A major insurance company in California predicts significant upheaval in the state’s housing market as insurers pull out due to rising wildfire risks. State Farm, Allstate, and other insurers have exited the state, citing an inability to match premiums with escalating wildfire risks. The state-run FAIR Plan, designed for high-risk properties, is overburdened, exposing homeowners to higher costs and limited coverage. Insurers argue that restrictive state laws, like Proposition 103, cap premium increases, leaving them unable to balance risk and profit. This crisis threatens housing affordability and recovery efforts, as contractors face skyrocketing costs in rebuilding homes. Critics suggest poor wildfire management and unchecked housing development in fire-prone areas, not just climate change, are fueling the crisis. Without reform, California faces a grim future of higher insurance costs, reduced housing affordability, and prolonged economic strain.