California’s capital city is a cultural, political, and economic hub of the Sacramento metropolitan area. Due to a rich agricultural diversity and vibrant history, Sacramento has been given many names over the years, such as City of Trees, the Camellia Capital, the Big Tomato, and the River City.
Sacramento is the fastest-growing city in California, all thanks to the cultural and technological transitions. It all started from gold and transportation, but today the city is home to many technology companies, including Intel and Hewlett-Packard. Ranked as one of the most diverse cities in the US, Sacramento has a welcoming community, a wide array of landmarks, parks, farmers markets, breweries, and the country’s best weather. The city is rich in agricultural products and famous for its local produce. Still, the federal, state, and local government offers the most employment opportunities. When you are in the city, you can visit its landmark restaurant, the Kitchen, and enjoy the best meal of your life.
As of 2021, the city has a total population of 489,650 and 570,752 housing units, with a homeownership rate of 56.4%. The median home value in Sacramento is $378,300. The cost of living in the city is 18% higher than the U.S. average.
Regardless of high living costs, it is the perfect time to buy a property in Sacramento. Whether you are currently living in the city or are planning to purchase a house, it is always a good idea to purchase a Sacramento homeowners insurance policy.
A standard homeowners insurance policy not only offers peace of mind but also protects your most significant investment – your home, from any unforeseen financial setbacks. Although it is not legally required to purchase homeowners insurance, it’s wise to get one anyway.
If you are looking to buy homeowners insurance in Sacramento, try our Home Insurance Quote Comparison Tool and get free homeowners insurance quotes from top-rated insurance companies.
When you are looking for homeowners insurance, you need to compare rates from the best-rated companies in your area to ensure you get the best rates.
In Sacramento, the average homeowner insurance rate is $1,557, which is slightly higher than the national average.
|Sacramento Average Home Insurance Cost (annual)||California Average||United States Average|
In Sacramento, different homeowners insurance companies offer competitive prices depending on the type of coverage you are looking for. All the insurance companies offer special discounts, which affects the insurance price. You need to find the right insurance company for your needs.
In Sacramento, Mercury offers the most affordable home insurance, valued at just $560 per year. Take a look at the table below and see rates offered by different insurance providers in Sacramento.
|Company||Average Annual Premium Rate|
When you buy a homeowners insurance policy, you will be asked to choose a dwelling coverage limit used to pay for the replacement or repair cost of your property in case of a disaster. Generally, if your dwelling coverage selected level is high, your homeowners insurance will cost more.
Here’s how different coverage levels affect your annual homeowners insurance cost in Sacramento:
Homeowners Insurance Rates in Sacramento by Coverage Limits
|Coverage Amount||Annual Home Insurance Cost|
|$750,000 to $1000,000 dwelling||$1,947|
Homeowners insurance companies in Sacramento use local variables to calculate potential risks and insurance costs. The location of your home is the primary factor that can make your insurance cost high or low. Even if you move from one street to another in the same city, your homeowners insurance premium will fluctuate.
Take a look at the table below, as we have listed the homeowners insurance rates in Sacramento based on different ZIP codes.
|Neighborhood||ZIP Code||Average annual homeowners insurance rate|
When you purchase homeowners insurance, your insurance agent would ask you to decide on a deductible amount. A deductible is a dollar amount that a homeowner is responsible for paying when filing an insurance claim. A high deductible can help you to reduce the cost of your homeowners insurance premium.
The following table shows how Sacramento homeowners insurance rates fluctuate based on different deductible amounts.
|Deductible Level||Average Annual Homeowners Insurance Rate|
A standard homeowners insurance policy in Sacramento provides the following coverages:
When you are looking for a homeowners insurance policy, price is not the only thing you need to check. All the insurance companies offer competitive premium rates to allure homeowners. When you buy homeowners insurance, you must pay attention to the company’s financial background, claim process, and customer service.
To make your research easier, we have listed the best Sacramento homeowners companies based on J.D. Power Rankings, AM Best Ratings, and BBB Ratings.
Best Cheap Homeowners Insurance Company in Sacramento
|Company||J.D. Power Ranking||A.M. Best Rating||BBB Rating|
|GEICO||5 out of 5 stars||A++ (Superior)||A+|
|Farmers||3 out of 5 stars||A+ (Superior)||A+|
|Travelers||5 out of 5 star||A++ (Superior)||A+|
|State Farm||4 out of 5 stars||A++ (Superior)||A|
|Liberty Mutuals||3 out of 5 stars||A||A-|
|Homeowners Insurance Agency Near Sacramento||Address|
|Farmers Insurance||2628 El Camino Ave Ste A14, Sacramento, CA 95821|
|Ken Smalley Insurance Agency||1851 Heritage Ln Ste 297, Sacramento, CA 95815|
|State Farm Insurance Agent||1515 30th St Ste 200, Sacramento, CA 95816|
|Bolt Insurance Services||1338 Howe Ave, Sacramento, CA 95825|
|Sky Insurance Brokers||1501 El Camino Ave STE 1, Sacramento, CA 95815|
|Nationwide Insurance: Ham Insurance Agency, Inc.||2210 Del Paso Rd E, Sacramento, CA 95834|
|Estrella Insurance||2433 Northgate Blvd, Sacramento, CA 95833|
The most common reason for homeowners insurance claims in Sacramento is wildfires. A standard homeowners insurance policy covers your property for damages caused by fire and smoke, but as Sacramento is located in a high-risk zone for wildfires, the residents might find it difficult to get coverage. Here are the top causes of homeowners insurance loss in Sacramento:
Homeowners insurance keeps your property protected, but it can be very expensive. Insurance companies offer many discounts for several factors. If your home is new, you can get a discount of up to 14%. Another way to save money is by installing alarm systems and smoke detectors at your home.
The best way to reduce your Sacramento homeowners insurance premium is bundling. By bundling your auto and home insurance, you can save up to 25% on your premium. Refer to the following table to see how bundling your home and auto insurance affects your insurance premiums.
|Company||Avg. Annual Auto Insurance Rate (With Bundle)|
Standard homeowners insurance protects you financially if your property gets damaged due to an unexpected incident. Buying a house is the biggest investment of anyone’s life, making it inevitable to protect it. A standard homeowners insurance will pay to repair or replace your property if it gets damaged by covered incidents. It will also provide liability protection and medical coverage in case a guest gets injured at your house. Most importantly, your lending company requires you to have homeowners insurance to safeguard their investment.
If you have a bad credit history, your insurance company may deny your homeowners insurance. If you successfully get a homeowners insurance policy, your rates will be high due to your low credit score.
Personal property coverage protects your personal items from damages caused by any covered peril. Your personal items could be furniture, electronics, clothing, art pieces, etc. If you ever lose your items to theft or fire, your personal property coverage will pay to repair or replace those items.
When you buy homeowners insurance, you need to consider several factors, such as:
Sacramento residents should consider getting additional flood insurance, especially those who live near the Sacramento Valley. The city’s location makes it highly prone to floods and heavy rainfalls, which may even cause mudflow.