California E&S Insurance

Local Housing Market Crash Once Insurance Pulls Out There is currently a one year moratorium in place that prevents insurance companies from canceling or non-renewing home owner's insurance in areas affected by the Eaton and Palisades fires. Is anyone concerned that very soon after this moratorium expires (Jan. 7, 2026), all existing insurance companies that still serve these areas will leave, leaving the California FAIR plan as the only option? My understanding is that the FAIR plan literally costs 10 times more than standard insurance (i.e., on the order of $20,000 a year) and provides a fraction of the coverage of a standard home owner's policy. There is also talk that the FAIR plan is insolvent or at least unsustainable and so even that may not be a viable option in the near future. Faced with this reality, isn't there a significant threat of a housing market crash in these areas? I've lived in Pasadena/Altadena/La Canada my entire life and know its beauty and draw. But presumably people will not want to buy a home in these areas if they cannot affordably insure them, or literally will not be able to buy a home because a bank won't extend a loan on an uninsurable/underinsured home. As demand drops, prices too would necessarily fall, potentially catastrophically. Is anyone else concerned about this? If not, why?

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