Why It’s Getting Harder to Get Home Insurance in California

Why It’s Getting Harder to Get Home Insurance in California

If you’re trying to buy a home in California right now, you’ve likely hit a wall when it comes to finding home insurance. It’s not just a minor inconvenience—it’s a real obstacle. No insurance means no mortgage, and no mortgage means no deal.

So what’s going on? Why is it getting harder (and more expensive) to insure property in California? And what role do insurance companies, government policies, and climate change all play in this crisis?

The Real Reason Behind California’s Home Insurance Crisis

It’s not just one thing—it’s everything at once.

In the past decade, California has faced:

  • Record-breaking wildfires
  • Catastrophic flooding
  • Landslides
  • Earthquakes
  • Infrastructure damage
  • Soaring rebuilding costs

Just this year, Lake Tahoe saw over 65 feet of snowfall, while other areas across the state battled flooding that displaced hundreds of residents. In the coming months, wildfire season will return—likely more intense than ever.

Despite all this, insurance companies kept writing new home insurance policies. But then a bigger issue emerged—state regulation.

How State Price Controls Pushed Carriers Out

California’s Department of Insurance has historically enforced price controls on insurers, requiring companies to offer policies at rates approved by the state—even if those rates didn’t reflect the actual risk.

When companies requested rate increases to reflect climate impact, rebuilding costs, and rising claims, many were denied. The state took a hard line: write at our price, or leave the market.

Insurers responded: We can’t stay profitable under these conditions. We’re out.

And many of them left.

That’s why today, homeowners are seeing:

  • Fewer options
  • Delayed or denied quotes
  • Underwriting freezes
  • Insurers pulling out of ZIP codes altogether

California vs. Florida: Two Different Storms

Some people compare California’s insurance woes to Florida—but the situations aren’t identical.

In Florida, premiums are skyrocketing (often 200%+) because companies can’t turn a profit—even with no price restrictions. Massive hurricane risk, roofing scams, and years of unchecked litigation have pushed many into insolvency.

In California, the problem is partly self-inflicted. The state’s regulatory structure hasn’t kept pace with the new normal—an environment where wildfires are expected, not rare. Insurers aren’t allowed to price for real-world risk, and so they’re opting out instead.

Both states are feeling the consequences of climate change, but California’s problem is solvable. The state simply needs to modernize how it allows companies to price their coverage. Without that change, more carriers will continue to exit—and homeowners will continue to feel stuck.

Is It Really “Impossible” to Get Home Insurance?

Not exactly. It’s difficult—but not impossible.

In many cases, buyers are still getting insured, but they’re facing:

  • Higher premiums
  • Narrower underwriting criteria
  • Longer turnaround times
  • Limited carrier options

Some real estate professionals say the headlines are overstated—most deals still go through. But ask any homeowner who’s recently tried to get insured in a wildfire-adjacent zone or on a home with an older roof, and you’ll get a different story.

The Problem with Older Roofs and Risk-Based Pricing

Right now, many homeowners are being dropped from their policies simply because their roofs are considered “too old.” Insurers like Progressive and Travelers have adopted stricter guidelines, with some requiring roofs to be 7 years old or newer for full coverage eligibility. If your roof is over 10 years old, don’t be surprised if your renewal is denied—or if your premium suddenly spikes. It's becoming a major factor in underwriting decisions, regardless of whether the roof is in good condition.

So what's happening?

  • Denied coverage entirely
  • Required to replace the roof before closing
  • Charged a significantly higher premium
  • Offered a “bare bones” policy with gaps in coverage

Insurers see older roofs as high risk—not because they will fail, but because statistically, they cost more in claims over time. In a fragile market, carriers are being hyper-selective.

Climate Change and Insurance: The Elephant in the Room

Here’s the brutal truth: many parts of the U.S. are becoming uninsurable.

Wildfire-prone areas. Coastal flood zones. Earthquake corridors. Insurers used to take on the risk in exchange for high premiums, but that equation is no longer sustainable.

Insurance companies can no longer act as a buffer for homes that were never meant to exist in high-risk regions. For decades, home insurance masked the real cost of building in vulnerable areas. Now, that cost is showing up in your renewal notice—or your outright denial.

This isn’t about greed. It’s about survival—both for the companies, and for the communities they serve.

What You Can Do as a Homebuyer in California

While it’s true that the market is strained, you can still find coverage. But you need to be proactive and strategic.

Work with a local agent

Don’t rely on online quote tools alone. A licensed, experienced agent who knows California-specific underwriting rules can save you time, money, and massive frustration.

Start the insurance process early

Don't wait until escrow to shop. Start getting quotes on home insurance the moment you make an offer—or even before.

Get your home inspection early

If the property has an older roof or needs retrofitting, find out now. It could make or break your ability to get California home insurance.

Consider a higher deductible

Some carriers will write higher-risk homes if you agree to absorb more of the cost up front.

Ask about the CA FAIR Plan

As a last resort, California’s FAIR Plan offers fire coverage when traditional carriers won't. You’ll need to pair it with a companion policy for liability and other perils—but it’s better than going uninsured.

Why Farmers Insurance–Young Douglas Still Writes in California

We understand the challenges because we’re living them with you. At Farmers Insurance – Young Douglas, we’re still actively writing farmers home insurance policies across California.

Here’s what we offer:

  • Stability – We’ve been around for nearly 100 years, and we’re not going anywhere
  • Smart bundling – Bundle auto, home, and umbrella for strong savings
  • Honest assessments – We’ll tell you what’s realistic and what’s not
  • Wildfire expertise – We know the high-risk areas, and we work with you to find options
  • Hands-on support – No overseas call centers, no generic emails—real help from real people

Insurance Isn’t Dead in California—But It Is Changing

Yes, it’s harder than ever to get home insurance in California. But it’s not impossible. The rules have changed, and homeowners need to adapt.

Cheap, fast, and easy coverage may be gone—but what’s left can still protect you if you make the right choices. That means partnering with an agency that understands the risks, knows the carriers, and has a track record of helping clients weather the storm.

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