Unlike most states, California heavily regulates its property insurance market.
Insurance companies also buy insurance themselves, a process known as reinsurance. Companies are not allowed to consider their reinsurance costs when setting rates for California homeowners.has intensified wildfires in California. Of the 20 most destructive fires in state history, 14 have occurred since 2015, according to the California Department of Forestry and Fire Protection.
When homeowners who need insurance can’t get it from private insurance companies, they must purchase policies from the California Fair Access to Insurance Requirements Plan. Insurance companies doing business in California must put money into a fund to pay for coverage under the FAIR Plan.