Homeowners in upscale Los Angeles neighborhoods like Santa Monica, Pacific Palisades, Brentwood, Bel Air, and Malibu face growing difficulties securing insurance coverage. The combination of increasing wildfire risks and regulatory limits on premium hikes has led major providers like State Farm to cancel policies across the region. In Pacific Palisades, 69.4% of policies were non-renewed, while 61.5% of homes in Brentwood were affected​.
This trend impacts luxury homes in high-risk wildfire areas, and many homeowners are forced to rely on the California FAIR Plan. The FAIR Plan offers limited fire coverage, often leading homeowners to purchase wrap-around policies for more comprehensive protection. These add-ons fill gaps in standard FAIR Plan coverage, ensuring protection for other risks like liability or water damage​.
The surge in home insurance cancellations throughout the Westside reflects a broader crisis in the state’s insurance market. As climate change intensifies natural disasters, many insurance providers are exiting the market, citing high costs and insufficient premium increases​. While state regulators are working to update rules and balance consumer protections, it’s become increasingly difficult to find affordable, comprehensive insurance.
For those struggling with policy cancellations, exploring California FAIR Plan solutions along with supplemental policies is often the best route to maintain coverage in fire-prone areas of Los Angeles. With FAIR Plan enrollment up by 38% since 2023, homeowners across the Westside are finding ways to piece together protection​.
If you're facing challenges with your homeowners insurance or want to explore comprehensive insurance solutions for wildfire-prone areas like Malibu or Pacific Palisades, we can help. Contact us today, and we’ll refer you to one of our five-star insurance partners who can help you find the right coverage.