While wildfires are certainly an exacerbating issue, the departure of insurance companies from the California residential market has been forecast for some time. A quote from the article:

"After the California state legislature failed during the recently concluded 2023 session to adopt modifications to state insurance guidelines geared to keeping insurance companies in the state, Ricardo Lara, state Insurance Commissioner, promised to review them and issue new guidelines by late 2024 or early 2025.

Since the passage of Proposition 103 by California voters in 1988, insurance companies have had to seek approval from the state Department of Insurance for rate increases and can only use historical data — not current circumstances nor future predictions such as climate-change studies —on which to base their rates."

The State Insurance Commissioners run on a platform of squeezing insurance rates. Now the Commissioner is saying in effect, "We're sorry, please come back. Despite our Legislature being unwilling to provide you relief, and Proposition 103 still being on the books, don't worry, we'll have new 'guidelines' out in 2025, we hope."

I was hit with a policy increase recently and had a long talk with my agent. It doesn't matter what your zip code is, or the value of your property, or the square footage. They are not writing new policies in California, end of sentence. Current customers won't be cancelled, but can be taken to the cleaners with a price hike because they are the only revenue resource. Before a person buys a property anywhere in California they would be wise to consult an insurance agent and get a quote in writing if they actually propose one. I'm really surprised this article hasn't generated more comments. It is a game changer for all of those hopefuls cashing out on their investment, so they probably don't want this to be publicized because it could affect sales. Plus the hopeful seller will have to pay the insurance bill if it comes due before the sale. They're probably hoping to stick it to the buyer.

For many the Fair Plan is the only option. My property was dropped from the traditional insurance plan. There is no way around this, the insurer has rights. Home building in our area is extremely expensive, and an older home is often built to extremely high specifications and materials that are not easily replaced. The challenge has been the relationship between government and the home owner. There is no easy way to explain the behavior of well wishers in government who look at an area and unilaterally decide every tree should be 'protected' without considering the consequences of that policy to human life. If you visit Big Basin you can see the effects of the fire. There are no human structures left standing. The climb out of the park on a bike is dramatic. There are vistas of 20 mile views right to the ocean, that only a few years ago were dense forests. The power of wild fire is beyond comprehension if you are responsible for addressing the fire in real terms. From my perspective, the cost of insurance increases are simply the cost of doing business and living in California. It is a fair response to a very clear reality.