In the News
The California Department of Insurance approved a 29.1% average rate increase for FAIR Plan dwelling policies, effective October 15, 2026, applying to both new and renewal policies. As of June 2026, the FAIR Plan’s total exposure has reached $768 billion, an 11% increase since September 2025, with policies in force now climbing to 696,562, up 8% in the same period. The affected lines include Dwelling Fire, Commercial, Commercial High Value, and Business Owner’s Policy, making this a direct cost concern for California real estate investors holding properties in wildfire-exposed ZIP codes. Roughly half of policyholders could experience premium increases ranging from 30% to 50%, so investors should stress test operating budgets and explore private market alternatives before their next policy renewal.
An Agent’s Guide to California FAIR Plan Rate Increases
Law to Be Aware Of
California’s Senate Bill 9 (the HOME Act) allows homeowners to split single-family lots into two parcels and build up to two units on each, creating a maximum of four housing units on one original lot; effective since January 2022, SB 9 requires ministerial (non-discretionary) approval from cities, and eligibility depends on zoning, location outside restricted hazard zones, and owner occupancy for lot splits. The owner occupancy rule is designed to prevent corporate assemblage of single-family neighborhoods but does not restrict what happens on the split-off parcel. SB 9 excludes historic properties and historic districts, farmland, wetlands and conservation land, high fire hazard zones, floodplains, hazardous waste sites, and earthquake fault zones, and it also cannot be used to remove rent-controlled or recently tenanted housing. For LA investors, this law remains a practical tool to unlock additional density and rental income on single-family parcels, particularly in R1 zones where entitlement has historically been slow and discretionary.
SB 9 Explained: California’s Lot Split and Duplex Law for Homeowners https://www.customhome.us/blog/sb-9-lot-split-duplex-california?_pxl=djoxLGM6NGVmM2Y2MzEzMTM1NjEsYTox
General Real Estate Tip
I recently contributed to the latest issue of RENT Magazine, both as an author and quoted. It is published by the American Apartment Owners Association. The quote was related to what laws really changed how we do business. I focused on AB 2493, which covers the order in which you accept tenant applications. The main article I wrote is about what to do when your unit isn’t renting. We are seeing longer vacancies than we care to have. I dive into five things you can do today to get your units rented. Here is the link to the full article: https://learn.american-apartment-owners-association.org/link/246600/82/
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