San Jose, CA Homeowners Insurance

San Jose, California is a beautiful city nestled in Santa Clara Valley, which is on the San Francisco Bay’s southern tip. The city is bordered on the West and East by Santa Cruz Mountain and Diablo Mountain, respectively, and has the Guadalupe and Coyote rivers running through it. San Jose was just a quiet city with a small population until 1980 when it became Silicon Valley’s capital. The allure of owning a piece of the booming real estate market in this city is coveted by many who prefer the cheaper San Jose to its more expensive northern neighbor, San Francisco. Paying for a home is one of the most expensive investments a person will make in their lifetime. With the increasing cost of housing and the recent rise of natural disasters, both natural and human-made, investing in the right homeowners’ insurance is necessary.

The Best and Cheapest Homeowners Insurance Rates in San Jose for 2021

The average cost of homeowners insurance in San Jose is $903, which is relatively low compared to the national average of $1,548 and the California statewide average of $1,868. 

What is the average homeowners insurance cost in San Jose? 

Homeowners insurance rates: San Jose Vs. State Vs. National average

San Jose Annual AverageCalifornia AverageUnited States Average
$903$1,868$1,548

San Diego Homeowners Insurance Rates by Insurer

Your homeowners insurance rate will depend on the company you choose. Different insurance companies calculate their rates based on various factors. Mercury offers the cheapest homeowners insurance rates in San Jose at the annual cost of $492. On the other hand, Farmers Insurance provides the most expensive rates at an annual premium of $1,608.

The Best Homeowners Insurance Companies In San Jose

Insurance CompanyAverage Annual Premium
Mercury $492
State farm$676
Allstate$682
USAA$712
Travelers$725
Grange$994
AIG$1,002
Chubb$1,207
Liberty$1,332
Farmers$1,608

San Jose Homeowners Insurance Rates by Coverage Level 

Homeowners insurance rates in San Jose are greatly influenced by the coverage level you choose. A $200K dwelling coverage will cost you about $634 annually, while a $400K dwelling coverage can cost as much as $1,092 annually. 

Coverage level and average insurance premium in San Jose

Dwelling Coverage levelAverage annual premium
$100,000 $367
$200,000 $634
$300,000$772
$400,000$1,092

Cheapest Homeowners Insurance Rates In San Jose by ZIP Code

Where you live in San Jose affects how much you pay for your homeowners insurance policy. Crime rates, the value of properties, the risk of natural disasters, and the volume of claims filed in your area affect how much you pay for your annual premium.

Cheapest Homeowners Insurance Rates in San Jose By Zip Code

Names of AreasZip CodeAverage Cost of Homeowners Insurance
Moorpark Avenue95129$750
Willow Glen95124$752
Bucknall Road95130$754
Cupertino95014$1,309
Ruby Avenue95148$1,312
Calero County95141$1,343

San Jose Homeowners Insurance Premiums by Deductible Level 

A deductible is an amount you are expected to pay to your insurer towards a covered loss: the higher your deductible, the lower your premium. So, if you seek a low insurance cost, then you should consider a higher deductible level. 

Homeowners Insurance Costs By Deductible Level in San Jose, CA

Insurance CompanyAverage Annual bundle insurance premium
$5,000$520
$2,000$642
$1,000$723
$500$814

What Are The Types Of Homeowners Insurance In San Jose?

There are various types of home insurance coverages in San Jose. The table below explains how much coverage each plan offers.

Types Of Homeowners Insurance In San Jose And Their Coverage Offer

Type of insurance coverageWhat it covers
HO-1 (Basic plan)
  • The most basic type of homeowners insurance in San Jose.
  • Provides coverage for natural disasters such as storms, fire, lightning, wind, and volcanic eruption.
  • Coverage includes explosion, theft, vehicular damage, and civil unrest.
HO-2(Broad plan)
  • Includes everything covered by basic coverage.
  • Covers damage from snow or sleet, falling objects, freezing of pipes, and HVAC.
  • Accidental damage to household systems from artificially generated electricity and accidental damages.
  • HO-2 covers both the house and the personal belongings in it.
HO-3 (Special policy)
  • Also known as special form policy, HO-1 and HO-2 are called peril policies because they only cover specific policy risks. 
  • Special form policies are open peril policies because they cover everything except what is excluded in the policy contract. 
HO-4 (Tenant’s policy)
  • This policy is also called renter insurance. It is designed for people with leases in San Jose rather than homeowners.
  • This policy covers the same as HO-2.
  • This policy does not cover the physical structure of the insured property.
HO-5(comprehensive policies)
  • This policy provides the broadest coverage for homeowners in San Jose. 
  • The significant difference between HO-3 and HO-5 is that HO-3 pays actual cash value, which is the exact amount of the damaged object.
  • H0-5 gives you replacement cost value, and you will be paid the total cost of replacing the item within the policy limits.
HO-6 (Condo policy)
  • This policy is for condo owners only.
  • Offers the same protection as HO-3.
  • HO-6 covers only the unit insured.
  • HO-6 coverage includes floors, walls, ceiling, personal properties, and liability.
HO-7(Mobile home policy)
  • This policy is for mobile homeowners.
  • This policy is similar to HO-3.
  • HO-3 protection only covers the house while it is stationary. You need to get a special policy to cover the car if you intend to move it.
HO-8 (Old home policy)
  • Old homes in San Jose are not built to the new acceptable standards, so they deserve a particular policy.
  • HO-8 covers the same as HO-1.
  • HO-8 insurance is accepted only for homes in San Jose considered landmarks or to have historical values.

Who Are The Best and Cheapest Home Insurance Companies in San Jose?

A company’s financial stability is a significant factor to consider before deciding on the insurance company to use.  This will determine the company’s ability to pay insurance claims. So, before purchasing an insurance policy in any company, be sure to check the AM Best Ratings and the JD Power Rankings of the company so you can have peace of mind in the event you need to file a claim. 

The Best Rated San Jose Homeowners Insurance Companies

Home insurance companyAverage annual rate for $250K dwellingJ.D. Power customer satisfaction scoreAM Best Rating
The Hartford$1,215843/1000>A+
CSAA Insurance Group$807832/1,000
Allstate$1,233838/1000A+ 
State Farm$802837/1000A++ 
USAA$671898/1000A++ 

Natural Disaster Risks for Homeowners in San Jose

Your San Jose Homeowners insurance should cover any catastrophic events, including natural disasters like wildfires. This is why it is advisable to extend your coverage limits to cover for losses due to natural disasters. 

Major natural disasters that are likely to occur in San Jose are:

  • Wildfires
  • Flooding
  • Landslides, as a result of flooding

Homeowners in San Jose should be sure their homeowners insurance policy covers most of these dangers. 

Find Home Insurance Agents Near San Jose, CA

Homeowners Insurance Agents Near San Jose, CAAddress of Agents
All Spectrum Insurance Brokers4010 Moorpark Ave #117, San Jose, CA 95117
Let’s Insure – San Jose1900 Camden Ave #204, San Jose, CA 95124
Freeway Insurance1646 Story Rd, San Jose, CA 95122
Farmers Insurance – Candice Salcedo5450 Thornwood Dr Ste F, San Jose, CA 95123
Destiny Rose Insurance Services2635 Cunningham Ave Ste F, San Jose, CA 95148
Donald Browne Insurance ServicesAddress: 330 W Hedding St #207, San Jose, CA 95110, United States
Harrington Insurance Agency6920 Santa Teresa Blvd #101, San Jose, CA 95119, United States
Derek Alota – State Farm Insurance5615 Cottle Rd, San Jose, CA 95123, United States
Bob Fillhouer – State Farm Insurance Agent2899 The Villages Pkwy, San Jose, CA 95135, United States

Save on Homeowners Insurance in San Jose, CA: Bundling Auto and Home Policies

Bundling would help you save a lot on your home insurance costs. You can save up to 17% annually when you use the same company for your homeowners and auto insurance policy in San Jose. 

Cheapest Home Insurance Companies in San Jose with the Best Bundling Policy Rates

Insurance CompanyAverage Annual bundle insurance premium
Mercury $1,180
GEICO$1,182
Farmers$1,520
Allstate$1,690
State farm$1,740

Special resources for Homeowners in San Jose, CA

Homeowners Insurance Quote Comparison Tool
The California Department of Insurance

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San Jose, CA Homeowners Insurance FAQs

Having a homeowner in San Jose is not mandatory under the law of California. However, if you’re still paying a mortgage on your property, having homeowners insurance is a lender requirement. It would be best to purchase homeowner insurance on your home even if you do not have a mortgage because San Jose is prone to natural disasters like earthquakes and wildfires.

If you have a mortgage, your lender will most likely find out about the lapse in insurance and will ensure the property on your behalf. You will be responsible for the extra cost during the lapse period.

Most homeowners insurance policies in San Jose will not cover flood disasters. You should purchase an additional flood insurance policy either through a private insurance company or with the National Flood Insurance Program.

It has been predicted that there is a 63 percent chance that San Jose will experience an earthquake of magnitude 6.7 within the next thirty years. An earthquake of such high magnitude will cause severe damage to buildings. Your homeowner’s insurance will not provide enough coverage for property damaged in Earthquakes. It will help if you consider signing up for an earthquake policy.

Your homeowner’s insurance in San Jose will not substitute for car insurance. However, you can bundle your home and auto insurance. Bundling your insurance policies will help you save on the premium you have to pay annually on both plans separately. 

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