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California will soon require insurers to increase home coverage in wildfire-prone areas

California will require property insurers to increase coverage in wildfire-prone areas after homeowners struggle to find policies.
The new rule mandates insurers to raise coverage by 5% every two years until reaching 85% of their market share.
Insurers can consider climate change when setting prices in exchange for increasing coverage.
Major insurers like State Farm and Allstate have halted new policies due to fears of losses from wildfires and other disasters.

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The Oregonian

California requires insurers to increase home coverage in wildfire-prone areas

The state’s new rule announced Monday requires insurers to start increasing their coverage by 5% every two years until they hit the equivalent of 85% of their market share. That means if an insurer writes 20 out of every 100 state policies, they’d need to write 17 in a high-risk area. In exchange for increasing coverage, the state will let insurance companies pass on the costs of reinsurance to California consumers. Some worry it will increase p…

2 months ago·Portland, United States

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Straight Arrow News

California to require insurers to offer policies in fire-prone areas

In recent years, destructive wildfires across California prompted some insurance companies to stop writing new policies for high-risk areas. Now, California is implementing a new regulation requiring home insurers to offer new policies in fire-prone areas if they want to remain in the state, California Insurance Commissioner Ricardo Lara announced Monday, Dec. 30. This is the first regulation of its kind in California. “Californians deserve a re…

2 months ago

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Washington Examiner

California to require home insurance coverage be offered to high-risk areas - Washington Examiner

California Insurance Commissioner Ricardo Lara introduced a new regulation Monday aimed at expanding coverage to areas at high risk of wildfires after insurers have limited options for those areas in recent years. In recent years, wildfires have been costly, which has pushed several insurance companies to pull coverage out of the state, especially in areas at high risk for wildfires. The regulation introduced by Lara would require insurers to in…

2 months ago·Washington, United States

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Inc.

California Will Soon Require Insurers to Boost Home Coverage in Wildfire Areas

The state’s insurance commissioner said insurance companies will have to offer home coverage in fire-prone locations if they want to do business in the Golden State.

2 months ago

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KSRO

New State Regulation Requires Insurance Companies To Over Coverage In Wildfire-Prone Areas

Insurance companies in California are now required to offer coverage to homeowners in wildfire-prone areas. That’s part of a new state regulation announced on Monday. It comes after several insurance companies pulled their coverage from mountain communities and areas that have been ravaged by wildfires in the past. The regulation says insurance companies will be legally required to write policies in those areas “equivalent to no less than 85% of…

2 months ago

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Fast Company

California will require insurance companies to offer coverage in wildfire zones

Insurance companies that stopped providing home coverage to hundreds of thousands of Californians in recent years as wildfires became more destructive will have to again provide policies in fire-prone areas if they want to keep doing business in California under a state regulation announced Monday. The rule will require home insurers to offer coverage in high-risk areas, something the state has never done, Insurance Commissioner Ricardo Lara’s o…

2 months ago

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