VISTA (KGTV) — A Vista woman's homeowner's insurance premium jumped from $900 to $4,000 in one year while on the California FAIR plan.
After Chrystal was dropped by Farmer's Insurance for making too many claims and couldn't find another policy in 2023, she had to insure her home through the California FAIR Plan, a last-resort plan through the state. At first, she was able to secure affordable rates, at $900 or so a year.
Then on December 29th 2025, she received a piece of mail that changed everything.
"It was when I opened up that piece of mail and I, you know, I was like, what? It's insanity," Chrystal Nowakowski said. "They basically told me that my fire zone rating went from a zero to a two and that was the biggest factor, but that they also had to adjust for inflation."
Chrystal went through the appeals process and, after a lot of work, was able to get her premium down to $3,000 a year. Nowakowski is a real estate agent who says she is used to navigating complex paperwork, but says the whole process has been difficult.
But another increase is already coming.
"They did confirm they will be raising their rates in October between 30 and 50%," Nowakowski said.
For many homeowners with a mortgage, going without insurance isn't an option. If they can't maintain coverage, their lender can force-place insurance or take other action under the terms of the loan. Chrystal's force-place insurance rate was $8,000 through her lender, a rate she said she simply can't afford.
I reached out to the California FAIR Plan with Chrystal's story and asked about rate increases overall this year. They said they can't comment on specific cases like Chrystal's, or even attribute it as part of an overall rate increase across the board. However, when pressed, they did confirm that an average rate increase of 29.1% for October had been approved, and that it could be higher for folks who live in higher-risk zones.
"We can't comment on an individual policy or specific premium changes. Renewal premiums can be affected by factors including changes to the property, coverage, underwriting characteristics, or approved rate adjustments. Because each policy is unique, we can't characterize one policyholder's experience as representative of broader premium changes. Policyholders with questions about their premium or coverage should contact their licensed insurance broker, who can review their policy and explain any available coverage options.
The California FAIR Plan's rates are regulated and are not adjusted based on inflation. Any rate changes are subject to review and approval by the California Department of Insurance and are intended to ensure rates accurately reflect the risk being insured and support the FAIR Plan's ability to pay covered claims.
Earlier this year, the California Department of Insurance approved the FAIR Plan's dwelling rate filing, which takes effect on October 15, 2026, for new and renewal dwelling policies. The approved statewide average rate change is 29.1%; however, individual premium impacts will vary. Some policyholders may see premium decreases, while others—particularly those with properties facing greater wildfire risk—may experience increases above the statewide average.
Because each policy is unique, we cannot comment on whether an individual policyholder's experience is representative of the broader FAIR Plan policyholder population."
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