Fire-Country Homeowners Hit Hardest as California Insurance Costs Soar 84% in Six Years

SACRAMENTO, CA — The communities hardest hit by wildfires and wildfire risk are getting hit again — this time by skyrocketing insurance costs. The average California homeowner now pays 84% more per year for home insurance than they did six years ago — a 45% increase even after adjusting for inflation, according to a new Stanford University research paper. The Wildfire Victims First coalition pointed to the findings as evidence that California's insurance market and wildfire recovery system are failing the families who need them most, and renewed its call for lawmakers to act to make insurance more affordable and available before the legislative session ends in August.

As detailed by the San Francisco Chronicle, the data show the sharpest rate hikes concentrated in high fire-risk areas such as the Sierra Nevada foothills and parts of Los Angeles County — the very communities already living with the greatest wildfire threat.

The research adds to a growing body of evidence that costs are spiraling out of reach for Californians, especially in fire-prone communities. It follows a recently approved rate increase for the FAIR Plan, the state's insurer of last resort for homeowners who can't find coverage on the private market, that averages roughly 29 percent and reaches up to 200 percent on the highest-risk homes. The increase comes alongside the California Earthquake Authority's Natural Catastrophe Resiliency Study, which warned that the state's wildfire recovery system is too slow, too expensive, and too often puts victims last.

The Wildfire Victims First coalition, which launched in April following the release of the CEA study, has grown to more than 170 social justice, community, labor, small business, chamber of commerce, and local government organizations from every region of California. The coalition is calling on the Legislature to enact a comprehensive Wildfire Victims First framework that:

• Protects people from wildfires
• Makes insurance available and affordable
• Pays victims first, fast, and fairly

To learn more about the Wildfire Victims First coalition, visit WildfireVictimsFirst.com.