The Good News & Bad News of Homeowners Insurance in California

Considering the disaster of years worth of wildfires and earthquakes, this is a big surprise, Lending Tree’s State of Home Insurance: 2026 says Californians pay 41% below the national average for homeowners insurance. On average, California homeowners pay $1,413 a year. The national average is $2,395.

That’s the good news.

The bad news? Since 2020, homeowners insurance prices have gone up 53%. The reason can be noted in just one incident. The L.A. wildfires of early 2025 cost insurance companies $23.7 billion in residential, commercial and auto policy losses.

Colorado has seen the biggest increase going up 100.8% from 2020 to 2025. That’s double the national average.

• People in Oklahoma have the highest rates averaging $5,298 a year

• Nebraska is second at $4,956

• Colorado’s $4,310 is third

The PIA Western Alliance state of Hawaii has the lowest homeowners insurance rate at $801. Vermont is second with an average of $923. New Hampshire is third at $1,028.

The Zebra's 2026 State of Insurance report looks much the same. The insurance comparison website has the average annual amount a little higher at $2,966. The Zebra says the jump in prices from 2025 to 2026 is about $165 on average.

Construction costs, labor costs and heavy weather events are the drivers behind the hike.

A frightening 74% of homeowners from The Zebra report said their homeowners insurance payment is a big part of their budget. Close to half say if rates go up much higher they may not be able to afford — or make — their mortgage payment.

These are the states The Zebra says have the lowest homeowners rates. Four PIA Western Alliance states — Hawaii (1), Nevada (7), Oregon (8) and Alaska (10) — are in the top-10:

1. Hawaii — Average annual premium: $732 ** Doesn't include cost of hurricane insurance which could add significantly to the annual cost of protecting a home

2. Vermont — Average annual premium: $1,087

3. Delaware — Average annual premium: $1,313

4. New Hampshire — Average annual premium: $1,352

5. Maine & District of Columbia tied — Average annual premium: $1,435

7. Nevada — Average annual premium: $1,487

8. Oregon — Average annual premium: $1,517

9. New Jersey — Average annual premium: $1,625

10. Alaska — Average annual premium: $1,672

Source link: PropertyCasualty360.com — https://bit.ly/43RuJWA

Source link: Insurance Journal — https://bit.ly/3QUHWuJ