California Homeowners Insurance - Big Win

Regulators Vs Insurers

Homeowners Insurance in California has faced difficulty in recent years with large providers pulling out of issuing new policies in the state. The insurers have been in a battle with California regulators over their ability to increase premiums. Insurers argue that fire risk an other issues make insuring homes at past premiums impossible. Past restrictions from regulators allowing premium increases have led to less insurers and options for homebuyers. For homes in rural or forested areas there have been an increase in homebuyers needing a separate policy to cover fire insurance leading to higher overall costs of homeownership.

Huge Win for Insurers & Homebuyers

California just approved State Farm’s ability to increase premiums by 22%. This was an important win for insurers giving hope that these large companies will continue to issue new insurance policies. While this may sound like a negative for homebuyers, it is important that homebuyers have as many options on who they can get homeowners insurance from. It is also important that providers stay in CA so insurance is not dropped prior to disasters like we saw with the LA fires in 2024

Getting Insured When Buying a Home

First, it is still very possible to get homeowners insurance when you buy a home. Insurance is specific to each home and the exact location of each home. Your realtor and lender have navigated the insurance process countless times and will be able to point you in the right direction. Most people check with their auto insurer first, and look at their bundling options. Insurance brokers are highly recommended because they will be able to search through multiple provider options and make the insurance process easy. Once you get an offer accepted, ask your agent or lender if they have any recommendation on who you should talk to about insurance.