# Nonrenewal of California Home Insurance Policies due to Wildfire Risk > Source: https://www.coveragecat.com/insurance-types/home/ca-nonrenewals-due-to-wildfire-risk > Description: Thousands of Californians in wildfire-prone areas have been non-renewed as insurers cut back exposure - what can California homeowners do? > Updated: 2026-08-13 Thousands of Californians living in wildfire-prone areas are facing a disturbing reality: receiving letters from their insurance companies stating that their home insurance policies will not be renewed. This growing crisis has left many homeowners scrambling to find new coverage, often at significantly higher rates, or in some cases, unable to find coverage at all. - - - ### The Scope of the Crisis * **Over 4 million homeowners protected by moratoriums since 2019.** California's one-year moratorium law has protected more than 4 million homeowners from non-renewals in declared wildfire areas ([California Department of Insurance](https://www.insurance.ca.gov/0400-news/0100-press-releases/2025/release077-2025.cfm)). * **State Farm cut 72,000 policies in 2024.** In March 2024, State Farm announced it would non-renew approximately 30,000 homeowners and other property policies, plus 42,000 commercial apartment policies ([State Farm](https://newsroom.statefarm.com/update-on-california/)). * **Pacific Palisades hit hard.** In March 2024, State Farm non-renewed more than 1,600 policies in Pacific Palisades [(ABC7, "State Farm home insurance cancellations in Southern California: Here's a list of zip codes impacted by non-renewal plan", 2024)](https://abc7.com/post/state-farm-home-insurance-cancellations-in-southern-california-heres-a-list-of-zip-codes-impacted-by-non-renewal-plan/14642538/). - - - ### Why Insurers Are Pulling Back 1. **Escalating wildfire losses.** Insurance claims from the January 2025 Los Angeles wildfires reached $22.4 billion as of early 2026 ([California Department of Insurance](https://www.insurance.ca.gov/0400-news/0100-press-releases/2026/release001-2026.cfm)). 2. **Rising reconstruction costs.** Building materials and labor surged over 40% since 2019, outpacing rate-approval timelines under Proposition 103 ([(AP News, "California will soon require insurers to increase home coverage in wildfire-prone areas")](https://apnews.com/article/56486f80c0f5f5e63b90db06d230f1d1)). 3. **Challenging reinsurance market.** Global catastrophe reinsurers hiked premiums, but California only recently gained authority to pass these costs to policyholders ([(Wired, "As Wildfires Rage, California's Insurance Market Is in Crisis")](https://www.wired.com/story/fire-insurance-wildfires-california-state-farm-allstate-liberty-mutual)). 4. **Climate change.** More frequent "once-in-a-generation" wildfires are now the norm, undermining traditional loss models . For a deeper look at how [California's unique regulatory environment and geology](https://www.coveragecat.com/blog/between-the-fault-and-the-flames-californias-home-insurance-market) shape this crisis, see our analysis of the state's insurance market challenges. - - - ### Impact on Homeowners > "After 28 years with AAA, my policy was canceled when they decided any home within 1,000 feet of brush was 'unacceptable risk.' No claims, no warning—just a letter." — Reddit user ([(AP News, "California will soon require insurers to increase home coverage in wildfire-prone areas")](https://apnews.com/article/56486f80c0f5f5e63b90db06d230f1d1)) The consequences for homeowners receiving non-renewal notices are significant: * **Limited Options**: Many find themselves with only surplus-line insurers or the FAIR Plan, both with higher premiums and fewer consumer protections ([(AP News, "California will soon require insurers to increase home coverage in wildfire-prone areas")](https://apnews.com/article/56486f80c0f5f5e63b90db06d230f1d1)). * **Higher Premiums**: Those who secure new coverage report premium increases of 50–300%—sometimes facing $10,000+ annual costs. * **FAIR Plan Reliance**: Many are forced to turn to California's FAIR Plan, the state's insurer of last resort * **Financial Strain**: Some homeowners report seeing their insurance costs jump from a few thousand dollars to $10,000 or more annually * **Property Value Concerns**: In difficult to insure ZIP codes, buyers hesitate when insurance becomes unaffordable or unavailable. - - - ### What California Is Doing * **One-Year Moratoriums.** After a wildfire emergency, insurers cannot cancel or non-renew policies for one year in affected ZIP codes, protecting all residential policyholders who suffer less than a total loss ([California Department of Insurance](https://www.insurance.ca.gov/01-consumers/140-catastrophes/MandatoryOneYearMoratoriumNonRenewals.cfm)). * **Expanded Moratorium Protections.** Effective January 1, 2026, the Business Insurance Protection Act (SB 547) extended one-year moratorium protections to businesses, homeowners' associations, condominiums, affordable housing units, and nonprofits ([California Department of Insurance](https://www.insurance.ca.gov/0400-news/0100-press-releases/2025/release079-2025.cfm)). * **Market-Share Mandate.** Insurers that use catastrophe modeling or reinsurance costs in rate filings must write at least 85% of their statewide market share in wildfire-distressed areas ([California Department of Insurance](https://www.insurance.ca.gov/0400-news/0100-press-releases/2025/release052-2025.cfm)). * **Mitigation Incentives.** Discounts now required for home-hardening measures like defensible space and ember-resistant vents. - - - ### Tips for Homeowners 1. **Act fast.** You typically have 45–75 days after a non-renewal notice to secure new coverage. 2. **Shop broadly.** Independent brokers can tap carriers still writing in your ZIP code—don't wait for the last minute. 3. **Consider home-hardening.** Investments in wildfire mitigation may unlock rate credits and broaden insurer appetite. 4. **Use FAIR Plan wisely.** As a last resort, the FAIR Plan offers fire-only coverage; wrap it with excess-liability or theft policies to fill gaps. 5. **Understand your rights.** If you believe a non-renewal violates moratorium rules or notice requirements, file a complaint with the California Department of Insurance. Navigating this turbulent market demands an expert advocate. **[Coverage Cat](https://www.coveragecat.com/)** specializes in multi-carrier searches, moratorium and FAIR Plan strategies, and mitigation-credit guidance helping Californians stay covered when others get dropped. For specific [expert solutions tailored to California homeowners facing the insurance crisis](https://www.coveragecat.com/blog/expert-solutions-for-california-homeowners-facing-the-insurance-crisis), our team can help you explore all available options. - - -