If you own a home or business in California, the last few years have been rough on insurance: non-renewals, carriers pulling out of wildfire-prone areas, and more and more people pushed onto the FAIR Plan as a last resort. In 2026, the picture is finally starting to shift — and it’s worth understanding what’s happening, because it may create a real opportunity to improve your coverage.
What’s changing in 2026
In June 2026, the California Department of Insurance announced meaningful progress under the state’s Sustainable Insurance Strategy. The headline: major insurers are committing to write more coverage in California again, including in the distressed, wildfire-prone regions that had been hardest to insure.
- Zurich US, one of the world’s largest commercial insurers, filed to expand commercial property coverage in some of California’s most wildfire-prone regions
- Mercury General and CSAA are increasing their presence and offering more coverage options
- The state reports insurers broadly re-entering the market, with consumer options expanding
Why this matters: More carriers competing for your business means more options — and for many homeowners and business owners stuck on the FAIR Plan, a path back to fuller, often more affordable coverage.
Why carriers are returning
Insurers left California largely because they couldn’t price wildfire risk predictably under the old rules. The state’s modernized framework changed key things that gave carriers the confidence to come back:
- Forward-looking catastrophe models — insurers can now use models that account for future wildfire risk, not just historical losses
- Recognition of reinsurance costs — the real cost of insurers’ own backstop coverage can now be reflected in rates
Together, these gave carriers the predictability they needed to re-enter the admitted market — the standard, regulated market, as opposed to the FAIR Plan or surplus lines.
What it means if you’re on the FAIR Plan
The FAIR Plan was always meant to be a temporary safety net — fire-only coverage, typically paired with a separate Difference-in-Conditions (DIC) policy to fill the gaps. It’s more expensive and more limited than standard coverage. As carriers return, more homeowners and businesses have a chance to transition off the FAIR Plan and back into fuller, admitted-market policies.
If you were forced onto the FAIR Plan in the last couple of years, 2026 is a good time to have your property re-shopped. The market that turned you away may now be open again.
What to do now
The market is improving, but it’s uneven — availability still depends heavily on your specific location and property. Here’s the practical move:
- Don’t assume you’re stuck. If you’re on the FAIR Plan or paying a painful rate, have an independent agent re-shop you against the carriers now re-entering.
- Review before you renew. If your renewal is coming up, it’s worth checking whether a returning carrier will now write you.
- Work with an independent agency. Because we’re not tied to one carrier, we can shop your property across the insurers expanding in California and find the best available fit.
Is a better policy available to you now?
As carriers re-enter California, we’ll re-shop your home or business — including a path off the FAIR Plan if one’s open. Free, no pressure.
