I was at my favorite store last week—Costco—picking up things for the office and the house. I grabbed my usual bag of Kirkland coffee, the same one I've been buying for years. At the beginning of 2025, it was $11.99. Last week? $19.99.

I was amazed at the price increase. Not that it stopped me from buying it (I'm a creature of habit), but that kind of jump is hard to miss.

Coffee isn't the only thing that's gotten more expensive. Everything has. But here's the difference: when coffee goes up, I might gripe, but I understand it: supply chain, inflation, labor costs. It makes sense.

When home insurance premiums go up, though, it feels different. It feels personal. It feels confusing. And it's harder to see what's actually driving the increase.

So when clients call me frustrated about their renewal, I don't dismiss that. I get it. But I also think it helps to understand what's actually happening. And where California really stands compared to the rest of the country.

Here's what surprises people

California homeowners often assume we're paying the highest property insurance premiums in the country. It makes sense why people think that. We live in one of the most expensive states in the country, we deal with wildfires, and the news is full of stories about the insurance market.

But according to 2026 data from Bankrate, California is ranked 33rd out of 50 states for home insurance costs.

Let me put that in perspective:

• 1st = Nebraska: $6,587 per year (average)

• 2nd = Louisiana: $6,274 

• 3rd = Florida: $5,838

• 33rd = California: $1,641

Yes, premiums have increased. But even with those increases, California remains one of the more affordable states for home insurance.

That doesn't mean the frustration isn't valid. It just means the story is more complicated than it feels.

Why premiums have gone up

The increases aren't arbitrary. A few things are driving costs across the state:

• Wildfire risk and catastrophic losses
  Insurers are paying out significantly more in claims than they used to. The frequency and severity of wildfires have changed the risk landscape, especially in brush areas, canyons, and fire-designated zones.
  
  

• Construction and labor costs
  Rebuilding a home costs far more today than it did five years ago. Materials, labor, and supply chain issues have all contributed to that.
  
  

• Carrier availability
  Some insurers have pulled back from writing policies in high-risk areas, which limits options for homeowners. In those cases, the California FAIR Plan is available as a last-resort option—though it does come with limitations, like reduced coverage for homes with roofs older than 25 years.
  
  

• Regulatory constraints
  California's insurance market is heavily regulated under Proposition 103, which was passed by voters in 1988. While it's designed to protect consumers from unfair rate increases, it also limits how quickly insurers can adjust to evolving risks. That sometimes results in sharper increases when changes are finally approved.

A real conversation I had recently

A long-term client called me after receiving his renewal. He'd been with the same carrier for over 20 years and was, rightfully, upset.

"This is how I'm treated for my loyalty?" he said.

I listened. I acknowledged his frustration. Then I offered to pull apples-to-apples quotes from a few other carriers in the marketplace.

In every case, his current policy—even after the increase—was 15 to 20 percent less expensive than what other carriers were quoting.

That conversation shifted things for him. It wasn't that his carrier was gouging him. It was an industry-wide issue, driven by real factors affecting every insurer in California.

I'm not exempt from this either. My own home insurance premium increased 30% in 2025. But when I compared it against other carriers—including policy features and benefits—my premium is still better than most. That doesn't make the increase easy to swallow, but it does help me understand what I'm actually dealing with.

What you can do

I completely understand why the increase is frustrating. What's important to know is that insurance pricing isn't changing on its own. Costs have gone up across the entire economy and in every state—not just California.

That said, there are things you can do to help manage your costs and protect your coverage:

• Keep up with home maintenance
  Small fixes matter. Addressing minor leaks, repairing aging plumbing before a pipe bursts, and staying aware of changes around your property can prevent major damage down the line. Proactive maintenance doesn't just protect your home—it can help you avoid claims that lead to higher premiums or coverage issues later.
  
  

• Review your coverage regularly
  It's worth sitting down with your agent from time to time to make sure the details about your home—square footage, construction type, recent updates—are accurate. Those details affect how much coverage you carry and what you pay. You can also explore different deductible options. While a low deductible might feel reassuring, it can lead to more frequent claims, which may result in higher deductibles, loss of discounts, or difficulty maintaining coverage in the future.
  
  

If you'd like to review your coverage or talk through what's changed in the market, I'm happy to walk through it with you. Sometimes a ten-minute conversation is all it takes to understand where you stand. Get in touch HERE.