Rising Home Rates in California? 10 Upgrades That Help

Photo by Jose Rago on Unsplash

Home rates in California are shifting, and the upgrades you make to your house now carry more weight than ever. This spring, the Auto Club's Southern California insurer asked the state to raise homeowner rates by 11.2% overall, and Travelers asked for 6.9%, while both asked to lower rates for condo owners. You can't control those filings, but you can control your home's wildfire risk. Under California's Safer from Wildfires program, every qualifying upgrade counts toward a discount.

Think of a homeowner in Rancho Cucamonga who opens a renewal notice and sees a higher number. The smartest next move isn't panic. It's a weekend walk around the house with a checklist.

What Was Filed and Why It Matters

According to the San Francisco Chronicle, the Interinsurance Exchange of the Automobile Club, the AAA-affiliated insurer for Southern California, applied to raise homeowner rates by 11.2% overall. It asked to lower rates by 20.5% for condominium owners and 27% for owners of rental homes.

Travelers, the ninth largest home insurer in California, asked to raise homeowner rates by 6.9% and lower rates by 17% for renters, 22.8% for condo owners, and 19.6% for condo landlords. About 60% of its homeowners would see increases of 5% to 10%, while just under a quarter would see decreases of up to 25%.

Both filings are the first from either company under the Sustainable Insurance Strategy, a set of reforms finalized in 2025 that changed how insurers can set prices. When a requested increase reaches 7% or more, consumer groups can demand a mandatory hearing. Together, the two companies insure about 760,000 California homes, according to a follow-up report. Filings are requests, so final rates can differ from what was asked.

The bigger takeaway for every homeowner: pricing is becoming more individual. Two similar houses on the same street can land in different places depending on their features and surroundings.

10 Upgrades That Qualify for Discounts

The California Department of Insurance's Safer from Wildfires program lists ten actions that protect your home in three layers: the structure, the space around it, and your community. The department says every action on the list qualifies you for a discount, and doing more can save more.

Protect the structure

1. Class A fire-rated roof. Embers can land on a roof during a wildfire, so roofing material matters. If yours is due for replacement, ask your roofer about Class A materials.
2. Ember- and fire-resistant vents. Vents covered with metal mesh keep embers out of attics and crawl spaces.
3. Six inches of non-combustible material at the base of exterior walls. This keeps ground-level flames and embers from catching the siding.
4. Enclosed eaves. Closing in eaves with non-combustible materials removes a spot where heat and embers collect.
5. Multi-paned windows or shutters. Upgraded windows, or shutters added to existing ones, help windows hold up to heat.

Protect the space around your home

6. A 5-foot ember-resistant zone. Use non-combustible materials such as gravel close to the house, and metal fencing where fences connect to the home.
7. Clear under decks. Remove vegetation and stored items from underneath decks.
8. Move sheds and outbuildings. Remove combustible sheds and outbuildings within 30 feet of the home.
9. Meet defensible space rules. Follow state and local requirements for clearing vegetation around your property.

Protect your community

10. Join a community program. Neighborhoods that take part in Firewise USA or a Fire Risk Reduction Community qualify too.

How to Get Credit for Your Upgrades

Upgrades only help your rate if your insurer knows about them. Keep it simple:

• Take dated photos of every upgrade, before and after.
• Keep receipts and invoices from contractors and suppliers.
• Use licensed contractors for roof, window, and vent work. Check licenses with the Contractors State License Board.
• Ask about your community. Find out if your neighborhood is in, or could join, a Firewise USA program.
• Report changes before renewal, not after, so they can be considered in your next rate.

One more habit worth building: keep all of this in one folder, paper or digital, labeled with the date of each project. If you sell the house, refinance, or ever need to file a claim, that folder shows exactly what was done and when. It also makes it easy to answer questions from a home inspector or a buyer's agent. A few minutes of organizing after each project saves hours of digging through emails and old texts later.

Plan Your Upgrades by Budget

Not every item costs the same. Start with what you can do this weekend and plan the bigger projects:

• Weekend projects: clearing under decks, creating the 5-foot zone, and meeting defensible space rules.
• Handyman projects: adding mesh-covered vents and non-combustible material at the base of walls.
• Bigger investments: a Class A roof, enclosed eaves, and new windows. These make the most sense when those parts of the house are due for replacement anyway.

For more home tips, visit our housing advice hub and our advice library. If you ever need to file a claim after a fire, read your rights when a wildfire claim is delayed, and see what to do after a water main break damages your home.

Frequently Asked Questions

Did AAA and Travelers raise home rates in California?

In spring 2026, the Auto Club's Southern California insurer requested an 11.2% overall increase for homeowners and Travelers requested 6.9%. Both asked to lower rates for condo owners. Filings are requests reviewed by the state, so final rates can differ.

Which home upgrades qualify for wildfire discounts?

California's Safer from Wildfires program lists ten, including a Class A roof, ember-resistant vents, a 5-foot ember-resistant zone, enclosed eaves, upgraded windows or shutters, and defensible space. The state says every action on the list qualifies for a discount.

Can consumer groups challenge a rate increase?

Yes. When a requested increase is 7% or more, consumer groups can demand a mandatory hearing on the filing.

What do these filings mean for condo owners and renters?

The requests point the other way for many of them. The Auto Club's insurer asked to lower condo rates by 20.5%, and Travelers asked for decreases of 22.8% for condo owners and 17% for renters. If you rent or own a condo, it is still worth reviewing your policy at renewal to confirm your belongings and liability limits fit your life today.

Do I have to finish all ten upgrades to benefit?

No. The state says every action on the Safer from Wildfires list qualifies for a discount on its own, and more actions can mean more savings. Many homeowners start with the free or low-cost items, like clearing under decks and creating the 5-foot zone, and plan roof or window work for when those parts need replacing.

Let's Look at Your Home Together

Rate changes affect every household differently, and the right coverage review can show where you stand. At Young Douglas Insurance, a Farmers Insurance agency in Ontario, we help California homeowners check that dwelling limits match today's rebuilding costs, review deductibles, and make sure upgrades like a new roof or vents are on record. Discounts and coverage depend on your policy and property, but knowing your options brings real peace of mind. Get a free quote and home coverage review from our team.

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Written by LaMonte Douglas, owner of Young Douglas Insurance, a Farmers Insurance agency serving California from Ontario. CA License #4091974.

Sources: San Francisco Chronicle via Yahoo Finance, May 1, 2026; Yahoo Finance, May 3, 2026; CDI Safer from Wildfires; Contractors State License Board.

Last updated: September 22, 2026.

Correction, September 22, 2026: An earlier version of this post said AAA's filing would lower rates for renters. The filing asked to lower rates for owners of rental homes. This version also adds sources for every figure.