Shanti Singh, legislative director for Tenants Together, expressed concern that renters are likely to bear the brunt of these increases. “It’s still kind of an unknown how common it is that tenants’ rents are rising along with insurance costs,” she said, pointing out that not all landlords are transparent about their reasons for raising rents.
In some areas, the impact is already being felt. Renters in the Bay Area reported rent hikes earlier this year directly tied to rising insurance premiums. As climate change continues to drive up the cost of living in California, renters are left with few options and limited recourse.
What’s Next?
California’s insurance commissioner, Ricardo Lara, has proposed a multi-part plan to address these challenges, including allowing insurers to use catastrophe models if they agree to cover certain areas. While these measures may help, they are unlikely to fully relieve the pressure on the rental market.
As I see it, the situation is poised to worsen as insurance becomes less accessible and affordable, and landlords are forced to pass those costs onto tenants. This could lead to an even more challenging housing market, where affordable rentals become increasingly rare. For California renters, the future could mean higher rent, fewer housing options, and a tougher road ahead in an already strained market.
