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Checked against official sources · Last reviewed October 14, 2026

What homeowners insurance costs in California: average premium, 2023 $1,655 a year in California vs. $1,737 countrywide · 21st highest of 51 · All states (HO-3 policies; NAIC)

California's home insurance market right now

The FAIR Plan says climate-driven wildfires and a lack of adequate insurance rates have left fewer coverage options in the regular market, and more Californians have turned to it. The California FAIR Plan reports that, as of June 2026, it had 696,562 dwelling and commercial policies in force, a 157% increase since September 2022. Its total exposure (the value it insures) was $768 billion, up 250% over the same period.

Growth is slowing. On Aug. 3, 2026, CDI said FAIR Plan policy growth fell to 1.9% in the second quarter of 2026, "the third consecutive quarter of slowing growth and the lowest quarterly increase since 2022." The plan added 12,305 policies that quarter, while CDI estimated that about 24,000 policies left the FAIR Plan in April and May 2026.

The Sustainable Insurance Strategy. CDI's Sustainable Insurance Strategy, completed in December 2024, lets insurers use forward-looking catastrophe models or the cost of reinsurance in their rates only if they write policies in wildfire-distressed areas. Insurers commit to write at least 85% of their statewide market share in "wildfire distressed" areas where the FAIR Plan has become the only option for many people.

Insurers coming back (as CDI reports it). On Sept. 18, 2026, CDI said 12 insurance groups had filed or received approval under the strategy. It also said State Farm, the state's largest home insurer, filed to resume taking new homeowners applications for the first time since May 2023, and Allstate filed to write new residential policies for the first time since 2022. CDI cautioned that "these companies are not open for new business yet" and urged people not to wait to shop.

What this means for you: ask an agent or broker about regular ("admitted") insurers first. CDI's advice to FAIR Plan policyholders is to "shop the market regularly rather than assume the FAIR Plan remains their only option." [8][10][11][12][13]

Last resort: the California FAIR Plan

The FAIR Plan is not a state agency. It is a pool made up of all insurers licensed to sell property insurance in California, set up by law in 1968. It sells basic fire insurance when regular insurers will not.

• Who it's for: CDI says it is for residents and businesses "who cannot obtain insurance through a regular insurance company." A broker first does a "diligent search" of the regular market.
• What it covers: the dwelling policy is a "named peril" policy: fire and lightning, internal explosion and smoke, with options such as vandalism at extra cost. It does not cover things like water damage, theft or liability.
• Limits: up to $3 million for a home, per CDI.
• How to apply: through a licensed agent or broker registered with the FAIR Plan, or directly at (800) 339-4099. CDI recommends using a broker.

To fill the gaps, you can buy a separate difference-in-conditions (DIC) policy from a private insurer. See our California FAIR Plan page and our guide to difference-in-conditions insurance.

Recent changes. On Sept. 30, 2026, CDI announced that the Governor signed AB 1680, the "Make It FAIR Act." CDI says the law improves oversight of the FAIR Plan, including corrective actions found in CDI's examinations, claims handling and financial accountability. Separately, in July 2025 CDI took formal legal action against the FAIR Plan for denying and limiting smoke damage claims from wildfire survivors. In February 2026, CDI said that case was scheduled for hearings before an administrative law judge later in 2026. [1][7][14][15][16][17][18][19]

If your insurer drops you: California's nonrenewal rules

California Insurance Code section 678 sets the rules for home policies:

• 75 days' notice. For policies expiring on or after July 1, 2020, the insurer must deliver or mail a nonrenewal notice "at least 75 days before the policy expiration."
• The reason, in writing. The notice must give "the specific reason or reasons for the nonrenewal," the insurer's phone number for complaints, and a statement that you may have the matter reviewed by CDI.
• Late notice keeps you covered. If the insurer misses the 75-day deadline, your existing policy stays in effect, unchanged, for 75 days from the date the notice is delivered or mailed.
• FAIR Plan information. A nonrenewal notice must come with a notice, worded in the law, about CDI's California Home Insurance Finder, the FAIR Plan and DIC policies.

Coming Jan. 1, 2028: more notice and a chance to fix problems. Senate Bill 1301 (Stats. 2026, ch. 693, signed Sept. 27, 2026) rewrites these rules starting Jan. 1, 2028:

• 90 days' notice. The insurer must deliver or mail a nonrenewal notice "at least 90 days before the policy expiration." If it doesn't, your policy stays in effect, unchanged, for 90 days from the date the notice is delivered or mailed.
• 120 days when you can fix the problem. If the insurer finds your home doesn't meet its underwriting guidelines "due to a condition that can be remedied by the policyholder," it must tell you at least 120 days before the policy ends, in plain language, what repair, information or other change would qualify you for renewal. You get at least 90 days to do it, and a fix the insurer verifies qualifies you for renewal.
• The reason and the evidence. The insurer must give a "detailed, plain language explanation" of why it won't renew, plus the non-aerial images it relied on, and, within 15 days of your request, any inspection reports. If wildfire risk was part of the reason, it must give you your wildfire risk score (or other wildfire risk classification) and the features of your property and surrounding area that led to it. You can dispute or correct wrong information.
• Some reasons not allowed. An insurer can't non-renew solely because of certain claims (such as a claim that wasn't paid or was within your deductible, with limits), because you asked about your coverage, or solely because of your roof's age if an independent inspection you pay for confirms at least five years of roof life left.

Cancellation (mid-term) is narrower. Once a policy has been in effect for 60 days, or right away if it is a renewal, an insurer can cancel only for reasons the law lists, such as nonpayment, fraud, gross negligence, or physical changes that make the property uninsurable (section 676). A cancellation notice must come at least 20 days ahead, or 10 days for nonpayment or fraud (section 677.4).

If you got a nonrenewal and think it breaks these rules, call your insurer first, then file a complaint with CDI. [2][3][5][20][21]

Wildfire moratoriums and protection after a total loss

One-year moratorium after a declared wildfire. Under Insurance Code section 675.1, after the Governor declares a state of emergency for a wildfire, an insurer "shall not cancel or refuse to renew" a residential policy for a property in any ZIP Code within or next to the fire perimeter "for one year," based solely on the fact that a wildfire occurred there. CAL FIRE maps the perimeter, and the Commissioner issues a bulletin listing the ZIP Codes. The protection does not apply in some cases, such as gross negligence by the policyholder or unrelated losses that make the property ineligible.

Starting Jan. 1, 2026, a new law (SB 547) extends the moratorium to many commercial policies, including homeowners associations, condominium associations and apartment complexes.

Most recent example. After the Governor's Aug. 6, 2026 emergency declaration for the Gann Fire, CDI's Bulletin 2026-6 barred cancellations and non-renewals due to wildfire risk for one year, starting Aug. 6, 2026, in 22 ZIP Codes in Calaveras, San Joaquin, Amador, Tuolumne and Stanislaus counties. The bulletin is addressed to both admitted and non-admitted insurers. Check the bulletin for your ZIP Code.

After a total loss from a disaster. If your home was a total loss in a disaster and you were not negligent, section 675.1 says the insurer must offer to renew your policy "for at least the next two annual renewal periods, but no less than 24 months" from the date of the loss, with some exceptions. While you rebuild, the insurer cannot cancel except for the reasons the law lists, and it cannot cancel solely because the home is damaged. [4][9][22][23]

Discounts for wildfire-proofing your home

California's "Safer from Wildfires" regulation (California Code of Regulations, title 10, section 2644.9)) requires licensed insurers whose rates reflect wildfire risk to give a separate discount or credit for each mandatory mitigation step. CDI says "every action under Safer from Wildfires will qualify you for an insurance discount." The steps on CDI's Safer from Wildfires page include:

• A Class A fire-rated roof
• A 5-foot ember-resistant zone around the home, including fencing
• Ember- and fire-resistant vents (1/16 to 1/8 inch metal mesh)
• 6 inches of noncombustible material at the bottom of exterior walls
• Enclosed eaves and upgraded (multi-paned) windows or shutters
• Clearing vegetation and debris from under decks
• Moving combustible sheds and outbuildings at least 30 feet away
• Meeting defensible space laws (see CAL FIRE's defensible space page)
• Living in a Firewise USA site or a Fire Risk Reduction Community

Under the regulation, if you finish a mitigation step and ask your insurer for an updated wildfire risk score, the insurer must provide it within 30 days. CDI says the rule is mandatory for licensed insurers; surplus lines insurers are "expected" to offer similar discounts but are not required to.

The FAIR Plan also offers wildfire discounts. As of Nov. 15, 2025, it lists up to 12 discounts worth up to 16.4% off the wildfire portion of a dwelling premium.

A 2025 law (AB 888, the California Safe Homes Act) created a CDI grant program to help qualifying residents pay for fire-safe roofs and "Zone Zero" work within 5 feet of the home. We could not confirm from CDI whether applications are open as of Oct. 13, 2026; ask CDI. [22][24][25][26][27]

Surplus lines: another option if regular insurers say no

Surplus lines (also called "non-admitted") insurers are not licensed by CDI the way regular ("admitted") insurers are, but they can sell policies here through a specially licensed surplus line broker. Before you buy, the broker must give you a disclosure under Insurance Code section 1764.1 that the policy comes from a surplus line company.

The big difference: CDI says the California Insurance Guarantee Association (CIGA), "which protects claims with admitted insurers, does not apply to surplus line insurers." If a surplus lines insurer goes broke, your only course is through the courts. You can check whether an insurer is on CDI's List of Approved Surplus Line Insurers. See our surplus lines guide. [28][29]

Flood and earthquake are separate

CDI says "homeowners, renters, and condominium insurance policies do not cover damage from natural disasters such as earthquakes, floods, and landslides."

Flood: CDI notes that flood insurance takes effect 30 days after you buy it, except when a lender requires it at a home purchase. For flood zones and flood insurance, see our sister site FloodHawk.

Earthquake: if you have homeowners insurance in California, your insurer "must offer to sell you earthquake insurance," every other year. The California Earthquake Authority sells residential earthquake policies through participating insurers, and the FAIR Plan offers CEA coverage to its own dwelling policyholders. [30][31][32][33]

Where to get help in California

• CDI consumer hotline: (800) 927-4357 (TTY (800) 482-4833), or CDI's online contact form.
• File a complaint: CDI's online complaint portal.
• Find a licensed broker: CDI's license lookup (the FAIR Plan links to it as its broker finder).
• FAIR Plan: (800) 339-4099 or cfpnet.com.

CDI says its direct help on complaints recovered more than $338 million from insurers for Eaton and Palisades fire survivors (as of Sept. 18, 2026). [5][6][9][13][34]

Questions people ask