Hey LA County, San Fernando Valley, Conejo Valley, and Coastal homeowners and buyers—California’s homeowners insurance crisis is hitting close to home. Wildfires, skyrocketing rebuild costs, and climate risks are making coverage hard to find or afford, especially in high-risk areas like Malibu, Topanga, or the hills of Calabasas. Insurers have been scaling back, leaving many residents dependent on the state’s FAIR Plan, which is notoriously expensive and limited. The result? Delays in home sales, frustrated buyers, and anxious homeowners.
But 2025 is bringing real progress. At Frontgate Real Estate, we’re seeing momentum in the right direction—both from the state and from insurers. Whether you’re buying in Woodland Hills, selling in Ventura, or refinancing in Malibu, there are reasons to stay hopeful. Here’s what’s changing and how we’re helping homeowners navigate it.
The Local Challenge
For the past few years, LA County homeowners have faced a perfect storm:
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Premiums are soaring due to wildfire exposure and steep construction costs.
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Insurers are limiting coverage, forcing many to turn to the FAIR Plan, which offers only basic fire protection.
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Uninsurability is delaying real estate deals, since lenders won’t close without proof of comprehensive coverage.
In areas like Calabasas, Agoura Hills, or Thousand Oaks, even longtime residents are struggling to renew policies. Buyers, especially those using mortgages, often find themselves stuck when insurers pull back at the last minute. This has cooled parts of the housing market—particularly in scenic but high-risk zones.
However, that tide may finally be turning.
Five Hopeful Solutions on the Horizon
1. Big Insurers Are Coming Back
After years of retreat, several major carriers—Mercury Insurance, CSAA, USAA, Pacific Specialty, and California Casualty—are expanding or reentering California. Their renewed presence could bring coverage options to more than 1.5 million high-risk homes, particularly in places like Malibu, Chatsworth, and Westlake Village.
This shift stems from new state reforms allowing insurers to better price policies based on actual risk. For homeowners, that means more competition, fewer denials, and better chances to find comprehensive coverage—without relying solely on the FAIR Plan.
2. Relief from FAIR Plan Costs
The California FAIR Plan has long been a safety net, but it’s costly and limited. Under the Department of Insurance’s Sustainable Insurance Strategy (SIS), homeowners will gradually move off the FAIR Plan and into private-market coverage. This could save residents in Sherman Oaks, Agoura Hills, or Oxnard hundreds of dollars annually while expanding their protection to include liability and theft.
For those still on the FAIR Plan, the state is working to reduce surcharges and streamline supplemental coverage. Over time, this should make it easier for homeowners to transition to standard, affordable policies.
3. Smarter, More Accurate Pricing Models
Traditional insurance models often lumped entire ZIP codes into one risk category, even if a specific property had fire-resistant features. Now, with advanced catastrophe modeling, insurers can evaluate each home individually—factoring in defensible space, fire-resistant materials, and local mitigation efforts.
This means that a property in Topanga Canyon with a new metal roof and cleared perimeter may be priced differently than a neighboring home without those upgrades. For many homeowners, investing in mitigation could directly translate to lower premiums and better coverage options.
4. Faster, Fairer Rate Approvals
One major reason insurers left California was the slow, restrictive rate approval process. The SIS plan now streamlines these reviews, helping insurers adjust rates more quickly in response to reinsurance costs and market changes.
This doesn’t mean runaway premium increases—rates will still need to be justified—but it allows insurers to stay profitable and engaged in the California market instead of exiting altogether. For residents in Ventura, Thousand Oaks, and Agoura Hills, this could mean more stable options and fewer policy cancellations in the years ahead.
5. Local Advocacy from C.A.R.
The California Association of REALTORS® (C.A.R.) Insurance Task Force is taking the fight local. They’re working directly with policymakers, insurers, and real estate professionals to craft coverage solutions that fit the unique needs of LA County, the Valleys, and the Coast.
From advocating for property-level risk scoring to exploring community insurance pools, these initiatives are designed to keep homeownership accessible and transactions moving. At Frontgate, we’re proud to align with these advocacy efforts and share updates as they unfold.
The Catch
Of course, change comes with growing pains. Some homeowners may still face short-term premium hikes—10% to 20% in some cases—as insurers recalibrate and reintroduce policies. Reinsurance costs (the insurance companies’ own insurance) are still high, and recent wildfires across LA County and Ventura County remind everyone that the risks are real.
But these temporary increases are part of stabilizing the broader market. Once insurers regain confidence, competition should drive rates down and availability up. In the meantime, staying proactive—shopping early, bundling policies, and making mitigation improvements—can make a big difference.
How Frontgate Real Estate Can Help
At Frontgate Real Estate, we go beyond buying and selling homes—we help our clients protect their investments. Our team stays informed about every update to California’s insurance reforms and partners with trusted brokers who specialize in high-risk markets.
If you’re listing a home in Calabasas, we’ll ensure potential buyers understand coverage options early in the process. If you’re buying in Van Nuys or Encino, we’ll connect you with insurers who can write comprehensive policies quickly to avoid closing delays. For coastal clients in Malibu, Oxnard, or Ventura, we’ll walk you through strategies to pair FAIR Plan fire coverage with supplemental private insurance to satisfy lenders and protect your property fully.
Our goal is to make sure insurance challenges don’t derail your dreams of homeownership or successful sale.
Turning Crisis into Opportunity
This insurance shake-up, while challenging, is sparking innovation across the industry. Communities are investing in fire-safe infrastructure, local governments are revising building codes, and the state is pushing toward a more resilient housing market.
For buyers, this moment presents opportunity: fewer competitors are in the market, and sellers are motivated. For homeowners, the coming reforms could mean a more stable, predictable insurance landscape.
If you’re struggling with coverage—or wondering how these changes affect your property’s value—let’s talk. Our team is here to help you navigate the uncertainty with clarity, strategy, and confidence.
Frontgate Real Estate: Your LA County, Valleys & Coast Partner
Don’t let uninsurability stall your plans. Whether you’re in escrow or exploring your next move, the Frontgate Real Estate Team can help you find lender-friendly policies, connect with trusted insurance advisors, and position your property for success in this evolving market.
Reach out today for a free consultation—and let’s make this crisis your opportunity.
