California's wildfire insurance market is in the worst shape it has been in my career. State Farm's 2023 pull-back, Allstate's pause on new policies, and the 2024-2025 wave of non-renewals across high-risk Ventura and Los Angeles County ZIPs have pushed thousands of Conejo Valley homeowners into the California FAIR Plan or onto specialty non-admitted carriers. I'm Brian Cooper, REALTOR(R) at eXp Realty (DRE# 01434286). This is what buyers, sellers, and current owners in Bell Canyon, Hidden Hills, Lake Sherwood, Oak Park, and Westlake hillside tracts need to know about the 2026 insurance landscape.
Quick Answer
If you are buying a hillside or brush-adjacent home in the western Conejo Valley or the Simi Hills, the single most consequential contingency in your offer is the insurance contingency, not the inspection. Through 2025 and into 2026, large admitted carriers (State Farm, Allstate, Farmers, Liberty Mutual, USAA in some ZIPs) either stopped writing new policies, non-renewed existing policies in wildfire-exposed tracts, or restricted underwriting to homes that meet specific defensible-space and construction criteria.
The remaining stack for high-risk Conejo Valley homes looks like this in 2026: the California FAIR Plan as fire-only base coverage (dwelling cap raised to $3M residential under recent commissioner action), paired with a Difference in Conditions (DIC) wrap from a non-admitted specialty carrier for liability, theft, water, and other perils, plus optional CEA earthquake. The combined stack for a $1.5M dwelling commonly runs $3,500-$8,500 per year. Verify availability and bind a quote before you remove your inspection contingency.
The 2025-2026 non-renewal wave
The California insurance market hardened in stages. State Farm announced in May 2023 it would stop writing new homeowners policies statewide. Allstate paused new business earlier and limited renewals. Farmers limited California writings in late 2023. In 2024 and 2025 the non-renewals accelerated, concentrated in ZIPs the Insurance Department flagged as high-wildfire-risk per the Cal Fire FHSZ (Fire Hazard Severity Zone) maps.
The Conejo Valley and Simi Hills got hit hard because of topography. Steep, brush-covered canyon walls, prevailing Santa Ana wind corridors, and a long fire-event history (2018 Hill, 2018 Woolsey, 2003 Simi, 2025 Mountain Fire among others) made ZIPs like 91301 (Agoura Hills), 91302 (Calabasas), 91361 (Westlake Village), 91320 (Newbury Park hill tracts), and parts of 93065 (south Simi Hills) priority-non-renewal candidates for many admitted carriers. Bell Canyon, despite being in 91307 / 91302 boundary territory, lost most admitted-market options by mid-2024.
Insurance Commissioner Ricardo Lara's Sustainable Insurance Strategy, finalized in late 2024 and implemented through 2025-2026, was the regulator response. It allows admitted carriers to use forward-looking catastrophe models in rate filings, includes reinsurance costs in the rate base under specific conditions, and requires carriers using these tools to commit to writing in distressed and high-risk areas at no less than 85% of their statewide market share. The strategy is supposed to bring carriers back. Whether and how fast it does is still playing out.
What the California FAIR Plan is — and what it covers
The California FAIR Plan is a state-mandated insurance pool of last resort, created in 1968 under California Insurance Code section 10090 et seq. Every admitted property insurer in the state participates as a member and shares in the policy stock. The FAIR Plan exists to make basic property insurance available to property owners who cannot find coverage in the voluntary market.
What the FAIR Plan covers, residential dwelling form: fire, lightning, internal explosion, smoke, and (with optional endorsement) limited extended coverage for windstorm/hail, vandalism, and vehicle damage. The maximum residential dwelling coverage was raised by the Commissioner to $3 million in 2024. Contents coverage and additional living expense (ALE) are available with separate sub-limits. The policy is bare-bones by design.
What the FAIR Plan does not cover: liability, theft, water damage, falling objects, weight of ice/snow/sleet, accidental discharge, freezing, and most of the standard HO-3 perils outside the named-peril fire coverage. This is why FAIR Plan is almost always paired with a Difference in Conditions wrap. FAIR Plan alone is not a complete homeowners solution — it is the fire coverage layer of a multi-policy stack.
Pairing FAIR Plan with a DIC wrap
A Difference in Conditions (DIC) policy is a non-admitted specialty product designed to fill the gaps in FAIR Plan coverage. DIC carriers write the perils FAIR Plan excludes: liability (usually $300K-$1M), theft, water damage (sudden and accidental), and the other standard HO-3 perils minus fire. Combining FAIR Plan + DIC produces something close to a full HO-3 policy, at a premium that varies by location and carrier.
Common DIC carriers in 2026 California include Bamboo (an MGA backed by Lloyd's syndicates), Aon Edge, NREIG-affiliated specialty MGAs, and a handful of E&S (excess and surplus) carriers. These are non-admitted markets, which means California Insurance Guarantee Association (CIGA) protection does not apply if the carrier becomes insolvent. Underwriting is tighter than admitted market — defensible space, roof class, vent screens, and gutter guards are real underwriting inputs, not afterthoughts.
Cost-wise, a FAIR Plan + DIC stack on a $1.5M dwelling in Bell Canyon or Hidden Hills in 2026 typically runs $3,500-$6,500 per year for the combined stack. Lake Sherwood and Hidden Valley estate homes can run $5,500-$10,000+. Lower-risk tracts in central Oak Park or non-hillside Westlake run $2,800-$4,500. Compare those to the $1,400-$2,400 per year that the same homes paid to admitted carriers in 2019, and the carrying-cost shift is visible.
The Sustainable Insurance Strategy in plain English
The Insurance Commissioner's Sustainable Insurance Strategy was the December 2024 regulatory package intended to bring admitted carriers back to wildfire-distressed ZIPs. Three pieces matter for Conejo Valley homeowners and buyers.
First, carriers can now use forward-looking catastrophe models in rate filings. Previously, California was the only state requiring rates be based on backward-looking 20-year average losses, which had not kept up with climate-driven wildfire frequency. Forward-looking modeling allows rates that reflect current and projected risk.
Second, reinsurance costs can be included in the rate base under specific conditions. Reinsurance is what carriers buy to protect themselves against catastrophic loss events. Including reinsurance in the rate base means premiums reflect the carrier's true cost structure, not an artificial subset.
Third, carriers using these tools must commit to writing in distressed and high-risk areas at no less than 85% of their statewide market share. The commitment is a quid pro quo: regulatory flexibility for coverage availability in the ZIPs that need it most. As of mid-2026, multiple carriers have filed under the new framework. Whether the strategy materially expands coverage in Bell Canyon, Lake Sherwood, and Hidden Hills is still being measured.
PRC 4291 — Zone 0, Zone 1, and Zone 2 defensible space
California Public Resources Code section 4291 requires property owners in State Responsibility Areas (SRA) and very-high-fire-hazard zones to maintain defensible space around structures. The framework defines three zones with increasing permissible vegetation density as you move away from the structure. Underwriters now use Zone 0/1/2 compliance as a real input — non-compliant properties are increasingly uninsurable.
Zone 0 is the 0-5 foot 'ember-resistant zone' immediately adjacent to the structure. The regulatory standard, fully phased in by 2026, prohibits flammable materials in this zone: no wood mulch, no combustible plants, no flammable fencing tied to the home, no wood patio furniture stored against the wall. Hard surfaces, gravel, non-combustible decking, and well-irrigated low groundcover only.
Zone 1 is 5-30 feet from the structure. Vegetation is allowed but must be lean, clean, and green: irrigated, well-spaced, no dead material, no ladder fuels (low plants under tree canopies that carry flame upward), and tree canopies trimmed 10 feet from chimneys. Zone 2 extends 30-100 feet (or to property line) and requires horizontal and vertical spacing between plants scaled to slope.
Practical impact: I've seen Conejo Valley homes denied coverage by underwriters in 2025-2026 because of wood-mulch flowerbeds in Zone 0, a wood gate attached to the home, or accumulated leaf litter in roof gutters and valleys. The fixes are usually $1,500-$8,000 in landscape and carpentry work. The cost of not fixing them is either a coverage denial or premium loaded with non-compliance surcharges.
Neighborhoods at highest non-renewal risk
Risk concentrates by topography and brush exposure. Based on what I have seen in the local market through 2025-2026, here are the Conejo Valley and Simi Hills neighborhoods most affected by admitted-market non-renewals.
| Neighborhood | City / area | Typical 2026 admitted-market status |
|---|---|---|
| Bell Canyon | Unincorporated LA County | Mostly FAIR Plan + DIC; very few admitted carriers |
| Hidden Hills | Hidden Hills | Most large carriers non-renewed; specialty/E&S market |
| Lake Sherwood | Westlake Village area | FAIR Plan + DIC; estate-value DIC required |
| Hidden Valley | Thousand Oaks west | Largely non-admitted; some renewal with retrofit proof |
| Oak Park hillside tracts | Oak Park (north slopes) | Mixed; tract-specific underwriting |
| Calabasas hills (Mountain View, Calabasas Hills) | Calabasas | Some admitted with strict Zone 0/1/2 verification |
| Agoura Hills (Old Agoura, Morrison Ranch) | Agoura Hills | Tightening; depends on tract and prior loss |
| South Simi Hills (above Wood Ranch) | Simi Valley | Admitted available for compliant homes; non-renewals climbing |
| Bridle Path | Simi Valley | Equestrian-zone exposure; mixed availability |
This is a directional snapshot, not a guarantee. Carrier appetite changes quarter to quarter. I tell buyers to call an independent insurance broker who writes in California specialty/E&S markets — not their existing carrier — during the first week of escrow. The broker can quote across multiple markets and tell you whether the specific address is currently insurable and at what cost.
What buyers should do in escrow
Make the insurance contingency real, in writing. California Residential Purchase Agreement does not separate insurance from the inspection contingency by default, but you can and should add a specific insurance contingency that allows you to cancel and recover deposit if you cannot obtain homeowners coverage at a stated maximum premium. I write this contingency to expire at the same time as inspection — usually 17 days — so the seller has clarity.
Order quotes immediately. Day 1 of escrow, contact an independent broker with E&S appointments. Provide the address, year built, square footage, roof material and age, construction type, distance to nearest fire hydrant, and any prior claims. Ask the broker to quote (a) admitted market if available, (b) FAIR Plan + DIC stack, and (c) any non-admitted alternatives. Make the decision with three real quotes in hand.
Verify Zone 0/1/2 compliance during inspection. Have your general home inspector or a separate defensible-space consultant document the current state of vegetation, mulch, fencing, vent screens, and gutter condition. If the home is non-compliant, get written estimates for remediation. Then decide whether to ask the seller to remediate, take a credit, or walk.
What sellers should fix before listing
If you're listing a hillside or brush-adjacent home in 2026, fix the insurance picture before the first showing. The reason: buyers who can't get a mortgage because they can't get insurance cancel deals. Pre-listing investments in insurability return at the offer stage.
- Defensible space — clear Zone 0 of flammable materials, prune Zone 1, document with dated photos.
- Roof class — Class A roof rating (composition, tile, metal). If the home has wood shake or shingle, replacement is the single largest insurability lever.
- Vent ember-screens — 1/16-inch to 1/8-inch noncombustible mesh on every attic and crawlspace vent. $50-$200 per vent.
- Gutter cleaning and gutter guards — leaf litter is a known ignition source under blowing embers.
- Eaves and soffits — boxed-in, non-combustible soffits resist ember intrusion better than open-eave construction.
- Fencing to home — replace the last 5 feet of any wood fence that touches the structure with non-combustible material.
- Carbon monoxide and smoke detectors — current code, hardwired with battery backup. Inspectors verify.
- Pre-listing insurance quote — get a binder offer from at least one carrier before listing so you can disclose insurability to buyers.
The honest read on the next 18-24 months
I am not going to pretend to know exactly how this shakes out. The Sustainable Insurance Strategy is a serious regulatory package, and several large carriers have filed under it. If those filings result in rate adequacy plus the 85% high-risk-ZIP commitment, admitted-market availability should expand in 2026-2027. If they don't, the FAIR Plan + DIC stack remains the default for much of the Conejo Valley and Simi Hills.
What I tell clients is to plan for the current reality. Underwrite your purchase or refinance on FAIR Plan + DIC pricing. Get the defensible-space and roof-class work done now — both for insurability and for actual wildfire resilience. Don't bet your closing on an admitted-market binder you don't have yet. The insurance picture is one of the largest carrying-cost variables in Conejo Valley real estate in 2026, and treating it that way is the rational position.
Frequently Asked Questions
What is the California FAIR Plan?
A state-mandated insurance pool of last resort, created in 1968 under Insurance Code section 10090. It provides basic fire coverage (dwelling cap raised to $3M residential) to property owners who cannot obtain coverage in the voluntary market.
Does FAIR Plan cover liability and theft?
No. FAIR Plan covers fire, lightning, internal explosion, smoke, and (with endorsement) limited extended perils. Liability, theft, and water damage require a separate Difference in Conditions (DIC) wrap policy.
How much does a FAIR Plan + DIC stack cost in the Conejo Valley?
On a $1.5M dwelling in Bell Canyon, Hidden Hills, or Lake Sherwood in 2026, the combined stack typically runs $3,500-$8,500 per year depending on construction, defensible space, and carrier.
What is PRC 4291?
California Public Resources Code section 4291, requiring property owners in State Responsibility Areas and very-high-fire-hazard zones to maintain defensible space (Zone 0/1/2) around structures. Non-compliance is now an insurance underwriting input.
Which Conejo Valley neighborhoods have lost the most admitted coverage?
Bell Canyon, Hidden Hills, Lake Sherwood, Hidden Valley, Oak Park hillside tracts, Calabasas hills, parts of Agoura Hills, and the southern Simi Hills above Wood Ranch have seen the heaviest admitted-market withdrawal.
Will the Sustainable Insurance Strategy bring carriers back?
It is designed to. The framework allows forward-looking catastrophe modeling and reinsurance-cost inclusion in rates, in exchange for an 85% high-risk-ZIP coverage commitment. Whether material new capacity returns to Bell Canyon and Hidden Hills by 2027 is still being measured.
Can I get a mortgage if the home is FAIR Plan only?
Yes, generally. Lenders accept FAIR Plan + DIC as satisfactory coverage as long as the dwelling limit matches the loan-required amount. Some lenders ask for specific endorsements; verify with your lender before removing your loan contingency.
Should I pay for a pre-listing defensible-space inspection?
Yes, on hillside or brush-adjacent homes. A pre-listing report identifying Zone 0/1/2 deficiencies lets you remediate before buyer inspections find them. Reduces deal friction and demonstrates insurability to underwriters.
