🔥 Rising Insurance Costs & New California Laws: What Every Homeowner Should Know Before 2030

If you own a home in California, you’ve probably already noticed your home insurance premiums going up — or your policy being dropped entirely. Unfortunately, this trend isn’t going away anytime soon. Between wildfire risk, new state regulations, and insurers pulling out of high-risk zones, homeowners across the state — including right here in Visalia and the Central Valley — are facing growing challenges.

At Romine Group, we work directly with property owners to help them understand how these insurance changes impact their home’s value, sellability, and financial future. Here’s what you need to know heading toward 2030.

🏠 1. The Insurance Landscape Is Changing — Fast

In the past two years, major insurers like State Farm, Allstate, and Farmers have stopped writing new home policies in several parts of California. Others are asking the Department of Insurance for double-digit rate increases to keep up with rising wildfire and reinsurance costs.

The California Department of Insurance is trying to stabilize the market with a “Sustainable Insurance Strategy,” but the result so far has been higher premiums and fewer options for homeowners.

Key Trends:

• Average California homeowner insurance premium has risen over 20% since 2023.

• Many homes in fire-prone areas can only be insured through the California FAIR Plan, which often costs 3× more and covers less.

• Some homeowners in rural or hillside areas have had no choice but to go uninsured.

⚖️ 2. New Laws & Rules Affecting Homeowners

SB 824 – One-Year Moratorium on Cancellations

After a wildfire or declared state of emergency, insurers can’t cancel or non-renew homeowners within or adjacent to the fire zone for one year. While this offers short-term protection, it doesn’t guarantee renewal after that year ends — leaving owners in limbo.

New Wildfire Coverage Requirements (2025–2026)

Starting in 2026, insurers doing business in California must increase coverage in wildfire-prone areas to maintain their market approval. This means they’ll either raise rates in those zones or tighten underwriting to balance risk.

Catastrophe Modeling Rule (2025)

Insurers are now allowed to use advanced catastrophe models — simulations that calculate potential losses from fires, floods, and earthquakes — to justify rate hikes. This means higher premiums for homes in or near any mapped risk zone, even if you’ve never filed a claim.

💰 3. Why This Could Hurt Property Owners

Rising insurance costs don’t just impact monthly budgets — they can reduce property value and limit who can buy your home.

• Financing risk: Many lenders require proof of full insurance coverage. If a buyer can’t obtain or afford insurance, deals can fall through.

• Lower buyer demand: Homes in fire-prone ZIP codes or rural areas can lose 5–15% of market value due to higher ownership costs.

• Holding risk: Landlords and investors face steeper annual costs, reducing net returns.

For many longtime owners, it feels unfair — but ignoring these changes could cost even more down the line.

🧩 4. What Homeowners Can Do Now

✅ Review your insurance policy today.Ask your insurer or agent what zone your property is in (fire, flood, seismic) and how catastrophe modeling affects your rate.

✅ Make fire-hardening improvements.Simple steps like clearing brush, upgrading vents, and installing fire-rated roofing can improve insurability and resale value.

✅ Evaluate your long-term strategy.If you’re in a high-risk area and premiums keep climbing, now may be the best time to consider selling before insurance laws tighten further.

✅ Work with a local expert.At Romine Group, we help Central Valley homeowners assess market timing, risk exposure, and sale strategy — especially when insurance costs are eating into your returns or equity.

💬 Final Word from Romine Group

California’s insurance system is entering a new era. Between climate risk, state mandates, and stricter underwriting, homeownership costs are rising — and that directly impacts home values and investment returns.

Don’t wait until your policy gets canceled or premiums double. Whether you want to sell, refinance, or reposition your property, we can help you understand your options and protect your equity before 2030’s new rules take hold.

📍 Serving Visalia, Tulare, Hanford, and all of Central California📞 559-254-8223🔗 rominegroupre.com