be expensive throughout Los Angeles. That’s because of the high risk of natural disasters, relatively high vandalism rates, and expensive real estate costs in the city. But searching for the cheapest policy doesn’t mean you have to sacrifice the best homeowners insurance. Compare coverage options and choose the perfect option for you and your lifestyle.
You may need special home insurance coverage to guarantee you’re protected from damage caused by earthquakes in or near Los Angeles. Standard home insurance costs generally protect against specific perils. Unless otherwise noted, earthquake protection is usually a special supplemental package. Check with your home insurance company to see if you’re covered.
You may need special home insurance coverage to guarantee you’re protected from damage caused by wildfires in or near Los Angeles. Standard home insurance costs generally protect against specific perils. Unless otherwise noted, wildfire protection is usually a special supplemental package. Check with your home insurance company to see if you’re covered.

Compare Home Insurance Quotes Instantly

Personalized quotes in 5 minutes or less
No signup required