Campbell sits in the heart of Silicon Valley's South Bay, offering that rare combination of small-town charm and big-city convenience. With its walkable downtown, the bustling Pruneyard shopping center, and tree-lined neighborhoods, it's easy to see why people love living here. But if you own a home in Campbell, you're also dealing with some California-specific insurance challenges—from earthquake exposure to a statewide insurance market that's been pretty turbulent lately.
Here's what you need to know about protecting your Campbell home in 2026, including what your policy covers, what it doesn't, and how to make sure you're not overpaying or underinsured.
What Campbell Homeowners Are Paying for Insurance
California home insurance costs have been climbing steadily, and 2026 is no exception. The average California homeowner pays around $1,674 per year for coverage on a $300,000 home, though some estimates put the statewide average closer to $1,405 annually. For Campbell specifically, where the median home value is around $1.73 million, you're likely paying significantly more because your dwelling coverage needs to match your home's replacement cost.
Why the increases? California has been hit hard by catastrophic wildfires, including the devastating Palisades and Eaton fires in early 2025 that caused over $10 billion in insured losses. Insurers are responding with rate increases—some carriers have requested hikes of 30% or more. The California FAIR Plan, the state's insurer of last resort, has proposed a 35% average rate increase starting in spring 2026.
The good news? Campbell isn't considered a high wildfire risk zone like hillside communities in other parts of California. Your rates will generally be lower than homes in designated Fire Hazard Severity Zones, though you're still affected by the overall market conditions impacting California insurers.
What Your Standard Policy Covers (and What It Doesn't)
A standard homeowners insurance policy in Campbell covers the usual suspects: fire damage, wind damage, lightning strikes, theft, vandalism, and hail. If a tree falls on your roof during a storm or someone breaks into your garage, you're covered. Your policy also includes liability protection if someone gets injured on your property—critical given Campbell's median home values and the potential lawsuit exposure.
But here's what trips up a lot of Campbell homeowners: your standard policy does not cover earthquake or flood damage. These require separate policies, and both are relevant risks here. Campbell sits in an active earthquake zone—this is California, after all—and while major flooding isn't as common as in coastal areas, it can happen during heavy winter rains, especially in low-lying areas near Los Gatos Creek.
Earthquake Insurance: Do You Need It in Campbell?
Let's be honest: earthquake insurance is expensive and has high deductibles. But Campbell is in Santa Clara County, which means you're living near several active fault lines. An earthquake happens somewhere in California every three minutes, and while most are minor, the potential for a major quake is real.
Earthquake insurance in California typically costs between $1,000 and $2,500 annually for $500,000 in coverage. You'll choose a deductible between 5% and 25% of your dwelling coverage—so if your home is insured for $1.7 million and you select a 15% deductible, you'd pay the first $255,000 of damage out of pocket. That's significant, but it protects you from catastrophic loss.
Most earthquake policies in California come through the California Earthquake Authority (CEA), though you purchase them through participating insurance companies. If you have a mortgage, your lender doesn't require earthquake coverage, but many Campbell homeowners opt for it given the local risk and the fact that their homes represent such significant investments.
New California Insurance Protections for 2026
California has implemented several important insurance reforms that take effect in 2026, and they're good news for Campbell homeowners. The biggest change comes from Senate Bill 495, sometimes called the "Eliminate the List" Act. Here's what it does: if your home is destroyed in a qualifying disaster, your insurance company must now pay out 60% of your contents coverage limit (capped at $350,000) without requiring you to submit a detailed inventory list for at least 100 days.
This is huge. In the past, homeowners who lost everything had to somehow remember and document every item they owned before getting their full payout. Now you get most of your contents coverage upfront when you need it most, giving you breathing room to rebuild your life before dealing with detailed claim paperwork.
Additional proposed reforms include expanding coverage limits for additional living expenses by 100% during declared disasters and requiring insurers to offer extended and guaranteed replacement cost coverage. These changes aim to close the gap between what policies pay and what it actually costs to rebuild after a catastrophe.
How to Save Money on Campbell Home Insurance
Even with rising rates, there are ways to reduce your home insurance costs in Campbell. Start by shopping around—prices can vary significantly between carriers for the same coverage. Don't just renew automatically.
Consider bundling your home and auto insurance with the same company for a multi-policy discount. Many insurers offer 10-20% off when you bundle. Installing a monitored security system, smoke detectors, and water leak sensors can also earn you discounts. Since Campbell homes are often older with established landscaping, upgrading your roof or updating electrical and plumbing systems can reduce your premiums while making your home safer.
California's Safer from Wildfires program offers discounts for fire mitigation measures. Even though Campbell isn't a high wildfire risk area, improvements like clearing vegetation near your home, installing ember-resistant vents, or using fire-resistant roofing materials can qualify you for 5-10% discounts. Every action you take under this program qualifies for an insurance discount.
Raising your deductible is another option, though it comes with tradeoff. Increasing from a $1,000 to $2,500 deductible could save you 10-15% on premiums, but make sure you have that amount in savings to cover potential claims.
Getting the Right Coverage for Your Campbell Home
The most common mistake Campbell homeowners make is underinsuring their dwelling coverage. With home values averaging $1.7 million and rising, you need coverage that reflects the actual cost to rebuild your home—not its market value. Rebuilding costs include labor, materials, permits, and debris removal, which can exceed your home's purchase price, especially given Silicon Valley's construction costs.
Ask your insurer about extended replacement cost coverage or guaranteed replacement cost coverage. Extended replacement cost typically adds 25-50% more coverage above your dwelling limit. Guaranteed replacement cost covers the full cost to rebuild no matter how much it exceeds your policy limit—valuable protection if construction costs spike after a regional disaster.
Review your personal property coverage too. The standard policy covers 50-70% of your dwelling coverage for belongings, but high-value items like jewelry, art, or electronics may need additional scheduled coverage. Take a home inventory—photos and receipts—and store it off-site or in the cloud. You'll be grateful you did if you ever need to file a claim.
Finally, don't skip liability coverage. With home values and wealth levels in Campbell, you're at higher risk for lawsuits. Most policies include $100,000 to $300,000 in liability coverage, but consider purchasing an umbrella policy for an additional $1 million to $5 million in protection. It's surprisingly affordable—often $200-400 annually—and provides critical protection for your assets.
Next Steps: Protecting Your Campbell Home
Home insurance in Campbell comes with some unique considerations—earthquake risk, California's changing insurance market, and high home values that require adequate coverage limits. But with the right policy and some smart risk management, you can protect your investment without overpaying.
Start by reviewing your current coverage to make sure your dwelling limit reflects current rebuilding costs. Get quotes from multiple insurers, ask about available discounts, and seriously consider earthquake coverage given your location. If you're shopping for a home in Campbell, factor insurance costs into your budget—they're not insignificant, especially for higher-value properties.
Need help finding the right coverage for your Campbell home? Get a personalized quote today and make sure you're properly protected at the best available rate.
