Hve you noticed that Nationwide is no longer “by your side.” Peyton Manning is now Paintin Manning but not in California. In fact, many national insurance companies have stopped writing policies in California. USAA, Amica, Allstate, Farmers Insurance Group, Nationwide and State Farm have already left or started to limit coverage for California homeowners in the last two years. California homeowners now have fewer options for homeowners’ insurance than the rest of the country due to insurers pulling out of the state since 2023.

In 2025, California’s homeowners’ insurance environment is knee deep in claims and concerns. Premiums are higher due to natural disasters like earthquakes, floods, and mudslides. The catastrophic Los Angeles fires of 2025 have highlighted the need for ‘comprehensive’ insurance policies. In addition, insurers now use wildfire catastrophe modeling to assess risk, and factor higher rates for these areas.

I had a conversation with local insurance expert, Rick Divel with Divel Insurance Agency in San Clemente. He shared with me there is new competition for primary carriers fromout of state that will underwrite your home but do have higher policy fees and charges.

Another option is the FAIR Plan (Fair Access to Insurance Requirements) program that includes all licensed property and casualty insurers in California who participate in providing insurance to homeowners who cannot find it elsewhere. Plus, the California FAIR Plan, funded by the state will cover high risk properties, however it lacks special endorsements and provides limited coverage for personal loss, requiring DIC (difference in conditions) for secondary coverage.

California’s governor has declared a state of emergency which includes a one-year moratorium on insurance cancellations plus non-renewals for affected areas. This is to create stability and prevent further hardships for the residents by prohibiting them from dropping or refusing to renew policies for homeowners that include condo units, mobile and manufactured homes and renters of these properties. The California insurance commissioner has also asked for an extension or grace period on the requirement to continue paying premiums while seeking resources to recover and rebuild.

For more info: www.insurance.ca.gov/01-consumers/140-catastrophes/MandatoryOneYearMoratoriumNonRenewals.cfm.

When time comes and you need to file a claim on your insurance, it is important to understand a few things. If the cost of repair is slightly above your deductible, then you should consider paying out of pocket. The reason is that filing an insurance claim can often result in the loss of claim-free discounts which could increase your insurance premium by 12-15%. If the cost of repair is above $5,000 then it makes sense to submit the claim and only pay your deductible out of pocket. Many people are reluctant to file a claim with their insurance because of the cost increase that will 

take place.

Review your homeowners’ declaration page to understand what your coverage includes and their respective limits. Pay particular attention to section one property coverages: 

Dwelling, other structures, personal property and loss of use amounts. Dwelling coverage can range from 100% to 150% of property value. 

Make sure that your coverage amounts are in line with the “replacement value” and note that replacement costs are typically 25% higher due to the work required for clearing and rebuilding after a disaster.  Insurance carriers will only replace in like, kind and quality, they don’t replace what the home was worth on the selling market.  It’s important to check for ‘extended replacement’ cost, anywhere from 25-50% on the policy giving the added protection if replacement costs go over the initial dwelling A coverage.  . Additionally, verify mold coverage and that your personal property coverage is adequate, especially if you possess valuable items that are not insured separately.

If your current homeowner’s insurance carrier is one of the companies that has pulled out of California, you might want to create a new relationship with a reputable insurance broker. Brokers have access to all insurance companies that will write policies in California and can help you determine which policy and carrier is the best for you.

I hope you find this information valuable during a time of change and increasing costs everywhere. If you need a referral to a trusted advisor in any of these areas, please let me know. I only work with the best throughout California and am happy to assist. Feel free to share this information with someone who might find it valuable.