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alifornia's housing market is facing a crisis as homeowners, buyers, and sellers struggle with unaffordable insurance rates and dwindling options. Despite low interest rates, the state's real estate industry is experiencing a slowdown due to cancellations, non-renewals, and skyrocketing premiums for those who can secure coverage.

    According to the California Association of Realtors, 13% of sales have fallen through this year because insurance was unavailable or too expensive, more than double the rate from last year. Insurance brokers like David Shaffer and Allie Lopez report that securing home insurance in California has become extremely challenging due to non-renewals and limited access to coverage.

    Without insurance, lenders cannot finance loans, making it difficult for buyers to purchase homes. Even when insurance is available, prices are skyrocketing, with some policies costing upwards of $14,000 to $20,000 per year. The delay in securing insurance can also be a significant issue, particularly for those facing deadlines.

    Consumer advocate Harvey Rosenfield, author of Proposition 103, believes that new regulations from the Department of Insurance may not address the root issues. "The law is being applied in a way that allows insurers to cancel or non-renew policies without justification," he said. The new rules are expected to take effect in 2026, but Rosenfield notes that insurance companies will have years to implement them, and the impact on the market may not be felt until then.