Homeowners Insurance Update: Q3 2026
What East Bay homeowners and buyers should know about California's shifting insurance market
Insurance has become its own part of the conversation in nearly every transaction we are part of this year, so we asked our insurance advisor, Allie Lopez, for a quick update on what's changing. Here's what's relevant if you own a home in the East Bay or are getting ready to buy one.
CA FAIR Plan Rates Are Going Up
The California FAIR Plan, the state's insurer of last resort for homeowners who can't find coverage elsewhere, is raising rates by an average of 29.1 percent starting October 15. The increase hits hardest in higher fire-risk areas, which matters directly for East Bay hillside homeowners in Berkeley, Oakland, and parts of Orinda, where FAIR Plan coverage has become more common in recent years. If you're on the FAIR Plan, Allie's advice is simple: shop it before the October renewal. There may be better options available than there were even a year ago.
New Market Capacity Opening Up
On a more encouraging note, Allie is seeing more competition enter the market, not less. Kingstone Insurance has opened as a new option for homes with low to moderate fire risk, with capacity for both mid-market and high-value homes with underwriter approval. More broadly, carriers are getting more creative about how they structure coverage to keep policies approvable, offering flexible deductible options, credits for homes with no recent losses, and selective exclusions on specific risks like water or roof damage rather than declining coverage outright.
Chubb and Condo Requirement Changes
A couple of carrier-specific shifts worth knowing if you're shopping high-value coverage. Chubb has lowered its dwelling limit requirement in several NorCal counties, including San Mateo and San Francisco, from $3 million down to $1.5 million, which opens the carrier to a broader range of homes. Separately, condo insurance requirements in San Francisco have dropped from $1 million in appliances and additions coverage to $500,000, a meaningful change for condo buyers working through financing.
Why This Matters for a Purchase
Allie shared a recent example worth passing along. A buyer had already selected a carrier shortly before a high-magnitude earthquake. Given the size of the event, that carrier implemented a 30-day moratorium on new policies, the kind of thing that can jeopardize a closing date if there's no backup plan. Because she'd lined up an alternate option in advance, the buyer still closed on time.
It's a good reminder that insurance isn't something to leave until the final week of escrow. Having more than one viable option lined up early is often what keeps a closing date intact when something unexpected happens.
- Alex
