Can You Still Get Homeowners Insurance in Downey? What Buyers Need to Know in 2026

by Orlando Garcia

Can You Still Get Homeowners Insurance in Downey? What Buyers Need to Know in 2026

Quick answer: Yes. You can still get homeowners insurance in Downey in 2026. It costs more than it used to, and you have fewer carriers to choose from than five years ago. But the market is starting to open back up, and most Downey homes are insurable through a regular private carrier. The key is shopping early, before you’re deep into escrow.

Let’s break down what’s actually going on, and what it means for you if you’re buying in Downey right now.

Why Is Home Insurance So Hard to Get in California?

Over the past few years, a lot of big-name insurers stopped writing new policies in California. Wildfires, rising rebuild costs, and slow rate approvals made the math ugly for them. So they hit pause.

State Farm, the biggest home insurer in the state, stopped taking new homeowners applications in May 2023. Allstate closed its doors to new homeowners back in November 2022.

That left a lot of buyers scrambling. Some ended up on the California FAIR Plan, the state’s insurer of last resort.

Here’s the thing most headlines skip: the worst of it hit high wildfire-risk areas. Hillsides. Canyons. Brush. That’s not most of Downey.

Is the California Insurance Market Getting Better in 2026?

Yes, and that’s real news.

In September 2026, State Farm filed to start accepting new homeowners applications again. Allstate filed to reopen too. Both are still under state review, so don’t count your quotes yet. But it’s a big shift.

On top of that, more than a dozen insurance groups have committed to stay and grow in California under the state’s Sustainable Insurance Strategy. That includes six of the 10 largest home insurers in the state.

And the FAIR Plan, which was ballooning, has slowed way down. Growth dropped below 2% this summer. That’s a sign private carriers are picking up more homeowners again.

Bottom line: it’s not 2019. But it’s a lot better than 2024.

Can You Get Homeowners Insurance in Downey Specifically?

For most homes, yes.

Downey is flat, urban, and mostly outside the areas insurers are scared of. That works in your favor. Your address still matters though, so check two things on any home you’re serious about:

Fire hazard zone. Look up the address on CAL FIRE’s Fire Hazard Severity Zone map.
Flood zone. Check FEMA’s flood map. Some lenders require flood insurance if the home falls in a designated flood zone.

In Downey, the bigger insurance hurdle usually isn’t fire. It’s the house itself.

What Do Insurers Look at on Older Downey Homes?

A lot of Downey was built in the 1940s and 1950s. Great bones. Great neighborhoods. But insurers get picky about older systems. Here’s what can slow you down or bump your premium:

Roof age. This is the big one. An older roof can mean higher rates or a flat no.
Electrical panel. Older panels (like Federal Pacific or Zinsco) and knob-and-tube wiring are red flags for carriers.
Plumbing. Galvanized pipes can be a problem.
Past claims. A home with a history of water or fire claims can be harder to insure.

None of these are deal killers on their own. But you want to know about them early, not three days before closing.

Pro tip: Ask the seller for a CLUE report. It shows the property’s insurance claims history. It’s a small ask that can save you a big headache.

What Is the California FAIR Plan, and Do You Want It?

The FAIR Plan is the state’s backup option when private insurers say no. It’s there so you can still close and protect your home.

But it’s bare bones. It mainly covers fire. For things like liability, theft, and water damage, you usually need a second policy called a Difference in Conditions (DIC) policy. That’s two policies and two bills.

It’s also getting pricier. The FAIR Plan got a 29.1% average rate increase approved earlier this year, taking effect this October.

For most Downey buyers, the FAIR Plan should be a last resort, not a first stop.

How Much Does Homeowners Insurance Cost in Downey?

It depends on the home, the roof, the coverage amount, and your deductible. I’m not going to throw out a number that won’t apply to your house.

What I will say: budget for it like it matters, because it does. Your insurance premium usually gets rolled into your monthly mortgage payment. A higher premium means a higher payment. Get real quotes before you lock in your budget.

When Should You Shop for Homeowners Insurance as a Buyer?

Earlier than you think.

Your lender won’t fund your loan without proof of insurance. No policy, no closing. Simple as that.

Here’s the timeline I give my buyers:

Before you write offers. Call an independent insurance broker. Get a feel for pricing in your target neighborhoods.
As soon as you’re in contract. Send the property address to your broker and get real quotes.
During your investigation contingency. Under the standard California purchase agreement, you have time to check the availability and cost of insurance. Use it. If you can’t get reasonable coverage, that’s a legit reason to renegotiate or walk.
Before you remove contingencies. Have a policy you can bind. Don’t release contingencies on a hope.

Should You Use an Independent Insurance Broker?

For most buyers right now, yes.

A captive agent can only quote one company. An independent broker can shop several carriers at once. In a tight market, that’s a big advantage. They’ll also know which carriers are picky about roofs, panels, and pipes, and which ones aren’t.

The Bottom Line for Downey Buyers

You can still insure a home in Downey. The market is tougher than it was, but it’s moving in the right direction. Most Downey homes can get private coverage. The buyers who run into trouble are the ones who wait until the last minute.

Shop early. Know the house. Use your contingency. And work with an agent who’s asking these questions for you, not after it’s too late.

If you’re thinking about buying in Downey or anywhere in Southeast LA County, let’s talk. I’ll help you spot insurance issues before they become closing issues.

Orlando Garcia | The GO Team Real Estate Services | HomeSmart Realty Group
DRE #01221472 | (562) 413-7349 | soldbythegoteam.com

Frequently Asked Questions

Can I still get homeowners insurance in Downey, CA in 2026?
Yes. Most Downey homes can still get coverage through private insurers. Costs are higher than in past years, and you should start shopping early in the buying process.

Is State Farm writing new homeowners policies in California?
In September 2026, State Farm filed to start accepting new homeowners applications again for the first time since May 2023. The filing is under review by the California Department of Insurance.

Do I need homeowners insurance to close on a house?
Yes, if you’re using a mortgage. Lenders require proof of homeowners insurance before they fund your loan.

What is the California FAIR Plan?
It’s the state’s insurer of last resort. It mainly covers fire, so most FAIR Plan homeowners also buy a separate Difference in Conditions policy for other risks.

What makes an older Downey home harder to insure?
Roof age, outdated electrical panels, knob-and-tube wiring, galvanized plumbing, and past insurance claims can all raise your premium or limit your options.

When should a first-time buyer shop for homeowners insurance?
Before you make offers, and again right after you’re in contract. Have a policy ready to bind before you remove your contingencies.