California’s New Insurance Mandate for Wildfire Zones: A Lifeline for Homeowners

Insurance Commissioner Ricardo Lara emphasized the importance of these regulations: “We’re creating targets that are achievable and will help consumers not in decades but absolutely now. As soon as our regulations are complete later this year, insurance companies that use catastrophic models will have to publicly detail their commitments in writing.”

While the regulations mandate larger companies to cover 85% of their market share in wildfire-prone areas, smaller and regional insurers are not held to this standard. Instead, they are encouraged to increase their market share in these areas by 5% over the next two years. This measured approach aims to ensure that smaller companies are not unduly burdened while still contributing to the overall increase in coverage availability.

Public Participation

The CDI is involving the public in this crucial regulatory process. A public workshop to discuss the draft regulations is scheduled for June 26 at 2:30 p.m. I encourage all interested parties to register and participate. Additionally, written comments can be submitted to [email protected] by June 27.