GuideOne Exits California Earthquake Insurance Market: What Homeowners Need to Know Now
May 5, 2025
As of January 1, 2025, GuideOne Insurance Company has officially withdrawn from the California residential earthquake insurance market. This decision affects thousands of homeowners across the state who now face the non-renewal of their earthquake insurance policies, effective February 1, 2025.
If you’re currently insured with GuideOne, here’s what happened, why it matters, and what steps you should take next.
What Happened with GuideOne?
GuideOne is a Midwest-based insurance company best known for serving churches and nonprofits. In late 2020, the company entered the California earthquake insurance market with aggressive pricing—offering premiums 20% lower than Palomar Specialty, one of the leading private earthquake insurers.
Instead of building their own custom rate model, GuideOne used Palomar’s rate filings and simply discounted them by 20%, claiming they had lower operating costs and higher financial capacity.
Unsurprisingly, homeowners flooded in. Who wouldn’t want lower rates with a recognizable brand?
The Perfect Storm: Inflation + Reinsurance Crisis
By 2022 and 2023, things began to shift:
- GuideOne started blocking certain ZIP codes with high concentrations of new policies
- Inflation surged, and the cost of rebuilding homes skyrocketed
- A global reinsurance crisis pushed up costs across the board for all insurers
- Major carriers like State Farm began pulling back in California’s home insurance market
These factors hit GuideOne’s earthquake insurance program hard. According to their official statement, the company is exiting California due to the rising cost of reinsurance—a key layer of protection that insurers use to manage catastrophic risks like earthquakes.
What This Means for You as a Policyholder
If your GuideOne earthquake policy renews on or after February 1, 2025, you’ll be non-renewed. A formal notice will be sent, likely through Catalytic Risk, the general agency that processed GuideOne’s policies in California.
That means you’ll need to find a replacement policy—and quickly—to avoid going without earthquake protection.
Could This Happen to Other Earthquake Insurers?
Yes. If a company like GuideOne (or even State Farm) can withdraw from a market or pause new business, it’s possible for any insurer to do the same—especially in a high-risk, high-cost state like California.
That’s why it’s crucial to not just buy a policy online and forget about it—but to work with an independent agent who specializes in earthquake insurance.
What You Should Do Now
Here’s what we recommend:
✅ 1. Don’t Wait for the Non-Renewal Notice
Start shopping for a replacement policy now. Earthquake moratoriums can go into effect after any quake, leaving you temporarily unable to buy coverage.
✅ 2. Work With an Earthquake Insurance Specialist
Most agents write one or two earthquake policies a year—if that. You want someone who understands the market, carrier risk appetite, deductible strategies, and policy nuances that don’t show up on the declarations page.
✅ 3. Get Multiple Options
An independent specialist can present you with several policy options, explain the differences, and help you compare pricing and protection.
Final Thoughts
GuideOne’s exit from California is a wake-up call for homeowners across the state. It shows how quickly the market can shift—and how fragile your current policy may be in the face of economic, regulatory, and natural pressures.
📍 Protect your home and your finances before the next shake-up.
Start your quote today with a specialist at 👉 EarthquakeAgent.com