11home insurance groups committed to grow
1.9%FAIR Plan growth in Q2 2026, smallest since 2022
~24Kpolicies that left the FAIR Plan in April and May

What happened

Starting around 2022, many big insurers stopped writing new home policies in California or cut back sharply. Insurance Commissioner Ricardo Lara's answer was the Sustainable Insurance Strategy, finished in December 2024. The deal is simple: insurers can factor wildfire catastrophe models and the cost of their own reinsurance into rates, but only if they commit to writing more homes in wildfire-distressed areas.

According to CDI, as of July 23, 2026, 11 home insurance groups and 2 major commercial insurers had committed to grow in California. Named companies include Farmers, Mercury, CSAA, USAA, Liberty Mutual, Travelers, and newcomer MS Transverse, plus specialty insurers Pacific Specialty, California Casualty, and Horace Mann.

Specific moves to know

  • MS Transverse was approved to start writing California homeowners policies on July 15, 2026.
  • USAA plans to expand homeowners coverage for military members and their families starting in January 2027.
  • Liberty Mutual asked to expand coverage in wildfire areas with no additional rate increase.
  • PURE plans to grow its homeowners business, including homes now on the FAIR Plan.
  • Farmers was approved for an average home rate increase of 1.5% at renewals after September 15, 2026. It had asked for 6.99%.

What it means for you

More choices don't automatically mean lower prices. The same rules that bring insurers back also let them build wildfire risk and reinsurance costs into what you pay. Consumer groups have criticized parts of the strategy for that reason. And insurers that are writing again often have conditions, like roof age, inspections, and cleared space around the home.

For context, a Stanford study released in June 2026 found California homeowners premiums are up 84% since 2020.

If you're on the FAIR Plan, or a company dropped you in the last few years, your options may be better now than they were when you last looked. The FAIR Plan's own numbers point that way: its growth slowed for the third straight quarter, and about 24,000 policies left it in April and May 2026.

What to do

  • Shop at your next renewal. Start 45 to 60 days ahead and get quotes from several companies.
  • Ask whether each company is writing new policies in your ZIP code. Statewide headlines don't always reach every neighborhood.
  • Get your home ready to be insured. Know your roof's age and condition, clear space around the house, and keep dated photos of upgrades like ember-resistant vents.
  • Compare coverage, not just price. A FAIR Plan policy plus a separate DIC policy is not the same as one full homeowners policy. Line them up side by side.
  • Keep watching. CDI expects more insurers to file under the strategy in the coming months.

Sources

  1. California Department of Insurance: FAIR Plan growth slows below 2% as California's insurance market continues to show signs of recovery (Aug. 3, 2026)
  2. Farmers Insurance newsroom: approval of new California homeowners rating plan (May 11, 2026)
  3. California Department of Insurance: Petition for hearing on Farmers rate applications (requested 6.99%)
  4. California Department of Insurance: Insurance surge expanding options for Californians in wildfire distressed areas (July 23, 2026)
  5. Stanford Woods Institute: California's home insurance crisis is spreading beyond wildfire country (June 2026)

This article is general information about California insurance, checked against the sources above as of October 13, 2026. It isn't advice for your situation. Your policy documents and a licensed professional are the final word. Spot an error? Tell us and we'll correct it.