Daily Property & Casualty Insurance News
California Edition

A three-party settlement approves a 17% increase for non-tenant homeowners policies, 15% for renters/condos (slightly higher than interim), and 38% for rental dwelling policies, with refunds plus 10% interest for some condo and rental dwelling policyholders. This avoids an extra $400 million in premiums compared to State Farm’s original 30% request, amid ongoing financial challenges from catastrophes.[1]

New laws effective January 1 promote wildfire safety and consumer protections, including the “Eliminate The List” Act (SB 495) that requires insurers to pay 60% of contents coverage limits (up to $350,000) for total losses in qualifying disasters without a detailed inventory list. These measures address climate-driven insurance instability by enhancing oversight, transparency, and convenience for policyholders.[2]

SB 1076 would require insurers to offer and renew coverage for homes meeting wildfire-safety standards starting January 1, 2028, with penalties for noncompliance, amid concerns from Eaton fire survivors facing denials despite rebuilds. Insurers warn the mandate could force carriers out of the market, exacerbating the crisis as hundreds of thousands shift to the costly FAIR Plan.[3]

One year after the Eaton and Palisades fires, survivors report delays, denials, and communication issues, with the FAIR Plan paying nearly $3.5 billion on 5,400 claims while securing reinsurance and a $750 million catastrophe bond. New laws like “Eliminate the List” mandate quicker payouts, but premiums are rising statewide due to the beleaguered market exposed by billions in claims.[4]

FAIR Plan enrollment surged 43% from September 2024 to December 2025 as insurers retreat even from low-risk areas post-$40 billion Los Angeles wildfires, now covering nearly 10% of residential policies limited to fire coverage. Legislation backed by Commissioner Lara aims to expand FAIR to comprehensive policies to shift homeowners back to private markets and stabilize the strained system.[5]