Sacramento, the capital city of California, offers residents a unique blend of urban amenities and natural beauty. The city boasts over 230 days of sunshine annually, making it an ideal location for outdoor enthusiasts. Sacramento's cost of living is relatively lower compared to other major California cities, with a median home price of approximately $400,000. The city's diverse economy is anchored by government, healthcare, and technology sectors, providing stable employment opportunities. Homeowners in Sacramento should be aware of the importance of home insurance to protect their property from potential risks such as wildfires, which are a concern in the region due to California's climate.

Why is Sacramento Homeowner's Insurance Expensive?

Sacramento, California homeowners are facing increasingly expensive home insurance rates, and it's worth discussing the reasons behind this trend. Firstly, the city's location in a high-risk wildfire zone has led to significant payouts by insurance providers in recent years. Secondly, the rising cost of construction materials and labor has increased the potential cost of rebuilding homes, driving up premiums. Thirdly, Sacramento's proximity to earthquake fault lines contributes to higher insurance rates as companies factor in potential seismic risks. Lastly, the impact of climate change has led to more frequent and severe weather events, increasing the overall risk profile for insurers. Two notable local weather events that have impacted insurance rates in the past three years include the devastating Camp Fire of 2018, which caused widespread destruction in nearby areas, and the record-breaking heatwave of 2021, which heightened wildfire risks and led to increased property damage from extreme temperatures.

How Much is Homeowners Insurance in Sacramento?

Homeowners in Sacramento pay an average of $2177 per year, or $181 a month, for a homeowners insurance policy with $300,000 in dwelling coverage. This makes home insurance in Sacramento roughly 1% less expensive than the California average of $2198 per year. And Sacramento insurance is about 4% less than the national average of $2270. It pays to shop and compare Sacramento home insurance rates.

The Cheapest Homeowner Insurance Rates for Sacramento, California

Provider	Annual Insurance Rate
AAA	$1754
AIG	$2677
Allstate	$1286
Chubb	$3021
CSAA	$1723
Farmers	$2127
Mercury	$1375
National General	$1812
Nationwide	$1728
Pacific Specialty	$1622
Pure Insurance	$4908
State Farm	$1770
The Hartford	$3650
Travelers	$1694
USAA	$1514