The California FAIR Plan will raise rates by an average of 29.1% starting this October.
Increases will vary based on wildfire risk, and some homeowners will see their rates rise more than others. About half of policyholders will see increases of 30% to 50%, but homeowners in particularly fire-prone areas could see hikes of 50% to 200%.
Some homeowners could see a smaller than average increase (under 30%), and homeowners in low-risk areas could see their premiums drop.
The hikes will apply to policyholders when they renew starting Oct. 15.
The FAIR Plan, the state's insurer of last resort, covers homes in wildfire-prone areas that traditional insurers have deemed too risky. As wildfire risk has grown and insurers have pulled back coverage in the state, the FAIR Plan has grown substantially in recent years, now insuring nearly 670,000 homes across California.
As of the end of last year, the FAIR Plan had a total exposure of $724 billion, up 230% from the fall of 2024.
The insurer initially wanted a 35.8% rate increase to help it stabilize financially, a California Department of Insurance spokesperson told the Orange County Register.
Several traditional insurers have announced plans to expand coverage in California, including in areas deemed high risk, as part of the Department of Insurance's Sustainable Insurance Strategy. As that initiative grows, California homeowners, at least in theory, will have more coverage options available to them.
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