Daily California P&C Insurance News

Wildfire Protection

Home Insurance
December 2025

Commissioner Lara protects thousands of Californians in Mono and Inyo counties from non-renewals following Pack Fire

Insurance Commissioner Ricardo Lara ordered companies to preserve coverage for over 14,800 policyholders in Pack Fire-affected areas, providing a one-year moratorium on non-renewals or cancellations. This action builds on his Sustainable Insurance Strategy amid ongoing wildfire challenges in California.[1]

Reinsurance Market

Reinsurance
2025

KBW expects property cat reinsurance rates to decline 15-20% at 1/1

KBW analysts predict risk-adjusted property catastrophe reinsurance rates will drop 15-20% at January 2026 renewals despite California wildfires. This follows perceived rate adequacy from prior increases, with minimal pricing impact from January 2025 fires.[2]

Market Expansion

Home Insurance
November 21, 2025

Farmers Insurance to remove cap on writing new homeowners insurance policies in California

Farmers Insurance eliminated its cap on new homeowners policies in California, effective immediately, under the Sustainable Insurance Strategy. The company also filed a new rating plan with a 6.99% rate increase and enhanced bundling discounts to expand coverage in distressed areas.[3]

Court Rulings

Property Insurance
2025

California appellate court denies homeowners’ debris damage claim from Saddle Ridge wildfire

A California appellate court ruled that two homeowners lacked coverage for debris damage from the 2019 Saddle Ridge wildfire, based on policy language and Supreme Court precedent. The decision highlights limits on smoke and debris loss coverage in property policies.[4]

Industry Challenges

Home Insurance
2025

California home insurance crisis deepens with rising rates and carrier withdrawals

California’s home insurance market faces escalating premiums, regulatory hurdles, and insurer exits like State Farm pausing new policies due to catastrophes and reinsurance costs. Homeowners in high-risk wildfire, earthquake, and flood zones must seek specialized coverage amid climate-driven challenges.[5]