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How California’s Climate Affects Your Home Insurance Premiums 

If you’re a California resident who owns a home, you already know how important it is to protect it with reliable homeowners insurance. No matter how great your policy is, though, chances are that you find yourself asking why your rate is as high as it is each month. 

There are many factors, but one that most residents of the Golden State overlook is the climate. Simply put, the impact of California’s climate on home insurance rates is more profound than most people imagine, thanks to things like higher wildfire risks and natural disaster risks. What role does it play in things like unwanted rate increases? Keep reading to find out! 

Understanding the Crisis 

Over the years, the topic of climate change has felt nebulous and controversial to many. However, it’s hard to ignore in California because of things like the increased number of wildfires raging throughout the state. The increased wildfire risks have caused many insurance companies to raise rates, and some of them have stopped selling new policies altogether. 

There are other issues affecting the state, including natural disasters such as earthquakes (which your homeowners insurance in California may not cover) that are more prevalent due to climate change. The rising sea levels that accompany higher global temperatures threaten coastal properties throughout the Golden State. Fortunately, by learning more about these factors and how they affect your policy, you can better combat the rising cost of your own homeowner’s insurance. 

The Wildfire Factor 

As detailed above, the impact of California’s climate on its home insurance rates is due to multiple factors, including rising sea levels and the increasing frequency of natural disasters. However, the No. 1 threat to both homeowners insurance premiums and the houses they protect remains wildfires. 

In 1950, California lost 32,000 acres to these fires. In 2020, however, the state lost 4.2 million acres, which is 4% of the entire state. The increase in these fires is a very visible and dangerous indicator of the climate risks faced by the state. And one of the reasons that many rates have increased is that carriers are pricing in wildfire risks when calculating the cost of individual premiums. 

California’s Fiery Threat: A Driver of Insurance Woes 

Even going beyond the difficulty of pricing wildfire risks, the increasing number of fires from year to year has wreaked major havoc on California’s insurance markets. Remember, property insurance policies are intended to replace entire buildings if the house is a total loss, and carriers set their prices based on the likelihood of that happening. Due to climate change, more portions of the state are at risk than ever before, and this has caused insurance companies to levy rate increases on a growing number of residents. 

When the sea level rises and the wildfires rage, it can often feel like there’s nothing you can do to fight off increasing homeowners insurance premiums. Here’s some good news: While you cannot personally reduce the state’s climate risk, there are several concrete steps you can take to protect your own policy from these rising costs. 

Young couple sitting on their couch in their living room going over their home insurance with papers and a laptop on the coffee table - cheap home insurance in California.

Strategies for Homeowners 

Now that you know more about the impact of California’s climate on home insurance rates, you’re probably asking the big question: “What can I do about my policy?” Even if you live outside of an explicitly high-risk area (which might require specialized high-risk home insurance), what is happening to the insurance market right now may drive your rates up. However, a few easy steps can help you reduce how much your rates increase. 

What can you do to keep from paying too much for your property insurance? More importantly, what can you do to keep your home protected when it is most vulnerable? Below, you’ll find some of the best strategies for keeping your homeowner insurance policy from spiking due to climate. 

Mitigating Risks: Reducing Your Home’s Vulnerability to Wildfires 

Want to prepare for this year’s California wildfires? To protect against fires, your roof and as much of the outside of your home as possible should be made of fire-resistant material, and anything combustible that remains (such as wood siding) should be treated with chemicals to make it fire retardant. Replacing or treating existing materials will cost some money upfront, but you may save in the long run by reducing your insurance rate (especially if you live in a high-risk area). 

Beyond replacing or treating those materials, you need to take a few steps to stay safe from wildfires, including cleaning your roof and gutter of anything flammable, removing debris from your vents, and moving all shrubs and other vegetation at least 15 feet from the house. Install a fuel break around every structure on your property. Finally, keep combustibles far from the house and remove lower tree limbs (branches lower than 15 feet from the ground) to reduce the chances of a fire increasing its heat intensity by “climbing” your trees. 

Shopping Smarter: Finding Affordable Coverage in Tough Times 

If you’re worried about insurance costs and wildfire coverage, remember that you can get free quotes from carriers whenever you want. This can help you make sure you are getting the best possible home insurance rate. Additionally, this gives you a chance to discover new carriers like Cost-U-Less that can help protect your home from the worst. 

What Steps Can I Take to Lower My Home Insurance Costs in California? 

If you don’t like your current home insurance rate, there are a number of easy steps to lower it. For example, you can bundle coverage together and improve your credit, both of which can lower your premium. You can also do things like to install security systems that make your home safer and, therefore, cheaper to insure. 

It’s also possible to lower your costs by raising your deductible, which means you’d have to pay more upfront when you file a claim before your policy kicks in but would otherwise have a lower premium. Of course, the absolute best way to lower your current costs is to shop around and find a new provider who offers the best protection for even the most vulnerable climates. 

Get a Free Home Insurance Quote Today and Ensure You’re Prepared for Climate-Related Risks 

Now you know more about the impact of California’s climate on home insurance rates. This includes how wildfires drive premiums up and the concrete steps you can take to lower your premium while keeping your house safe. But do you know who offers the best coverage at the most affordable prices? 

Here at Cost-U-Less, we’ve dedicated our lives to protecting your most important investment. Ready to protect your house from Mother Nature and more, all while paying less than you ever thought possible? Then, it’s time to call us at (800) 390-4071 or get a fast homeowners insurance quote online. Don’t forget that you can always find a Cost-U-Less office near you on our website! 

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