Home Insurance Quotes Are Over $6,000 for Some California Single-Family Homes

If you're shopping for a single-family home in California—especially in a wildfire-prone area—you may be shocked by your home insurance quotes. Some buyers are seeing quotes as high as $6,000 per year for standard HO3 policies. In some cases, even higher.

The reasons aren’t mysterious. But they are deeply frustrating.

High-Risk Fire Zones = High Premiums (If You Can Get Coverage at All)

For homes located in areas with extreme fire risk—typically ranked 9 or 10 out of 10 on wildfire risk reports—the market is brutal. Many traditional, A-rated insurance companies have pulled out of these zones entirely.

What’s left?

• California FAIR Plan, which only covers fire and certain limited perils
• DIC (Difference in Conditions) policies to fill in the gaps
• And a growing list of unrated carriers offering coverage that may not hold up in a major claim scenario

Together, that patchwork solution can cost $5,000 to $10,000+ annually, depending on location, home value, and roof age.

A Broken Market—or a Warning Sign?

Some say these sky-high premiums are intentional—to discourage development in areas that are increasingly unsafe due to wildfire activity. Others are asking the hard question: Why are we still building (and buying) homes in places where insurance is nearly impossible to get or afford?

But… People Are Still Buying in These Areas

A common defense among buyers: housing in California is so expensive that a $6,000 premium barely moves the affordability needle. Especially in Southern California, buyers are prioritizing home size and location—insurance becomes a second-tier consideration.

And sometimes, it’s the only option.

The Spread of the FAIR Plan

It’s not just remote mountain homes anymore. Suburban and semi-rural neighborhoods that didn’t used to be considered high-risk are now being funneled into the FAIR Plan.

Once intended as a last-resort coverage option, the FAIR Plan is quickly becoming the default for thousands of homeowners.

Even buyers in places like Ventura County, Santa Clarita, and parts of San Diego are being told: “We won’t write you a policy. Try the FAIR Plan.”

The Surge of “Go-Away” Quotes

In the last 12 months, insurance carriers have taken massive losses in California due to wildfire-related claims and inflation-fueled rebuild costs. Many carriers—except a few like Progressive—are flat-out not interested in taking on new business in high-risk areas.

So what do they do?

They quote $10,000–$20,000/year premiums, knowing it’s unaffordable. It’s their way of politely saying: Please take your business elsewhere.

And even in “low-risk” states like those in the Midwest, buyers are seeing their premiums double or triple in just a few years. It’s not just a California problem—it’s a national trend. But California is where it’s hitting hardest right now.

Insurance Availability Tied to Wildfire Policy

While buyers and insurers navigate this mess, state leaders are still debating how to fix it. California’s Department of Insurance announced in late 2024 that it would begin allowing insurers to factor catastrophe modeling and reinsurance costs into their pricing models.

(Source: Los Angeles Times, Sept. 2024) — This policy shift is intended to lure insurers back into the market by giving them more realistic pricing power. But consumer advocates are wary: will this lead to even higher premiums?

So far, the move hasn’t brought major insurers back into high-risk ZIP codes.

What You Can Do as a Homebuyer (or Current Homeowner)

Start shopping for insurance early

Don’t wait until escrow. If you're buying in a risk zone, insurance should be one of your first conversations—not your last.

Don’t rely solely on online quotes

Talk to a licensed agent who understands California’s wildfire zones, the FAIR Plan, and how to combine policies without gaps in coverage.

Consider homes outside the red zones

Even a few blocks can make a difference in risk scores and insurability. Ask about the area’s fire score and claims history before you commit.

Get multiple quotes—but check who’s quoting

Make sure you're dealing with rated, reputable insurers. If you're being quoted by unknown or unrated carriers, ask your agent what protections you actually have in the event of a claim.

Why Farmers Home Insurance Still Matters in California

At Farmers Insurance – Young Douglas, we know the landscape because we’re part of it. We still write policies across many parts of California, and we help clients navigate the FAIR Plan and DIC combinations when necessary.

Here’s what you can expect from Farmers home insurance:

• Stability from a company that’s been around since 1928
• Claims support you can actually count on
• Transparent assessments—we’ll tell you when it’s worth insuring, and when it’s not
• Help to navigate wildfire zones and new underwriting rules
• Honest guidance when bundling auto, home, and umbrella

The Market Is Rough—But You’re Not Alone

Yes, home insurance in California is getting more expensive and more complicated. Especially in fire-prone areas.

But that doesn’t mean you’re stuck with terrible options or bad advice.

You just need the right support, the right coverage, and a team that understands what you’re up against.