Daily P&C Insurance Agent News
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Daily Property & Casualty Insurance News – California
California Headlines
Home Insurance / Regulation
California home insurance premiums projected to rise 20% or more by end of 2025
California home insurance premiums are expected to climb roughly 20% or more by the end of 2025, driven by wildfire losses, higher reinsurance costs, and inflationary rebuilding pressures.[2] Large carriers are pursuing rate increases of up to 30% as regulators allow greater use of catastrophe models, deepening affordability and capacity challenges for homeowners statewide.[2]
Wildfire / Consumer Protection
Insurance Commissioner Ricardo Lara ordered insurers to preserve residential property coverage for an estimated 124,000 policyholders in 39 ZIP codes affected by the TCU September Complex Fire, imposing a one‑year moratorium on non‑renewals and cancellations following the Governor’s emergency declaration.[1] The action extends California’s wildfire protections as part of Lara’s Sustainable Insurance Strategy, which aims to keep carriers writing in high‑risk regions while new pricing rules reward mitigation.[1]
Home Insurance Market / Carrier Strategy
Farmers Insurance removes cap on new California homeowners policies and files new rating plan
Farmers Insurance announced it is eliminating its 9,500‑policies‑per‑month cap on new California homeowners business and will expand offerings across homeowners, condo, and renters products in the state.[5] The carrier is simultaneously submitting a new rating plan aligned with California’s Sustainable Insurance Strategy, signaling confidence in an improving market while still applying standard underwriting guidelines.[5]
Home Insurance / Wildfire & Coverage Design
Will California let insurers stop covering wildfires — as in Nevada?
A new Nevada law allowing insurers to exclude wildfire coverage has sparked debate over whether California might follow suit, as policymakers grapple with affordability and carrier withdrawal pressures.[4] Critics warn that carving out major perils from standard policies, as seen with earthquake coverage via the California Earthquake Authority, could leave cost‑burdened homeowners underinsured and more vulnerable to future disasters.[4]
Home Insurance / Market Stability
What is the California home insurance crisis? 2025 update
The article describes California’s home insurance crisis as a convergence of rising catastrophe losses, regulatory friction, and carrier retrenchment, leading to higher premiums and shrinking availability in high‑risk areas.[3] Major insurers have reassessed risk models and in some cases paused new business, forcing many homeowners—especially in wildfire, earthquake, and flood‑prone zones—to seek alternative or more expensive coverage options.[3]
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