Survey Shows California’s Insurance Crisis Is Impacting Home Sales

October 30, 2024

Realtors in California are reporting more difficulty selling homes because of the insurance crisis, according to a survey from the California Association of Realtors.

The group surveyed its members and found 13% reported a home sale falling out of escrow due to a buyer’s inability to find insurance, more than double the figure (6.9%) in last year’s survey.

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Nearly one-third (31%) of agents surveyed said their most recent buyers had difficulty getting insurance when trying to purchase a home, nearly double 2023’s 16%.

And roughly one-in-five respondents said their clients ended up buying insurance from the FAIR Plan.

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Nearly half (45%) of buyers told their agents insurance was too expensive, the survey shows.