Home Insurance at $10,000 a Year Shows California Buyers’ Pain

California’s lofty home prices and scarce inventory already amounted to one of the most nightmarish housing markets in the US. Now, challenges securing and affording home insurance in the wildfire-prone state are making it even worse.

Under the pressure of a looming closing date, prospective buyers are enduring lengthy, complex searches — and a fair amount of sticker shock – for a product that used to be something of an afterthought.

Lenders have been forced to adapt, often working closely with clients to help them land a policy so insurance doesn’t become an obstacle to approval of the loan.

“I ...