Why California Homeowners Are Struggling to Find Coverage (and What to Do About It)

For many California homeowners, securing homeowners insurance has become an uphill battle. Between rising wildfire risks, increased natural disasters, and insurance companies scaling back coverage, the struggle is real. If you're finding it difficult to get or keep your homeowners insurance in 2025, you're not alone.

Why Is It So Hard to Get Homeowners Insurance in California?

Over the past few years, many major insurance providers have pulled out of California or severely limited their coverage options. The reasons?

1. Wildfires and Natural Disasters Are Driving Insurers Away

California has experienced record-breaking wildfires, floods, and earthquakes. With climate change increasing the frequency of these disasters, insurers see the state as a high-risk area, making them hesitant to issue policies.

2. Rising Rebuilding Costs Affect Premiums

Inflation and supply chain issues have driven up construction costs. Rebuilding after a disaster now costs more than ever, forcing insurers to raise premiums or stop offering coverage altogether.

3. Stricter State Regulations

California’s consumer protection laws prevent insurers from rapidly adjusting their rates based on risk, leading many companies to exit the market rather than take losses.

4. Major Insurance Companies Are Pulling Out

Big names like State Farm and Allstate have already stopped writing new policies in California, leaving fewer options for homeowners and driving up costs among remaining providers.

What Are Your Options?

If you’ve received a non-renewal notice or are struggling to find a policy, don’t panic—there are still options available:

1. Shop Around with an Independent Agent

Many smaller, regional insurers still offer policies. Working with an independent agent like Dana Brown gives you access to more options tailored to your specific needs.

2. Consider the California FAIR Plan

The California FAIR Plan is a last-resort option for homeowners who can’t find coverage elsewhere. While it only covers fire damage, you can supplement it with additional policies.

3. Look Into Surplus Lines Insurers

These non-admitted carriers specialize in high-risk properties and may provide better coverage than the FAIR Plan, though rates can be higher.

4. Upgrade Your Home to Reduce Risk

Fire-resistant materials, defensible space, and updated electrical systems can make your home more attractive to insurers. Some companies offer discounts for proactive upgrades.

5. Bundle Your Policies

Some insurers are still providing homeowners insurance if you bundle it with auto or umbrella insurance. It’s worth exploring this option for potential savings.

Need Help Finding Coverage? Contact Dana Brown Today!

Navigating the changing insurance market in California is overwhelming, but you don’t have to do it alone. As an experienced insurance professional, Dana Brown can help you explore your options, find the best coverage available, and secure the protection your home needs.

📞 Call Dana Brown today to get started!

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Email: Dbrown@cdginsurance.com

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