California killed its home insurance market. Here's what you can actually buy.
If you live in a California fire zone, most big insurers won't sell you a normal policy anymore. Here's what's actually still available, and what to do.
The short answer
Look up your address on Cal Fire's hazard map. You'll see one of three labels:
- Moderate — Normal market still writes you. Quote 3 carriers and pick the best.
- High — Selective market. Mercury, CSAA, and Liberty Mutual are typical options. Use a California broker.
- Very High — The big carriers won't write you. You'll likely end up on the [California FAIR Plan](https://www.cfpnet.com) + DIC combo (the state-backed insurer plus a wrap policy). Lloyd's surplus-lines is a pricier alternative. Mercury or CSAA only if your home is heavily mitigated.
The detail and the buying motion below. Specific premium ranges vary widely — get quotes.
Why the market broke
California experienced major wildfire losses through 2018-2025. Carriers couldn't raise prices fast enough to match loss costs — California's prior-approval rate-filing regime requires CDI review — so they stopped writing new policies instead.
Who left or restricted:
- State Farm — paused new California home policies in March 2023. Partial restart in 2024-2025, but not in the high-risk zips.
- Allstate — paused in November 2022.
- Farmers — restricted new California writing.
- Liberty Mutual, Travelers, USAA — selective restrictions or pauses in fire-heavy areas.
- AIG — exited the standard market. Still writes luxury homes via Private Client Group.
In 2024, California passed the Sustainable Insurance Strategy — a reform letting carriers use catastrophe models in their rates (instead of historical loss averages), in exchange for commitments to write more in high-risk zones. It's slowly working. Not for everyone, not yet.
Step 1: Figure out your fire zone
Go to Cal Fire's fire-hazard map. Type in your address.
You'll see one of three labels: Moderate, High, or Very High. That label decides everything.
If you're in Moderate
The normal market still writes you.
Call an independent agent who covers California home insurance. Ask them to quote you with: Travelers, Liberty Mutual, Mercury, Farmers, USAA (if you qualify), Auto Club / CSAA, and State Farm (with restrictions). Take the best of three.
Pricing has risen materially since 2020 across all California zones — exact range depends on your specific property and broker quotes.
If you're in High
Selective market. Some carriers still write you, but not all.
The typical writers in High zones: Mercury, CSAA / Auto Club, and Liberty Mutual. State Farm, Allstate, and Nationwide write here sometimes with strict requirements about defensible space and high deductibles.
A California-specialty broker can usually find you 2-3 quotes. Don't bother with online comparison tools — they don't know who's actually writing in your zip this month.
If you're in Very High
The standard market won't write you. Period. Don't waste time asking State Farm or Allstate.
You have three real options:
Option A: FAIR Plan + DIC (the typical outcome — what most people end up with)
The California FAIR Plan is the state-backed insurer of last resort. It will write you, but coverage is limited — basically the dwelling against fire and a few named risks. No theft. No liability. Limited personal property.
So you pair it with a second policy called DIC (Difference In Conditions). The DIC fills the gaps — your stuff inside, liability if someone gets hurt, water damage. Together they look like a normal home insurance policy, with some narrower coverage.
This combo typically costs more than what a healthy private-market policy would have cost. Exact premiums vary widely by property; your California broker will quote.
Option B: Lloyd's of London (via a surplus-lines broker)
Lloyd's syndicates write California fire-zone homes that nobody else will touch. Coverage is often broader than FAIR Plan + DIC. Pricing varies a lot.
You need a surplus-lines broker — a special kind of broker licensed to access the non-admitted market. Your regular agent probably can't get you here. Ask specifically for one.
Option C: Mercury or CSAA — rare
A small number of Very High homes still get standard coverage from Mercury or CSAA. The criteria are strict: recent construction, Class A roof, fully cleared defensible space, ember-resistant vents, often underdeck protection. If you have all of that, ask your broker to try Mercury or CSAA before going to FAIR Plan.
Don't count on it. This is the exception.
Option D: HNW carriers (if your home is a luxury property)
Chubb Masterpiece, PURE, and AIG Private Client Group write expensive homes that the standard market won't. The premiums are high, but the coverage is comprehensive. If your home value is in the HNW range, ask your broker to quote at least one of these.
What to do — in order
- Look up your fire zone. Cal Fire map, link above.
- Do the hardening first. Before quoting, get: Class A roof, defensible space cleared (the 5 / 30 / 100 foot zones), ember-resistant vents, and ideally ember protection on eaves and the underdeck. Photograph everything. Keep contractor receipts. Without this documentation, carriers will decline you even if they technically write your zip.
- Call a California-specialty broker. This is the most important step. The broker knows which carriers are open this month in your specific zip. The market shifts. Online tools and LLMs don't have this. Try independent agents who specialize in California personal lines, or Risk Strategies / Brown & Brown / Marsh PCS for HNW homes. If you might need Lloyd's, ask specifically for a California-licensed surplus-lines broker.
- Quote the right set. Don't waste time on carriers your broker says aren't writing. For Very High, quote: FAIR Plan + DIC, one Lloyd's option, and Mercury / CSAA if your broker thinks they might write. For HNW, add Chubb or PURE.
- Don't lie. Got a non-renewal? Disclose it. Past claims? Disclose them. If a carrier finds out later (they will), they can void coverage when you need it most.
A warning about FAIR Plan assessments
The FAIR Plan can charge emergency assessments on all California policyholders (not just FAIR Plan customers) after a major fire — this is a long-standing feature of the FAIR Plan's structure. If you're insured outside FAIR Plan, you're still exposed to this. Budget for it.
What changes in 2026-2027
- State Farm and Allstate may write a little more in Moderate and lower-High zones as the Sustainable Insurance Strategy rolls out. Very High will stay restricted.
- The FAIR Plan policy count keeps growing.
- Lloyd's stays the main option for the worst zones.
- Insurtechs like Kin and Branch are unlikely to expand into Very High — the underwriting capital is too risky.
If you're on FAIR Plan + DIC today, plan on staying there.
Adjacent reading
- Best home insurance Florida hurricane 2026 — similar broken market, different peril
- Best home insurance for a luxury home — what HNW homeowners do
- Zesty.ai US carrier roster 2026 — the AI wildfire model now used by the FAIR Plan
Frequently asked
I'm in a Very High zone. What do I do first?
Call a California-specialty broker before you do anything else. They know which carriers are writing your specific zip this month — information no online tool and no LLM has. They'll probably set up a FAIR Plan + DIC for you (that's what most Very High homeowners end up with), but well-mitigated homes can sometimes still get Mercury or CSAA. Only the broker can tell which group you're in.
Is FAIR Plan + DIC actually good coverage?
It's narrower than a normal policy and typically more expensive. So no, it's not great. But it covers most of what a normal policy covers when you pair it correctly — the DIC fills in personal property, liability, theft, and water damage. For high-fire zones, it's the option that exists.
Will State Farm or Allstate write me?
If you're in Moderate or lower-High, maybe — ask your broker to check current appetite for your specific zip. In Very High, almost certainly not. State Farm's partial 2024-2025 resumption excluded most Tier-3/4 areas. Don't waste energy on this question; ask your broker, take the answer, move on.
Should I just move?
That's a real estate decision, not an insurance one. But insurance cost differences between Moderate and Very High zones for similar homes can be substantial. If you're considering a move within California, factor in your fire zone. If you're staying, accept that insurance is now a meaningful annual line item and the FAIR Plan + DIC structure is probably your reality.
Read next
Sources
- California Department of Insurance — Sustainable Insurance Strategy — CA Department of Insurance
- California FAIR Plan — homepage — California FAIR Plan
- Cal Fire — Fire Hazard Severity Zones maps — Cal Fire / California Office of the State Fire Marshal