May 6, 2026

San Francisco Bay Area Home Insurance Updates

The market for home insurance in California [and the SF Bay Area] is rapidly changing. Here are some quick updates in regards to buying/changing/ or thinking about insurance policies in 2026:

  • Property Inspections are challenging and harder than they once were
  • A few admitted home insurers have returned to the market
  • Underwriting rules are complex with admitted insurers
  • Premiums have continued an upward trend with admitted home insurers
  • Ample capacity with nonadmitted insurers
  • Several new nonadmitted insurers have entered the California market
  • Premiums with nonadmitted insurers are now more competitive
  • Switching home insurance is often not the best option
  • Rebuild costs continue to surge

The California Home Insurance Landscape:

For the past three years the homeowners insurance landscape in California has been in a horrendous state. However, the insurance landscape in the San Francisco area and greater California is changing slowly. Somewhat for the better. As of this time last year, we were seeing more cancellations than new admitted home issuance. This year, occassional admitted owner occupied insurance policies are getting through, but not a lot. Premiums are significantly higher than five years ago.

A Changed Underwriting Landscape:

Some admitted insurers are very slowly returning to the market. The Admitted insurers that are returning often have numerous new underwriting guidelines. Examples include automatic water shut off valve requirements. Tree and Foliage setback rules. Requirements for updated plumbing and electrical. The insurance expectations are much more significant. Railings, Occupancy, New Roofs are frequently cited in inspection requirements. I have seen underwriting rules that force to me laugh first and submit later.

So in theory, Yes some admitted insurers are returning to the market and occassionally offering up new terms.

Nonadmitted Insurers Surge:

There are numerous new nonadmitted [Surplus Lines] options available to Californians. Even for more expensive homes. The capacity of these insurers is there. Altougth we are still seeing occasional declines due to concentration. Coverage A rebuilds over about $5.0MM continues to be very challenging. Premiums with these Surplus Lines options in many cases appears to have leveled off. Underwriting requirements can be signficant here as well, but typically less so.

To Change or Not to Change:

Should you change home insurers if you can save $300? If you are with an admitted insurer, unless someting is off, changing for premiums alone typically still does not make sense. Remember that home inspection? The requirements are far more onerous than nine years ago.

If you are with Cal FAIR or a high priced Nonadmitted Insurer- you may want to shop. However you might not like what you find. Or you may cut your bill and increase your coverages.

It Just Costs More to Rebuild Homes:

One of the reasons that shopping for a new home insurance policy often does not save you money is because rebuild costs in the Bay Area are up from several years ago. It simply costs more money to rebuild a house. Labor, Materials, Building Codes, you name it. While your home might have been insurerd at $352 per square foot with some other insurer five years ago, it is hard to see it being less than $550 per square foot now, at the minimum in many areas in 2026. We have seen rebuild reports with estimates in the $800 to $900 per square foot range.

“Wildfire rebuilds can cost anywhere from $350 to over $700 per square foot depending on site conditions, design complexity, and fire-zone location.” Source from a San Jose group.

Should you go back to your current insurer and get coverages increased? In many cases – Yes you should. That is if you can.

Conclusion of SF Bay Area Home Insurance 2026 Update:

While it might be tempting to change home insurers, many folks that reach out to me are advised to stay put. There are still several product types with no good solutions. If you are already with a nonadmitted insurer or the California FAIR plan- changing might be a great option. For those that are lucky to have an admitted policy – changing is often not possible or advised.

The best news in 2026 is that the trend towards more capacity is there and might be growing. Two cheers for that. Will it continue?



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