California fire survivors say repeated premium increases are deepening California’s insurance crisis and placing recovery further out of reach for families.
SACRAMENTO, CA — Today, the California Earthquake Authority announced an average rate increase of 30% for subscribers to the FAIR Plan, California’s insurer of last resort. Policyholders in some of the highest risk areas, such as Grizzly Flats in the Sierra Nevada foothills, could see annual costs rise from approximately $2,671 to $5,485. California survivors say the increase is the latest sign of a deepening insurance crisis that is pushing families already reeling financially from the costs of extreme weather disasters even closer to the brink.
“Put simply, Californians cannot afford another rate hike — especially one of this outrageous magnitude,” said Sierra Kos, co-founder of Extreme Weather Survivors. “Families already struggling to recover from fires, floods, and rising costs deserve policies and protections that keep insurance affordable and prevent survivors from carrying the burden of this escalating crisis all alone.
“The FAIR Plan was never meant to be a permanent solution for families like mine,” said Nicholas Hernandez, former Wildland Firefighter, San Fernando Valley resident, and now an organizer with Extreme Weather Survivors. “After living through multiple major fires and then being dropped by our insurer because of smoke damage, we were forced onto a plan that costs more and covers less. This rate increase isn’t just another bill. It feels more like we’re being punished for surviving these disasters, which are becoming more common and more costly. Lawmakers need to stand with California taxpayers and constituents who have already paid so much. They should be using every tool in their toolbox to lower costs and to stabilize the insurance market from collapse.”
The FAIR Plan was created to offer coverage to Californians who couldn’t secure coverage through private insurers due to higher-than-usual risk profiles. Historically, only a small number of Californians have relied on this coverage, but enrollment in the FAIR Plan has recently skyrocketed–jumping 400% from 2018 to 2025–due to increasingly frequent and severe extreme weather events. Annual premiums have jumped too, from an average of $663 in 2018 to just over $3,000 in 2025. Private insurance costs are rising too. Between 2023 and 2025, State Farm alone received approval for cumulative rate increases totaling 45%, raising average annual premiums by $841. Now, more than 1 in 5 California homeowners are uninsured because of canceled policies and unaffordable premiums.
The latest FAIR Plan increases reflect the growing financial risks associated with escalating extreme weather events. Global reinsurer Swiss Re estimated insured losses from the 2025 Los Angeles wildfires at approximately $40 billion. In San Diego County, January 2024 flooding caused an estimated $90 million in damages.
Across California, survivors and ratepayers continue to shoulder the rising costs of these disasters on their own — through higher insurance premiums, utility bills, and recovery expenses. For survivors already struggling to rebuild, repeated rate increases feel like a second disaster. Meanwhile, the industries driving these risks rake in record profits and contribute little to this crisis. Just this week, oil and gas companies reported more than $40 billion in profits in Q1 2026.
Survivors with lived experience navigating the FAIR Plan and California’s insurance crisis are available for interviews upon request.
