The cost of homeowners insurance in California has risen nearly 7% from a year ago, according to an online insurance marketplace.
Homeownersinsurance.com reports that for the most recent month where data is available, May, the average premium was $770 on a new policy. In May 2010 the cost was $729.
Carlos Lagomarsino, CEO of the company, said even with the increase, the average premium in California was lower compared to some other states.
There are caveats to the pricing figures. The company said among the issues that affect insurance premiums are proximity to the coastline, the fire safety rating of the community, and the amount of coverage.
In addition, earthquakes and the proximity to fault lines have an impact. Earthquake damage is not covered by a standard homeowners policy. If a property owner wants coverage, he or she would need to purchase a separate policy.
The company cites the California Earthquake Authority's premium calculator, which shows the cost to insure a Los Angeles home with a replacement cost of $400,000 is $732 per year.
