Daily California P&C Insurance News

Key developments impacting insurance agents and the industry

California Headlines

FAIR Plan Reform
July 26, 2025
Commissioner Lara Expands FAIR Plan Coverage for High-Value Commercial Properties

Insurance Commissioner Ricardo Lara approved temporary expansion of the California FAIR Plan to include high-value commercial properties up to $20 million per building, with a total limit of $100 million per location, sunsetting in 2028. This reform aims to address the FAIR Plan’s growth as an insurer of last resort amid insurer withdrawals from high-risk wildfire areas.[1]

FAIR Plan Expansion
January 28, 2026
California Lawmakers Call for Expanding FAIR Plan as Statewide Safety Net

California lawmakers urged evolution of the FAIR Plan to insure more properties across the state, reframing it as a ‘safety net’ rather than last resort. Assemblymember Lisa Calderon highlighted the need for broader coverage amid ongoing insurance availability challenges.[2]

Wildfire Claims
January 13, 2026
California Fire Victims Report Delays in Insurance Payouts from State Farm After LA Wildfires

Fire survivors in Los Angeles faced prolonged delays and disputes with State Farm over claims from the Eaton and Palisades wildfires, exacerbating recovery challenges nine months post-disaster. Los Angeles County launched an investigation into the insurer’s handling of claims amid complaints of underpayments and denials.[3]

Rate Increases
January 2026
California Insurance Commissioner Approves Rate Hikes for Mercury and CSAA Amid Homeowner Concerns

Commissioner Ricardo Lara approved a 6.9% rate increase for Mercury Insurance and CSAA over the holidays, drawing criticism that private insurers are holding California homeowners hostage. The decision highlights ongoing tensions in the state’s property insurance market.[5]

Property Rates
2026 Forecast
Steep Premium Increases Expected in California Wildfire-Prone Areas for 2026

California homeowners in disaster-prone areas face premium hikes over 20% in 2026, carrier withdrawals in high-risk ZIP codes, and pushes toward state-backed markets. Agents should advise clients on mitigation measures like defensible space to improve insurability.[4]