California home insurance prices set to spike 16% in 2026, leading the entire nation as prices surge

nypost.com

California home insurance premiums are set to rise by 16% in 2026, leading the way as the largest spike in the entire country.

The jump in home insurance prices in the Golden State are more than five times what residents in states like Texas and Florida are expected to see.

Texas is set to increase their insurance prices by 3% and Florida by 2%, while some states like New York and Maine are expected to see the same or cheaper costs (0% and -1%, respectively) according to Jonathan Lansner of the OC Register.

A wildfire blazes across a dark mountain near a road at night, with red light trails from vehicles in the foreground.

View of the wildfire near Pacific Palisades in 2025 Anadolu via Getty Images

A firefighter spraying water at a burning house at night during a wildfire.

House on fire as the Palisades Fire forced tens of thousands of people to evacuate Anadolu via Getty Images

California’s massive increase is largely due to rising property damage, with fires in Los Angeles accounting for $61.8 billion in damages in 2025 according to Climate Central.

Home owners who cannot get insurance coverage are resorted to the state’s FAIR Plan, which provides basic fire insurance. However, those premiums are also projected to grow by 29% by 2027.

Despite the 16% spike, California only ranks 21st in average home insurance premium at $2843.

Part of this is due to California’s Proposition 103, which makes insurance companies obtain approval from the Insurance Commissioner before companies can implement rate hikes.

Nevertheless, California leads the entire nation in median home prices according to Forbes.

Aerial view of Siena Homes development in Winchester, CA, showing residential areas, undeveloped land, and an aqueduct.

Home owners are having difficulty in finding fire insurance Los Angeles Times via Getty Images

California’s median home price is at $854,000 which is $80,000 more than the next most expensive state in Hawaii. California also has the highest electricity rates with prices being at least 10% higher than other states since the late 1980s, according to the Public Policy Institute of California.