# "Maybe I Should Leave California" – The Growing Insurance Crisis in the Golden State > Source: https://www.coveragecat.com/insurance-types/home/homeowners-leaving-california-insurance-crisis > Description: Frustrated homeowner may be considering leaving California due to insurance crisis. While not the sole reason, the difficulty and expense of insuring a home in California has become part of the calculus for some residents. > Updated: 2026-08-13 California has long been celebrated for its beautiful landscapes, ideal climate, and economic opportunities. However, in recent years, a growing number of residents have found themselves contemplating an exodus from the state – not just because of the high cost of living or tax rates, but increasingly due to the mounting challenges of securing affordable home insurance in [California's volatile home insurance market](https://www.coveragecat.com/blog/between-the-fault-and-the-flames-californias-home-insurance-market). Across Reddit communities like r/California, r/Insurance, r/personalfinance, and various city-specific subreddits, homeowners are sharing their frustrations and concerns about the state's deteriorating insurance market. --- ## Skyrocketing Premiums > "My home insurance jumped from \$2,800 to \$7,200 this year for the exact same coverage. No claims, no changes to the property. When I shopped around, other companies wanted \$9,000+." > — u/FrustratedCalifornian on r/personalfinance * **State Farm**, California's single largest property insurer, received approval for a **17% average rate increase** on homeowners policies in mid-2025 following the devastating Los Angeles wildfires. * Since 2023, home insurance costs in California have risen **16.1%**, with projections for another **16% rise** by the end of 2026. * The California FAIR Plan saw enrollment jump **43%** between September 2024 and December 2025. --- ## Non-Renewals and Coverage Pullbacks > "After 14 years with the same insurer and zero claims, we got a non-renewal notice — pullout of our entire zip code due to wildfire risk. We finally found one company willing to insure us at 4× the rate." > — u/NoClaimsYet on r/Insurance * As part of a settlement reached in early 2026, State Farm agreed to halt mass non-renewals of homeowner policies through 2026. Questions remain about [whether State Farm dropped California homeowners before the wildfires](https://www.coveragecat.com/blog/did-state-farm-drop-california-homeowners-before-wildfires) or in response to the disaster. * **Allstate** has stopped selling new home insurance policies in California, and some existing policies have been non-renewed, though the company still operates in the state. * Many homeowners report being forced into the FAIR Plan plus an expensive "wrap" policy just to stay covered. --- ## The FAIR Plan Frustration > "The FAIR Plan only covers fire, then you need a separate 'wrap' for everything else. Together they cost us \$6,300 for less coverage than our old \$2,200 policy." > — u/WrappedAndWorried on r/homeowners * The **California FAIR Plan Association** serves as insurer of last resort, with enrollment hitting **555,868 policies** in March 2025 and average annual premiums around **$1,571**. * The FAIR Plan has requested an average rate increase of **35.8%** for 2026, driven by wildfire catastrophe modeling now permitted under new state regulations. * Total exposure has risen dramatically, reaching hundreds of billions of dollars following the $40 billion LA fire that destroyed 12,000 homes. --- ## Insurance as the Final Straw > "Taxes and housing costs annoyed us for years, but when our insurance premium doubled again this renewal…that was it. We already put a deposit on a house in Reno." > — u/MovingOnUp on r/California For many, insurance isn't the sole motivator — but it's the last in a chain of cost shocks that makes the move feel inevitable. Homeowners looking to stay have turned to [expert solutions for navigating the California insurance crisis](https://www.coveragecat.com/blog/expert-solutions-for-california-homeowners-facing-the-insurance-crisis) before making the decision to leave. --- ## Where Californians Are Relocating Reddit threads highlight five popular destinations when insurance drives the move: 1. **Arizona**: "Now paying one-third the premium for a larger house in Phoenix." 2. **Nevada**: "Las Vegas rates run \$1,100 vs. \$4,500+ back home." 3. **Idaho**: "Boise's premiums sealed the deal — similar climate without the insurance nightmare." 4. **Texas**: "Austin still runs 40% cheaper on coverage than our smaller SoCal home." 5. **Oregon/Washington**: "Portland rates dropped by over 50%, with broader coverage." --- ## Not Just Insurance > "Moving to Colorado for insurance relief? Think again — wildfire zones there face the same pullbacks." > — u/GreenGrassMyth on r/Insurance Redditors remind one another that every state has its own insurance challenges such as tornadoes in the Plains, and wildfires in the Rockies. --- ## The California Divide > "We solved our crisis by moving from the Sierra foothills to Sacramento: premium fell from \$4,200 to \$1,400 and we never left the state." > — u/SactoSaver on r/Sacramento Insurance stress maps aren't uniform — coastal enclaves, foothill canyons and past-fire areas bear the brunt, while Central Valley and urban cores often remain relatively affordable. --- ## How Regulators Are Responding * **Rate reform**: AB 888 allows insurers to incorporate forward-looking catastrophe modeling and reinsurance costs into rate filings, with the goal of encouraging carriers to write more policies in California, including wildfire-exposed areas. * **Carrier commitments**: Under California's "sustainable insurance strategy," six major carriers have had, or are seeking, rate increases in exchange for commitments to write more in wildfire-affected areas. Farmers Insurance has requested a nearly 7% rate rise and pledged to market to 300,000 consumers in high-risk zones from 2026. * **FAIR Plan reforms**: AB 226 allows the California Infrastructure and Economic Development Bank to issue bonds on behalf of the FAIR Plan to pay catastrophic claims, giving the FAIR Plan access to capital that isn't reliant solely on assessments or rate hikes.