California Property & Casualty Insurance Daily News
Monday, November 24, 2025

California’s Insurance Commissioner ordered insurers to preserve coverage for 124,000 residents impacted by recent wildfires in the Sierra foothills. The emergency measure blocks non-renewals and cancellations for one year in declared wildfire disaster zones, ensuring ongoing protection and stability for policyholders in affected areas[1].

Farmers Insurance announced it will immediately eliminate the cap on new homeowners policies offered in California, a significant expansion for the state’s largest P&C insurer. The company attributes its confidence in market improvement to the adoption of new regulatory strategies affecting homeowner risk and rates[5].

Recent reforms by Commissioner Ricardo Lara are set to increase both auto and home insurance premiums in California. Consumer groups warn the new rules may lead to higher costs for policyholders as insurers adjust rates to meet revised state requirements[11].

Farmers Insurance has filed a revamped rating plan, closely aligned with California’s Sustainable Insurance Strategy and reinsurance perspectives. The plan targets distressed areas, aiming to enhance both coverage offerings and overall market resilience after years of volatility[3].

Eleven major wildfires in California during Q1 2025 resulted in $50 billion in insured losses, depleting nearly half of the industry’s catastrophe budget for the year. Insurers are now further tightening underwriting and risk selection for properties in wildfire-prone areas[7].