California homeowners face the steepest insurance premium hikes in the country this year, with costs rising an estimated 16% in 2026, according to a report by policy tracker Insurify. The increase is four times the 4% hike facing the typical American property owner. Despite the sharp jump, California's insurance costs will still remain below national averages, the report finds.

The data shows Nebraska seeing the second-largest increase at 13%, followed by New Mexico at 11% and Georgia at 10%. Meanwhile, some states are seeing prices drop — Hawaii and Massachusetts are down 2%, and Maine is down 1%. After the 2026 increase, the average annual premium in California will hit $2,843, ranking 21st-highest among all states and sitting 7% below the national norm. The most expensive premiums are in Florida at $8,458 per year, followed by Oklahoma at $5,205, Louisiana at $5,035, Nebraska at $4,560, and Texas at $4,529. The cheapest insurance is in Vermont at $1,094 annually, followed by Maine at $1,359 and Utah at $1,370.

The report reveals that California insurance policies commonly cover $488,000 in repairs — the second-highest amount among states and 43% above the national average of $342,000. Only Hawaii is higher at $500,000. When you stack what homeowners pay against coverage, California's premium-to-coverage ratio sits at 0.6%, ranking 30th among states and one-third below the nation's 0.9% ratio. Florida has the highest ratio at 2.6%, while Vermont, Alaska, Washington D.C., New Hampshire, and New Jersey all clock in at 0.4% or less. About 11% of California property owners have no homeowner's insurance policy, the 11th-lowest level among states, compared to a national rate of 14%.

Years of rising property damage are largely behind the premium surge, with the 2025 Los Angeles wildfires serving as the latest example. Lower California rates have created a paradox — state insurance regulation has made it difficult for insurers to raise their rates, even as their costs and risks climb, which means many property owners struggle to find coverage in the first place. Homeowners who can't obtain insurance most often turn to the state's FAIR Plan, where premiums are expected to jump 29% next year. When measured as a share of household income, California's 2.8% insurance-cost burden ranks 25th among states and sits one-fifth below the nation's 3.6% — explaining why so many Californians still choose to pay for coverage despite the sticker shock.