As we all know,
California’s insurance market is at a crossroads, with growing challenges that
have left homeowners grappling with limited access to affordable coverage. Over
recent years, seven of California’s 12 largest homeowners insurance providers,
including State Farm and Allstate, have either paused or scaled back their
business in the state. This exodus has impacts far beyond the immediate loss of
coverage, threatening the stability of the housing market and exposing flaws in
the state’s insurance framework. To fully understand the crisis and chart a
path forward, we must explore its underlying causes, legislative context, and
potential remedies.
