Alex Hwang could not get the standard coverage his lender required for a nearly $700,000 home in Menifee, California, so he relied on a surplus-lines policy with a $25,000 fire deductible. He told the Los Angeles Times he had never heard of the insurer.
Cimarron Ridge is bordered by scrub and rolling hills, not dense forest. A Los Angeles Times review of 396 ZIP codes found low-risk homes made up 90% of policies added to California's FAIR Plan from March 2025 to June 2026; more than 11,000 low-risk properties were added, on top of 138,000 already covered. The Times found FAIR Plan enrollment around Menifee had risen fivefold from 2024 levels, with enrollment in neighboring Hemet up 660%. The FAIR Plan, the state's insurer of last resort, generally covers fire only, so homeowners need separate protection for theft, water damage and other hazards.
Wildfire losses, higher construction costs and more expensive reinsurance have prompted major insurers to scale back in California. Surplus-lines providers, which operate outside many of the state's usual insurance regulations, grew from about 1% of the home-insurance market in 2021 to roughly 7%, according to Weiss Ratings. California's reforms aim to encourage coverage in wildfire-distressed areas while allowing insurers to factor catastrophe models and reinsurance costs into decisions. The state's Department of Insurance has cited major fires since 2015 and climate-related risks as strains on the market.
