California’s Sustainable Insurance Strategy for 2025

Drought causes dead pine tree to fall on house, on the Big Sur coastline, California Central Coast, near Cambria, CA.

California has 39 million residents, with 43.5 percent owning homes. Many of these homeowners are struggling to find insurance for their homes. The preponderance of wildfires in California has made many insurance companies shy away from writing new policies.

California’s insurance commissioner, Ricardo Lara, thinks reforms to the state’s insurance laws will lure insurance companies back with California’s Sustainable Insurance Strategy. But what is this strategy, and can it help California’s homeowners?

California’s Insurance Crisis

In the past five years, California has experienced 6,269 wildfires that burned 995,829 acres. And during that five-year period, there was $18.7 billion in property damage.