From the beaches of San Clemente to the towering redwoods of Humboldt County and every mountain, desert and bay in between, California is a natural wonder with few equals. But with these amazing earthly features comes a special set of circumstances experienced by everyone who lives here: the unexpected and unpredictable power of Mother Nature. In other words, earthquakes, floods, mudslides, forest fires, wind storms-just about anything terrestrial that can be thrown your way. That's why selecting the right California home insurance is so important. You want to be financially prepared to weather anything. So when shopping for the best California home insurance rates it pays to know how to shop and to shop around for the best policy and price.

California Home Insurance Basics
Your basic California policy will consist of the following:

  • Dwelling- covers your home from major events like fire, lightning, theft, vandalism, hail, smoke, etc.
  • Other Structures- covers unattached structures on the property like garages and sheds.
  • Personal Property- covers personal belongings and is usually 50% of the dwelling amount.
  • Loss of Use- helps cover additional living expenses if you're unable to live in your home.
  • Personal Liability- protects you when you're held legally responsible for others injured on your property. Pays for legal fees and damages.
  • Medical Payments to Others- Pays for medical expenses for those injured on your property.

These policies don't cover floods and earthquakes so let's look at one of those: earthquake coverage.

What Should Know About Earthquake Coverage
One of the more common potential hazards in California, the earthquake can hit anytime with barely a tremor to a devastating 8.0 that levels buildings and shakes down bridges. Fortunately, the state has written some clear policies concerning consumer earthquake coverage. Every insurer who sells regular home policies must offer earthquake coverage even if your home does not meet Building Code requirements relating to the earthquake damage mitigation. So for example, you've retrofitted your home by bolting its wood frame to the foundation, and installed automatic gas shut-off valves. These features can reduce your California home insurance rates. Also, all policies must cover your dwelling, personal property and additional living expenses. And rates are usually quoted as a percent per thousand dollars of coverage. So a rate of 2.00 covering a $300,000 home (300 x 2.0) would run $600.

Comparing California Home Insurance Rates
Let's look at a couple of basic hypothetical example rates from the California Department of Insurance so you have an idea of pricing and the differences from one insurer to the next.

Scenario A: You reside in San Jose and want $500,000 in coverage with a $1,000 deductable for a home that is less than 15- years-old.

Policies range from $880 from Pacific Property & Casualty to $2,174 from Federal Insurance Company with rates from over 40 other insurers falling somewhere in between. Add earthquake coverage and you're looking at an additional $625 up to $6,250!

Scenario B: You reside in Fair Oaks outside of Sacramento and want $300,000 in coverage with a $500 deductable for a home that is 16-25-years-old.

Policies range from $789 from Wawanesa to $1,723 from State Farm. Add earthquake coverage and you're looking at an additional $147 on up to $3,750!

Shopping and Saving
It's pretty easy to see that California home insurance rates vary dramatically for the same home. That's not to say that all insurers are the same, and that you should only buy based on price. One thing is for sure, shopping with LocalInsurance is essential Fill out one form and LocalInsurance will search the web providing you with multiple quotes from agents in your area.