Nearly 700,000 customers will see the largest rate increase in the insurer’s recent history.
Aug 11, 2026
Updated 4:07 pm PT
A residence in Santa Rosa that was lost to the Tubbs Fire in 2017, pictured on Jan. 23, 2025. Homeowners living in areas with high wildfire risk could pay significantly more than the new average starting Oct. 15, 2026.
(Gina Castro/KQED)
California’s insurer of last resort is about to get significantly more expensive for policyholders starting Oct. 15, 2026.
The California FAIR Plan will be increasing its rates by an average of 29.1% for its more than 675,000 customers — the highest rate bump in recent history.
The exact increase depends on each homeowner’s situation. Those living in areas at a high risk of wildfire may pay significantly more. Some will see their wildfire premiums double.
“It’s definitely going to cause pain for some people,” said Karl Sussman, broker and insurance expert.
Policyholders with less risk will be less impacted. In residential, urban communities in the Bay Area, some might even see reductions.
Overhead shot of a newly completed model home in what will become Northern California’s first wildfire-prepared neighborhood.
The FAIR Plan asked for a higher rate hike of 35.8% from the California Department of Insurance, which oversees rate setting, last September.
A study released in June by Stanford University researchers found California homeowners insurance premiums are up 84% since 2020. FAIR Plan enrollment has nearly tripled — from under 2% to 5% of homes.
The FAIR Plan was designed as a temporary way to get coverage, not as a long-term insurance provider. But years of catastrophic fire damage and inflation prompted traditional insurers to pull back from areas at high risk of wildfire damage. For many Californians, the Plan became their first and only option. Half of homes in some high fire risk areas, such as Truckee, Nevada City, Malibu and Lake Arrowhead, are insured through the FAIR Plan.