February 15, 2026
New Surplus Lines Insurance Homeowners Policy Options for the $2MM to $3MM Range
The market for California Homeowners insurance continues to shift. Some admitted insurers seem remotely more interested in writing new policies than in 2024, the California FAIR plan has become slightly easier to use, and Surplus Lines capital continues to flow into the state. There is ample data to back up this last claim. Specific to the San Francisco Bay Area, the good news is that numerous new nonadmitted insurers are now writing in the $2.0MM to $3.0MM dollar range. Thats $2,000,000 in Coverage A to $3,000,000.
Surplus Lines – Non Admitted Insurance in General
Nonadmitted Insurance – Surplus Lines – Excess and Surplus, essentially all mean the exact same thing. Admitted insurance relative to California means insurance companies that are ruled and regulated by the California Department of Insurance. Admitted insurance is typically backed up by the State Guarantee Fund. Nonadmitted insurance is NOT ruled and regulated [in the same way] by the State’s DOI. And hence nonadmitted insurance is NOT backed up by the State Guarantee fund.
Why would you choose a Nonadmitted home insurance policy?
Frankly you would not unless there were no admitted options available. And in California right now, few shoppers can locate admitted policies, especially in that coverage A range.
A classic example of a nonadmitted home insurer is Lloyds of London.
Coverage A – a Brief Explanation:
The Harford says “Dwelling coverage, also known as coverage A” and it is “part of your homeowners insurance policy that helps cover the cost of rebuilding or repairs for your home and its attached structures after a covered loss…” Source. Basically Coverage A is the Main Building Coverage. There are lots of coverages on homeowners policies, but the Coverage A is the physical coverage amount for the house. Not the other strucutes, but the main house.
Coverage A = Dwelling Coverage = Main Building
We could get into the weeds on this one to define this, but thats not the point of this article. Speak with your licensed broker agent to inquire what parts of your house are covered by Coverage A.
With this brief explanation its important to know that insurers often limit their exposure to many properties by limiting how much Coverage A they will write. Many insurers will not write over $1.0 MM and some over $1.5 MM. Certainly at $2,000,000 in Coverage A, most insurers need special approval or will flat out not write that much. This is true for both admitted and nonadmitted insurers.
Surplus Lines Homeowner Options in the $2,000,000 to $3,000,000 Range:
Recently numerous nonadmitted insurers have shown a new found willingness to write in this ballpark. This is good news for thousands of Californians in desperate need of proper insurance cover. Consumers whose only option was the limited FAIR plan. Folks who chose to underinsure to $1.9MM. People that have no property insurance at all. All of these property owners might just benefit from these new insurers entering the $2,000,000 Coverage A market.
Who are these nonadmitted Insurers Writing $2 Million Dollar Coverage A?
Call with your submission to find out. They are all nonadmitted insurers. They all have underwriting rules so they will not accept everyone. Its more than one new option.
New $2 Million Dollar Homeowner Surplus Lines Submissions:
To find out if we have a market for your property, reach out to us with a new quote submission. There is lots of information about you and your property that we will need. Building characteristics and updates are of paramount importance. Current Insurer, claims record, and alarm/safety systems. That is not a complete list.
What Happens if my Coverage A is more than $3,000,000?
If the main building coverage is more than $3,000,000 then likely we will have fewer options. But we may still have choices.
How do Agents and Consumers determine how much Coverage A is needed?
This is a great topic for another article.
What Happens if My $2.5MM Coverage A Homeowners Policy is a Better Deal than your Offer?
Such a simple question with a simple answer – Keep your existing policy if its a better deal.
The $2,000,000 to $3,00,000 Coverage A New Surplus Lines Summation:
- New Nonadmitted Insurers entering this space
- No guatantee your house will qualify
- $2MM + is often hard to secure any coverage in California for
- Nonadmitted Insurance is often not better than Admitted Insurance but typically better than the FAIR plan.
- Check it out if you would like to know
Always speak with a licensed broker or agent in your jurisdiction whenever you are considering changing or adding coverage.
