WASHINGTON, DC – A new Stanford study finds that average home insurance premiums in California have surged 84% over the past five years. The steepest increases were concentrated in high wildfire risk communities, exacerbating an availability crisis that is pushing more homeowners onto the state’s FAIR Plan, its costlier insurer of last resort. The findings land days before the Trump administration’s self-imposed deadline to cut off FEMA support for Los Angeles wildfire survivors, with critical housing assistance set to lapse on July 9th.
California homeowners and families already face one of the most challenging home insurance markets in the country, and more than 4.6 million properties statewide face at least a moderate wildfire risk. Behind every percentage point are consumers deciding between coverage and other essentials, renters absorbing pass-through costs, and families locked out of the American Dream of homeownership.
“This new Stanford research confirms what California families have felt in their bank accounts for years: increased wildfire risk driven by unchecked corporate climate pollution is putting people at risk and pricing them out of their homes,” said Kyle Herrig, spokesperson for Unlocking America’s Future. “Insurers are pulling back from the communities that need coverage most, pushing families onto costlier plans of last resort. Homeowners didn’t create this crisis, but they’re the ones paying for it, and it’s time for real investment in prevention, not just higher premiums.”
Key Findings From The Stanford Study:
- Average home insurance premiums in California have risen 84% over the last five years, driven by costs in high wildfire risk areas.
- The highest-risk 10-20% of the market is facing an insurance availability crisis, forcing homeowners toward costlier coverage options.
- The share of new mortgages backed by the state’s FAIR Plan has quadrupled, raising costs for homebuyers.
- Researchers found that prescribed burns can dramatically reduce the likelihood of extreme wildfire, but the state is only about one-fifth of the way toward its annual goal of treating 500,000 acres.
- The study recommends major new investment in fire-hardening homes in high-risk areas alongside expanded prescribed burn programs.
Additional Resources:
- Rep. Garamendi, Disaster Survivor & Experts Call for Accountability as Insurance Companies Abandon California Homeowners While Reporting Massive Profits
- Home Insurers Save Billions By Forcing California Families Back Into Toxic Homes
- California Introduces Polluters Pay Legislation To Help Address Skyrocketing Climate-Driven Insurance Costs
- California Fire Victims Say State Regulators Ignored Complaints About State Farm as Insurance Crisis Deepens
- New GAO Report: Homeowners Insurance Premiums Surge Over 50% in High-Risk Areas as Climate Disasters Intensify
- As Wall Street Journal Exposes Skyrocketing Home Insurance Premiums, UAF Reports Reveal Systemic Exploitation of American Homeowners
- Home Foreclosures Hit Six-Year High, UAF Research Documents How Rising Insurance Costs Are Crushing American Homeowners
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