Home Insurance in California: A Calm Explanation of What’s Changed
Look, I'm not going to sugarcoat this: California's home insurance market has been rocky lately. But I'm also not going to tell you the sky is falling, because panic doesn't help anyone make good decisions.
Here's what's actually happening, in plain English.
The Quick Version
Several major carriers have either stopped writing new coverage in California or significantly pulled back their appetite. State Farm, Allstate, and a few others have made headlines. Why? A combination of wildfire risk, rising rebuild costs, and California's regulatory environment that limits how quickly insurers can raise rates.
It's like this: imagine you're running a coffee shop, but you can't raise prices even though your beans, milk, and rent keep going up. Eventually, you have to make some tough calls about staying in business. Insurance carriers are making similar calculations.
What This Means for You
If you already have coverage with one of these carriers, don't panic. Your existing coverage is still valid. They're not canceling everyone—they're just being more selective about renewing policies in high-risk areas and not taking on new clients.
If you're shopping for new coverage or up for renewal in a high-risk zone? Yeah, it might be trickier. But "trickier" doesn't mean impossible. It means you need to be proactive and work with someone who knows the market (hi, that's literally what we do).
What You Can Actually Do Right Now
Don't wait until renewal is 30 days out. Start conversations early. The carriers that are still writing in California are being pickier, and you want time to explore options.
Consider the FAIR Plan as a backstop, not a first choice. California's FAIR Plan exists for high-risk properties that can't get traditional coverage. It's bare-bones, but it's there. You can supplement it with a wrap policy (DIC aka Difference in Conditions) for broader coverage.
Make your home more defensible. Hardening your home against wildfire—things like ember-resistant vents, fire-resistant roofing, and creating defensible space—can make you more attractive to insurers. Some carriers are even offering credits for these improvements.
Talk to an independent agent. We work with dozens of carriers. When one pulls back, we know which others are still writing and what they're looking for. You're not stuck with one company's appetite.
The Bigger Picture
This isn't permanent chaos—it's the market adjusting. California's insurance commissioner is working on reforms to make the market more stable long-term. Carriers are figuring out how to price risk more accurately. Things will settle.
In the meantime, the best thing you can do is stay informed and stay ahead of your renewal dates. Don't let your coverage lapse because you waited too long to start shopping.
And if you're feeling overwhelmed? That's literally what we're here for.
Growing Up Covered Insight
Growing up in this business, I learned from my dad that insurance works best when people understand it and feel confident in their coverage. No jargon, no fear tactics — just real conversations about protecting what matters.
You've got this. And if you need help navigating it, you know where to find me.
Zach Nadler, 4th Generation | Nadler Insurance | San Carlos, CA