California Health Coverage Mandates Explained

With further capital wear and tear as a result of the wildfires, additional downgrades could follow. If that were to occur, consumers with a mortgage might not have the ability to use SFG insurance on the security support for their home mortgage. SFG insures high concentrations of danger in California that might generate financial losses several times bigger than the company's present surplus.

Harmony SoCal Insurance

Insurance will cost more for consumers in California moving forward since the danger is greater in California. Over the last nine years, the absence of alignment between rate and risk means that for every single $1.00 gathered in premium, SFG paid $1.26, leading to over $5 billion in cumulative underwriting losses.

Harmony SoCal Insurance

If you tried to purchase or restore home insurance in California over the last couple of years, you probably faced the exact same wall a great deal of property owners did: your regular insurance company non-renewed you, a new carrier would not estimate your ZIP code at all, and you wound up on the state's FAIR Plan typically paying more for less protection than a standard policy would provide you.

Harmony SoCal Insurance

Here's where things really stand in 2026, and what it implies if you're currently on the FAIR Strategy or were refused in the past. Back-to-back wildfire seasons, topped by the Palisades and Eaton fires in January 2025, eliminated tens of billions of dollars in insured value in a matter of weeks.