California insurance race puts home coverage at center stage

California voters will select a new insurance commissioner in November, giving the winner authority over companies offering homeowners, fire and auto policies. Democrat Ben Allen, a lawmaker representing Pacific Palisades, wants to restore the private insurance system. Democratic rival Jane Kim, a San Francisco organizer, favors replacing that model. The departing commissioner leaves after eight years marked by shrinking coverage options and rising reliance on California’s backup plan.

Wildfires spanning 2015 to 2020 consumed roughly 4 million acres. About 35,000 homes were lost. Insurers paid billions in claims, then sought higher premiums because they believed existing prices did not reflect the risk. California regulators limited those increases. Major carriers responded by dropping customers, halting new policies or leaving the state’s market. Insurance trouble also disrupted home purchases for 1 in 7 California real estate agents in 2024.

Lynn McIntyre’s experience shows the strain on individual owners. Liberty Mutual removed fire protection from her inherited Los Angeles bungalow, so she added FAIR Plan coverage for $5,000 annually. Smoke and ash damaged the house during the Palisades Fire, yet FAIR covered temporary lodging rather than repairs. After months of disputes, McIntyre prepared to fund restoration with a federal loan of nearly $200,000. Liberty Mutual later said it would end her remaining coverage.