Major California home insurers move to reopen for new business, including state’s largest insurer

September 18, 2026 - Insurance Commissioner Ricardo Lara is reporting that State Farm, California’s largest homeowners insurance writer, and Allstate, another major carrier in the state, have filed plans to begin writing new residential policies.

These two companies’ past decisions to close to new business in 2022 and 2023, respectively, came to define the state’s property insurance crisis.

Their recent filings continue the momentum seen since the launch of the Sustainable Insurance Strategy, the most extensive overhaul of California’s insurance regulations in more than 30 years. With Allstate’s SIS HO filing, 12 insurance groups have now filed or received approval under the SIS framework.

Allstate, one of California’s top 10 largest homeowners insurance writers, submitted a Sustainable Insurance Strategy filing to the Department on August 31. The filing signals Allstate’s intent to begin writing new residential policies in California for the first time since 2022. The Department will review this initial filing with a goal of Allstate more aggressively reopening across California as it has committed to in previous Department conversations.

State Farm General, California’s largest homeowners insurance company, filed a rule application today with the Department, indicating plans to resume accepting new homeowners applications for the first time since May 2023. The company is committing to write homes statewide that meet the IBHS Wildfire Prepared Home Enhanced safety standards, joining several other major companies making this landmark commitment to incentivize homeowners to harden their homes and mitigate their properties from wildfire. In addition, it will write homes that meet the IBHS Wildfire Prepared Home Essential safety standards located in low and moderate wildfire severity zones statewide. Learn more at wildfireprepared.org.

Although State Farm’s rule application is not under the Sustainable Insurance Strategy, the company is returning to writing new homeowners business in California after more than three years of being closed to new homeowners business statewide.

Commissioner Lara continues to urge State Farm to join 12 other companies – and growing – in filing under the Sustainable Insurance Strategy and making verifiable, long-term commitments to California’s homeowners market.

“Reporters covered these companies’ decisions to stop writing new home insurance as defining signs of a market in crisis. Both of these companies’ filings to reopen are an equally clear signal in the other direction: Options for Californians are increasing. A filing is a starting point, not a finish line. My Department will continue to be aggressive in our review until these companies are writing policies at the scale Californians need, especially in the communities that need them most.” — Insurance Commissioner Ricardo Lara

The Department continues push for new policies and fair claims payments

These filings are initial signs of market improvement, not the end of the work. The Department will continue negotiations with both companies to ensure they reopen at a meaningful scale, including in wildfire-distressed areas. Every filing remains subject to the Department’s full rate review under Prop. 103, which applies the same scrutiny to these companies as to every other insurer doing business in California.

Accountability also means getting money directly into the hands of people who need it. Through our direct intervention in consumer complaints, the Department has recovered more than $338 million from insurance companies for Eaton and Palisades fire survivors -- money that they would not have gotten if they hadn’t filed a complaint with the Department of Insurance -- including $52 million for smoke damage claims alone.  Insurers have paid more than $25.2 billion to residential, commercial, and auto policyholders affected by these fires.

The Department’s expert review of insurance rate filings saved Californians $6.6 billion in premiums from 2019 through 2025, and secured $3.3 billion in refunds for drivers during the COVID-19 pandemic. That scrutiny does not change because a company is returning to the market.

What Allstate and State Farm’s planned return means for consumers today

State Farm said in its filing that it would open new policies to homes meeting certain IBHS Wildfire Prepared Home certifications. Homes that meet the enhanced IBHS standard could be located in any part of the state. Homes that meet the “base” IBHS standard would be subject to geographical limits and wildfire risk.

The Department has urged local officials in Los Angeles to assist homeowners in rebuilding to this high standard, which research shows would reduce future losses in a wildfire that is almost certain to happen again in vulnerable parts of Southern California.

These companies are not open for new business yet. Both filings are now under Department review and discussions with both insurers. Consumers should not wait on an approval to shop for coverage. More than a dozen insurance groups have committed to stay and grow in California under the Sustainable Insurance Strategy. Talk to an agent or broker about admitted market options before turning to the FAIR Plan. Call us with questions. The Department’s consumer hotline is 1-800-927-4357.