Low-Income California Homeowners Face Higher Property Insurance Cost Burdens in 2023

A UC Berkeley Terner Center analysis reveals that low-income California homeowners spend a significantly higher portion of their income on property insurance compared to higher-income residents, averaging about 3% of their income in 2023. This disparity is influenced by increasing wildfire risks and regulatory changes aimed at curbing insurance restrictions, which may exacerbate financial burdens on lower-income households. Mobile home residents also face disproportionately higher insurance costs relative to their property's value, with median costs more than double those of single-family homes. Despite California's insurance rates being median among U.S. states in 2023, affordability challenges persist for vulnerable homeowners, highlighting the need for policy strategies addressing climate risks and housing affordability.