California Home Insurance Market Shaken by Wildfire Risk

State Farm and Allstate have stopped writing new homeowner policies in California, which could lead to rising insurance premiums and difficulty in finding coverage for home buyers. The impact on home prices is uncertain, particularly in fire-prone areas, where inventory remains low and demand is high. Homeowners insurance is not required by law in California, but most mortgages require it. The lack of supply and steady high demand may prevent home prices or sales from changing much, even with the added expense of higher insurance.