Understanding New California Insurance Trends

With further capital wear and tear as a result of the wildfires, additional downgrades could follow. If that were to occur, clients with a mortgage might not be able to use SFG insurance coverage on the security backing for their home loan. SFG insures high concentrations of threat in California that could produce monetary losses several times larger than the business's current surplus.

Harmony SoCal Insurance

Insurance coverage will cost more for customers in California going forward due to the fact that the threat is greater in California. Over the last nine years, the lack of positioning between rate and threat means that for every $1.00 gathered in premium, SFG paid $1.26, resulting in over $5 billion in cumulative underwriting losses.

Harmony SoCal Insurance

If you attempted to purchase or restore home insurance coverage in California over the last couple of years, you most likely encountered the very same wall a great deal of homeowners did: your routine insurance company non-renewed you, a new carrier wouldn't quote your postal code at all, and you wound up on the state's FAIR Strategy typically paying more for less coverage than a basic policy would provide you.

Harmony SoCal Insurance

Here's where things in fact stand in 2026, and what it indicates if you're currently on the FAIR Strategy or were declined previously. Back-to-back wildfire seasons, topped by the Palisades and Eaton fires in January 2025, removed 10s of billions of dollars in insured worth in a matter of weeks.