California’s property insurance market remains in turmoil, exacerbated by escalating wildfire risks, insurer withdrawals, and systemic shortcomings in the state’s safety net—the California FAIR Plan. As homeowners confront rising premiums and limited coverage options, comprehensive reform is imperative to stabilize the market and protect policyholders.
In the aftermath of the January 2025 wildfires in Southern California, which destroyed over 18,000 structures and claimed at least 30 lives, insurers like State Farm, Farmers, and Allstate have further scaled back their presence. State Farm, the state’s largest home insurer, stopped issuing new policies in 2023 and has s…