The Insurance Crisis Continues: What California Homeowners Need to Know in 2025

What Homeowners Need to Know (and Do) Right Now

If you're a homeowner in California, chances are you’ve either heard the stories, or lived them firsthand. Policies being dropped. Premiums doubling (or worse). Homes falling out of escrow because buyers can’t find coverage.

Last year, we published a blog post about insurance companies dropping homeowners due to roof conditions, and it struck a nerve. It became one of BYLTup’s most-read articles to date. So we’re back with an update for 2025, because unfortunately, this issue isn’t going away. In fact, it’s gotten even harder to navigate.

To help make sense of what’s happening—and what you can do about it—we spoke with Kelsey Malone, a business insurance producer at Newfront Insurance with over 20 years in the industry. He’s seen the shifts up close and shared some valuable insight.

What’s Going On With Home Insurance in California?

Let’s start with the big picture:

“About 80 to 90% of carriers have stopped writing new home and property policies in California,” Kelsey told us.

That alone paints a pretty clear picture. In just the past year, the number of homeowners receiving non-renewal notices has skyrocketed, and many are struggling to find replacement policies. For those who do, the cost is often two to four times higher than their previous premium.

Worse, the insurance roadblocks are affecting real estate sales. “We’ve seen homes fall out of escrow simply because buyers can’t get coverage,” he said. “That used to be unheard of.”

Why Are So Many Policies Being Dropped?

Roof condition is still one of the top reasons, but it’s not the only one. Insurance companies are now looking at:

• How old your roof is (they prefer under 20 years)

• Overgrown vegetation near your home

• Exterior paint and siding condition

• The age and type of electrical panels and plumbing

• Overall maintenance and risk factors

In short, if your property looks like a risk—either from fire, storm, or even water damage—it may be flagged. 

“Insurers are getting proactive,” Kelsey explained. “They’re using Google Maps, virtual inspections, and even asking homeowners to upload their own photos.”

What Happens If You Get Dropped?

In many cases, your only option will be a non-admitted carrier, also called a surplus lines insurer. These companies aren’t regulated by the California Department of Insurance the same way traditional insurers are, and they come with a cost.

“It used to be rare to use a surplus carrier,” said Kelsey. “Now it’s becoming the norm, even for homes in low risk areas.”

These policies often have higher deductibles, limited coverage options, and significantly higher premiums. But for many, it’s the only path forward.

How to Protect Yourself (and Your Coverage)

If you’re wondering what to do to keep your policy, or avoid losing your next one, here’s the bottom line: be proactive.

Start by addressing the common red flags:

• Roof condition: If it’s over 20 years old, consider an inspection or replacement

• Tree trimming: Remove overhanging branches and clear brush from around the home

• Maintenance: Repair peeling paint, damaged siding, or rotting wood

• Update systems: Replace outdated electrical panels and plumbing if possible

• Document everything: Take photos, keep receipts, and submit updates to your insurer

“Think of it like credit,” Kelsey said. “Once you have a claim or a non-renewal, it follows you. The cleaner your record and the better the upkeep, the safer your policy.”

How BYLTup Can Help

This is exactly where BYLTup comes in. We help homeowners:

• Connect with vetted contractors for roofing, plumbing, electrical, and exterior work

• Organize inspection reports and documentation

• Stay ahead of maintenance issues that might flag insurers

Whether you're preparing to renew your policy or selling your home, we help ensure you’re ready, and protected. Documentation is your best defense. With BYLTup, you can be confident you have what you need when it counts.

California’s home insurance market isn’t what it used to be. But with the right information, and the right partners, you don’t have to feel powerless. Keeping your home in good shape and well-documented is more than smart… it’s essential.