Can You Still Get Home Insurance in Southern California? What Buyers and Sellers Need to Know in 2026

If you’re buying or selling a home in Southern California right now, there’s a topic that has quietly become one of the most important parts of any real estate transaction: home insurance availability.

In recent years, many insurance companies have scaled back coverage or stopped writing new policies in parts of California due to wildfire risk and rising rebuilding costs. For buyers and sellers across the Los Angeles and Ventura County corridor—including communities like West Hills, Woodland Hills, Calabasas, Hidden Hills, Agoura Hills, Westlake Village, and Thousand Oaks—this has become a critical issue during escrow.

Simply put: no insurance can mean no loan, and that can stop a deal in its tracks.

Why Home Insurance Has Become a Bigger Issue

Insurance companies evaluate several factors before issuing a policy, including wildfire risk, rebuilding costs, and overall exposure in certain geographic areas. In response to increasing claims and rising construction costs, some carriers have limited new policies in California or increased premiums significantly.

This has made buyers more cautious and has introduced a new step in the home buying process: confirming insurance availability early.

The California FAIR Plan

When traditional insurance companies decline coverage, homeowners may still be able to obtain coverage through the California FAIR Plan.

The FAIR Plan was created as a last-resort option for homeowners who cannot obtain coverage through standard insurance providers. While it can provide basic fire insurance protection, homeowners typically need to purchase an additional “wraparound” policy for liability and other coverage.

This means coverage can sometimes be more expensive and more complex, which is why it’s important to evaluate options before finalizing a purchase.

What Buyers Should Do Before Making an Offer

Today’s buyers should take a proactive approach when it comes to insurance.

Before submitting an offer on a home, it’s smart to:

• Speak with an insurance agent about the property location
• Obtain a preliminary insurance quote if possible
• Understand whether coverage would be through a traditional carrier or the FAIR Plan
• Factor insurance costs into the overall monthly payment

Doing this early can prevent surprises once escrow is underway.

What Sellers Should Know

For sellers, insurance availability can impact how smoothly a transaction moves forward.

If a buyer struggles to obtain insurance, it can delay escrow or even cancel the sale. Sellers can help avoid these issues by:

• Providing buyers with information about current insurance coverage
• Ensuring the property is well maintained and defensible against wildfire risk
• Pricing the home appropriately for current market conditions

Homes that are well-prepared and properly priced tend to attract more confident buyers.

The Bottom Line

Insurance has become an important piece of the real estate puzzle in California. While it hasn’t stopped buyers from purchasing homes in desirable communities across Los Angeles and Ventura counties, it has made preparation more important than ever.

With the right planning and guidance, buyers and sellers can still navigate the process successfully.

After more than 30 years helping buyers and sellers throughout the Los Angeles and Ventura County corridor, I’ve seen how market changes—from interest rates to insurance—can affect transactions. The key is staying informed and working with professionals who understand how to navigate these challenges.

If you’re considering buying or selling a home and want to discuss today’s market conditions, feel free to reach out anytime.

Anthony Guetzoian
Broker / Owner
Century 21 Valley Properties
📞 818.266.1100