Daily Property & Casualty Insurance News
California Edition

California fire victims say fighting with insurance companies has delayed rebuilding

Nine months after a wildfire destroyed his Southern California home, Mark Johnson is still awaiting payment from State Farm to rebuild. Insurers have paid billions but frustration persists over claim processing delays.[1]

California fire victims say slow insurance payouts have hampered their recovery

Fire victims report ongoing battles with insurers like State Farm over claim payments, significantly delaying rebuilding efforts. Industry groups acknowledge frustrations while noting billions already paid to policyholders.[7]

Commissioner Lara protects nearly 150,000 Californians in Kern, Santa Barbara, San Luis Obispo and Ventura counties from non-renewals following Gifford Fire

Insurance Commissioner Ricardo Lara ordered carriers to preserve coverage for 147,000 policyholders in wildfire-affected ZIP codes for one year following Governor Newsom’s emergency declaration. This moratorium, enabled by 2018 legislation, provides relief regardless of property loss.[3]

New California Insurance Laws on the Books in 2026

New laws effective January 1 require insurers to pay 60% of contents coverage limits up to $350,000 for total home losses in qualifying disasters. The legislation enhances wildfire safety, consumer protections, and transparency amid climate-driven insurance challenges.[5]

2026 Home Insurance Rates: Will SoCal’s Record-Wet Months Push Premiums Higher?

California home insurance premiums are projected to rise 20% or more through 2025 due to reinsurance costs, regulatory changes, and dual wildfire-flood risks in Southern California. New rules allow better risk pricing, potentially stabilizing markets long-term but increasing short-term rates.[4]

The Return Period for An LA Wildfire-Scale Event May Be Shorter Than Commonly Thought

A new report warns that large-scale LA wildfires may have shorter return periods, exacerbating insurance market disruptions and FAIR Plan growth from $167 billion in 2021 to $700 billion in 2025. Admitted carriers’ retreat forces more homeowners into high-risk pools with systemic assessment risks.[6]