If you've read the headlines about California's insurance crisis, there's some good news: that crisis is mostly about wildfires, and San Francisco is mostly not wildfire country. This chapter covers how to get a homeowners policy here, what condo owners need, and how to decide on earthquake coverage, which can cost several thousand dollars a year and comes with a deductible that can run into six figures.
The short version
- Getting a policy is doable in SF. It's dense, urban, and mostly outside high fire-hazard zones. The California FAIR Plan, the insurer of last resort, had only about 1,100 SF homeowners policies as of Sept 2025.
- The big carriers are slowly coming back. State Farm filed in Sept 2026 to resume new policies, but only for IBHS wildfire-certified homes, with a reported cap of about 7,500 a year. Allstate filed in Aug 2026, and Farmers lifted its new-policy cap in Nov 2025. Most SF buyers will still be placed by a broker.
- High-value homes need high-net-worth carriers. Above about $1M of rebuild cost, expect Chubb, PURE, AIG Private Client, or Cincinnati, through an independent broker.
- Standard policies exclude earthquake. CEA deductibles run 5–25% of dwelling coverage, and homes insured above $1M are limited to 15–25%. A $1.8M rebuild at 15% means you pay the first $270k.
- Condo buyers need an HO-6 sized to the HOA master policy, plus loss-assessment coverage.
- Add an umbrella and check flood. A $2–5M umbrella is cheap relative to an equity-heavy net worth. Flood and sewer-backup risk are real in specific low-lying SF pockets.
What's happening with California home insurance in 2026
After the 2017–2018 wildfires and then the January 2025 Eaton and Palisades fires, major carriers stopped writing new homeowners policies or limited them. State Farm paused new California applications in May 2023. A March 2026 settlement with the Department of Insurance kept its +17% emergency rate increase.
The state's response is the Sustainable Insurance Strategy. Insurers can use forward-looking catastrophe models and pass through reinsurance costs if they commit to writing more policies in wildfire areas. As of September 2026, 12 insurance groups had filed or been approved under it. Farmers dropped its new-business cap in November 2025 and filed a rating plan under the strategy. On Sept 18, 2026, the Department announced that State Farm (outside the strategy) and Allstate (filed Aug 31) are moving to write new homeowners policies again.
In the table, IBHS is the Insurance Institute for Business & Home Safety, which certifies homes that have been hardened against wildfire.
| Carrier | New CA homeowners business, Oct 2026 |
|---|---|
| State Farm | Filed (Sept 2026) to accept new applications only for homes with an IBHS Wildfire Prepared Home designation: "Enhanced" statewide, "Essential" in low/moderate fire zones. Reportedly capped at about 7,500 new policies a year (the cap isn't in the Department's announcement). Pending approval. Few SF homes carry this designation today. |
| Allstate | Filed Aug 31, 2026 to resume writing new residential policies, for the first time since 2022. Pending. |
| Farmers | Lifted its cap of 9,500 new policies a month in Nov 2025 and filed a rating plan under the Sustainable Insurance Strategy. |
| Chubb, PURE, AIG Private Client, Cincinnati | Writing high-value homes selectively through brokers. Chubb tightened roof, brush, and defensible-space underwriting after the LA fires. |
| California FAIR Plan | Last resort, fire-only. Record 668,600 policies statewide (Dec 2025). Dwelling rates up an average 29.1% on new and renewal policies from Oct 15, 2026. |
Which carriers are accepting new customers changes month to month, so treat this table as a snapshot.
Why most of SF is easier to insure than the hills
Most of the price increases come from the wildfire part of premiums. Most SF lots are flat, dense, and far from brush and forest, so you'll usually find admitted carriers (regular, state-regulated insurers) here. The exceptions are wooded, steep, or edge areas, such as parts of Twin Peaks, Mt. Davidson, Mt. Sutro, and Presidio-adjacent streets, where some carriers apply wildfire scoring.
One secondary source put average SF homeowners premiums around $2,000 a year in 2026, but that average is mostly small houses. A $3M Noe Valley Edwardian with a $1.5M+ rebuild cost will cost several times that.
The FAIR Plan, and why it's rare in SF
The FAIR Plan covers fire only. You'd pair it with a "difference in conditions" (DIC) policy for liability, theft, and water damage, and the combination usually costs more and covers less than a normal HO-3 (the standard homeowners policy for a house). In SF it's rare: about 1,108 SF homeowners policies averaging about $1,153 a year (data as of about Sept 2025). If a broker tells you FAIR is your only option for an SF house, ask why. It usually says something about the house's condition or location.
Who insures high-value homes
Above about $1M of dwelling (rebuild) coverage, mid-market carriers often pass. High-net-worth (HNW) carriers write these homes through independent brokers, not agents who work for a single company:
- Chubb (Masterpiece): one of the best-known high-value programs, with guaranteed or extended replacement cost options.
- PURE: a member-owned reciprocal, typically for $1M+ dwellings.
- AIG Private Client Select: bundles home, auto, valuables, and umbrella.
- Cincinnati and others: selective.
What you get for the higher premium:
- Extended or guaranteed replacement cost. After a citywide quake fire, labor and materials prices spike. A 25–50% buffer over the stated rebuild cost, or uncapped replacement, is worth real money.
- Building code upgrade (ordinance or law) coverage. Rebuilding a 1906 Victorian to the 2026 code costs far more than restoring it.
- Cash-out option. Some HNW policies pay replacement cost even if you don't rebuild.
Condos: your HO-6 and the building's master policy
A condo has two policies stacked on each other:
- The HOA master policy. The homeowners association (HOA) insures common areas and the structure. Depending on the CC&Rs (the building's recorded rules), it may be "bare walls" (the building shell only), "single entity" (original fixtures inside units), or "all-in." Get the declarations page and the master deductible.
- Your HO-6 (the condo owner's policy) covers everything the master policy doesn't: interior finishes and upgrades, your belongings, liability, and loss of use.
Two lines on the HO-6 matter most:
- Loss assessment coverage. If the HOA's master policy has a $50k–$250k deductible, or the building is underinsured, the HOA bills the owners for the gap. Buy loss assessment coverage at least as large as your likely share.
- Earthquake loss assessment. Most SF HOAs don't carry master earthquake insurance because it's too expensive. If the building is damaged, the repair bill becomes a special assessment split among owners. The CEA sells condo policies that include earthquake loss-assessment coverage.
Also check that the master policy is actually in force at adequate limits. Some California HOAs struggled to renew in 2024–2026, and an underinsured master policy can make some lenders unwilling to lend in the building. See SF property types decoded.
Earthquake insurance: deciding whether you need it
Standard homeowners policies exclude earthquake shake damage. Fire after an earthquake is generally covered by your regular policy. Lenders rarely require quake coverage, so this comes down to how much risk you're comfortable carrying yourself.
Option 1: California Earthquake Authority (CEA)
The CEA is a publicly managed, privately funded insurer. You buy it through participating home insurers. Its main terms:
| Feature | CEA homeowners policy |
|---|---|
| Deductible choices | 5%, 10%, 15%, 20%, or 25% of dwelling coverage |
| Restrictions | Dwelling coverage above $1M, or pre-1980 raised-foundation homes without a verified retrofit, are limited to 15–25% |
| Building code upgrade | $10,000 included, with higher limits available |
| Emergency repairs | First $1,500 with no deductible |
| Loss of use (ALE) | No deductible |
| Retrofit discount | Up to 25% for qualifying older homes with a verified retrofit |
(ALE is "additional living expenses," like a rental while your home is repaired.)
Here's how that plays out on a $3M SF house with a $1.8M rebuild cost. Because coverage is above $1M, the lowest CEA deductible is 15%, or $270k. A moderate quake that does $150k of cracked plaster, a damaged chimney, and broken pipes pays nothing. CEA coverage pays off when the house is badly damaged or red-tagged (declared unsafe to enter by the city).
Premiums depend on age, construction, soil, and retrofit status. Secondary sources put typical SF policies at roughly $2,000–$5,000 a year, and much more for large, older, or soft-story houses (homes with living space over a garage, which are weaker in quakes). Get a real quote.
Option 2: Private earthquake carriers
Private quake insurers (GeoVera and Palomar are among the names active in California) and HNW add-ons (Chubb, PURE) can offer:
- lower deductibles than CEA's 15% floor for high-value homes,
- higher limits for contents and loss of use,
- better pricing for newer or retrofitted homes.
Availability and pricing change often, so ask your broker to quote CEA and at least one private option side by side.
Should you buy it?
There's no single right answer, but these factors point one way or the other. LTV (loan-to-value) is how much you owe compared with what the home is worth. Liquefaction is when loose, wet soil turns soft in a strong quake.
| Lean toward buying | Lean toward self-insuring |
|---|---|
| High LTV: your equity is thin, and a red-tagged house with a mortgage is a disaster | Low LTV and large liquid assets outside the house |
| Soft-story house over a garage, unretrofitted | Retrofitted, newer, or bedrock-sited house |
| Liquefaction zone (Marina, SoMa, Mission Bay, parts of the Mission and Dogpatch) | Firm-soil western hills |
| Your net worth is mostly the house | Your net worth is mostly elsewhere, diversified |
| Condo in a building with no master quake policy | — |
Retrofit first, then insure
A seismic retrofit (strengthening the house against quakes) lowers both your damage risk and your premium:
- Earthquake Brace + Bolt (EBB): grants of up to $3,000 to bolt the house to its foundation and brace cripple walls (the short walls between foundation and first floor), plus up to $7,000 more for income-qualified households. Available in eligible ZIP codes during registration windows. Check whether your ZIP qualifies.
- Earthquake Soft-Story (ESS) grants: up to $13,000 for owner-occupied single-family homes with a living space over a garage (FEMA P-1100 types), in program ZIP codes.
- CEA retrofit discount: up to 25% off premiums once the retrofit is verified.
See Renovating in SF for permits, and find contractors who actually pull seismic permits in our index: seismic retrofit contractors →.
Umbrella liability insurance
Homeowners liability usually tops out at $300k–$500k (HNW carriers go to $1M). An umbrella policy adds extra liability coverage on top of both your home and auto policies, and it's priced per $1M of coverage. The first $1M is usually the most expensive layer, and each additional million costs less. Get quotes, because pricing depends on cars, drivers, pools, and rentals.
A good rule of thumb: carry umbrella coverage at least equal to your net worth that a plaintiff could reach, and more if you have teenage drivers, a rental unit or ADU (accessory dwelling unit, like an in-law), or a household employee. Someone with $5M in investments and a $3M house is exactly who plaintiffs' lawyers look for after a car accident. Most umbrellas require minimum underlying limits on home and auto, so you may need to raise those too.
Flood and water damage
Homeowners policies don't cover flooding. In SF it's a limited risk, but it's real in specific places:
- FEMA flood maps. SF's first FEMA Flood Insurance Rate Map took effect March 23, 2021. Special Flood Hazard Areas are mostly along the bay shoreline and Treasure Island. If you're in one with a federally backed mortgage, flood insurance is required.
- SFPUC 100-Year Storm Flood Risk Zone. This is a separate SF map of places where stormwater can pond 6"+ deep in heavy rain, not tidal flooding. Sellers must disclose it. Low-lying blocks, such as around 17th and Folsom in the Mission, have flooded repeatedly in big storms.
- Sea-level rise exposure is concentrated in Mission Bay, the Embarcadero, Dogpatch, Bayview/Hunters Point, and Treasure Island. Today it's mostly a long-term resale issue.
Even outside mapped zones, add a water backup / sewer backup endorsement to your homeowners policy. It's inexpensive, and sewers backing up during big winter storms happen in SF more than you'd think. Flood policies are available from the federal NFIP (National Flood Insurance Program) and private insurers, and NFIP pricing now uses property-specific Risk Rating 2.0.
Insurance checklist
- Broker quote on the specific address before offer day
- Dwelling coverage set to rebuild cost, with extended or guaranteed replacement and building code upgrade coverage
- Condo: HOA master policy declarations, master deductible, and loss-assessment coverage on your HO-6
- Earthquake: CEA and private quotes side by side, deductible in dollars written down
- Retrofit status verified; Brace + Bolt or ESS eligibility checked
- Umbrella sized to reachable net worth; underlying home and auto limits raised to match
- FEMA and SFPUC flood maps checked; water and sewer backup endorsement added
- Rent-back or ADU tenant disclosed to the carrier
Sources & verification›
- Major California home insurers move to reopen for new business — California Department of Insurance, Sept 18 2026
- State Farm to write new California home policies again, but only for fire-hardened homes — Yahoo Finance, Sept 2026
- Momentum continues to build under the Sustainable Insurance Strategy — California Department of Insurance, Jul 2026
- Farmers Insurance to remove cap on writing new homeowners policies in California — Farmers Insurance, Nov 21 2025
- State Farm settlement keeps 17% rate increase — Carrier Management, Mar 9 2026
- California FAIR Plan rate increase: what it costs in 2026 — JVM Lending, 2026
- FAIR Plan rates to increase by an average of 29.1% starting Oct. 15 — ABC10, 2026
- FAIR Plan home insurance map — San Francisco Chronicle
- Guide to homeowners insurance in San Francisco — Coverage Cat, 2026
- High-net-worth home insurance carriers compared (2026) — Latent Insure, 2026
- CEA homeowners earthquake insurance policies — California Earthquake Authority
- Earthquake insurance consumer guide — California Department of Insurance
- Earthquake Brace + Bolt retrofit — California Residential Mitigation Program
- California's Earthquake Soft-Story retrofit grant program — California Residential Mitigation Program
- San Francisco floodplain management program — City and County of San Francisco
- SFPUC flood maps — San Francisco Public Utilities Commission
- NFIP Risk Rating 2.0 — FEMA