Got a California Home Insurance Non-Renewal?
Here's Exactly What to Do

You opened your mail and found it — a non-renewal notice from your home insurance carrier. It's one of the most stressful letters a California homeowner can receive. But it doesn't mean you're out of options. Here's exactly what to do.

Why California insurers are non-renewing policies

Since 2022, California has seen a wave of major carrier withdrawals and non-renewals — State Farm, Allstate, Farmers, AIG, Tokio Marine, and others have either stopped writing new policies or significantly reduced their California exposure. The reasons:

• Wildfire losses — the 2017–2021 fire seasons and the 2025 LA fires created billions in claims
• Reinsurance costs — the companies that insure insurance companies raised their rates dramatically
• California rate regulations — Proposition 103 limited how quickly insurers could raise rates, making California unprofitable
• Concentrated risk — carriers with too many policies in fire-prone areas hit their exposure limits

None of this is about you personally. Your neighbors with perfect records are getting the same notices.

Your timeline after receiving a non-renewal notice

California law requires insurers to give you at least 75 days notice before non-renewing your policy. Here's what to do with that time:

• Days 1–7: Don't panic. Call an independent agent who specializes in the California market. Not a captive agent (State Farm, Allstate rep) — they only have one carrier to offer.
• Days 7–30: Get quotes from specialty and surplus-line carriers. Your independent agent will do this for you.
• Days 30–60: Review your options and make a decision. Don't wait until the last week.
• Before expiration: Bind your new coverage. Never let your policy lapse — your mortgage lender will force-place expensive coverage if you do.

Your coverage options after non-renewal

Option 1: Specialty and surplus-line carriers
These are non-admitted carriers who aren't subject to California's rate filing restrictions — meaning they can price risk accurately and actually want to write California properties. Lloyd's of London syndicates, Scottsdale Insurance, Nationwide (E&S), and others operate in this space. An independent agent with E&S market access is your best resource here.

Option 2: FAIR Plan + DIC companion policy
The California FAIR Plan covers fire and some other perils but has significant gaps. Pairing it with a Difference in Conditions (DIC) policy fills those gaps. Together they can approximate full homeowners coverage.

Option 3: Admitted specialty carriers
Some admitted carriers are still writing in California's harder-to-insure markets — including some that specialize in high-value homes, green-built homes, or homes with specific fire mitigation features.

The FAIR Plan — what it actually covers (and what it doesn't)

If you end up on the FAIR Plan, understand what you have:

• ✅ Fire and wildfire damage
• ✅ Smoke damage
• ✅ Some windstorm damage
• ❌ NO theft
• ❌ NO liability (if someone is injured in your home)
• ❌ NO water damage
• ❌ NO loss of use (hotel if your home is uninhabitable)

The FAIR Plan alone is NOT full homeowners coverage. Get a DIC companion policy to fill the gaps.

Your action plan — what to do right now

1. Call an independent agent immediately — one with access to specialty and E&S markets
2. Gather your current policy — note your current coverage limits, deductibles, and any endorsements
3. Consider wildfire mitigation — Class A roof, ember-resistant vents, 100-foot defensible space. These improve your insurability and can qualify you for discounts
4. Don't shop on price alone — the cheapest policy after a non-renewal is usually the FAIR Plan. Make sure you understand what you're giving up
5. Act early — don't wait until the last week. Specialty market placement takes time