Town Hall recap, what’s coming, and fire safety checklist to do now
Santa Barbara area homeowners are facing a growing insurance crisis as many lose their long-standing coverage, face skyrocketing premiums, or both. This issue is impacting traditionally high-risk and low-risk zones, forcing residents to scramble for solutions. Home insurance coverage is also a home purchase requirement if working with a mortgage lender.
Last week’s Insurance Town Hall with Insurance Commissioner Ricardo Lara, hosted by Senator Monique Limón and Assemblymember Gregg Hart, with local experts from the Santa Barbara County Fire Department, Fire Safe Council, CA FAIR Plan and CA Association of Realtors, shed light on current challenges and potential solutions.
The town hall focused on California’s insurance market and ongoing efforts to bring private insurers back into the state and assist individuals with improving the fire preparedness of their homes. California’s insurance market is the fourth-largest in the world, and experts emphasized that for long term stability, insurers must begin competing for customers. Commissioner Lara discussed several proposals to stabilize the market, including advanced catastrophe modeling and new legislation to support homeowners.
A key topic was the California FAIR Plan, the nonprofit administered by the Insurance Commissioner that has become a lifeline for homeowners facing policy cancellations. Originally created in the 1960s, the FAIR Plan “pool” provides an option for homeowners unable to find coverage elsewhere, but it was meant to be the insurer of last resort. As more turn to the FAIR Plan, this shift has meant a financial strain on the system.
High-value homes face additional challenges in the current insurance climate. Rising inflation, construction costs and the frequency of disasters make it difficult to fully fire-insure properties above the FAIR Plan residential limit of $3 million.
Changes are expected in the coming year, particularly in response to escalating wildfire costs. New regulations took effect December 2024 requiring insurers to cover at least 85% of properties in a given area. In exchange, to bring insurers back into the market, insurance companies will be allowed to create and rely on risk modeling to request approval for new rates. Experts admit that homeowners should expect premium increases to match where they live as a result. These new models will be verified next to a new public model, built with universities, which the Commissioner said would be the first wildfire public model in history.
Commissioner Lara emphasized that availability of coverage must come first in order to make insurance more affordable, citing the increasing frequency of disasters like wildfires as a primary factor. Since 2019, California has experienced 115 catastrophic wildfires, including the January 2025 Los Angeles wildfires, which are now the most expensive fire in U.S. history. Santa Barbara County Fire Officials at the Town Hall said they do an extensive amount to be fire safe and receive 10% of all the available grants in the state for their important work.
To help homeowners navigate these challenges, there is a one-year moratorium on non-renewals in wildfire-prone areas, and the legislature has proposed multiple bills pertaining to wildfire disaster safety. Two stand out: a bill to provide financial incentives for fire safety improvements such as roof fortification and defensible space; another for a tax free Catastrophe Savings Account, similar to a health savings account. These measures could help Santa Barbara residents reduce both fire risks and insurance premiums.
Homeowners must also take proactive steps to protect their properties. Experts recommend reviewing insurance policies annually, documenting valuable assets, and beginning home hardening measures to protect homes for the future and potentially qualify for discounts on premiums.
While the FAIR Plan remains a fallback for many homeowners, its long-term stability depends on improving risk assessments and increasing mitigation efforts. Commissioner Lara reassured the public that insurers have committed to staying in California, but he cautioned that rate adjustments will continue to reflect actual risk.
Risk Mitigation Strategies: Home Fire Safety Checklist to Protect Homes
There is the expectation that homeowners can take steps directly to reduce fire risks and harden their homes and neighborhoods. To protect properties, owners can implement fire safety measures, including creating defensible space, upgrading roofing materials, and installing ember-resistant vents. The Santa Barbara County Fire Safe Council offers valuable resources for home hardening and neighborhood risk reduction strategies, and homeowners are encouraged to work with neighbors to create Fire Safe Communities.
“It is a shared risk, we are only as safe as our neighbor,” said fire officials. Both local fire departments and the SB Fire Safe Council offer free home hardening inspections to provide info on what you can do around your own home, and how your neighborhood can become FireWise.
Talk with your neighbors and become a Fire Safe Community. I recommend reviewing the Santa Barbara Fire Safe Councils home hardening guide available on their website.
Let’s do more to connect with our neighbors, get to know them, and talk about what we can do together. Higher social connections mean more safety and speedier recovery.
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Kathleen Rogers is a Santa Barbara-based real estate professional with eXp Luxury, the daughter of a retired California firefighter, and a member of the SBAOR Government Affairs Committee, South Coast Chamber Public Policy Committee, and SB Sunrise Rotary. If you have any questions, I’d love to help. For more info, visit @WelcometoSantaBarbara or call 805-284-3900. DRE 02044953..
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