3 More California Home Insurers Get Go-Ahead for Hefty Rate Hikes

Property insurance rate hikes are on the way for more than 61,000 Californians, after the state’s Department of Insurance approved three insurers’ requests for higher premiums. The increases range from 5% to 40% and will affect policies for single-family home, mobile and manufactured home, condo, and renters insurance from Stillwater, Grange, and Wawanesa.

Grange customers with standard HO-3 homeowners policies will face the largest increase — 40%. Additionally, Grange mobile and manufactured home policyholders will face a 25% hike, renters will see a 12.5% increase, and condo policyholders will get a 5% increase.

The changes will take effect on Jan. 1, 2026, and impact nearly 26,000 Grange customers.

Approximately 27,000 Wawanesa policyholders will see their rates increase by 35% under the approved rate change. The higher rates will apply to new applications and policy renewals, effective July 1, 2025.

And more than 8,600 Stillwater customers are facing a 16% increase — which will also apply to new policies — effective July 1.

California’s volatile home insurance market

Years of weather-driven losses and strict regulation have prompted many home insurers to curtail their business in California. High rates and fewer insurers have made it difficult for many Californians in high-risk areas to find affordable coverage. As a result, the state’s insurer of last resort, the California FAIR Plan, clocked a 74% increase in policies in just 18 months.

Regulators have been working to expand insurance choices for consumers with tactics like investing in programs that promote wildfire-resistant home building, banning insurers from shedding policies in wildfire-affected areas of the state, and allowing participating FAIR Plan insurers to pass half of a $1 billion assessment on to policyholders.

What’s next? Predictions for 2025

At the end of 2024, the average annual cost of home insurance in California was $2,424, Insurify data showed. Insurify data scientists predict Californians will see a 21% increase in the state’s average cost of homeowners insurance this year, likely reaching $2,930 by the end of 2025.

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