In the nation’s most populous state, the surplus lines market is no longer an exclusive outlet and, for a growing number of ordinary homeowners, has become the only game in town. Surplus lines on homeowner policies in California are set to surpass 300,000 in 2025, an unprecedented level in state history, according to new data from the Surplus Lines Association of California. What began as a rebound from pandemic-era disruption turned into a structural shift in 2024, and is set to become even more consequential by 2026: a full-scale realignment of the entire California property insurance market.
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