If you're buying a home in San Francisco or already own one, you've probably noticed something unsettling: homeowners insurance costs keep climbing. The average San Francisco homeowner now pays between $1,150 and $1,575 per year for standard coverage—but that's just the beginning of the story. Depending on your ZIP code, the age of your home, and what neighborhood you're in, your actual premium could be significantly higher. And here's the part that surprises most people: earthquake coverage isn't included in that price. You'll need to buy it separately, and it's not cheap.
Let's break down what you're really paying for, why San Francisco is different from other cities, and how to make sense of the costs without getting overwhelmed.
What San Francisco Homeowners Actually Pay
The numbers you'll see quoted for San Francisco homeowners insurance vary, but most sources agree on a range of $1,150 to $1,575 per year for a policy covering a $300,000 dwelling with $100,000 in liability protection. That works out to about $96 to $131 per month—roughly the cost of a nice dinner out in the city.
But here's where it gets tricky: your ZIP code matters more than you'd think. The most expensive area in San Francisco—ZIP code 94141—sees average premiums around $1,365 annually, while the most affordable area, ZIP 94128, comes in at about $1,179. That's a nearly $200 difference just based on where your house sits.
And those are the average cases. If you own a high-value home—and in San Francisco, with median home prices well over $1 million, that's many homeowners—your premium could easily climb to several thousand dollars per year. Some homeowners are paying up to $10,000 annually depending on their property's value, age, and risk factors.
The Earthquake Coverage Reality
Here's what catches most new San Francisco homeowners off guard: your standard homeowners insurance does not cover earthquake damage. Not even a little bit. In California, residential insurance policies specifically exclude earthquakes, which means if the Big One hits, your regular policy won't help you rebuild.
You need a separate earthquake insurance policy, and in a city sitting near the San Andreas Fault with a 72% chance of experiencing a magnitude 6.7 or larger earthquake by 2043, that's not optional coverage—it's essential. The California Earthquake Authority (CEA) provides most earthquake insurance in the state, though you can't buy directly from them. Instead, you purchase through CEA member insurance companies.
The cost? Earthquake insurance in California typically runs $1,250 to $2,750 per year on average. But in San Francisco specifically, with its high property values, you're looking at the upper end of that range or higher. For a median San Francisco home valued at $1.3 million, earthquake coverage could cost close to $6,000 annually. Rates vary by neighborhood too—insuring a house in Glen Park might cost around $1,927 per year, while coverage in the Mission or Nob Hill could range from $4.08 to $4.58 per thousand dollars of dwelling coverage.
One more thing people don't realize: there's a specific risk called "fire following earthquake" that's particularly relevant in San Francisco. After the 1906 earthquake, most of the destruction came from fires that broke out afterward. Your earthquake policy needs to account for this scenario.
Why Victorian Homes Cost More to Insure
San Francisco's famous Victorian homes are architectural treasures, but they're also insurance headaches. If you own one of these beauties—or you're thinking about buying one—expect higher premiums than you'd pay for a newer construction.
The reason is simple: older homes are built with materials and techniques that are harder and more expensive to replicate today. If your Victorian is deemed a total loss, the insurer might need to source specialty materials, hire craftspeople with specific skills, and spend significantly more than they would rebuilding a standard modern home. That risk gets priced into your premium.
Victorian homes also often have outdated electrical, plumbing, and HVAC systems. These aren't just inconveniences—they're red flags for insurers. Old wiring increases fire risk. Aging pipes can burst and cause water damage. Upgrading these systems to modern standards can actually help lower your insurance costs, or at least make your home more insurable as carriers become pickier about what they'll cover.
There's also the 80% rule to consider. This guideline suggests insuring your home for at least 80% of its replacement cost—not its market value, but what it would actually cost to rebuild from the ground up. For Victorians with intricate details, custom woodwork, and period-appropriate materials, that replacement cost can be surprisingly high.
How Neighborhood and Construction Type Affect Your Rates
Location isn't just about the views—it's about risk. Homes in neighborhoods with higher crime rates will see higher premiums. Properties on hillsides face additional concerns: landslides, erosion, and accessibility issues that make repairs more complicated and expensive.
Earthquake risk zones also play a major role. While all of San Francisco faces some seismic risk, certain areas sit closer to fault lines or on less stable soil types. Your insurer knows exactly where these zones are, and they price accordingly.
Construction type matters too. Wood-frame houses—common in San Francisco—have different risk profiles than concrete or steel-frame buildings. Your home's foundation type, roof materials, and overall structural integrity all factor into the calculation. Homes built before modern building codes were established may lack seismic retrofitting, making them more vulnerable and more expensive to insure.
The California Insurance Crisis and What It Means for You
You might have heard that California's homeowners insurance market is in crisis. That's not hyperbole. Between 2019 and 2024, more than 100,000 California homeowners lost coverage as major insurers pulled back from the state or stopped writing new policies altogether.
In March 2024, State Farm and Farmers Insurance Group—California's top two home insurers, covering just over 35% of all policies—raised their rates by 20% and 15% respectively. These aren't small adjustments. For many homeowners, that translates to hundreds of dollars more per year.
The result? Fewer options and higher prices. Some homeowners are being forced into the California FAIR Plan, the state's insurer of last resort, which typically offers more limited coverage at higher rates. If you're shopping for coverage now, expect to get quotes from multiple carriers and don't be surprised if some decline to offer you a policy at all.
How to Get the Coverage You Need Without Overpaying
Start by shopping around. In a tight market, comparing quotes from multiple insurers is essential. Rates can vary by hundreds of dollars for the exact same coverage. Work with an independent insurance agent who can pull quotes from multiple carriers instead of going directly to one company.
Consider your deductibles carefully. A $1,000 deductible will cost you more in premiums than a $2,500 or $5,000 deductible, but make sure you can actually afford that higher out-of-pocket cost if you need to file a claim. The same goes for earthquake insurance, which often comes with deductibles of 10-15% of your dwelling coverage.
If you own an older home, investing in upgrades can pay off. Updating your electrical panel, replacing old plumbing, adding a seismic retrofit, or installing a new roof can all help lower your premiums—or at least make insurers more willing to cover you. Document these improvements and make sure your insurer knows about them.
Finally, don't skip earthquake coverage just because it's expensive. Yes, it can add thousands to your annual insurance costs. But if you're carrying a million-dollar mortgage on a home sitting on a major fault line, going without earthquake insurance is a gamble you probably can't afford to take. The financial devastation of losing your home and still owing the mortgage is far worse than the sting of a high premium.
