In this blog post I am sharing a few industry insights regarding the California property insurance market that consumers may not be aware of unless they are currently shopping for coverage.
Market History
At the end of 2023, the property insurance market struggled due to COVID-era rate restrictions imposed by the Department of Insurance. Many insurers limited new policies as premiums fell behind rising rebuild costs and inflation. In early 2024, State Farm began non-renewing policies in California, creating a domino effect that prompted the Department of Insurance to finally approve long-delayed rate changes. While the market was expected to stabilize in 2025, the January 2025 Altadena fires in Southern California created further challenges for this recovering marketplace.
Pricing
Before 2020, high competition led to exceptionally low rates. However, post-COVID inflation and the cessation of rate increases changed the landscape. Today, the average annual premium for a home 20 years or newer in California is approximately $1,600, with higher rates for older homes and landlord policies.
Underwriting
Underwriting is the process used to determine if a home qualifies for a specific program. Prior to 2020, many insurers prioritized market share over strict property maintenance. Today, insurers have returned to rigorous enforcement of these standards. Most companies now require shingle roofs to be less than 20 years old and expect homes to demonstrate clear pride of ownership before offering a quote.
The Outlook for 2026 and Beyond
Insurance carriers that previously paused operations have begun to reopen, primarily through trusted insurance agencies. Many agencies that failed to meet carrier requirements have been removed from rosters, clearing the path for professional agencies to better serve and protect consumers.
In this evolving market, you should expect to receive advice focused on coverage quality. Be cautious of agents who speak solely on pricing, as prioritizing low costs over adequate protection was a significant factor in many insurers struggling during the recent California Insurance Crisis.
How TCS Insurance Brokers Can Help
We are committed to providing logical solutions and only recommend new policies if they genuinely improve your situation. As one of the few California agencies with direct contracts with top insurers currently active in the market, we offer unique insights to keep you ahead of industry changes. We also look beyond basic quotes to identify coverage enhancements that are critical during a claim.
If you are interested in a new policy, please submit a request on our “Get A Quote” page. To compare your current coverage against available options, you can email or text us a copy of your unaltered declaration pages. We will review them and provide honest feedback and advice.
Thank you for visiting our website.
Blog post written by Domingo Ramos, CA Lic. 0F53636, National Producer Number 9071660
Want us to help you with Home Insurance?
No obligation to buy, complete a formal quote request on the page link below and I or one of my amazing licensed brokers will reach out.
- About Us
- Auto Insurance
- Auto Insurance Instant Quote
- Auto Personal Insurance Quote
- Blog
- Business Insurance
- Business Owners Insurance Quote
- Collector Vehicle Insurance Quote
- Commercial Auto Insurance Quote
- Consumer Privacy Policy
- Contact
- Contractor Insurance Quote
- Cyber Liability Insurance Quote
- Event Insurance
- Get a quote
- Health Insurance Quote
- Home Insurance
- Home Insurance Quote
- Landlord Insurance Quote
- Life Insurance Quote
- Mexico Tourist Auto Insurance Quote
- Mobile Home Insurance Quote
- Mobile, Modular, Manufactured Home Insurance Quote
- Pay Portal
- Renters Insurance Quote
- Renters Insurance via Set Up Service
- Workers Compensation Quote
