Sonoma Valley homeowners urged to prepare as California insurance costs climb

With homeowners facing rising premiums and fewer coverage options, the Sonoma Valley Community Advisory Commission on Monday, Nov. 17, received an overview of California’s strained insurance market during a presentation by United Policyholders.

Anne Barbour, a liaison coordinator with the San Franciso-based consumer advocacy nonprofit, who lost her home in the 2017 Tubbs Fire, said the organization aims to give residents the information they need before disaster strikes.

“We want folks to really understand what their insurance policies are before things happen, because it’s much easier that way,” she said during the presentation.

United Policyholders, founded after the 1991 Oakland firestorm, now works nationally to help policyholders navigate claims and coverage decisions.

Barbour described the California FAIR Plan as a last-resort option for homeowners who have lost coverage or been dropped due to wildfire risk.

“The FAIR Plan is not a policy that is intended to be the answer,” Barbour said. “It is intended to help homeowners who cannot otherwise get coverage.”

She stressed that the plan provides only basic fire protection and must be paired with supplemental coverage for liability, theft, water damage, and other losses.

The presentation came as the FAIR Plan requested an average statewide rate increase of more than 35%, driven by rising wildfire risks and claims.

While some policyholders could see reductions, most would face hikes depending on location.

“Insurance companies are constantly reviewing and evaluating risk,” Barbour said, noting that many consumers view insurance as static rather than tied to changing risk models.

Commissioners pressed for guidance on local impacts. Commissioner Matthew Dickey highlighted the economic strain on homeowners.

“A lot of people in the valley now are faced with the FAIR Plan or selling their homes and moving on because insurance is so expensive,” he said.

Commissioners also focused on claims processes after a disaster. Commissioner Randall Roberts asked how homeowners should document possessions for insurance claims.

Barbour recommended receipts, photos, and digital records. “You don’t need to have this be a full-time job to protect yourself,” she said.

She also highlighted an AI-powered tool, bevelmade.com, which allows users to photograph belongings and generate an itemized list for claims.

“It’s AI generated, so you do have to have your eyes on it, but you can take pictures inside your house and upload it, and AI will capture what the items are and the prices,” said Barbour. “It’s a pretty cool tool, and it’ll put it on a spreadsheet for your loss of use.”

Commissioner Nicolas Brereton raised concerns about insurers’ reconstruction cost estimates.

“The insurance companies come up with their own cost of construction estimates, and they’re clearly bogus,” said Brereton. “They clearly make up things in order to obfuscate to the homeowner how the cost is and what it is. A friend of mine lost his house in the Butte County Fire. It had eight pages of nonsense, nothing like a construction estimate.”

Barbour explained that while “scope of loss” reports can provide more accurate figures, they are costly and time-consuming, particularly after a major disaster.

“Unfortunately, in a big disaster, a contractor is not going to be able to assess,” she said. “The insurance companies use  exact amounts, and when they send it to you, they say, ‘This is an estimate.’ They’re hoping that the consumer will take that as, ‘Oh, that’s how much they’re going to pay me.’”

Barbour also advised homeowners and renters to review policy limits, inventory belongings, and document home improvements.

“The more prepared you are, the easier everything will be on the other side,” she said. “Renters insurance is generally two Starbucks a month, to put it in perspective, and you want to document your contents before you have that loss.”

State leaders are working to stabilize California’s insurance market, allowing companies to factor climate-change risk into rates if they agree to write more policies in fire-prone areas.

Even so, more homeowners are turning to the FAIR Plan as major insurers pause new business or reduce coverage. A statewide report on long-term wildfire response, mitigation, and insurance access is expected in April of 2026.

Barbour closed the presentation by emphasizing preparation.

“Insurance is supposed to be a safety net,” she said. “You want to have the strongest one you can have going in.”