Opinion: How to cool California’s heated home insurance market

As California grapples with another season of wildfires, the impact on the state’s insurance market has become increasingly dire.

The reasons are numerous and complex: the rise in wildfires and extreme weather, high construction costs driven by inflation, high costs of capital, legal system abuse, and longstanding regulatory impediments.

Homeowners are understandably weary of seeing premium increases or — worse — policy cancellations after years of paying premiums. Insurers, meanwhile...