Is There Any “Good” Home Insurance Left in California?

If you're a homeowner in California, you've probably felt it: renewal anxiety. Premiums are skyrocketing. Carriers are pulling out. And the ones that remain? Often criticized for poor claims experiences or stripped-down policies that leave too much at risk.

The truth is, the California home insurance market has been hit hard. Wildfires, inflation, rising rebuilding costs, and increased litigation have all created a near-impossible environment for carriers to operate in. Many major insurers have stopped writing new business entirely in certain ZIP codes or for certain property types.

So where does that leave you—the homeowner who's simply trying to protect their biggest investment?

Let’s break it down.

What Homeowners Are Facing Right Now

If you're renewing your policy or shopping for new coverage in California, here's what you're up against:

• Premium increases of $500–$1,000+ at renewal—even without filing a claim
• Fewer options—many carriers won’t write new business in wildfire-prone areas or on older homes
• Roof age restrictions—some companies flat-out refuse to insure homes with roofs over 15–20 years old, regardless of condition
• Coverage gaps—especially when switching to a budget policy that excludes key protections
• Frustration with claims—delays, lowball settlements, or outright denials are becoming more common
• Lack of transparency—it’s harder than ever to know which companies are financially stable and will actually pay out in a disaster

Your home isn’t just exposed to natural disasters—it’s also vulnerable to being underinsured or dropped altogether based on criteria most homeowners aren’t warned about. That’s why having an experienced agent and a reputable company matters now more than ever.

What You Actually Want in a Home Insurance Policy

You’re not buying paper. You’re buying a contract to protect you when things go wrong. That means:

• A financially stable company that won’t disappear after a catastrophe
• Realistic replacement cost estimates—not bare-minimum coverage
• A local agent who knows how to navigate California-specific risks and regulations
• A claims process that isn’t a nightmare
• Flexibility and transparency at renewal

Why Some “Affordable” Policies Aren’t Worth It

Let’s say a carrier gives you a lower premium, but:

• They underinsure your home by 20%
• They use third-party adjusters who don’t return your calls
• They take 60+ days to settle a claim
• They have a reputation for denying common damage claims

Is that savings really worth it?

As a homeowner, you didn’t buy the cheapest house you could find. So why would you protect it with the cheapest insurance?

Evaluating the Big Players: AAA, Progressive, and Others

Some names keep coming up when people shop around: AAA, Progressive (Homesite), and others.

• AAA is a not-for-profit and generally well-rated, especially for bundling. If your home qualifies, it's not a bad option.
• Progressive (via Homesite) offers competitive quotes, especially online. But many customers report issues during the claims process.
• Smaller, lesser-known companies may offer low premiums, but make sure to vet their financials. Some are barely hanging on and may not survive a major catastrophe.

Every insurer has tradeoffs. What matters is who will actually show up for you when it counts.

What Farmers Home Insurance Brings to the Table

At Farmers Insurance – Young Douglas, we understand the state of the market. But we also believe in doing it right. Here's why we’re still a smart choice for California home insurance:

Stability

Farmers has been around for nearly a century. We’re one of the few major carriers still actively writing and renewing home policies across California.

• Claims You Can Count On - when disaster strikes, you want more than a call center. Our claims team works fast—and fairly. We’ve handled everything from wildfire rebuilds to complex theft claims.
• Real Coverage - we won’t underinsure your home just to give you a “better” price. We’ll walk through your rebuild value, endorsements, and exclusions so you’re not surprised when it matters most.
• Bundling Done Right - yes, we offer auto and home bundling too—but without cutting corners. And we don’t just stop at auto. We can bundle umbrella, rental, life, and even business insurance where needed.
• A Local, Licensed Agent - we're not a call center. We’re real people based in California who understand the laws, risks, and nuances of insuring property in this state.

What to Watch Out for in This Market

• Tempting rates that disappear at renewal
• Policyholders getting dropped after minor claims
• Insolvent carriers who won’t be there when the big one hits
• Apps and aggregators that quote without explaining key exclusions
• Misleading bundling incentives that don’t save as much as promised

You deserve better than that.

The Palisades Fire, which ignited on January 7, 2025, devastated Pacific Palisades and surrounding areas, destroying over 6,800 structures and claiming 12 lives. This catastrophe left many homeowners grappling with the harsh reality of continuing mortgage payments on uninhabitable properties while also incurring additional expenses for temporary housing.​  (Source: AP News)

The financial strain of maintaining mortgage obligations on a destroyed home, coupled with the costs of securing alternative accommodations, underscores the importance of comprehensive home insurance coverage. Such coverage can provide  support for additional living expenses, helping affected homeowners manage the dual financial burdens during the rebuilding process.​

At Farmers Insurance – Young Douglas, we recognize the profound impact such disasters have on individuals and communities. Our commitment is to offer robust and reliable home insurance policies that not only protect your property but also provide assistance for living expenses in the aftermath of unforeseen events. Guaranteeing that you have the necessary coverage can make a significant difference in navigating the challenging path to recovery.

What You Can Do Right Now

1. Review your current policy
2. Are you actually covered for a rebuild at today’s prices?
3. Don’t just chase the lowest quote
4. Ask about financial strength, claims history, and service levels.
5. Talk to a real agent
6. Online quotes can only go so far. A licensed agent can uncover hidden gaps and make sure you’re covered the way you think you are.
7. Ask questions
8. Is your personal property replacement cost or actual cash value? Are you covered for ordinance & law? What’s your wildfire deductible?

The Verdict: There's Still Good Insurance in California

Yes, the market is tight. Yes, rates are up. But not all home insurance in California is broken.

The best approach? Choose a company that’s proven. Choose a policy that’s clear. Choose coverage that matches the value of your home—not the lowest price on the screen.

At Farmers Insurance – Young Douglas, we’re here to help you navigate the mess. And when the unexpected happens, we’re here to help you recover.

Get a free no obligation home insurance quote. Ask questions. Let’s protect your home properly.