California Legislators Pushing a Bill Requiring Insurers to Insure Fire Safe Homes

Pasadena, California Sen. Sasha Renee Perez has introduced Senate Bill 1076 — the Insurance Coverage for Fire-Safe Homes Act — in California Senate. If passed it will require insurance companies to offer homeowners insurance to homeowners who meet California’s home hardening and defensible space requirements.

Senate Bill 1076 is co-sponsored by the Eaton Fire Survivors Network and Consumer Watchdog.

The concern is homeowners rebuilding in areas like that of the Eaton Fire and then not being able to get homeowners insurance because of the original loss. And being denied coverage is a real possibility even if the home is hardened against wildfire.

“I’ve spoken with Eaton Fire survivors whose newly built homes will meet the highest levels of protection against wildfires but still fear they won’t be able to purchase insurance,” Pérez said. “Being denied coverage after meeting safety standards sends the wrong message and is akin to being penalized for doing the right thing. SB 1076 will ensure that our communities’ insurance needs are met by making coverage available to them for making existing neighborhoods safer.”

The law would require carriers to offer and renew coverage to any home meeting the wildfire safety standards adopted by California Insurance Commissioner Ricardo Lara. Insurers refusing to comply could be barred from selling homeowners and auto insurance in California for five-years. 

“On and after January 1, 2028, this bill would prohibit an admitted insurer that offers or sells residential property insurance in this state from refusing to offer, sell, or renew a policy of residential property insurance for an applicant or insured whose property meets minimum home hardening and wildfire mitigation standards, except as provided,” the text of the bill states. “The bill would authorize an admitted insurer to apply to the commissioner for a temporary waiver of that prohibition in a particular geographic area of the state, as specified. On and after January 1, 2028, the bill would also require any residential property insurance offered or sold to, at a minimum, provide coverage equivalent in scope to the residential property coverage the admitted insurer most commonly offers or sells in this state.”

Source link: Insurance Journal — https://bit.ly/4qWW1np