California FAIR Plan Rates Are Increasing by an Average of 29.1% in 2026. Here's What Redlands Homeowners Need to Know.
By Cristina Caministeanu, REALTOR® | eXp Realty of California | Redlands, CA
Insurance is now part of every real estate conversation I have. Whether I'm working with a buyer in Yucaipa, a seller in Highland, or a family relocating to Lake Arrowhead, insurance costs come up before we even talk price. The latest news makes that conversation more important than ever.
The Rate Increase Is Official
The California Department of Insurance approved an average rate increase of 29.1% for the California FAIR Plan. It takes effect October 15, 2026, on all new and renewal policies.
The key word is average. The 29.1% figure does not mean every FAIR Plan policyholder will see their premium increase by exactly 29.1%. Actual increases will vary depending on factors such as the property, location, coverage, and risk profile.
The FAIR Plan originally requested an average increase of 35.8%. Regulators scaled it back, but the approved 29.1% average increase is still the largest in the plan's history. It tops the roughly 20% increase in 2019 and the 16% increases in both 2021 and 2023.
Properties in higher wildfire-risk areas, including many homes in the foothills and mountain communities around Big Bear and Lake Arrowhead, may see increases that are higher than the statewide average.
Why This Is Happening
The FAIR Plan exists as California's insurer of last resort. It steps in when private carriers won't write a policy. Over the past two years, major insurance companies pulled back from wildfire-prone areas across the state. That pushed more homeowners onto the FAIR Plan than ever before.
Between fall 2024 and the end of 2025, active FAIR Plan policies grew by 44%, reaching more than 668,600 statewide. Then came the January 2025 Los Angeles wildfires. Those fires generated an estimated $4 billion in losses for the FAIR Plan alone, forcing a $1 billion assessment on member insurance companies just to cover claims. The approved rate increase is part of the FAIR Plan's response to those rising costs.
What This Means If You Own a Home in the Inland Empire
I work with clients across Redlands, San Bernardino, Highland, Loma Linda, Yucaipa, and the greater Inland Empire, plus buyers and sellers heading up the hill to Big Bear and Lake Arrowhead. Here's what I'm telling all of them right now.
If you're currently on the FAIR Plan, expect your premium to change at your next renewal after October 15. The amount of your increase may be different from the 29.1% statewide average, so start budgeting now instead of getting surprised later.
If you're selling, buyers are asking about insurance earlier in the process than they used to. Having a clear answer about current coverage and cost helps keep a deal on track through escrow.
If you're buying, get an insurance quote before you write an offer, not after. In higher-risk ZIP codes, insurance availability and cost can change what you can actually afford to carry on a home.
If you're on the FAIR Plan without a Difference in Conditions (DIC) policy, that gap needs attention regardless of this rate increase. A FAIR Plan policy alone only covers fire, smoke, lightning, and internal explosion. It does not cover theft, liability, or water damage.
There Is Some Good News
FAIR Plan growth is slowing. In the first quarter of 2026, the plan added about 16,000 residential policies statewide. That's a real drop from the 35,000 to 50,000 new policies added each quarter over the prior two years. It's an early sign that market reforms may be opening the door for more homeowners to get coverage through traditional carriers again.
There's also a real opportunity to lower your premium. The FAIR Plan updated its wildfire hardening discount program effective November 15, 2025. Homeowners can now stack up to 12 individual hardening discounts, all applied to the wildfire portion of the premium. Dwelling Fire policyholders who qualify for all 12 can save up to 16.4% on that portion of their bill. Things like Class-A roofing, five-foot noncombustible zones around the home, and ember-resistant vents all count toward those discounts.
My Advice
Don't wait until October to think about this. If you own a home anywhere in our fire-risk zones, from the Redlands foothills up through Yucaipa and into the mountain communities, talk to your insurance agent now.
Ask about hardening discounts. Ask about DIC coverage. And if you're planning to sell in the next year, let's talk about how to position your home's insurability as part of your marketing story. It matters more to buyers than it used to.
Insurance is quickly becoming one of the biggest factors in whether a home sells smoothly or stalls in escrow. I stay on top of these changes so my clients don't get blindsided by them.
Thinking about buying or selling in Redlands, San Bernardino, Highland, Loma Linda, Yucaipa, or the surrounding Inland Empire and mountain communities? I'd love to help you navigate what insurance changes mean for your specific property and timeline. Call or text me at 909.213.8565, email [email protected], or visit redlandsrealestatepros.com to get started.
Cristina Caministeanu is a top 1% producing REALTOR® and Branch Manager at eXp Realty of California, specializing in luxury homes and estates throughout Redlands and the Inland Empire. She is also the founder of Reveal Home Staging, offered complimentary to all her seller clients.
