By Phil Irwin, LUTCF, CLCS · Gold Insurance Solutions · Wildfire Country Home Insurance Experts
If you’re buying, selling or renewing in Northern California, the question we hear most this fall is simple: who is actually writing new home insurance policies in California right now? The honest answer is “more companies than a year ago, but not everywhere, and not for every home.” Whether the house is in Folsom, El Dorado Hills or Granite Bay, up in the Sierra foothills and Gold Country, or in Napa and Sonoma wine country, here’s what changed in 2026, what it means for availability and price, and how to shop smart.
Are insurance companies writing new home policies in California again?
Yes, gradually. In a September 18, 2026 consumer alert, the California Department of Insurance said 12 insurance groups have now filed or received approval under the state’s Sustainable Insurance Strategy. In May, the Department reported that six of California’s 10 largest home insurance groups are committing to stay and grow.
The same September alert said two large insurers that stopped taking new homeowners business in 2022 and 2023 have filed plans to reopen. Neither was accepting new business when the alert was issued, and both filings were still under review. As the Department put it: “A filing is a starting point, not a finish line.”
The FAIR Plan numbers point the same way. The Department reports that FAIR Plan growth slowed to 1.9% in the second quarter of 2026, the third straight quarter of slowing growth and the lowest quarterly increase since 2022. About 24,000 policies left the Plan in April and May.
What is California’s Sustainable Insurance Strategy?
The Sustainable Insurance Strategy is the Department’s package of reforms, finalized in December 2024. Think of it as a trade: insurers get new pricing tools, and in exchange they commit to write more policies where coverage has been hardest to find.
Forward-looking catastrophe models
Insurers can now use forward-looking wildfire catastrophe models in their rate filings. The Department completed its review of three models in 2025 and made them available to every insurer. Under the regulation, those models must account for mitigation by homeowners, businesses and communities. That’s one more reason home hardening and defensible space matter.
Reinsurance costs
Insurance companies buy reinsurance, which is insurance for insurers. Under the Department’s reinsurance regulation, insurers can include reinsurance costs in their rates, but only California-related costs count, “so consumers do not pay for the cost of Gulf Coast hurricanes or Midwest windstorms.”
The 85% commitment in wildfire distressed areas
Here’s the give-back. Major insurers using these tools must write policies in wildfire distressed areas at a level of at least 85% of their statewide market share, rising by 5% each year until they reach that threshold. Smaller or regional insurers have a lower target of 5% growth.
According to the Department’s presentation on these commitments, distressed areas include ZIP codes in CAL FIRE’s “High” and “Very High” hazard categories with a FAIR Plan concentration of 15% or more, or that meet an affordability test. A whole county can qualify when 20% or more of its properties are in a high-risk area. The Department monitors the areas annually, and if an insurer falls short, it can audit the company, hold a rate hearing or stop it from using catastrophe models.
If your home sits in a higher-hazard ZIP code in Placer, El Dorado, Nevada, Amador or Calaveras County, or in the hills of Napa, Sonoma or Lake County, this is the part of the strategy aimed at you.
What does this mean for availability and price?
Availability is improving, but it’s selective. More admitted options are coming back, and each carrier still applies its own underwriting guidelines. Some are tying new business to mitigation. For example, the Department says one large insurer’s pending plan commits to writing homes statewide that meet the IBHS Wildfire Prepared Home Enhanced standard.
Prices are still rising, though more slowly. In May, the Department said insurers covering roughly one-third of California homes have sought rate increases averaging about 6.9% under the strategy. Meanwhile, average FAIR Plan rates are rising 29% effective October 15, 2026, down from the 36% requested. What you pay depends on the home, its location, its mitigation and the carrier.
Don’t wait for headlines. The Department’s advice is that consumers shouldn’t hold off shopping while filings are reviewed, and should “talk to an agent or broker about admitted market options before turning to the FAIR Plan.”
Admitted vs. non-admitted (E&S) vs. the FAIR Plan
We cover this in depth in Admitted vs. Non-Admitted vs. the FAIR Plan in California. Here’s the quick version.
Admitted carriers
An admitted carrier must file its rates with the Department of Insurance and can’t change them without authorization. Admitted carriers also participate in the California Insurance Guarantee Association, the state’s guaranty fund. For most homeowners, this is where shopping should start.
Non-admitted (excess and surplus lines, or E&S)
Surplus lines insurers aren’t required to file rates with the Department, which gives them more flexibility on coverage and price. The Surplus Line Association of California explains the guardrails:
- The broker must first make sure coverage “is not generally available from admitted insurers.”
- A broker can’t place you with a non-admitted insurer just to get a lower premium than an admitted carrier offered.
- You’ll sign a D-1 disclosure acknowledging that guaranty fund protection isn’t available.
- Approved surplus lines insurers must keep at least $45 million in capital and surplus.
The California FAIR Plan
The FAIR Plan is California’s insurer of last resort, offering basic fire insurance when traditional companies won’t. The Department notes it covers fire, lightning, internal explosion and smoke, with up to $3 million in combined residential property limits, and recommends pairing it with a Difference in Conditions (DIC) policy for other perils. Already on it? Read how to get off the California FAIR Plan.
How does an independent agency shop many markets?
A captive agent represents one company. An independent agency represents several, so one application can be compared across multiple carriers. That matters in a market where each company’s appetite is different and changing.
The Department’s own top tips for finding residential insurance say that if the FAIR Plan seems like your only option, “you or your agent should contact other agents and brokers who represent other insurers.” It also suggests making sure you’ve done everything you can to mitigate fire risk before you shop.
Here’s the order we follow:
- Start with the home. Roof, construction, defensible space and any hardening already done.
- Document mitigation. Dated photos and receipts help it get considered.
- Shop admitted carriers first. Each one applies its own guidelines.
- Consider E&S if admitted markets decline. Review the D-1 disclosure and coverage form carefully.
- Use the FAIR Plan as a last option, paired with a DIC policy.
- Re-shop at renewal. As more carriers reopen, options can change.
A note for Realtors
Start the insurance conversation before the offer, not in the middle of escrow. In wildfire country, the right answer can take more than one market to find. For the rules that took effect this year, see new California home insurance laws for 2026.
How we help
At Gold Insurance Solutions, we shop multiple admitted carriers for homes across the Sacramento metro, the Sierra foothills and Gold Country, and the North Bay, and we explain clearly when E&S or the FAIR Plan with a DIC policy is the better path.
Our free, in-person Wildfire Insurability Walk-Through reviews the outside of the home through each carrier’s underwriting lens. We identify the mitigation priorities that matter most and help you plan for them, validate the home hardening you’ve already done, and help you determine if your home qualifies for Mercury, our top carrier in the California home insurance market, with our other admitted carriers shopped if it doesn’t.
Book a free Wildfire Insurability Walk-Through: calendly.com/phil_irwin_availability/30min · Get a free home quote: gold.insure/quote · Realtors: send quote requests to quote@gold.insure
Frequently asked questions
Who is writing new home insurance in California right now?
More insurers than a year ago. As of September 18, 2026, the Department of Insurance says 12 insurance groups have filed or received approval under the Sustainable Insurance Strategy, though availability still depends on each carrier and each home.
What is the 85% rule in California home insurance?
Under the Sustainable Insurance Strategy, major insurers using catastrophe models must write policies in wildfire distressed areas at a level of at least 85% of their statewide market share, phased in over time.
Will the Sustainable Insurance Strategy lower my premium?
Not necessarily. Insurers covering roughly one-third of California homes have sought increases averaging about 6.9%. The goal is more availability, and what you pay depends on the home and carrier.
What’s the difference between admitted and non-admitted insurance?
Admitted carriers file rates with the Department of Insurance and participate in the state’s guaranty fund. Non-admitted (E&S) insurers have more pricing flexibility, but guaranty fund protection isn’t available.
Is the FAIR Plan getting more expensive?
Yes. Average FAIR Plan rates are rising 29% effective October 15, 2026, down from the 36% requested.
Should I wait for more insurers to reopen before shopping?
No. The Department advises consumers not to wait, and to talk to an agent or broker about admitted options before turning to the FAIR Plan.
Phil Irwin, LUTCF, CLCS, is President of Gold Insurance Solutions in El Dorado Hills, with more than 30 years in insurance. CA License #0G50873 · Agency License #6000540. This article is general information, not a guarantee of coverage, eligibility or discounts.
Sources: CDI: Major Home Insurers Move to Reopen (Sept. 18, 2026) · CDI: FAIR Plan Growth Slows Below 2% (Aug. 3, 2026) · CDI: Second Largest Home Insurer Joins SIS (May 12, 2026) · CDI: Momentum Continues to Build (May 1, 2026) · CDI: Expanding Coverage, Catastrophe Model Review (Aug. 1, 2025) · CDI: Reinsurance Regulation · CDI: Insurer Commitments in Wildfire Distressed Areas · CDI: Sustainable Insurance Strategy Summary · CDI: Top Ten Tips for Finding Residential Insurance · United Policyholders: SIS Implementation Fact Sheet · United Policyholders: Catastrophe Modeling Regulation Enforcement · United Policyholders: Admitted vs. Non-Admitted Carriers · Surplus Line Association of California: Primer on the Non-Admitted Market · California FAIR Plan