The Insurance Story Nobody Is Talking About

WEEKLY SAN DIEGO REAL ESTATE UPDATES | June 24th, 2026

California homeowners are expected to see the largest insurance increase in the country next year, with premiums projected to rise 16%.

However, Californians still pay less for insurance than many other high risk states when you compare premiums to property values and replacement costs.

Why This Matters for Real Estate

What I find most interesting is how this could impact real estate moving forward.

For years, buyers focused on three things: price, location, and interest rates.

Today, insurance is quietly becoming a fourth factor.

Here in San Diego, insurance risk is becoming increasingly neighborhood specific. The reality is that many homeowners have no idea whether their property is considered low risk or high risk until they receive a renewal notice or shop for a new policy. As insurers continue refining how they evaluate wildfire exposure, factors like proximity to open space, canyons, and brush areas can have a meaningful impact on both cost and coverage options.

In my opinion, rising insurance costs are not the biggest concern.

Buyers can adapt to higher costs. What creates problems is when insurance becomes difficult to obtain, carriers leave the market, or homeowners have no idea what future costs might look like.

Real estate markets do not like uncertainty.

What Homeowners Should Watch

Most homeowners know the value of their home. Very few know their insurance risk profile. Yet that may become one of the most important factors affecting housing costs over the next decade.

If you own a home, now may be a good time to review your current policy and understand how insurers view your property. Many homeowners are surprised to learn that factors like proximity to canyons, open space, or wildfire zones can affect both premiums and coverage options.

Not sure where your property stands?

Your current insurance policy often contains clues about how your home is being evaluated. If you’d like a second set of eyes on it, feel free to send it over. I’m happy to help you understand what you’re looking at and how it could impact your home’s value, marketability, and future insurance costs.

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