# New Insurance Startups and Alternatives in California: Tech-Based Solutions for a Challenging Market > Source: https://www.coveragecat.com/insurance-types/home/california-homeowners-insurance-startups > Description: California's home insurance crisis has brought several newcomers into the market, including startups working to change insurance. Should you try these options? > Updated: 2026-08-13 ## **The California Insurance Crisis** California's insurance market is in turmoil, with many traditional insurers pulling back from high-risk areas, particularly those prone to wildfires. This retreat has left many homeowners struggling to find affordable coverage, with some being forced into the California FAIR Plan. In response to the [California homeowners insurance crisis](https://www.coveragecat.com/blog/between-the-fault-and-the-flames-californias-home-insurance-market), several insurance startups have emerged, leveraging technology to offer new solutions. Tech-based insurers still writing policies in California's high-risk areas, or have they followed traditional insurers in retreating from the market? - - - ### Market Context The January 2025 Palisades and Eaton fires generated $37.5 billion in insured losses, prompting exits and caps on new business. One year later, insurers have paid more than $22.4 billion on tens of thousands of claims. As a result, surplus-line policies and the FAIR Plan surged, leaving many homeowners hunting for alternatives. ## Tech-Based Insurance Companies (Insurtech Carriers) ## Hippo Insurance Founded in 2015 in Mountain View, California, Hippo pioneered a tech-enabled approach to home insurance. The company launched in California in early 2017 with the goal of providing "smart home insurance for the modern household." Hippo uses data science and technology to streamline insurance purchases and underwriting review. . ### Current California Status: Hippo has pulled back in California, and as of 2025 is not accepting new customers for most policies. Instead, they're matching potential customers with third-party insurance partners - including some of the other insurtech carriers on this list! ## **Lemonade Insurance** Lemonade entered the renters insurance market with a goal of disrupting the traditional insurance industry using AI and behavioral economics. The company offers homeowners, condo, renters, pet, life, and car insurance policies throughout the U.S., but not every policy type is available in every state. ### Current California Status: Lemonade continues to operate in California selling new condo, homeowners, renters, life and pet policies, though they have pulled back or introduced limitations in high-risk fire zones. ## **Delos Insurance** Delos Insurance was founded in San Francisco in 2017 specifically to address wildfire risk in California. The company uses advanced technology, artificial intelligence, and NASA Earth-observation imagery to assess wildfire risk more precisely than traditional insurers. ### Current California Status: Delos is one of the few companies actively writing new homeowners, landlord, and vacant home policies in California, including in some higher-risk areas. They're backed by Homesite Insurance Company and Lloyd's of London, both A-rated carriers. Their specialized wildfire modeling allows them to offer coverage where other companies cannot. ### **Bamboo Insurance** Bamboo Insurance is a new MGA working exclusively in California homeowners insurance and providing both admitted and non-admitted policies, including Difference in Conditions policies, founded to provide an "easy and innovative insurance experience." Bamboo is a subsidiary of White Mountains Insurance Group, Ltd., and issues policies underwritten by Sutton Specialty Insurance Company and Sutton National Insurance Company. ### Current California Status: Bamboo continues to write policies in California, including some higher-risk areas. They offer coverage for primary homes, secondary and seasonal properties as well as coverage for rental properties. ## **Steadily** Steadily is a newer company focused on landlord insurance, offering policies for rental property owners, including non-admitted landlord coverage in California. They provide an easy online experience and competitive rates. ### Current California Status: Steadily continues to write policies in California, but does limit coverage in high-risk wildfire zones. Steadily's coverage extends to short-term rentals (such as those listed on Airbnb and VRBO) and properties with joint owner and rental exposures. ## **Obie Insurance** Founded in 2017, Obie specializes in insurance for landlords and real estate investors. They offer a streamlined online experience for getting quotes and purchasing policies. ### Current California Status: Obie is actively writing policies in California, even in some areas considered higher risk. They offer a "Risk Map" tool that allows property owners to assess various risks, including wildfire, for specific addresses. ## **Lightspeed Specialty** Lightspeed is a brand new managing general agency (MGA) working to address the California home insurance crisis. Founded in 2024 - it offers homeowners, landlord, and even condo policies. ### Current California Status: While other insurers have left the state, Lightspeed is offering coverage to homeowners and landlords in some fire-risk areas with a range of customizable options. - - - | Company | Status in CA | Why It Matters | Redditor Reviews | | ------------------------ | ------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------ | | **Hippo Insurance** | Limited new business | Hippo's combined ratio for 2025 was 113.1, and Hippo's site now directs Californians to partner carriers rather than writing directly in high-risk ZIPs. | "Hippo sucks… switched away after drop." | | **Lemonade** | Selective underwriting | Continues writing in CA but applies stricter wildfire-zone screens. Their AI model flags many high-risk addresses, leading to non-renewals or higher rates in exposed areas ([(Bloomberg, "As California Fires Rage, One Insurer Uses AI for Coverage")](https://www.bloomberg.com/news/articles/2024-07-24/as-california-wildfires-rage-one-insurer-taps-ai-for-coverage)). | "Lemonade dropped us despite no local fires." | | **Delos Insurance** | Actively writing in California, including some high-risk fire zones | Uses satellite imagery and AI for precise fire-risk modeling. Backed by Lloyd's and Homesite, Delos still quotes in ZIPs where others balk, leveraging proprietary catastrophe science ([(PR Newswire, "Delos Insurance Solutions statement on California wildfires")](https://www.prnewswire.com/news-releases/delos-insurance-solutions-statement-on-california-wildfires-302347359.html)). | "I got a Delos quote when everyone else said no." | | **Bamboo Insurance** | Writing in many ZIPs | Underwritten by Sutton Specialty and Sutton National, Bamboo offers homeowners and rental-property policies, including some wildfire-exposed areas—though agents call for caution until claims history emerges . | "Mixed reviews—good service, but wait on real claims." | | **Steadily** | Landlord focus | Targets rental properties, short-term rentals (Airbnbs) and multi-unit homes. Their digital platform admits California business broadly but limits single-family wildfire risks ([(Insurance Journal, "Will California's FAIR Plan Have Enough Cash for Its Wildfire Claims?", 2025)](https://www.insurancejournal.com/news/west/2025/01/16/808564.htm)). | "Works well for our four rentals—no surprises yet." | | **Obie Insurance** | Investor-oriented | Specializes in real-estate portfolios. Offers a Risk Map tool to assess fire exposure per address. Some investors report large savings switching from legacy carriers ([(Insurance Business America, "Hippo grows revenue but faces wildfire impact in Q1")](https://www.insurancebusinessmag.com/us/news/property/hippo-grows-revenue-but-faces-wildfire-impact-in-q1-535019.aspx)). | "Saved $1,500/year for four houses—higher hail deductibles." | | **Lightspeed Specialty** | MGA for low-risk fire zones | Focuses on excess markets in lower fire-risk pockets, providing tailor-made packages. Limited footprint where wildfire threat is acute ([(Insurance Journal, "Insurtechs' Approach to Wildfire Insurance: Part I – Delos", 2025)](https://www.insurancejournal.com/news/national/2025/01/21/808848.htm)). | "Good option if you aren't on the red-hot perimeter." | | **California FAIR Plan** | Last-resort option | Covers fire perils only, although "wraparound" Difference in Conditions policies are available - often at higher cost. Lacks liability, theft, and water damage. | "FAIR Plan is expensive and partial—better than nothing." | - - - ### Why These Alternatives Matter 1. **Broader Access:** Startups like Delos and Bamboo still write where other insurers won't. 2. **Tech-Powered Risk Models:** Satellite imagery and AI let Delos price risk more granularly, sometimes enabling coverage in ZIPs excluded by legacy carriers. 3. **Mixed Longevity:** Many venture-backed insurtechs faced high loss ratios in 2025; their California appetites may ebb further as wildfire claims mount. 4. **Surplus-Line & MGAs:** Lightspeed and Steadily leverage surplus markets or MGAs to fill specific niches, but may lack certain protections such as being backed by the California Guaranty Fund. - - - ### Tips for Homeowners * **Quote Early:** Alternatives can fill gaps only while they have capacity—start 90 days before renewal. * **Use a Broker:** An independent broker like Coverage Cat scans admitted, surplus, and niche markets to find the best fit. For homeowners in the Bay Area, specialized local expertise like [home insurance in Fremont](https://www.coveragecat.com/blog/fremont-home-insurance) can help identify regional options. * **Ask About Endorsements:** Fire-hardening discounts and catastrophe deductibles vary greatly. Review endorsements to ensure you're getting the best protection and price. Coverage Cat offers [expert solutions for California homeowners](https://www.coveragecat.com/blog/expert-solutions-for-california-homeowners-facing-the-insurance-crisis) navigating these challenges. - - -