The government should make insurers cover homes like they do cars

By Robert Howell, especially for CalMatters

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Guest Comment written by

As the first anniversary of Southern California’s devastating wildfires approaches, CalMatters asked candidates for the 2026 state insurance commissioner race to share thoughts on what the state can do to help victims and stabilize insurers. This is the fifth answer. Read other candidates’ answers here, here, here and here.

California’s insurance system does not work for ordinary people. Homeowners are losing coverage, premiums continue to rise and the state’s safety net is under strain.

It didn’t happen overnight. This is the result of years of lax oversight and a government that was too willing to look the other way.

The first problem is liability. Insurers are allowed to choose how to participate in the California market. They sell auto insurance and other profitable products, then withdraw from homeowners insurance when the risk increases.

This is not a balanced system. If companies want to do business in California, they must share responsibility for basic coverage that protects people’s homes.

One reform worth pursuing is tying homeowners insurance participation to broader market access. If an insurer operates in a region and sells other lines of insurance, it should also be required to offer coverage to homeowners there, subject to reasonable standards. Allowing companies to profit from California while abandoning homeowners puts families and the state at risk.

Stronger enforcement around cancellations and non-renewals is also critical. Entire neighborhoods are dropped with little explanation and little notice. Families who have paid premiums for years are left to struggle through no fault of their own.

These are not the market forces at work. This is a regulatory failure. Insurers should be required to explain large-scale claims, and homeowners who invest in fire mitigation and protection should see those efforts count.

The second problem is the price. Californians pay more and get less. Premiums are rising, deductibles are higher and coverage continues to shrink. Too often these increases are approved without explanations that consumers can understand.

This is why California needs an Insurance Payers Bill of Rights. Homeowners deserve enforceable protection. They need to know why rates are rising, what they are paying for, and what policy changes are being made. They should receive meaningful notice before coverage is canceled or reduced, along with a genuine appeals process.

Insurance should not be a black box.

Price increases don’t always look like higher premiums. Insurers pass on costs through exclusions, higher deductibles and fine print that quietly reduces protection. These changes deserve the same attention as official rate hikes. If insurers cannot justify them clearly and in understandable language, they should not be approved.

Competition matters too. A market with fewer insurers and fewer choices puts consumers at a disadvantage. California must encourage responsible new entrants and create a predictable regulatory environment. Competition alone is not enough, but combined with strong oversight and consumer rights, it helps keep prices under control.

We also need to be honest about California’s FAIR plan. FAIR was never intended to be the primary insurer for large parts of the state. Today, it faces tens of billions of dollars in exposure. There is no realistic way to stabilize FAIR while continuing to absorb the risk that the private market can shed.

If FAIR has serious problems, the state will pay one way or another. That means homeowners and taxpayers. FAIR can only function as intended if the private market is restored and insurers are held accountable.

This crisis will not be solved by putting another insurance insider in charge. Californians need an insurance commissioner who understands what it’s like to receive a cancellation notice or a huge premium increase. The job is to stand up for consumers and restore a system that works for the people it’s meant to serve.

Candidate guest comments are published in the order they are received.

This article was originally published on CalMatters and is republished under Creative Commons Attribution-NonCommercial-No Derivatives license.