Home Insurance in California Is Changing Fast—Here’s What You Need to Know

Jun 20

Over the past few years, California homeowners have faced an insurance market in crisis. Major insurers like State Farm, Allstate, American National, and The Hartford have stopped renewing or issuing new policies, especially in wildfire-prone areas. Ten of the largest carriers have either pulled out or significantly reduced their coverage footprint in the state.

Meanwhile, the number of homeowners turning to the California FAIR Plan—the state’s last-resort insurance option—has doubled. And with the latest round of devastating wildfires, the situation is only getting more difficult.

Wildfires Are Reshaping the Insurance Landscape

Recent fire damage estimates are staggering. Some reports suggest $8 billion to over $50 billion in losses, once you include commercial properties and inventory losses. These disasters are putting massive pressure on the insurance industry, forcing it to adapt in ways that directly impact consumers.

In response, California Insurance Commissioner Ricardo Lara struck a deal with big-name insurers like State Farm and Allstate to encourage them to write more policies in fire-prone areas. But the concessions made to get those deals done come at a cost to you, the homeowner:

Future Risk Pricing: Insurers are no longer limited to past data when calculating your premium. Now, they can include future climate risk—which means higher projected wildfire danger could raise your rates, even if you’ve never filed a claim.
Reinsurance Costs Passed to Consumers: For the first time in California, insurers can now pass along reinsurance costs (insurance that protects insurers) to policyholders. Consumer advocates say this alone could drive up rates by double digits—or even up to 50%.

What This Means for You

Even if you don’t live in a high-risk zone, you’re likely to feel the ripple effect. As insurers shift strategies to manage their exposure, policy rates across the board are going up, and coverage is getting harder to secure.

You might be left wondering:

Will my policy be non-renewed next year?
Is the FAIR Plan my only option now?
How do I know if I’m overpaying?

The Good News

We’re independent insurance brokers, and that gives us access to a wide network of carriers—not just one. While many big-name companies are limiting new policies, we still work with providers that are writing competitive policies in California. Our goal is to match you with the best option available based on your home, your risk, and your budget.

We only turn to the California FAIR Plan as a last resort—and in some cases, it’s a necessary one. But when it is, we help you pair it with wraparound coverage to ensure you’re fully protected.

We Work for YOU, Not the Carrier

When things change fast—as they are right now—you want someone in your corner who understands the market and isn’t stuck selling one company’s product. We’ll fight to keep you covered, explain your options clearly, and never settle for the bare minimum.