05/28/2026
CA FAIR PLAN EXPECTED TO RAISE RATES 29% ON AVERAGE, BEGINNING OCT 15
The California FAIR Plan — the state’s high-cost, bare-bones fire insurance of last resort — is raising rates 29 percent, on average, starting mid-October. The California Department of Insurance approved that increase just last month. That will be a sharp and expensive premium hike for many homeowners, but the Department says there’s good news to help balance this all out.
Starting October 15 — whenever after that someone’s policy is set to renew — customers will see an average 29 percent increase in their homeowners premium, meaning that some people will see an increase higher than that, and others, lower. Last year, the FAIR Plan asked for a 35.8 percent increase, but the department granted a lower 29 percent increase.
The good news is that the state’s recent insurance reform is bringing insurance companies back to California. 12 insurance companies are responsible for 85% of homeowners policies in the state, and of those, 6 have so far agreed to the Sustainable Insurance Strategy, including CSAA, Mercury, USAA and Farmers, among others. Travelers and AAA SoCal are reviewing rates, along with several other, smaller companies. The reform offers them rate-setting tools they’ve sought for years, in exchange for agreeing to write more policies in higher-wildfire-risk areas.
Now is a good time to call insurance agents because you might have more options.
To read more: https://bit.ly/4v3F4Ki
