Homeowners insurance when you buy in Shasta and Tehama counties

Getting homeowners insurance in California has been harder in recent years, especially in wooded or outlying areas, because several large insurers stopped writing new policies. That is starting to change, but nothing is settled. When a traditional policy isn't available, buyers often use the California FAIR Plan together with a separate "wrap-around" policy. An insurance broker can tell you what is available for a specific address today, so talk to one before you make an offer.

What has changed

State Farm General stopped accepting new homeowners applications in California effective May 27, 2023 (State Farm).
Allstate also stopped writing new residential policies in California starting in 2022, according to the California Department of Insurance (CDI alert, September 18, 2026).
The California FAIR Plan says more Californians have turned to it as wildfires have grown and some insurers have pulled back from those markets (FAIR Plan).
It may be improving. On September 18, 2026, the Department of Insurance reported that State Farm and Allstate each filed to resume writing new homeowners policies. The Department says these are filings under review, not approvals, and State Farm's filing sets wildfire-readiness conditions on the homes it would write. The Department also urges consumers to shop for coverage now and to look at other insurers before turning to the FAIR Plan.

Sources checked October 6, 2026. Insurance conditions change often, so confirm what is available today. The Department of Insurance consumer hotline is 1-800-927-4357.

What my clients run into

In my experience, homes in more rural or wooded parts of Shasta and Tehama counties are the ones most likely to need the FAIR Plan, often with a wrap-around policy. Availability depends on the specific address and the home, not the town name, so I don't promise a result for any area.

The FAIR Plan and a wrap-around policy, in plain English

FAIR Plan: the state's insurer of last resort for property owners who can't find coverage in the traditional market. It's a basic fire policy, and the FAIR Plan calls itself a temporary safety net.
Wrap-around (DIC) policy: a separate policy that adds coverage for perils the FAIR Plan doesn't include, such as water damage, theft and liability, according to the California Department of Insurance.
Two policies, two companies. Your lender will want to see proof of insurance, and the combined cost can be higher than a standard policy, so get it quoted early.

Sources:California Department of Insurance fact sheet on the FAIR Plan and residential policies,California FAIR Plan, about us (checked October 6, 2026). Check what a specific policy covers before you buy it. The Department of Insurance has warned that not every wrap-around product delivers what it appears to, so ask your broker to explain exactly what is and isn't covered.

What I recommend before you make an offer

Pick an insurance broker, ideally one who can quote several companies, and give them the address of the home you're considering. I have some great local insurance brokers I can get you in touch with if you have additional questions. I don't receive a fee or any payment for these introductions, and you're free to use any broker you like.
Ask what can be written on that address, which companies, and what the policy would cost each month. Ask them to look at traditional carriers before settling on the FAIR Plan.
Ask what home or property improvements, such as roof condition and defensible space, could change availability or price.
Add the monthly insurance cost to your payment estimate with your lender before you decide on the price.
Do the wildfire and flood lookups on the town page for the address, and ask your inspector about the roof and the property.

Common questions

What is the California FAIR Plan?

The California FAIR Plan is the state's insurer of last resort. It was set up for homeowners who cannot find coverage in the traditional market, and it describes itself as a temporary safety net until coverage from a traditional carrier becomes available. It is a private association of insurers, not a state agency.

What is a wrap-around or DIC policy?

A Difference in Conditions policy, often called a wrap-around, adds coverage for things a FAIR Plan policy does not include, such as water damage, theft and liability. Together the two policies are meant to come close to the coverage of a standard homeowners policy, but they are two separate policies from two different companies.

Why talk to an insurance broker?

A broker who can quote several companies can ask them all about one address and can put together a FAIR Plan policy with a wrap-around when that is what is available. Some large companies sell only directly or through their own agents, and not every company is accepting new homes in every area.

How much will insurance cost?

It varies widely by address, home, roof and the company that will write it, so I do not quote figures. Get a written quote for the specific home before you commit to the purchase.

Can I wait until after I have an accepted offer to look at insurance?

You can, but I would not. Lenders generally require proof of insurance before closing, and the cost affects what you can afford each month. Ask for quotes as soon as you have a home in mind, and before your contingencies expire.

I'm a REALTOR®. I don't sell insurance, and I don't give insurance advice or quotes, so please rely on an insurance broker for your policy. I have some great local insurance brokers I can get you in touch with if you have additional questions. I can tell you what I see in the market and make sure the insurance question gets answered before it affects your purchase. Information here is general and changes often.

Want help finding insurance for a home you're considering? Contact me at 530-356-8100 or use the form below, and I'll get you in touch with a local insurance broker.

Last verified: 2026-10-06