Wildfire insurance town hall meeting
- 5-6 p.m. Thursday, April 3, 2025 online.
- State Assemblymember Gail Pellerin, D-Santa Cruz, will lead a virtual town hall meeting about home insurance, available services and common scams with California Insurance Commissioner Ricardo Lara and United Policyholders Executive Director Amy Bach.
- Register online to receive a Zoom link.
Thousands of Santa Cruz County residents have been dropped from their homeowner’s policies in recent years. There is no easy way to regain a policy or make home insurance more affordable, but knowing the rules can make navigating the changing insurance landscape a little easier.
Tips and information below come from the California Department of Insurance and the nonprofit group United Policyholders.
Jump to a section:
- My home insurance provider won’t renew my policy. What should I do?
- What if I can’t find a home insurance policy?
- What is California’s FAIR Plan for home insurance?
- How can I make my home insurance policy more affordable?
- How can I make my FAIR Plan policy more affordable?
- How will new rules affect home insurance?
- Where can I get more information?
My home insurance provider won’t renew my policy. What should I do?
Contact every insurance company to see if they can offer you a plan.
- There were more than 110 insurers in California as of January 2024, according to the California Department of Insurance. Some insurance companies only sell directly to homeowners. Call every company on the California Department of Insurance’s list of home insurance providers to seek a direct quote.
Find an insurance broker.
- Find an insurance broker you trust. Working with multiple brokers won’t increase your chance of getting insurance or reduce the cost. That’s because insurance companies will only work with one broker for a given home.
Know the law and your rights.
State regulators can’t force private insurers to renew policies. But they can enforce regulations on non-renewals.
- Insurers must send a non-renewal notice at least 75 days before the policy expires.
- Insurers must use a risk score to justify non-renewals. Typically, it includes factors like the property’s slope, the proximity to brush and forest, and the distance from a fire department. You’re entitled to ask what your risk score is and how it was created. Insurers cannot drop policies solely based on ZIP code.
- If you’ve taken steps to reduce fire risk on your property, such as installing a fire-safe roof or removing bushes around your house, you’re entitled to ask for another risk assessment, which insurers must complete within 30 days. But insurers still aren’t legally required to continue your policy.
- If your insurer doesn’t follow these rules, you can file a complaint with the Department of Insurance.
What if I can’t find a home insurance policy?
If you can’t find a standard insurance plan, brokers may offer a non-admitted insurance plan, also known as out-of-market or surplus-lines insurance. These policies are legal, but are not regulated by the California Department of Insurance and not backed by the state’s reinsurance program. If a non-admitted insurer runs out of money, policyholders may not receive payouts. If you go with a non-admitted insurer, look for one with a high credit rating.
Homeowners who cannot find a standard plan can also enroll in the Fair Access to Insurance Requirements Plan, or FAIR Plan, which offers basic coverage for areas at high risk of fire.
What is California’s FAIR Plan for home insurance?
State law established the Fair Access to Insurance Requirements Plan, or FAIR Plan, for homeowners who cannot secure insurance from a standard carrier. The FAIR Plan is mandated by the state, but collectively funded and managed by private insurers. If the plan runs out of money, private insurers are on the hook for insurance payouts.
The FAIR Plan limits coverage to $3 million for a residential property. Homeowners may be able to purchase a Difference in Condition policy, which supplements the FAIR plan to provide coverage similar to a standard homeowners insurance policy.
The FAIR Plan and Difference in Conditions plans can be purchased through insurance brokers.
How can I make my home insurance policy more affordable?
Insurers are required to offer discounts for making your home more fire-resistant or joining a fire-prevention community group, like Firewise. However, the state Department of Insurance cannot force insurers to issue policies or reduce prices.
How can I make my FAIR Plan policy more affordable?
The FAIR plan offers discounts of up to 20% to homeowners who take steps to reduce their property’s risk of fire. Those steps include:
- Hardening your home to fire with features like a metal roof, double-paned windows and enclosed eaves.
- Moving plants, firewood and sheds away from the house, or removing them from the property.
- Joining a community fire-prevention group like a neighborhood Firewise group.
The size of the discount depends on your plan and which steps you’ve taken.
You can also lower your premium by increasing your deductible to the highest level you’d be able to afford. The deductible is the amount you’d have to pay before insurance kicks in.
How will new rules affect home insurance?
State rules approved in December 2024 may increase the likelihood of getting and keeping home insurance, but they’ll also likely push premiums higher.
The rules allow insurers to consider the risk of future natural disasters, and the cost of their own insurance to cover cost overruns, when applying to the state for rate increases.
The new rules will also require insurers to factor in steps homeowners, neighborhoods, and local governments take to lower wildfire risk, including making houses less flammable and clearing potential fuel around homes.
New rates and increased availability will likely start in early 2026.
Where can I get more information about obtaining, keeping and affording homeowners insurance?
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