Fire Chief, Industry Consultant · Published November 13, 2026
Two of California's biggest home insurers have filed plans to take new homeowners customers again, but as of Friday, Nov. 13, 2026, neither plan is final. A trade report published today asks whether the state's home insurance market is turning a corner. It finds signs of recovery alongside rising costs, wildfire risk and stricter eligibility rules.
What has been filed
Allstate submitted a Sustainable Insurance Strategy filing to the California Department of Insurance on Aug. 31. The department says the filing signals Allstate's intent to write new residential policies for the first time since 2022.
State Farm General, the state's largest homeowners insurer, filed updated underwriting guidelines on Sept. 16. If approved, they would let it consider new applications for the first time since May 2023. State Farm has said it could begin offering some new policies in December if regulators approve the filing.
The department's announcement says neither company was accepting new business yet, and both plans remain subject to review. A State Farm post from late October still describes the guidelines as filed, not approved. In the reporting I reviewed, I found no announcement of approval for either company.
Who could qualify
State Farm's plan is built around the Insurance Institute for Business and Home Safety (IBHS) Wildfire Prepared Home program. Under the filing, a home with the Enhanced designation could be considered anywhere in California, if it also meets State Farm's normal underwriting rules. A home with the Essential designation could be considered only in low and moderate wildfire severity areas.
The San Francisco Chronicle reported that the higher tier requires major work, such as noncombustible doors and decks. It also requires detached structures to sit at least 30 feet from the house. The Chronicle also reported that State Farm would cap new applications at 7,500 a year.
Allstate's path is different. Its filing uses catastrophe modeling and reinsurance costs in pricing. In exchange, the company must write a minimum of 2,064 new policies between now and mid-2029, according to the Chronicle. Insurance Business reported that the application ties the return to approval of an overall 1.4% rate increase. Under the state's framework, new business is directed toward ZIP codes the department has flagged as distressed.
Is the market really recovering?
There is real movement. An Insurance Journal viewpoint in September counted nine insurers, including six of the state's 10 largest groups, committed to expand under the Sustainable Insurance Strategy. It said Mercury had committed to write 38,000 new policies.
There are also reasons for caution. CalMatters reported in September that the state had released an estimate of 12,189 new policy commitments since January 2025, but not the number of policies actually written. A Stanford research paper found average California homeowners premiums rose 84% between the end of 2020 and March 2026.
The FAIR Plan, the state's insurer of last resort, still had 696,562 policies in force in June, according to plan figures. Its average rate increase of 29.1% took effect Oct. 15 for new and renewal policies.
The political backdrop is also shifting. Insurance Commissioner-elect Jane Kim takes office in January with a proposal for a state-run wildfire program. She has said she will need to work with the governor-elect and the legislature on it. A State Farm spokesman said the company is committed to working with the new commissioner.
What this means for your home
The clearest signal in these filings is that carriers are tying new coverage to documented mitigation. A home that is hardened, and can prove it, is likely to have more options than one that is not. Your carrier sets final pricing and eligibility, and nothing here guarantees a policy or a lower premium.
Practical steps:
- Check your current status. Find out whether you are on a standard policy, a surplus lines policy or the California FAIR Plan. Ask your agent whether they expect to quote you with State Farm or Allstate if approvals come.
- Learn the designation. Read the Wildfire Prepared Home guide so you know which tier fits your property and what documentation is required.
- Start at the five-foot zone. State Farm's own guidance points to Zone 0, with no plants or mulch against the foundation, as part of what protected a home in Los Angeles. Our Zone 0 guide walks through it.
- Close the ember entry points. Vents, gutters and eaves are common weak spots. See our page on ember-resistant vents and gutters.
- Document everything. Keep dated photos, receipts and inspection reports. Mitigation discounts are not automatic, and you generally have to document the work and ask your carrier for the credit.
- Ask for a walk-through. Our free home hardening assessment lists what to fix first on your property. You can also email info@wetlinedefense.com.
Nevada readers: this story concerns California rules. Nevada has its own wildfire coverage question, covered in our Nevada exclusion guide.
Frequently asked questions
Can I buy a new State Farm or Allstate home policy today?
Not yet, based on the department's announcement. Both companies filed plans, and both plans remain subject to review. State Farm has said it could open in December if regulators approve its filing. Check with your agent for updates.
Will hardening my home lower my premium?
It may, but your carrier sets final pricing. California requires insurers that price using wildfire risk to give credits for recognized measures, and one carrier, Mercury, publishes a 22.5% to 37.5% range on the wildfire portion of the premium for an IBHS Wildfire Prepared Home. That range applies only to the wildfire part of the premium, not the whole bill, and it varies by carrier and property.
Should I leave the FAIR Plan if a carrier reopens?
That depends on the coverage and price you are offered. The FAIR Plan is meant to be the option of last resort. Compare a private quote line by line, including deductibles and what is excluded, before you switch. Our FAIR Plan vs. standard policy comparison can help.
Sources
- Is California's home insurance market finally turning a corner? (PropertyCasualty360, Nov. 13, 2026)
- Major California home insurers move to reopen for new business (California Department of Insurance)
- State Farm and the California Insurance Marketplace (State Farm newsroom)
- Preparing California Homes for Future Wildfires (State Farm newsroom)
- State Farm to write new insurance policies for first time since 2023 (San Francisco Chronicle)
- State Farm to write new California home policies again, but only for fire-hardened homes (Yahoo Finance)
- Major California home insurer plans to write new policies for first time since 2022 (Yahoo Finance, San Francisco Chronicle)
- Allstate moves to reopen California home insurance market (Insurance Business)
- Insurers say they're starting to write new California homeowner policies, but how many? (CalMatters)
- Viewpoint: After 3 Years of Retreat, Insurance Capacity Is Returning to California (Insurance Journal)
- California's home insurance crisis is spreading beyond wildfire country (Stanford Woods Institute)
- California insurers pledge new policies as FAIR Plan stays near 697,000 (Beinsure)
- California FAIR Plan policyholders to pay more (CBS News San Francisco)
- California's Kim Says Insurance Should Fund Wildfire Safety (Carrier Management)
- California Wildfire Mitigation Program (Mercury Insurance)
- California Wildfire Home Hardening Discounts: Safer from Wildfires (2026) (Latent Insure)
This article is general information, not insurance or legal advice. Your carrier sets final pricing and eligibility.
