Home prices in Los Angeles and Southern California are some of the highest in the country. However, the cost of Los Angeles home insurance isn’t. Home insurance rates in Los Angeles, Orange, and San Diego counties are very much the same as those in the rest of the country and oftentimes even less. There are a couple reasons for this. First, catastrophic perils such as tornadoes, hurricanes, and freezing weather aren’t a factor here in Southern California. We have earthquakes, but it’s rare for an earthquake to cause significant damage to a home (besides, that’s what earthquake insurance is for). Secondly, the replacement cost used in home insurance rates is based on the value of the home itself, insurance calls this the dwelling, and NOT the land. Here in Southern California, home prices are high because we are paying a premium for the land (location-location-location) and the actual home price is similar to home prices in the rest of the country.
We typically insure homes in Los Angeles/San Diego/Orange counties for around $150-$200 per square foot. To insure a standard home (1,500-2,400 square feet) in these areas, you will pay approximately $1,000-$1,500 per year on average. Larger or more upscale homes are insured from about $200-$300 per square foot. So it is not uncommon, especially in the Southern California coastal areas, for the replacement amount or dwelling coverage on the home insurance policy to be less than the purchase price.
You should also take advantage of the various discounts that Farmers Insurance offers, such as the Farmers affinity discounts, which are about 15% savings, depending on your occupation or line of work. There is also a 25% discount if you insure both your home and auto with us. Farmers offers other discounts too, which can often result in Los Angeles home insurance rates under $1,000 per year.
If you have any questions about home or condo insurance rates in the Southern California area or questions about discounts that might be available to you, please call me at (949) 436-0740.