California Housing Costs Soar as Insurance Firms Abandon State

California's insurance crisis, driven by wildfire risk, high construction costs, and a challenging regulatory environment, is exacerbating the state's already dire housing affordability problem. Home insurers are retreating from California, making it difficult for ordinary people to find affordable coverage. Insurance premiums have more than doubled in recent years, and homeowners are often required to make costly upgrades to secure comprehensive coverage. The lack of insurance options may also limit where people can live, driving up housing costs in more affordable, rural areas. The insurance crisis is particularly concerning for lower to moderate-income individuals, who are largely shut out of homeownership. Experts suggest that the state government needs to take decisive action to resolve the crisis and allow insurers to charge appropriate rates to improve availability and affordability.