buy + owncalifornia insuranceupdated for 2026boyenga team at compass
The Insurance Lab
Home insurance in California has changed fast. Put in a few facts about the home to see which policies to line up, what your lender requires, what a deductible costs in dollars and which wildfire steps earn a discount.
Insurance checkerWildfire discountsYour rightsFAIR PlanThe market
- average premium$1,571California, per CDI (U.S.: $1,512)
- FAIR Plan limit$3Mper location, all coverages combined
- nonrenewal notice75 daysat least, before the policy ends
- discount actions11on the state’s wildfire list
insurance checker
What this home needs
Answer nine questions. The list shows the policies to line up and what to check; the ledger turns deductibles into dollars.
Policies to line up
deductibles in dollars
Deductibles are a percentage of the coverage amount. The earthquake figures use the dwelling coverage you entered; your CEA quote sets the actual limit.
General information from the California Department of Insurance, the FAIR Plan, the CEA, FEMA and Fannie Mae, not insurance advice. A licensed agent or broker quotes the actual coverage.
wildfire discounts
The state’s wildfire discount list
Under California’s Safer from Wildfires rules, insurers must offer discounts for these steps. Check off what the home already has.
0 of 11steps done. Tell your insurer or broker; proof or an inspection may be required.
Discounts differ by insurer and apply from the next policy period. The FAIR Plan offers these discounts too. Since July 1, 2025, the FAIR Plan flags homes with these steps so regular insurers can offer them policies. Your checkmarks stay in this browser only.
your rights
Your rights, by the clock
The deadlines California sets for insurers, from the Department of Insurance’s summaries of the law.
- 15daysYour wildfire risk score
Insurers that use a wildfire model must give you the score in writing within 15 days of a completed application.
10 CCR 2644.9 - 45daysRenewal offer
Insurers send a renewal offer at least 45 days before the policy ends, noting any cut in coverage; the risk score comes with it.
Ins. Code 678; 10 CCR 2644.9 - 75daysNonrenewal notice
At least 75 days before the policy ends, with the reasons, plus a pointer to the state’s Home Insurance Finder and the FAIR Plan.
Ins. Code 678 - 10 / 30daysAppeal your risk score
Insurers must acknowledge an appeal within 10 days and decide in writing within 30.
10 CCR 2644.9 - 1yearNo wildfire nonrenewals
After a declared wildfire emergency, insurers can’t drop homes in ZIP codes in or next to the fire perimeter for a year just for being there.
Ins. Code 675.1 - 60daysPremium grace period
After a declared emergency, residential policyholders in the area get 60 days of grace on premium payments.
Ins. Code 2062 - 24 + 12monthsLiving expenses after a disaster
Loss-of-use coverage lasts at least 24 months, with up to 12 more for delays you can’t control.
Ins. Code 2060 - 36monthsCollecting full replacement cost
After a declared-emergency loss, you have at least 36 months to collect replacement cost (12 months otherwise).
Ins. Code 2051.5 - 100daysProof of loss
Since January 1, 2026, at least 100 days to submit proof of loss after a declared emergency, and contents paid without an inventory at 60% of the contents limit, up to $350,000.
SB 495 - 30daysFlood insurance wait
NFIP coverage normally starts 30 days after purchase; there’s no wait when it’s bought at a loan closing.
FEMA / NFIP
the FAIR Plan
The FAIR Plan, decoded
The California FAIR Plan is the insurer of last resort, run by the insurance companies under state law since 1968. CDI suggests shopping the regular market first.
What it covers
- Fire and lightning, internal explosion, smokeA named-peril dwelling policy; vandalism and malicious mischief cost extra.
- Up to $3 million per locationAll coverages combined, per CDI.
- Wildfire-hardening discountsOn the wildfire part of the premium, plus fee-free monthly payments.
- Apply through a brokerA FAIR Plan-registered broker checks the regular market first; brokers charge no extra cost. FAIR Plan: 800-339-4099.
What it leaves out
- Water damage, theft and liabilityPair the FAIR Plan with a Difference in Conditions (DIC) policy, bought separately.
- Additional living expensesNot in the current residential policy, per CDI.
- Some propertiesHomes vacant more than a year, lender-owned property and buildings slated for demolition aren’t eligible.
- The 75-day noticeFAIR Plan cancellations and nonrenewals need only 30 days’ notice in most cases.
The FAIR Plan had 696,562 homeowner and commercial policies in June 2026. The Make It FAIR Act (AB 1680), signed in September 2026, tightens oversight; CDI has pushed for a fuller homeowners option, which isn’t available yet.
the market
Where the market is in 2026
What the state has changed and what it reports.
cdi, 2026premiums
$1,571 average premium
California’s average homeowners premium, against $1,512 nationally, in CDI’s 2026 market snapshot.
- 12 homeowners insurance groups were expanding in California, up from none in 2025.
- Rate filings took an average of 282 days to approve.
since 2024-2025Sustainable Insurance Strategy
Catastrophe models and reinsurance
Insurers can now use wildfire catastrophe models (the first cleared July 24, 2025) and pass through a capped cost of reinsurance.
- In exchange, they commit to writing at least 85% of their statewide market share in wildfire-distressed areas.
- CDI counts 662 distressed ZIP codes; the list is updated each year.
since jan 1, 2026new laws
Claims and grants
SB 495 sped up disaster claims; AB 888 created a state grant program for fire-safe roofs and “Zone Zero” work near homes.
- AB 226 lets the FAIR Plan use catastrophe bonds and credit to keep paying claims.
- SB 429 funds a public wildfire catastrophe model.
signed sept 2026coming next
Nine more insurance laws
Including the Disaster Recovery Reform Act (SB 876), smoke-damage standards (AB 1795) and the Make It FAIR Act (AB 1680).
- Most take effect January 1, 2027 or later.
questions
Questions we hear
When should a buyer start shopping for insurance?
Early. CDI’s tips suggest finishing any mitigation work and starting to shop well before you need the policy; during the inspection contingency is a good time to get quotes.
What is the FAIR Plan?
The insurer of last resort for homes regular insurers won’t cover. Its residential policy is a limited fire policy; a separate Difference in Conditions policy adds water damage, theft and liability.
Does homeowners insurance cover earthquakes or floods?
No. Fire after an earthquake is covered, but earthquake damage needs a separate policy (such as the CEA’s, bought through your insurer) and flood needs a flood policy such as the NFIP’s.
What if my insurer won’t renew?
It must tell you at least 75 days ahead, with the reasons, and point you to the state’s Home Insurance Finder and the FAIR Plan. Ask what mitigation would change the decision, and call CDI at 1-800-927-4357 if you think it’s unjustified.
Do wildfire upgrades lower the premium?
Insurers must offer discounts for the steps on the state’s list. The amount varies by insurer, and the savings start at the next policy period once you show the work.
sources
Sources
State, federal and lender sources behind this page, checked October 2026.
- CDI: California FAIR PlanCalifornia Department of Insurancewww.insurance.ca.gov/01-consumers/200-wrr/California-FAIR-Plan.cfm
- California FAIR Plan AssociationPlan of Operation, edition 9/3/25www.cfpnet.com/
- CDI: Sustainable Insurance StrategyMarket snapshot updated October 7, 2026www.insurance.ca.gov/01-consumers/180-climate-change/Sustainable-Insurance-Strategy.cfm
- CDI: Safer from Wildfires FAQSeptember 2026www.insurance.ca.gov/01-consumers/105-type/95-guides/03-res/upload/FAQ-Safer-from-Wildfire-Regulation.pdf
- CDI: Top Ten Tips for finding residential insuranceConsumer hotline 1-800-927-4357www.insurance.ca.gov/01-consumers/105-type/5-residential/Top10Tips_FindingResidentialIns.cfm
- CDI: Earthquake insurance guideRevised April 25, 2024www.insurance.ca.gov/01-consumers/105-type/95-guides/03-res/eq-ins.cfm
- California Earthquake Authority: homeowners policiesDeductibles and retrofit discountswww.earthquakeauthority.com/california-earthquake-insurance-policies/homeowners
- FEMA FloodSmart: buy a policyNFIP limits and waiting periodwww.floodsmart.gov/get-insured/buy-a-policy
- FEMA: Risk Rating 2.0Updated April 9, 2026www.fema.gov/flood-insurance/risk-rating
- Fannie Mae Selling Guide B7-3-02: property insuranceDated August 5, 2026selling-guide.fanniemae.com/sel/b7-3-02/property-insurance-requirements-one-four-unit-properties
- CDI: 2026 insurance laws signedSeptember 30, 2026www.insurance.ca.gov/0400-news/0100-press-releases/2026/release035-2026.cfm
more to learn
Keep going
- Home insurance for buyersEarthquake, flood, the FAIR Plan and lender rules, in brief.
- Disclosure DecoderEvery document in a California disclosure packet, including the hazard form.
- Mortgage LabPoints, buydowns, ARMs and jumbo limits.
- Build LabADUs, SB 9 homes and lot splits.
- Real Estate CalculatorsPayments, affordability, transfer tax and more.
- Buyer PlaybookFrom pre-approval to keys.
- Seller PlaybookSelling a home, step by step.
General information as of October 2026, not insurance or legal advice. Policies, rates and eligibility depend on the insurer and the property; a licensed agent or broker and your policy documents control.
talk to a property nerd
Buying in a fire or flood zone?
We’ll flag the hazard reports early, point you to the questions to ask insurers and keep your contingency timeline in view. Commissions are negotiable, and we offer bundled services, so ask us what’s included.
