On May 28, 2025, the Center for California Real Estate brought experts together to discuss the key drivers of the crisis and identify the most urgent and effective solutions.
Rising wildfire risks, increasing reinsurance costs, and regulatory constraints have led to the California homeowners' insurance crisis.
According to insurers, Proposition 103’s (passed in 88) strict regulations don’t allow them to raise rates fast enough to reflect modern risks.
The following are solutions being considered or implemented by CCRE to address this issue.
- Speed up rate approvals
- Allow forward-looking catastrophe modeling
- Permit reinsurance costs in rate filings
- Wildfire Risk Mitigation Incentives
- Expand the California FAIR plan
- Attract and retain Private Insurers
- Legislative and Ballot Measures
Many homes are deemed uninsurable due to the high risk of wildfires.
The Center for California Real Estate (CCRE) has proposed the following action steps:
- Encourage insurers to give discounts for fire-resistant roofing, defensible space, and other mitigation measures.
- Safer from Wildfires Program
- State support for local fire prevention
As a result of May’s forum, they developed actionable strategies to improve the availability, affordability, and sustainability of homeowners insurance amid rising wildfire risk.
