building in wildland urban interface drives up home insurance & cancellation rates

“Insurance companies are abandoning homeowners in the highest risk wildfire areas. They cannot charge prices high enough to take on the risk they see coming. Exiting the market has become their last resort. In California, one in five homes in the most extreme fire risk areas has lost coverage since 2019. There are now over 150,000 uninsured households in these areas in California alone.” —Deepsky

“In California, we have seen this play out in extremes, with skyrocketing insurance prices, rising insurance nonrenewals, and a ballooning FAIR Plan—California’s insurance of last resort for those who cannot access private insurance. FAIR Plan policies are less comprehensive and less affordable than traditional insurance. In high-risk areas of the state, insurance premiums increased by as much as 42%, while one in five homes in these areas have lost insurance coverage since 2019.” —Rachel Harris, “An Insurance Market Aflame,” Greenbelt Alliance, November 2025