Today, possibly big news for those impacted by California’s home insurance crisis. 

Friday, the state’s Department of Insurance says it got a major procedural green light to make some changes that might entice insurance companies to stop dropping people’s policies and possibly resume selling homeowners coverage. 

The state says it’s now clear to let home insurance companies use future-looking computer catastrophe models to set our rates. In exchange for those new tools, the state says we’re getting — for the first time — a new commitment from insurance companies to sell more insurance — especially in wildfire-distressed areas.

Consumer Investigator Chris Chmura asked California’s Insurance Commissioner Ricardo Lara in an interview on Friday when consumers can expect to see impacts. 

“We’re seeing the impact already,” Lara said. 

“Just this week, California’s second-largest home insurance company, Farmers, said they’re going to expand in California,” he continued, recognizing an announcement Farmers made on Wednesday in which the company cited an improved insurance market in California. 

In October, Lara told NBC Bay Area he believes consumers will start seeing more companies return to California in mid-to-late 2025, a belief he reiterated on Friday.

“By mid-next year, you’re going to start seeing more companies come in, you’re gonna start seeing these rates really reflect homeowners’ investment in their property,  and we’re going to — for the first time– use technology so we’re not relying on outdated historical data that we know no longer really meets the needs given climate change and what we’re seeing,” Lara said. 

The state is also aiming to create a public catastrophe model to keep the insurance companies honest. We should learn more details about that in the spring of 2025. In the meantime, if insurance sales open up or if premiums jump, we’ll find out first from people like you. 

Continue to share your insurance stories with us here. If your homeowners insurance carrier is dropping your policy, watch our video for help protecting yourself.