Daily California P&C Insurance News

California Homeowners Insurance Headlines

Homeowners Insurance
Farmers Insurance eliminates cap on homeowners policies offered in California
December 2025

Farmers Insurance, California’s largest property casualty insurer, has removed its cap on new homeowners, condo, and renters policies effective immediately, driven by improvements in the market via the Sustainable Insurance Strategy.
The company plans to add thousands of policies in distressed areas starting early 2026, alongside a 6.99% rate increase and enhanced bundling discounts.[1]

Market Reform
California Insurance Market Reform
December 2025

Governor Gavin Newsom issued an executive order to accelerate solutions for the homeowners insurance crisis, directing agencies to address market volatility and natural disaster mitigation ahead of a required 2026 report.
Insurance Commissioner Ricardo Lara supports the move, noting five major insurers—Mercury, CSAA, USAA, Pacific Specialty, and California Casualty—have committed to expanding coverage with modest 6.9% rate requests.[2]

Insurer Returns
Major insurance companies commit to staying in or returning to CA
December 2025

Major insurers including Mercury, CSAA, Pacific Specialty, Allstate, and Farmers have committed to staying or resuming service in California following new reforms allowing catastrophe risk factors in premium setting.
Critics like Consumer Watchdog warn of potential premium hikes, as seen in California Casualty’s filed 6.9% increase.[5]

Insurer Returns
Five property insurers return to California amid new reforms
September 25, 2025

Five property insurers—CSAA, Mercury, California Casualty, and Pacific Specialty—that previously left California are returning, confirmed by the Department of Insurance amid reforms from Commissioner Lara and Governor Newsom.
The returning insurers have requested 6.9% rate increases, amid concerns that reforms could lead to higher premiums for consumers.[4]

Regulatory Changes
California Drops Prelicensing Requirement in 2026
December 2025

Starting January 1, 2026, California eliminates the prelicensing education requirement for specific producer authority lines while maintaining the 12-hour post-licensing course.
This change aims to streamline entry into the insurance market for agents handling property and casualty lines.[8]