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alifornia's real estate market is getting a boost from the state's Realtor association, which has added an insurance contingency to its contracts. This allows buyers to back out of deals or renegotiate if they can't find affordable home insurance. The move comes as the state's insurance crisis worsens, with many major insurers limiting or halting new policies.

    The California Association of Realtors updated its template for home sales to include the insurance contingency, giving buyers more flexibility in a market where obtaining insurance has become increasingly difficult. State Farm and Allstate have stopped offering new home insurance policies for over a year, while others like Farmers Insurance have limited their offerings.

    As a result, costs have skyrocketed, with the average homeowner paying $2,000 a year for insurance - more than double what it was a decade ago. The terms of the CAR insurance contingency are generally negotiable and allow buyers to cancel contracts if they can't obtain insurance within 17 days.

    Without this contingency, buyers would be forced to forfeit their safety deposit or move forward with the deal anyway. Realtors say that adding an insurance contingency has become increasingly common in recent months, as the issue of affordable home insurance has become a major concern for buyers.