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.

Related articles