California’s insurance market is undergoing a seismic shift — and the impact is being felt by carriers, homeowners, business owners, and lenders alike. As climate change accelerates the frequency and intensity of natural disasters, insurance companies are grappling with unprecedented losses and mounting uncertainty.

Wildfires, floods, and droughts are no longer rare occurrences — they’re a regular part of life in many parts of California. In fact, one study found that wildfire risk has surged by 25% in recent years due to climate change alone. When you combine that with rising inflation, escalating construction costs, and continued population growth in high-risk areas, the result is a perfect storm for the insurance industry.

Fewer Options, Higher Costs, and Increased Risk

Another recent report shows that insurance availability in California has declined by as much as 20%. As a result, more homeowners are being pushed onto the California FAIR Plan — the state’s “insurer of last resort.” While it offers a last line of defense, the FAIR Plan is expensive and provides only limited coverage, often falling short of what most property owners need to feel secure.

Even those who manage to find private market alternatives often face frustrating challenges. With many carriers scaling back or exiting the market entirely, the pressure on the remaining insurers is intense. When State Farm, one of the nation’s largest providers, announced its exit from California, a regional carrier reportedly saw a 500% spike in call volume — leading to overwhelmed customer service centers and long wait times.

For mortgage lenders and real estate professionals, this chaos can mean major delays in securing proof of insurance — and potential disruptions to the loan closing process.

You Don’t Have to Navigate This Alone

At CSIA, we understand the stress and confusion that come with trying to secure insurance in this volatile market. We’ve built strong relationships with a broad network of carriers and specialty providers, allowing us to find coverage options others may not be aware of.

Our team stays ahead of market trends, regulatory changes, and underwriting shifts so that our clients don’t have to. Whether you’re a homeowner, business owner, or lender, we’ll guide you through the process and fight to get the coverage you need — without the delays and dead ends.

Let’s Talk About Your Insurance Strategy

In today’s environment, getting insured in California takes more than filling out an application — it takes a partner who knows the landscape and can help you adapt to it. Don’t leave your property or your clients at risk. Reach out to CSIA and let’s talk about how we can help you navigate the path forward with confidence.