Paradise, California Residents Face Skyrocketing Home Insurance Premiums as Wildfire Risks Continue

Rising home insurance costs, with premiums nearing $10,000, place severe strain on residents, as seven of the 12 largest insurers in California halt or limit new coverage due to high wildfire risk; state reforms to address the issue and offer discounts for security measures not expected until at least next year.

Residents of Paradise, California, who are trying to rebuild their homes and lives after the devastating Camp Fire in 2018, are facing escalating home insurance premiums, with some quoting annual rates near or exceeding $10,000.
Seven of the 12 largest home insurance companies in California, including State Farm, Farmers Insurance, and Allstate, have paused or limited new policies in the state due to the increased financial risk from devastating wildfires, creating difficulties for residents to find affordable coverage.
California Insurance Commissioner Ricardo Lara is working on reforms to make the private insurance market more robust and plans to allow discounts for homeowner's who implement fire-security measures, but these revisions will not take effect until at least next year.
Many Paradise citizens have been forced to resort to the California Fair Access to Insurance Requirements (FAIR) Plan, which is California's insurer of last resort, but this option often only provides basic fire coverage and lacks comprehensive coverage.
Some residents are considering leaving the state due to the high insurance costs, while others express frustration over the financial hardship and lack of immediate solutions from elected officials and insurance companies.