Research data sheds light on California’s home insurance gaps and challenges

The devastating wildfires in Los Angeles in early January 2025 have sparked new concerns about the stability of California's homeowner's insurance market. Insurers, including major providers like State Farm, have been retreating from high-risk areas due to the escalating costs of climate-driven disasters, leaving many homeowner's struggling to secure coverage. This growing challenge has put the spotlight on insurance availability and affordability in California, where YouGov Profiles USA data highlights trends in policy ownership and consumer preferences.

Two in five Americans have homeowner's insurance (41%). However, in California, only 31% of residents have a policy. This is one of the lowest rates in the market, falling behind states like South Dakota (59%), North Dakota (55%), Arizona (44%), Oregon (45%), Nevada (39%).

Renter’s insurance ownership is also low in California, with just 14% of residents covered. This rate is well below states like the District of Columbia (37%), Idaho (21%), Colorado (19%), Oregon (19%), Nevada (19%), and Arizona (18%).

Californians are more likely to have health insurance (44%) and car insurance, with 32% holding collision coverage, 33% having liability insurance, and 32% carrying comprehensive coverage.

Among those who do have insurance, State Farm is a key provider in the market. About 23% of US adults with homeowner's insurance and 21% of those with renter's insurance say they are current customers of State Farm. Other popular providers include Blue Cross Blue Shield (20% of homeowner and 15% of renter insurance owners), Progressive (13% of homeowner and 15% of renter insurance owners), UnitedHealthcare (12% of homeowner and 14% of renter insurance owners), Allstate (10% homeowner insurance owners), and Geico (12% of renter insurance owners).

The issue of affordability is also a growing concern. At the same time, only 8% of homeowners say they are likely to switch providers in the next 12 months, reflecting the limited options available. Renters are even less likely to switch, with just 1% considering changing carriers.

One in 10 American adults say they would cut back on insurance premiums if their household budgets were squeezed (11%). However, this figure is one of the lowest compared to other categories such as eating out (62%), travel (40%), tech purchases (36%), clothing (35%), groceries (22%), mobile data (13%), and heating/ lighting (13%).

Methodology: YouGov Profiles is based on continuously collected data and rolling surveys, rather than from a single limited questionnaire. Profiles data for the US is nationally representative and weighted by age, gender, education, region, and race.