Under reviewJurisdiction CA

California: insurance regulation and availability context

Effective: August 31, 2026
Last reviewed: August 31, 2026
Regulator: California Department of Insurance
Consumer line: 1-800-927-4357
Sources: 19 records

California requires prior approval of insurance rates: commencing November 8, 1989, insurance rates subject to the Proposition 103 chapter must be approved by the commissioner prior to their use [1]. An insurer that wants to change a rate files a complete rate application and bears the burden of proving the change is justified, and no rate may be approved or remain in effect that is excessive, inadequate, unfairly discriminatory or otherwise in violation of the chapter [2]. Three mechanisms sit alongside the ordinary admitted market: the California FAIR Plan Association, defined in statute as a joint reinsurance association formed by insurers licensed to write and engaged in writing basic property insurance in the state [11]; the California Earthquake Authority, created by the Legislature in 1996, which sells its policies exclusively through participating insurance companies [13]; and the California Insurance Guarantee Association, which says it is there for liability, auto and workers' compensation claims after an insurance company is placed in liquidation [14]. California's minimum auto liability limits became $30,000 / $60,000 / $15,000 on January 1, 2025 and are scheduled to rise again on January 1, 2035; Vehicle Code section 16056 states those amounts as the limits applicable on and after January 1, 2025 [5][4]. On December 13, 2024 the Department announced it had finalized a wildfire catastrophe modeling regulation permitting forward-looking models in ratemaking [17].

Key mechanisms

Prior approval of rates under Proposition 103. A California insurer must have a rate approved before it uses it. Insurance Code section 1861.01(c) provides that commencing November 8, 1989, insurance rates subject to that chapter must be approved by the commissioner prior to their use [1]. Section 1861.05 supplies the machinery: every insurer that desires to change a rate files a complete rate application, the applicant bears the burden of proving the requested change is justified, and no rate may be approved or remain in effect that is excessive, inadequate, unfairly discriminatory or otherwise in violation of the chapter [2]. The commissioner must notify the public of an application, and the application is deemed approved sixty days after public notice unless a consumer requests a hearing within 45 days or the commissioner determines on his or her own motion to hold one; an application is also deemed approved 180 days after it is received unless it has been disapproved after a hearing or extraordinary circumstances exist [2]. The Department's Rate Enforcement Bureau enforces Proposition 103 and represents the Department's position in prior approval rate hearings before a Department administrative law judge [3].
Wildfire catastrophe modeling and the writing requirement. California now allows forward-looking wildfire catastrophe models in ratemaking, and it separately states a writing obligation for homeowners insurers. The Department states that Commissioner Lara announced on December 13, 2024 that he had finalized a wildfire catastrophe modeling regulation permitting the use of forward-looking catastrophe models in ratemaking [17]. The Department states that all homeowners insurance companies must increase the writing of comprehensive policies in wildfire distressed areas equivalent to no less than 85 percent of their statewide market share [17]. The Department describes a separate net cost of reinsurance in ratemaking regulation, announced in its December 30, 2024 release, as the final major element of the reform package, and uses the phrase Sustainable Insurance Strategy for the overall effort [17]. What any individual applicant is offered still depends on that insurer's own filed program and its underwriting decisions.
Earthquake coverage must be offered, and is usually bought separately. Earthquake is not part of a California residential property policy by default. Insurance Code section 10081 provides that no policy of residential property insurance may be issued or delivered, or, with respect to policies in effect on the effective date of that chapter, initially renewed in the state, unless the named insured is offered coverage for loss or damage caused by the peril of earthquake as provided in the chapter [12]. The statute allows the offer to be satisfied by a provision or endorsement within the residential property policy, or by a separate policy or certificate covering earthquake alone or together with other perils [12]. The California Earthquake Authority, created by the Legislature in 1996 after the January 17, 1994 magnitude 6.7 Northridge earthquake, describes itself as a not-for-profit, publicly managed, privately funded entity and states that it sells its policies exclusively through participating insurance companies [13]. CEA states that it provides two-thirds of the residential earthquake insurance policies sold in California [13]; that is CEA's own figure and it changes over time.
The FAIR Plan writes basic property insurance, not a homeowners policy. The California FAIR Plan describes itself as an insurer of last resort, established by statute to provide basic property insurance to Californians statewide when no other option is reasonably available, and says it was established so that all California property owners have access to basic fire insurance when access to coverage in the traditional market is not available through no fault of the property owner [7]. Statute defines the association as a joint reinsurance association, the California FAIR Plan Association, formed by insurers licensed to write and engaged in writing basic property insurance within the state, to assist persons in securing basic property insurance and to administer an equitable apportionment program among insurers [11]. The Plan's Dwelling page lists covered perils including Fire and Lightning, Internal Explosion, and Smoke, states that optional coverages are available at an additional cost such as coverage for vandalism and malicious mischief, and does not list liability, theft, or water damage among covered perils [10]. Those are the program descriptions on the Plan's website, not the text of a filed policy form; what is covered on any particular policy is what that policy's own form, endorsements, and declarations say, so read your own form. The Plan advises buyers to consider Difference in Conditions, Flood, or Earthquake policies to supplement a FAIR Plan policy [10], but it does not sell the first two itself: its Policies page states that the California FAIR Plan does not offer Difference in Conditions or Flood coverage [8], and its home page says only that a broker can help the applicant find a Difference in Conditions policy which offers additional coverages [7]. On getting in, the Plan states that a broker performs a diligent search for comprehensive coverage in the traditional insurance market, and that if coverage is not available with another company the broker can help determine whether the California FAIR Plan is available as a temporary solution [9]. The Plan states the other half of that test too, and it cuts the other way: if coverage is available in the traditional marketplace, the Plan says the California FAIR Plan is not right for the applicant [9]. Nothing on this page means any particular property is eligible; that is the Plan's own underwriting decision.
Insolvency backstop through CIGA. CIGA states that it is there for liability, auto and workers' compensation claims after an insurance company is placed in liquidation, and that it has helped consumers navigate insolvency since 1969 [14]. On its claims page CIGA states that all other claims, including automobile and personal injury claims, are paid at full value up to $500,000 or the policy limit, whichever is less, and that Loss of Use / Additional Living Expense (Coverage D) is paid at actual cash value up to $500,000 or the policy limits, whichever is less [15]. CIGA describes the California Life and Health Insurance Guarantee Association as its sister organization and as California's guaranty fund for life and health insurance and annuities [14]. CIGA also notes that because it must first obtain the claim files from the liquidator of the insolvent insurer, some delays may occur [14]. How a specific claim is treated is CIGA's determination on that claim.

Residual market

California FAIR Plan Association Statute defines the California FAIR Plan Association as a joint reinsurance association formed by insurers licensed to write and engaged in writing basic property insurance within the state [11]. The Plan describes itself as an insurer of last resort, established by statute to provide basic property insurance to Californians statewide when no other option is reasonably available, and says it was established so that all California property owners have access to basic fire insurance when access to coverage in the traditional market is not available through no fault of the property owner [7]. Its Policies page lists dwelling coverage for owner or tenant occupied dwellings with up to 4 family units and personal property for renters and condo owners, commercial coverage for business owned buildings and for individual owned habitational buildings with 5 or more units, and earthquake coverage through the California Earthquake Authority, and states that the California FAIR Plan does not offer Difference in Conditions or Flood coverage [8]. The Dwelling page lists covered perils including Fire and Lightning, Internal Explosion, and Smoke, with optional coverages available at additional cost such as vandalism and malicious mischief [10]; those are website program descriptions, not a filed form, so read the actual policy form. The published route in is a broker-performed diligent search of the traditional insurance market, after which the broker can help determine whether the Plan is available as a temporary solution; the same page states that if coverage is available in the traditional marketplace, the Plan is not right for the applicant [9]. Nothing stated here means any particular property is eligible; eligibility is decided by the Plan's own underwriting.

Auto financial responsibility

Minimum liability limits: $30,000 / $60,000 / $15,000, effective January 1, 2025. Yes, SB 1107 raised the limits, and the increase is already in force. Vehicle Code section 16056 states the limits applicable on and after January 1, 2025 as $30,000 for bodily injury to or death of one person, $60,000 for bodily injury to or death of all persons in one accident, and $15,000 for property damage, replacing the $15,000 / $30,000 / $5,000 limits that the same section states for the period through December 31, 2024 [5]. Those amounts were set by SB 1107 (2022), chaptered as Chapter 717, Statutes of 2022, which amended Vehicle Code sections 16056, 16430, 16435, 16451 and 16500 and added Insurance Code section 12960 [4]. One attribution point is worth stating precisely rather than rounding off: the section's own amendment note reads that it was amended, as added by Stats. 2022, Ch. 717, Sec. 3, by Stats. 2023, Ch. 204, Sec. 19 (AB 1140), effective January 1, 2024, operative January 1, 2025 by its own provisions, so SB 1107 set the amounts but a later bill amended the section before those amounts became operative [5]. The California DMV listed the same $30,000 / $60,000 / $15,000 amounts as current at review on 2026-08-31, citing Insurance Code section 11580.1b, and stated no effective date of its own [6]. Effective date of the current limits: January 1, 2025. Verified on 2026-08-31 against the codified section on the Legislative Counsel's own site, the enacting bill, and the DMV page.
Scheduled increase to $50,000 / $100,000 / $25,000, effective January 1, 2035. Effective January 1, 2035 the same statute increases the minimums by $20,000 per person, $40,000 per accident, and $10,000 for property damage, producing limits of $50,000, $100,000, and $25,000 [4][5]. That step-up is already written into the section; it is not the requirement for a policy written today.
A liability policy is not the only route: $75,000 cash deposit, $75,000 surety bond, or a DMV self-insurance certificate. SB 1107 set the cash deposit alternative for proof of financial responsibility at $75,000 effective January 1, 2025, and that figure increases by $50,000 effective January 1, 2035 [4]. The cash deposit is not the only alternative to a liability policy, and the earlier version of this page named only the deposit: the DMV also lists a DMV-issued self-insurance certificate and a $75,000 surety bond from a company licensed to do business in California [6]. Which of these a particular person can actually use is the DMV's determination on that application.

Workers compensation

California workers compensation pure premium rates are advisory rather than mandated. The Insurance Commissioner adopted an average advisory pure premium rate of $1.65 per $100 of payroll effective September 1, 2026, a 6.6 percent increase from the 2025 approved rate [16]. The Department states that the adopted rate is advisory, meaning insurance companies are not bound by it and are free to set their own rates, so what an employer actually pays depends on the insurer's own filed rates and its underwriting [16]. The Department also publishes an online rate comparison for the top 50 workers' compensation insurers [19].

Consumer tools published by this jurisdiction

CDI consumer hotline and complaint help - The Department lists its consumer hotline as 1-800-927-4357 [18].
CDI premium comparison tools - Comparison tools for private passenger automobile and motorcycle, homeowners including condominium, renters and earthquake, long-term care, Medicare supplement, and an online rate comparison for the top 50 workers' compensation insurers; the Department states that the results of these surveys are not premium quotes [19].
California FAIR Plan - Official site of the association. Its Policies page describes the dwelling, commercial, and earthquake programs and states that the FAIR Plan does not offer Difference in Conditions or Flood coverage [8]; its How to Apply page describes the broker-performed diligent search [9].
California Earthquake Authority - CEA states that it sells its policies exclusively through participating insurance companies [13].
California Insurance Guarantee Association - CIGA states that it is there for liability, auto and workers' compensation claims after an insurance company is placed in liquidation [14].

Source ledger

19 sources. Every citation number above resolves to a record below. Nothing here sits behind an account.

[1]
California Insurance Code Section 1861.01 (Proposition 103 rate rollback and prior approval)(opens the original record on California Legislative Counsel (leginfo.legislature.ca.gov))
California Legislative Counsel (leginfo.legislature.ca.gov)Primary lawPrimaryJurisdiction CALast checked August 31, 2026Updates: Amended only by legislation or voter initiative; re-check leginfo for current text.ID ca-ins-code-1861-01
What this source supports (1)
California Insurance Code section 1861.01(c) provides that commencing November 8, 1989, insurance rates subject to that chapter must be approved by the commissioner prior to their use.
Active
[2]
California Insurance Code Section 1861.05 (rate standards, applications, and hearings)(opens the original record on California Legislative Counsel (leginfo.legislature.ca.gov))
California Legislative Counsel (leginfo.legislature.ca.gov)Primary lawPrimaryJurisdiction CALast checked August 31, 2026Updates: Amended only by legislation or voter initiative; re-check leginfo for current text.ID ca-ins-code-1861-05
What this source supports (4)
California Insurance Code section 1861.05(a) provides that no rate shall be approved or remain in effect which is excessive, inadequate, unfairly discriminatory or otherwise in violation of the chapter.
Section 1861.05(b) requires every insurer that desires to change any rate to file a complete rate application with the commissioner, and places on the applicant the burden of proving that the requested rate change is justified and meets the requirements of the article.
Section 1861.05(c) requires the commissioner to notify the public of any application by an insurer for a rate change, and provides that the application is deemed approved sixty days after public notice unless a consumer requests a hearing within 45 days of public notice or the commissioner on his or her own motion determines to hold a hearing.
Section 1861.05(c) also provides that a rate application is deemed approved 180 days after the application is received, unless it has been disapproved after a hearing or extraordinary circumstances exist.
Active
[3]
Rate Enforcement Bureau - California Department of Insurance(opens the original record on California Department of Insurance)
California Department of InsuranceRegulatorPrimaryJurisdiction CALast checked August 31, 2026Updates: Updated by CDI as its organization changes.ID cdi-rate-enforcement-bureau
What this source supports (2)
The California Department of Insurance Rate Enforcement Bureau enforces the provisions of Proposition 103 and other laws pertaining to the availability and affordability of insurance and the rating and underwriting practices of property and casualty insurers.
The Rate Enforcement Bureau represents the Department's position in prior approval rate hearings before a Department of Insurance administrative law judge.
Active
[4]
California SB 1107 (2022) - Motor vehicle financial responsibility minimums (Protect California Drivers Act)(opens the original record on California Legislative Counsel (leginfo.legislature.ca.gov))
California Legislative Counsel (leginfo.legislature.ca.gov)Primary lawPrimaryJurisdiction CALast checked August 31, 2026Updates: Static enacted bill text; the 2035 step-up is written into the statute.ID ca-sb-1107
What this source supports (5)
California SB 1107 raised the state's minimum motor vehicle liability limits to $30,000 for bodily injury to or death of one person, $60,000 for bodily injury to or death of all persons in one accident, and $15,000 for property damage, effective January 1, 2025.
SB 1107 set the cash deposit alternative for proof of financial responsibility in California at $75,000 effective January 1, 2025.
Effective January 1, 2035 the California minimums increase again by $20,000 per person, $40,000 per accident, and $10,000 for property damage, producing limits of $50,000, $100,000, and $25,000, and the deposit alternative increases by $50,000.
SB 1107 amended California Vehicle Code sections 16056, 16430, 16435, 16451 and 16500, and added Insurance Code section 12960.
SB 1107 was chaptered as Chapter 717, Statutes of 2022.
Effective: 2025-01-01
Active
[5]
California Vehicle Code Section 16056 (policy limits that satisfy financial responsibility)(opens the original record on California Legislative Counsel (leginfo.legislature.ca.gov))
California Legislative Counsel (leginfo.legislature.ca.gov)Primary lawPrimaryJurisdiction CALast checked September 2, 2026Updates: Amended only by legislation; the January 1, 2035 step-up is already written into the section.ID ca-veh-code-16056
What this source supports (4)
Vehicle Code section 16056 states the liability limits a policy must carry to satisfy California's financial responsibility requirement as $15,000 for bodily injury to or death of one person, $30,000 for bodily injury to or death of all persons in one accident, and $5,000 for property damage for the period through December 31, 2024.
Vehicle Code section 16056 states the limits applicable on and after January 1, 2025 as $30,000 for bodily injury to or death of one person, $60,000 for bodily injury to or death of all persons in one accident, and $15,000 for property damage.
Vehicle Code section 16056 provides for a further step-up effective January 1, 2035, expressed as an increase BY $20,000 for bodily injury to or death of one person, BY $40,000 for bodily injury to or death of all persons in one accident, and BY $10,000 for property damage. Applied to the amounts operative from January 1, 2025, that produces limits of $50,000, $100,000 and $25,000 from January 1, 2035. The statute states the increments rather than the resulting figures, so the increments must not be read as the 2035 limits.
The section's amendment note reads that it was amended, as added by Stats. 2022, Ch. 717, Sec. 3, by Stats. 2023, Ch. 204, Sec. 19 (AB 1140), effective January 1, 2024, operative January 1, 2025 by its own provisions.
Effective: 2025-01-01
Active
[6]
Insurance Requirements - California Department of Motor Vehicles(opens the original record on California Department of Motor Vehicles)
California Department of Motor VehiclesRegulatorPrimaryJurisdiction CALast checked August 31, 2026Updates: Re-verify annually and after each legislative session.ID ca-dmv-insurance-requirements
What this source supports (2)
The California DMV lists the current minimum liability insurance amounts as $30,000 for injury or death to one person, $60,000 for injury or death to more than one person, and $15,000 for damage to property.
The California DMV states that the financial responsibility requirement may also be met by a $75,000 cash deposit with the DMV, by a DMV-issued self-insurance certificate, or by a $75,000 surety bond from a company licensed to do business in California.
Active
[7]
The California FAIR Plan - official site(opens the original record on California FAIR Plan Association)
California FAIR Plan AssociationCarrier officialPrimaryJurisdiction CALast checked August 31, 2026Updates: Site content changes as FAIR Plan programs and limits change; re-verify at least quarterly.ID ca-fair-plan-home
What this source supports (3)
The California FAIR Plan describes itself as an insurer of last resort, established by statute to provide basic property insurance to Californians statewide when no other option is reasonably available.
The California FAIR Plan states that it was established so that all California property owners have access to basic fire insurance when access to coverage in the traditional market is not available through no fault of the property owner.
The California FAIR Plan home page states that a broker can help the applicant find a Difference in Conditions policy which offers additional coverages, and invites the reader to ask a broker about Flood and Earthquake insurance.
Active
[8]
Policies - The California FAIR Plan(opens the original record on California FAIR Plan Association)
California FAIR Plan AssociationCarrier officialPrimaryJurisdiction CALast checked August 31, 2026Updates: Programs change; re-verify at least quarterly.ID ca-fair-plan-policies
What this source supports (4)
The California FAIR Plan Policies page describes its Dwelling program as coverage for owner or tenant occupied dwellings with up to 4 family units and personal property for renters and condo owners.
The Policies page describes its Commercial program as business owned buildings including habitational units, retail mercantile, manufacturing risks, farms, wineries, and office buildings, and individual owned habitational buildings with 5 or more units.
The Policies page describes Earthquake coverage for individually owned residential properties and personal property of tenants and condo owners through the California Earthquake Authority.
The Policies page states, with respect to Difference in Conditions and Flood coverage, that the California FAIR Plan does not offer these coverages.
Active
[9]
How to Apply - The California FAIR Plan(opens the original record on California FAIR Plan Association)
California FAIR Plan AssociationCarrier officialPrimaryJurisdiction CALast checked August 31, 2026Updates: Re-verify when the Plan revises its application process.ID ca-fair-plan-how-to-apply
What this source supports (5)
The California FAIR Plan states that insurance agents and brokers may have access to property insurers other than the California FAIR Plan.
The California FAIR Plan states that the applicant's broker will perform a diligent search for comprehensive coverage in the traditional insurance market.
The California FAIR Plan states that if coverage is not available with another company, the broker can help the applicant determine if the California FAIR Plan is available as a temporary solution.
The California FAIR Plan states that if coverage is available in the traditional marketplace, the California FAIR Plan is not right for the applicant.
The How to Apply page repeats the Plan's description of itself as an insurer of last resort, established by statute to provide basic property insurance to Californians statewide when no other option is reasonably available.
Active
[10]
Dwelling - The California FAIR Plan (policy category listing)(opens the original record on California FAIR Plan Association)
California FAIR Plan AssociationCarrier officialPrimaryJurisdiction CALast checked August 31, 2026Updates: changes with FAIR Plan form and program filingsID cfp-dwelling-policy
What this source supports (19)
The California FAIR Plan Dwelling Fire Policy is a named peril policy, which provides coverage only for damage caused by the specific causes of loss listed in the policy.
The causes of loss shown on the page are fire and lightning, internal explosion, and smoke.
Optional coverages are available at an additional cost, such as coverage for vandalism and malicious mischief.
The FAIR Plan suggests that for more complete property coverage the reader consider purchasing Difference in Conditions, Flood, or Earthquake policies to supplement a California FAIR Plan policy by covering additional perils.
The page states that the California FAIR Plan Dwelling Fire Policy is a named peril policy, which provides coverage only for damage caused by the specific causes of loss listed in the policy.
The page lists Fire and Lightning, Internal Explosion, and Smoke as the covered perils shown.
The page states that optional coverages are available at an additional cost, such as coverage for vandalism and malicious mischief.
The page advises considering Difference in Conditions, Flood, or Earthquake policies to supplement a California FAIR Plan policy by covering additional perils.
The page describes the California FAIR Plan as an insurer of last resort, established by statute to provide basic property insurance to Californians statewide when no other option is reasonably available, and describes the dwelling policy as a temporary solution.
The California FAIR Plan's dwelling page lists a category labeled "Owner-Occupied", described as "1-4 unit dwellings in which the owner lives in one or more unit."
The same page lists a category labeled "Rentals", described as "1-4 unit dwellings that are rented to a tenant for at least one year."
The same page lists a category labeled "Seasonal Rental", described as "Dwellings that are rented (in whole or part) for less than one year."
The same page lists a category labeled "Condominium Unit Owners", described as "Personal property and improvements coverage for a condominium unit owner", separate from its owner-occupied and rental dwelling categories.
The same page lists a category labeled "Renters", described as "Personal property coverage for the tenant of an apartment or single/multi-unit dwelling."
The California FAIR Plan Dwelling page lists covered perils including Fire and Lightning, Internal Explosion, and Smoke.
The California FAIR Plan Dwelling page states that optional coverages are available at an additional cost, such as coverage for vandalism and malicious mischief.
The California FAIR Plan Dwelling page states that for more complete property coverage the reader should consider purchasing Difference in Conditions, Flood, or Earthquake policies to supplement a California FAIR Plan policy.
The California FAIR Plan Dwelling page states that if you are unable to purchase coverage with a traditional insurance company, the California FAIR Plan offers a temporary solution for the occupancy types it lists.
The California FAIR Plan Dwelling page does not list liability, theft, or water damage among the covered perils, and states no maximum dwelling limit.
Effective: not stated on the page
Active
[11]
California Insurance Code Section 10091 (basic property insurance definitions; FAIR Plan Association)(opens the original record on California Legislative Counsel (leginfo.legislature.ca.gov))
California Legislative Counsel (leginfo.legislature.ca.gov)Primary lawPrimaryJurisdiction CALast checked August 31, 2026Updates: Amended only by legislation.ID ca-ins-code-10091
What this source supports (1)
California Insurance Code section 10091(a) defines 'Association,' 'industry placement facility,' or 'facility' to mean a joint reinsurance association, the California FAIR Plan Association, formed by insurers licensed to write and engaged in writing basic property insurance within the state to assist persons in securing basic property insurance and to formulate and administer a program for the equitable apportionment among insurers of basic property insurance.
Active
[12]
California Insurance Code section 10081 (mandatory offer of earthquake coverage)(opens the original record on California Legislative Information (official))
California Legislative Information (official)Primary lawPrimaryJurisdiction CALast checked August 31, 2026Updates: amended only by legislation; re-check leginfo annuallyID ca-ins-code-10081
What this source supports (9)
No policy of residential property insurance may be issued or delivered or, with respect to policies in effect on the effective date of this chapter, initially renewed in this state by any insurer unless the named insured is offered coverage for loss or damage caused by the peril of earthquake as provided in this chapter.
The earthquake coverage may be provided in the residential property policy itself by specific policy provision or endorsement, or in a separate policy or certificate of insurance covering earthquake alone or in combination with other perils.
The section was added by Stats. 1984, Ch. 916, Sec. 1.
Section 10081 reads: 'No policy of residential property insurance may be issued or delivered or, with respect to policies in effect on the effective date of this chapter, initially renewed in this state by any insurer unless the named insured is offered coverage for loss or damage caused by the peril of earthquake as provided in this chapter.'
Section 10081 continues: 'That coverage may be provided in the policy of residential property insurance itself, either by specific policy provision or endorsement, or in a separate policy or certificate of insurance which specifically provides coverage for loss or damage caused by the peril of earthquake alone or in combination with other perils.'
The section sits in CHAPTER 8.5. Earthquake Insurance [10081 - 10089.4], added by Stats. 1984, Ch. 916, Sec. 1.
The 'initially renewed' clause in Section 10081 is qualified by the phrase 'with respect to policies in effect on the effective date of this chapter'; Section 10081 does not by its own terms impose an offer duty at every renewal.
California Insurance Code section 10081 provides that no policy of residential property insurance may be issued or delivered or, with respect to policies in effect on the effective date of the chapter, initially renewed in the state by any insurer unless the named insured is offered coverage for loss or damage caused by the peril of earthquake as provided in the chapter.
Section 10081 allows the earthquake offer to be satisfied by a provision or endorsement within the residential property insurance policy, or by a separate policy or certificate covering the peril of earthquake alone or together with other perils.
Published: 1984 (added by Stats. 1984, Ch. 916, Sec. 1) Effective: not separately stated on the page beyond the 1984 enactment note
Active
[13]
California Earthquake Authority's Story - Building Earthquake Resilience(opens the original record on California Earthquake Authority)
California Earthquake AuthorityCarrier officialPrimaryJurisdiction CALast checked August 31, 2026Updates: Updated occasionally by CEA communications.ID cea-history
What this source supports (11)
CEA describes itself on this page as a not-for-profit, publicly managed, privately funded entity.
The page states that in 1996 the California Legislature created the California Earthquake Authority.
The page describes the January 17, 1994 magnitude 6.7 Northridge earthquake as the background to CEA's creation.
CEA states: 'On January 17, 1994, a magnitude 6.7 earthquake known as the Northridge earthquake rocked California's San Fernando Valley'.
CEA states that 'the earthquake caused an estimated $20 billion in residential damages alone' and that 'only half of that was covered by insurance'.
CEA states: 'In 1996, the California Legislature went one step further and created the California Earthquake Authority (CEA)'.
CEA describes itself as 'a not-for-profit, publicly managed, privately funded entity'.
CEA states: 'Today, CEA provides two-thirds of the residential earthquake insurance policies sold in California'. The page gives no as-of date and no methodology for that figure.
The California Legislature created the California Earthquake Authority in 1996, following the January 17, 1994 magnitude 6.7 Northridge earthquake.
CEA describes itself as a not-for-profit, publicly managed, privately funded entity, and states that it sells its policies exclusively through participating insurance companies.
CEA states that today it provides two-thirds of the residential earthquake insurance policies sold in California.
Active
[14]
California Insurance Guarantee Association - official site(opens the original record on California Insurance Guarantee Association)
California Insurance Guarantee AssociationCarrier officialPrimaryJurisdiction CALast checked August 31, 2026Updates: Site updated as insolvencies are added.ID ciga-home
What this source supports (4)
CIGA states that it is there for liability, auto and workers' compensation claims after an insurance company is placed in liquidation.
CIGA states that since 1969 it has helped consumers navigate insolvency.
CIGA describes the California Life and Health Insurance Guarantee Association as its sister organization and as California's guaranty fund for life and health insurance and annuities.
CIGA states that because it must first obtain the claim files from the liquidator of the insolvent insurer, some delays may occur.
Active
[15]
Liability, Auto, and Property Claims - CIGA(opens the original record on California Insurance Guarantee Association)
California Insurance Guarantee AssociationCarrier officialPrimaryJurisdiction CALast checked August 31, 2026Updates: Re-verify if the statutory cap is amended.ID ciga-claims
What this source supports (2)
CIGA states that all other claims, including automobile and personal injury claims, are paid at full value up to $500,000 or the policy limit, whichever is less.
CIGA states that Loss of Use / Additional Living Expense (Coverage D) is paid at actual cash value up to $500,000 or the policy limits, whichever is less.
Active
[16]
Commissioner Lara takes action to maintain stable workers' compensation market amid rising costs (Release 024-2026)(opens the original record on California Department of Insurance)
California Department of InsuranceRegulatorPrimaryJurisdiction CALast checked August 31, 2026Updates: CDI issues a pure premium rate decision at least annually; the figures change each cycle, so re-check before each content review.ID cdi-release-024-2026
What this source supports (7)
The Insurance Commissioner adopted a workers' compensation insurance average advisory pure premium rate of $1.65 per $100 of payroll, a 6.6 percent increase from the 2025 approved rate.
The release states that the new rate will be effective on September 1, 2026.
The release states that the adopted rate is below the 10.4 percent requested rate increase of the Workers' Compensation Insurance Rating Bureau.
The release states that the adopted rate is advisory, meaning that insurance companies are not bound by it and are free to set their own rates.
The release states that the adopted rate is in line with the analysis and recommendation of Department of Insurance actuaries reviewing the WCIRB filing.
The California Insurance Commissioner adopted an average advisory workers compensation pure premium rate of $1.65 per $100 of payroll effective September 1, 2026, a 6.6 percent increase from the 2025 approved rate.
The Department states that the adopted rate is advisory, meaning that insurance companies are not bound by it and are free to set their own rates.
Published: 2026-07-10 Effective: 2026-09-01
Active
[17]
Commissioner Lara issues landmark regulation to expand insurance access for Californians amid growing climate risks (Release 065-2024)(opens the original record on California Department of Insurance)
California Department of InsuranceRegulatorPrimaryJurisdiction CALast checked August 31, 2026Updates: Re-verify against the adopted regulation text and any subsequent amendments.ID cdi-cat-model-2024
What this source supports (3)
The Department states that Commissioner Lara announced on December 13, 2024 that he had finalized a wildfire catastrophe modeling regulation, which permits the use of forward-looking catastrophe models in ratemaking.
The Department states that all homeowners insurance companies must increase the writing of comprehensive policies in wildfire distressed areas equivalent to no less than 85 percent of their statewide market share.
The Department describes the net cost of reinsurance in ratemaking regulation announced in this December 30, 2024 release as the final major element of the reform package, and uses the phrase Sustainable Insurance Strategy for the overall effort.
Published: 2024-12-30
Active
[18]
Get Help - California Department of Insurance consumer assistance(opens the original record on California Department of Insurance)
California Department of InsuranceRegulatorPrimaryJurisdiction CALast checked August 31, 2026Updates: Maintained on an ongoing basis by CDI consumer services.ID cdi-getting-help
What this source supports (5)
The California Department of Insurance publishes 1-800-927-4357 on this page for insurance information and questions, corroborating the Consumer Hotline number on a second official CDI page.
The California Department of Insurance offers electronic complaint forms and also printable complaint forms.
The page states that CDI recommends using the electronic complaint forms and that use of non-electronic complaint forms may delay the process.
The page provides a Spanish-language help link (Como obtener ayuda).
The California Department of Insurance lists its consumer hotline as 1-800-927-4357.
Active
[19]
Compare Premiums - California Department of Insurance(opens the original record on California Department of Insurance)
California Department of InsuranceRegulatorPrimaryJurisdiction CALast checked August 31, 2026Updates: CDI refreshes each survey on its own cycle; the editions shown at review on 2026-08-31 were 2026 for auto, homeowners and Medicare supplement, and 2025 for long-term care.ID cdi-premium-comparison
What this source supports (2)
The California Department of Insurance publishes premium comparison tools for private passenger automobile and motorcycle insurance, homeowners insurance including condominium, renters and earthquake coverage, long-term care insurance, Medicare supplement insurance, and an online rate comparison for the top 50 workers' compensation insurers.
The Department states that the results of these surveys are not premium quotes.
Active

Report an error on this pageCorrections are checked against the original record. Material changes are logged on the corrections page.

Cite this page

These records contain public page facts only: title, operator, dates, canonical URL, and content version. They never include a question, an input, or an identifier.

Plain text

BestInsurance Research. "California insurance context." WJB Services, Inc. dba Bollinsure Insurance Services. Published August 31, 2026. Last reviewed August 31, 2026. Content version 2026.08.31. https://bestinsuranceresearch.com/states/california

BibTeX

@misc{bir-california-2026,
  title        = {California insurance context},
  author       = {Aaron Bollinger},
  organization = {BestInsurance Research},
  institution  = {WJB Services, Inc. dba Bollinsure Insurance Services},
  year         = {2026},
  month        = {08},
  note         = {Last reviewed August 31, 2026; content version 2026.08.31},
  howpublished = {\url{https://bestinsuranceresearch.com/states/california}},
  urldate      = {2026-08-31}
}

CSL JSON

[
  {
    "id": "california",
    "type": "webpage",
    "title": "California insurance context",
    "container-title": "BestInsurance Research",
    "publisher": "WJB Services, Inc. dba Bollinsure Insurance Services",
    "author": [
      {
        "literal": "Aaron Bollinger"
      }
    ],
    "URL": "https://bestinsuranceresearch.com/states/california",
    "issued": {
      "date-parts": [
        [
          2026,
          8,
          31
        ]
      ]
    },
    "accessed": {
      "date-parts": [
        [
          2026,
          8,
          31
        ]
      ]
    },
    "version": "2026.08.31",
    "genre": "state"
  }
]

Machine-readable record for this page: /states/california.json

Does homeowners insurance cover earthquake damage in California?

Generally no, and California law says so in the statute itself: section 10083(a) prescribes the wording insurers must use for the mandatory earthquake offer, in at least

EstablishedReviewed August 31, 2026

What is the difference between replacement cost and market value?

Replacement cost is the cost to repair or replace damaged property using materials of a like kind and quality; market value is a different number, because it includes the

EstablishedReviewed August 31, 2026

How do workers compensation class codes affect a quote?

Start with which system applies, because that is a question of state. NCCI states that its Experience Rating Plan does not apply in California, Delaware, Michigan, New Je

EstablishedReviewed August 31, 2026

What information does a commercial property underwriter usually request?

A commercial property underwriter is generally looking at four categories of information the industry calls COPE: construction, occupancy, protection, and exposures. One

ContextualReviewed August 31, 2026

When can a contract require additional insured status?

A contract can ask for additional insured status, but only a change to the insurance policy can grant it. On the standard ISO forms, that change is an additional insured

ContextualReviewed August 31, 2026

What is inland marine insurance used for?

Inland marine is the classification used for movable property, property in transit, and a set of transportation and communication structures such as bridges, tunnels, pip

ContextualReviewed August 31, 2026

Can my insurer make me use their repair shop after a California car accident?

No. California prohibits an insurer from requiring that an automobile be repaired at a specific automotive repair dealer. It may not even suggest or recommend one unless

EstablishedReviewed September 5, 2026

When does a landlord need a landlord policy instead of homeowners coverage?

In the forms read here, the dividing line is whether you still reside at the property, not whether someone else also lives there. The ISO HO 00 03 05 11 special form defi

ContextualReviewed August 31, 2026

What does a lender insurance requirement actually prove?

A lender insurance requirement proves the loan condition is satisfied. It is written around the loan and the collateral, not around whether a household could recover. For

EstablishedReviewed August 31, 2026

Why can two insurance policies with the same limit protect differently?

The limit is a ceiling on payment, not a description of what is covered, so two policies printing the same number can behave very differently. The number itself can mean

EstablishedReviewed August 31, 2026

What does a surety bond guarantee, and how is it different from insurance?

A surety bond guarantees that the bonded party will perform an obligation, and it is written for the party that required the bond rather than the party that pays for it.

EstablishedReviewed August 31, 2026

Does a California guarantee fund cover my surplus lines policy if the insurer fails?

No. California requires the surplus line broker and the nonadmitted insurer to tell you in writing, in boldface 16-point type on a freestanding document you sign, that th

EstablishedReviewed September 5, 2026

How many insurers have to decline before a broker can place my risk in the non-admitted market?

Three, but the number is evidence rather than the rule. California requires the broker to make a diligent search among admitted insurers that actually write the type of i

EstablishedReviewed September 5, 2026

Why did my California underinsured motorist coverage pay nothing?

Most often because the at-fault driver carried liability limits equal to or above your own uninsured motorist limit, which in California leaves nothing for the coverage t

EstablishedReviewed September 5, 2026

Overview

Key mechanisms

Residual market

Auto financial responsibility

Workers compensation

Consumer tools published by this jurisdiction

Source ledger

Plain text

BibTeX

CSL JSON

Questions that turn on California law or practice

Does homeowners insurance cover earthquake damage in California?

What is the difference between replacement cost and market value?

How do workers compensation class codes affect a quote?

What information does a commercial property underwriter usually request?

When can a contract require additional insured status?

What is inland marine insurance used for?

Can my insurer make me use their repair shop after a California car accident?

When does a landlord need a landlord policy instead of homeowners coverage?

What does a lender insurance requirement actually prove?

Why can two insurance policies with the same limit protect differently?

What does a surety bond guarantee, and how is it different from insurance?

Does a California guarantee fund cover my surplus lines policy if the insurer fails?

How many insurers have to decline before a broker can place my risk in the non-admitted market?

Why did my California underinsured motorist coverage pay nothing?