What the FAIR Plan Rate Proposal Means If You're Buying in the Mountains

Every buyer I work with asks about the roof, the septic, and the price. The ones who've done this before ask about insurance first.

Here's why. In late 2025, the California FAIR Plan asked the state to approve rate increases averaging 35.8% statewide, the largest request in seven years. It wasn't spread evenly. The request ranged from about 9% in the Davenport area to just over 50% in Brookdale, according to Lookout Santa Cruz's reporting. Roughly 11,000 Santa Cruz County households carry FAIR Plan coverage, and most of the mountain homes I show are in that group or one bad renewal away from it.

So the number that matters isn't the price of the house. It's the price of the house plus a premium that could be several thousand dollars a year more than the listing agent's estimate. The closer a home sits to the CZU burn scar, the steeper it climbs.

Insurance up here is doable. It's also the thing that quietly changes a monthly payment by hundreds of dollars, and I'd rather you find that out before you write an offer than after.

What I ask every buyer to do: get a real quote on the specific address before you get emotionally attached to it. Not a zip code estimate. The address. Some carriers are starting to write again house by house, and things like roof material, ember-resistant vents, and the width of the access road can change your options. (Yes, the driveway matters. I didn't expect that either.)

The final rates depend on what the state approved, so ask your insurance agent for the current numbers when you're ready to shop.

If you're weighing a mountain home and the insurance question is what's keeping you up at night, that's a smart question, and it's one I'm happy to walk through with you. Reach me at sjwrealestate.com.