Why California home insurance went up, and how to lower yours
Updated October 26, 2026 · From the California Department of Insurance, the California FAIR Plan Association and other public records · Our data
If your renewal jumped, you're not alone. Most large California insurers have had rate increases approved since 2023, and many homes moved to the FAIR Plan, which usually costs more for less coverage. Here's what's behind it and what actually lowers the price.
Why premiums went up
- Wildfire losses. Insurers paid out more than they collected in premiums in several recent fire years.
- Rebuilding costs. Labor and materials cost far more than five years ago, so the coverage on each home is worth more.
- Reinsurance. The insurance insurers buy for themselves got more expensive, and California now lets that cost into rates for insurers that commit to writing more in wildfire areas.
- Moving to the FAIR Plan. A home dropped by its insurer often ends up on the FAIR Plan plus a companion policy, which together usually cost more.
Rate changes the state approved
Admitted insurers need the Department of Insurance's approval for rate changes. The latest approved homeowners rate change for each large insurer:
| Insurer | Approved | Asked for | Date |
|---|---|---|---|
| Auto Club of Southern California (AAA) | +3.3% | +3.3% | September 30, 2026 |
| State Farm General | +17.0% | +30.0% | September 3, 2026 |
| Farmers | +1.5% | +7.0% | May 11, 2026 |
| California Casualty | +6.9% | +6.9% | February 17, 2026 |
| USAA | +6.9% | +6.9% | February 6, 2026 |
| Pacific Specialty | +6.8% | +6.8% | February 6, 2026 |
| California FAIR Plan | +29.1% | +35.8% | October 15, 2026 (effective) |
Official Department of Insurance lists of approved homeowners rate filings, checked daily. An approved average applies across an insurer's policyholders; your own change can be higher or lower. Every new approval appears on Updates.
What lowers your premium
- Ask for the wildfire discounts. Every insurer must credit specific home hardening: a Class A roof, ember-resistant vents, enclosed eaves, a 5-foot ember-resistant zone and more. The full list.
- Compare insurers. An independent broker can quote several at once; prices for the same house vary widely. See who's writing.
- Raise your deductible if you could cover a bigger out-of-pocket cost.
- Bundle home and auto, and ask about claims-free, new-roof and security discounts.
- Check your coverage amount. Insure for the cost to rebuild, not the market value; too much costs more, too little leaves you short after a loss.
- Compare with neighbors. On any ZIP code page, enter what you pay to see the FAIR Plan price there and your insurer's latest approved change. Anonymous, no email needed.
Got a renewal letter you don't understand? Snap a photo and Ask Shirley explains what changed.
Common questions
- Why did my home insurance go up so much in California?
- Wildfire losses, higher rebuilding costs and reinsurance prices pushed insurers to ask for large rate increases, and the Department of Insurance approved many of them. Some homes were also moved to the FAIR Plan, which usually costs more for less coverage.
- Does the state have to approve home insurance rate increases?
- Yes. Admitted insurers in California need the Department of Insurance's approval for rate changes. Surplus lines (non-admitted) insurers don't.
- How can I lower my home insurance premium in California?
- Ask for the wildfire mitigation discounts insurers must offer (Class A roof, ember-resistant vents, 5-foot ember-resistant zone, defensible space), have an independent broker compare insurers, raise your deductible if you can afford it, and bundle home and auto.
More guides
- Who's still writing home insurance in California (October 2026)Which big insurers are taking new customers, which are closed, and who's about to reopen.
- California FAIR Plan (October 2026): what it covers, what it costs, how to get off itThe state's insurer of last resort, in plain English, with current costs by area.
- Safer from Wildfires: the discounts California insurers must giveThe home-hardening steps every insurer must credit, and the FAIR Plan's own list.
- Buying a home in a California fire zone: the insurance checklistWhat to check before your offer and before contingencies come off.
Insureability is not an insurance company, agency or broker and doesn't recommend insurers. This guide is general information from public records, not insurance or legal advice; your policy and the Department of Insurance are the authority.