. Good for you! To get the most bang for your buck, your policy should cover both the usual perils and risks California homeowners face, like wildfires and theft.

Finding a good policy is easier than you might think—and your home deserves the best, right? Since you can’t personally fight off wildfires or defend your home from thieves, it’s wise to purchase an insurance plan that will help protect your investment in the case of the unexpected.

The first step is learning which coverage you need. Then, you can get competitive quotes from multiple companies to find the best rate.

Let’s start with this quick guide to

homeowners insurance

in California from home and

car insurance

broker and comparison app

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What is homeowners insurance?

Homeowners insurance is a type of insurance that covers your house and the possessions inside it. It often covers personal liability, too, meaning that you have financial protection in case an incident occurs on your property and injures another person.

The average cost of homeowners insurance in the US is $115 per month. This works out to about $1,387 per year. That may seem like a high fee, but $115 per month is a pretty small sum compared to the cost of a new house.

Californians, get ready to pat yourselves on the back—California homeowners pay less for homeowners insurance than the national average!

Basic components of homeowners insurance

You can add or subtract some kinds of coverage from your policy. However, the basic components of a homeowners insurance policy are usually the same:

Coverage A (Structure): Pays for repairs or replacement of the actual house.

Coverage B (Additional structures): Pays to repair other structures besides the house, like sheds, barns, pools, and fences.

Coverage C

(Personal property): Offers financial protection if specific personal property is lost or destroyed (jewelry, electronics, furniture, etc.).

Coverage D (Additional expenses): AKA “loss of use,” this policy pays for temporary living expenses associated with losing some or all of your home (e.g., hotel, rent).

Coverage E

(Personal liability): Pays for the cost of legal defense if someone gets injured on your property, or if your pet or family member does the damage.

Here’s an important note to keep in mind: a policy will either cover actual cash value (ACV) at the time of loss or the replacement cost of items.

ACV is how much your home and possessions are worth at the time of the incident. On the other hand, the replacement cost is the fee required to replace everything, regardless of the current (often depreciated) value.

This option usually comes with a higher fee. Mortgage companies may require homeowners to purchase a policy that covers at least 80% of the replacement cost.

To receive accurate coverage, be sure to carefully document the specific items you are insuring—especially if you have a replacement cost policy. The insurance company is obliged to replace the exact item.

MORE:

Home insurance liability coverage

Named perils

A peril must be named in your policy for you to receive a payout for damage caused by it. Here are some of the named perils that are generally (but not always) included in a California homeowners insurance policy:

Fire or lightning

Explosion

Windstorm or hail

Weight of ice, snow, and sleet

Volcanic eruption

Sudden and accidental water damage

Damage due to aircraft or vehicles

Riots

Vandalism and theft

Falling objects

Glass breakage

It’s worth spending a few minutes to closely examine your policy to be certain you understand what’s covered. There are too many horror stories of people who only discovered after the fact that a devastating incident was not covered by their insurance.

Here are some perils not generally covered by a homeowners policy:

Flood damage

Earthquake and earth movement damage

Termites and pest damage

Water damage due to seepage or leaks

Mold

Wear and tear

Neglect

Losses to a house that has been vacant for 60 days or more

Tidal waves

War

Insurrection

Nuclear hazard

Is homeowners insurance required in California?

No, the state of California does not currently require that homeowners carry home insurance. However, most banks and lenders do require that you carry full coverage. We recommend checking with your lender to be certain.

It’s still a good idea to carry homeowners insurance even if you’re not legally required to have a policy. Would you be able to buy yourself a new house out-of-pocket? If not, strongly consider buying a policy.

The financial insulation you get in the event of a tragedy is well worth the monthly payments, even if they cut into your budget.

How to get homeowners insurance

We know it’s tempting just to go with the first policy referral you get. But do you really want to overpay (potentially by hundreds of dollars) for the sake of convenience?

Jerry

makes it easy to compare rates and sign up for a policy—no gimmicks. It’s easy! Enter your zip code and desired coverage and let Jerry find you dozens of competitive quotes.

If you find a policy you like, Jerry will even handle all the paperwork and phone calls, including helping to cancel your old policy if you have one!

Here’s an insider tip: Always ask your car insurance company for a quote. You can save a ton of money (like 15% of your total bill!) by bundling your homeowners policy with your car insurance.

Recommended home insurance coverage in California

Did someone say wildfire alert? Wildfires are unfortunately a real concern for many California homeowners. The last 10 years have seen some of the worst fires on the state’s record.

A robust home insurance policy in California should include protection against wildfires, theft, and earthquakes. While these perils are often covered in a standard homeowners policy, they are usually excluded in states like California and Oregon that face unusually high risk.

To protect your home, consider these additional strategies:

Fire insurance can cover costs related to smoke or wildfire damage

Earthquake insurance can cover damage due to earthquakes (look up the California Earthquake Authority)

Flood insurance

can help protect your home from flooding when its source is outside the home (like a mudslide)

These additional policies can cost more than the typical homeowners plan.

MORE:

How to decipher home insurance quotes

Why is homeowners insurance in California expensive?

Homeowners insurance in California is the second cheapest in the entire country, after Hawai’i. However, premiums are calculated with a formula that takes into account your credit history, marital status, and zip code.

Here are a few variables that affect homeowners insurance rates for all California residents, no matter their specific location.

Natural disasters and inclement weather

It’s no secret that California is incredibly vulnerable to wildfires. Wildfires cause costly property damage, which is why most homeowners policies don’t cover wildfire damage.

On the other hand, California does not usually have to deal with dangerous weather patterns such as hail or tornadoes. This makes homeowners insurance cheaper here.

Theft rates

California’s property crime rate is slightly above the national average. Since a California home is more likely than the average American home to file a theft or vandalism claim, you’ll pay a slightly higher premium.

Homeowners insurance discounts in California

There are a wide variety of discounts available to homeowners. Some are based on behavior (like storm-proofing your home), while others are based on customer status (like being a first-time homeowner).

Here are common homeowners insurance discounts offered by most major insurance companies:

Discount	How to get it
Bundling	Bundling home and auto insurance could earn you a steep discount on both policies.
First-time homeowner	Most companies will offer you a discounted policy if it’s your first time purchasing a home.
Claims-free	If you maintain a certain period (typically a few years) without any claims on your policy, you may be eligible for a discounted rate.
Storm proofing	Installing various hurricane safety measures, such as an upgraded roof or storm shutters, could earn you a discount on your homeowners policy.
Security system	If you’ve got a security system to prevent theft, your insurance company might discount your homeowners insurance rate.
Upgraded fire alarm	Set up your fire alarm to contact the fire department directly—your insurance company may give you a discount for a shorter fire response time.

How to save on home and auto insurance

The best way to save money is to compare rates and pick the best offer. This doesn’t have to involve opening up a bunch of tabs or negotiating with salespeople—at least, not with

Jerry

Download the Jerry app for a one-and-done solution to home and car insurance buying.

Jerry helps you along at every step, from getting personalized quotes to signing up for a policy. It’s easy to check for

car insurance

savings with Jerry, too. Enter your zip code and desired coverage, and boom! Unlock huge savings for both auto and homeowners insurance.

P.S. Jerry isn’t just for first-time homeowners! You can use Jerry to check if you’re overpaying on your current

home insurance

policy, too.