California homeowners insurance has become more expensive mainly because of wildfire losses, rising rebuilding costs, and fewer carriers writing new policies.
Major wildfires over the past decade led to billions of dollars in claims. At the same time, construction and labor costs climbed, so it costs more to rebuild a home, and reinsurance costs went up for insurers. Several large carriers stopped writing new homeowners policies or reduced how many they keep, which pushed more homeowners to the California FAIR Plan. The state has been rolling out reforms meant to bring carriers back, but premiums have been rising in the meantime.
To keep your premium down:
- Complete wildfire mitigation steps and send proof to your agent. California requires insurers to offer discounts for qualifying mitigation.
- Bundle home and auto with the same carrier.
- Consider a higher deductible.
- Keep your roof, electrical, and plumbing updated and save the receipts and permits.
- Have an independent agent compare several carriers at each renewal.
Questions about your own policy? Elye Insurance in Mission Viejo helps homeowners and drivers across California and Nevada compare options from multiple carriers.
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