California Insurance Crisis: What Homeowners Must Do Now

Short answer: What changed and what to do now

California's private property insurance market is under stress because of large climate losses and insurer withdrawals. Insurers are cancelling or not renewing policies and raising prices. Act now: harden your home, document your property, and shop for coverage with papers ready. This article gives a 5-step checklist and a 30/60/90-day plan.

Why this is happening

Fires, floods, and extreme weather have caused big insurer losses. Regulators and lawmakers are trying fixes, but market shifts are fast. Read reporting and context in Imagining a post-insurance world to see how leaders are thinking about the private market.

5-step checklist to protect your coverage (do these in 30 days)

1. Confirm your status: Call your insurer and ask if your policy is at risk or nonrenewed. Note the nonrenewal date.
2. Get clear documentation: Take dated photos of your home, roof, yard, and meters. Save receipts for recent repairs.
3. Start home hardening: Clear 5 feet of debris from roofs and gutters, remove dry brush near the house, and install spark arrestors on chimneys.
4. Ask about discounts and grants: Call your insurer and county to ask about home hardening grants and premium credits.
5. Prepare to shop: Get a replacement-cost estimate and loss history. Find a broker experienced with high-risk areas.

30/60/90-day plan

• 30 days: Complete checklist tasks and call your insurer. If you get a nonrenewal, file an appeal and start shopping immediately.
• 60 days: Finish larger mitigation like gutter covers, ember-resistant vents, and a defensible space. Apply for local mitigation grants.
• 90 days: Shop policies, compare private options and the California FAIR Plan, and gather proof of mitigation to show insurers.

How to shop and what to compare

Compare premium, deductible, wildfire coverage limits, policy conditions for repairs, and cancellation rules. The California Department of Insurance has consumer guides. The FAIR plan is a last-resort option and may lack full protections—compare carefully.

Quick script to call or email your insurer

Hi, my name is [Name]. My policy number is [Policy#]. I received a notice of nonrenewal and need the reason and the effective date. I have completed these mitigation steps: [list]. Please tell me what documentation you need to keep coverage or to appeal. Thank you.

Mitigation ROI snapshot

Action	Typical cost	What it can do
Clear roof and gutters	$100–$300	Lower ember ignition risk; possible small premium credit
Ember-resistant vents	$200–$800	Reduce claim risk; helps insurability in high-risk zones
Defensible space (yard work)	$0–$2,000	Significant reduction in loss probability

Policy options and appeals

If your private insurer cancels, you can seek the California FAIR Plan or other carriers. File an appeal with your insurer and contact the Department of Insurance for help with unfair nonrenewals. Keep clear records of all communications.

County risks and local help

Wildfire risk varies by county. Check CAL FIRE for maps and local defensible-space rules. Ask your county about home hardening grants through the Office of the State Fire Marshal at osfm.fire.ca.gov/grants/.

Trend insight and citizen action

Trend: More insurers are using stricter underwriting and leaving some counties. That raises nonrenewal risk for many homeowners. Citizen action: Contact your state representative and the Department of Insurance to request incentives for mitigation and affordable reinsurance programs.

Final steps

Act fast. Make a short list, harden your home, document everything, and start shopping early. Use the links above to get help. For deeper reporting, see the POLITICO piece.

Resources

• California Department of Insurance
• California FAIR Plan
• CAL FIRE
• Office of the State Fire Marshal grants