7 of 12 top insurers leaving. $51.7B in fire damage. 30 years of suppressed pricing coming due.
Carriers Leaving
7+
Of top 12 insurers
Quote Declines
52%
In CA vs 26% national
Nonrenewals
100K+
Policies dropped
Coverage Cut
-20%
Statewide options
The Insurance Exodus
Major insurers that have stopped or restricted California coverage
State FarmNo new policies since May 2023
Largest insurer in CA. 2.8M policies. $7.6B in LA fire payouts. S&P downgraded from A+ to A-. Requested 17% + 11% rate hikes.
AllstatePaused new home/condo policies
Cited wildfire risk and reinsurance costs. Working with Commissioner on potential return under new catastrophe models.
FarmersPulled back, partially returning
Reduced new policies significantly. Reopened condo and renter markets. Still limiting homeowner policies in high-risk areas.
AIGRestricted coverage
Major pullback from high-risk zones. Focused on commercial lines. Residential exposure being reduced.
ChubbRestricted coverage
Reduced wildfire-zone exposure. Focusing on high-value properties with mitigation measures in place.
Hartford / Tokio MarineStopped writing new policies
Complete withdrawal from new California homeowner policies. Existing policies being maintained for now.
Seven of the top twelve carriers have halted, restricted, or refused renewals. Quote declinations jumped from 14.6% to 52.3% in under a year -- double the national average. Over 1.5 million homeowners now have limited options in the voluntary market.
Policy Nonrenewals by County
Residential policies nonrenewed, 2020-2023
LA County alone had 56,558 nonrenewed policies from 2020-2023 -- 22% of the state total. Wildfire-prone ZIP codes like 95033 in the Santa Cruz Mountains saw nonrenewal rates above 65%, even for homeowners who fire-hardened their properties.
Sources: EIA, CAISO, CA Energy Commission, CPUC, CA Legislative Analyst, NRC, AAA, GasBuddy, Tax Foundation, MIT/Stanford, Kpler, Bloomberg, Reuters, CalMatters, UC Davis. March 2026.