Don’t Let Insurance Kill Your Deal
Dear Friends and Colleagues,
The landscape of California’s homeowners’ insurance market is changing fast—and those changes are hitting home for REALTORS® like us. With skyrocketing FAIR Plan premiums, increased wildfire exposure, and new regulations rolling out, a delayed insurance conversation could easily derail your next deal.
This month we urge you to be on top of vital updates and practical guidance on California insurance. From court rulings on smoke damage to key legislative changes like AB 226, you’ll find critical tips on how to protect your clients—and your closings.
Let’s stay ahead of the curve and lead with confidence. Your voice, experience, and action are vital in shaping better insurance outcomes for all Californians.
Sincerely,
John
Navigating California’s Insurance Shakeup: What REALTORS® Need to Know Now
California’s homeowners insurance market has undergone sweeping changes since the spring, with skyrocketing FAIR Plan premiums, increased wildfire risk, and aggressive new state reforms reshaping how—and where—insurance is available. For REALTORS®, these shifts are more than headlines: they’re deal-changers that can stall escrows, disrupt renewals, and impact clients’ confidence in buying or selling property.
From record-high policy costs to a major court ruling on smoke damage coverage, and a bold regulatory push requiring insurers to return to wildfire-prone areas, understanding the current landscape is essential to advising clients and closing transactions.
REALTOR® Action Checklist:
Your Voice Matters: Help Shape CA’s Insurance Solutions
You’re on the frontlines of California’s housing market—and when insurance becomes a barrier to closing deals, renewing policies, or protecting your clients’ investments, you feel it first. That’s why C.A.R. has created the Homeowners Insurance Helpline—a free member benefit designed to support you and amplify your experiences by giving you a direct line to inform statewide solutions.
Share the biggest insurance-related pain points you and your clients are facing. Whether it’s trouble finding coverage, last-minute escrow delays, premium spikes, or renewal hurdles, your feedback helps influence policy and shape future services.
Note: The helpline does not provide direct insurance quotes or case-by-case solutions. Calls are answered on a first come, first served basis.
Start the Insurance Conversation Early. Advise clients to begin exploring insurance options as soon as a property is listed or goes under contract—especially in high-risk areas.
Use the FAIR Plan Strategically, Not Automatically. Stay informed about the FAIR Plan’s premium increases, expanded coverage options, and claims process changes. Know when it’s a useful fallback and when a traditional policy may be possible.
Know Your Client’s Rights. Educate clients about nonrenewal moratoriums, 75-day cancellation notices, and available resources through the C.A.R. Homeowners Insurance Helpline.
FAIR Plan Reforms
CA Insurance Commissioner Lara is pushing reforms backed by Governor Newsom, implementing more transparency and requiring insurers to write policies in high risk zones if they wish to model future risk. | AB 226 (FAIR Plan Stabilization Act) >
Document Property Risk Mitigation. Encourage sellers and buyers to document defensible space, Class A roofing, fire hardening, and other risk-reduction upgrades to strengthen insurance eligibility.
Track Ongoing Legislative Changes. Monitor reforms like AB 226 and new Department of Insurance regulations requiring insurers to return to wildfire-prone areas. These may open up more options for your clients in the near future.
Report Issues to C.A.R. Submit challenges through the C.A.R. Insurance Helpline—your feedback helps shape advocacy efforts and future tools.
CCRE Expert Insights on Insurance
The Center for California Real Estate’s (CCRE) July 2025 report proposes solutions to stabilize the homeowners insurance market while empowering REALTORS® to guide clients on risk reduction.
Correction: Disclaimer and Disclosure Updates Email
We’d like to issue a correction to the Disclaimer and Disclosure Updates email sent earlier today. In the section referencing:
- El Cerrito Real Estate Transfer Tax Rebate (Paragraph 48): Language was updated to reflect a Seller can provide a letter to the City of San Pablo releasing their portion of the rebate to the Buyer.
The reference to the City of San Pablo was incorrect. It should read:
- El Cerrito Real Estate Transfer Tax Rebate (Paragraph 48): Language was updated to reflect a Seller can provide a letter to the City of El Cerrito releasing their portion of the rebate to the Buyer.
We apologize for the oversight and appreciate your understanding.
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