This month I attended a breakfast where experts from the California Department of Insurance and the California Association of REALTORS® shared critical updates on California's evolving insurance market. Outreach Analysts Rob Obedoza and Richie Sayavong, along with C.A.R. Deputy Chief Economist Oscar Wei, provided insights into how wildfire risks and market challenges are reshaping home insurance in our state.
As a realtor who’s passionate about community and going the extra mile, I’ve worked closely with clients to navigate these hurdles, including attending events like these to stay updated on vital policies. If you have questions or need guidance, I’d be happy to connect you with local experts or discuss these updates further.
Key takeaways:
- Insurance Market Changes: Starting in 2025, new measures aim to attract insurers back to California (including allowing modeling with transparency - a topic for deeper dive article) modernize the FAIR Plan, and provide discounts for wildfire safety.
- Challenges for Buyers & Sellers: Non-renewals have skyrocketed, and I heard at the meeting that 14.3% of transactions fell out of escrow this year due to insurance issues. I help clients get insurance addressed up front, as quickly as possible and thankfully this has not happened yet.
- Tips to Navigate Insurance: Start early, prioritize home safety upgrades, check out Santa Barbara's Fire Safety Council, and try to exhaust all market options before settling for the FAIR Plan. But the FAIR Plan is available - I have it along with a wrap around policy myself.
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CA State Insurance Commissioner Ricardo Lara at Townhall in Montecito in 2023[/caption]
This is a huge issue. That's why last year I was one of a just a few local real estate professionals who also attended a town hall with State Insurance Commissioner Ricardo Lara and local fire safety experts to better understand and be able to help others. They discussed the evolving insurance landscape, including wildfire risk coverage and the push for more accessible options statewide. With new policies and industry challenges, staying informed and sharing knowledge and key resources is crucial for protecting my clients and my own family and friends' biggest investment: our homes.
Let’s work together to protect your home and investment!
Source: SBAOR event insights. For more information on resources or wildfire safety programs, visit our local SB Fire Safe Council and www.insurance.ca.gov
