Insurance Business reported in mid-August 2026 that the California FAIR Plan’s 29.1% rate increase takes effect October 15. The plan had filed for 35.8%. FAIR Plan enrollment grew 43% from September 2024 to December 2025. Total exposure was cited around $750 billion by March, up 242% since September 2022. In the highest-risk ZIP codes about 41% of residential structures were on the FAIR Plan, versus 4% in lower-risk areas. Year-end 2025 residential policy count: 668,609, a record.
State Farm and Allstate were still closed to new homeowners. Mercury, Farmers, and CSAA were among the names still writing. A 29.1% residual-market increase is what happens when the last-resort pool is both huge and freshly burned.
If you are on the FAIR Plan, budget the October bill and let us try SIS carriers before you assume residual is permanent. If you are not, keep the admitted policy. Jumping to the FAIR Plan to “save money” is how people lose water and liability coverage they still need.
If this is on your renewal, call the office at (619) 420-8600 or start a quote. We will tell you what the market will actually write.
Sources: Insurance Business, August 19, 2026.