California’s Lara Sets New Wildfire Requirements for Insurers

Since being elected, California Insurance Commissioner Ricardo Lara has implemented new wildfire regulations on insurers. Those rules are now coming to fruition. The commissioner has finalized a plan to force insurance companies to give homeowners and businesses a discount if they go the extra mile and make sure their property is as safe as possible from wildfire.

The new regs from Lara’s Safer from Wildfires edict will be the first of their kind implemented in the country.

“Protecting Californians from deadly wildfires means everyone doing their part, including insurance companies by rewarding consumers for being safer from wildfires,” Lara said. “The reality of climate change is driving my determination to help communities better prepare, help our firefighters save lives, and help more Californians find insurance they can afford.”

That means insurance companies will now be required to give the California Department of Insurance new rate filings that take into account the new safety standards that Lara has put into effect.

They have 180 days to set up a process to determine risk for residents and businesses. Each property — businesses or home — has to be given a wildfire risk score and if the business or homeowner doesn’t agree, they have a right to appeal the score.

The Safer from Wildfires regulations were written immediately after Lara took office in 2019. At that time, 7% of the residential market in California received insurance discounts. Today that figure is about 40%.

When Lara’s new regulations are fully implemented, the commissioner says that number will be 100% and all 100% will be in line with the rules encased in Safer from Wildfires.

It’s not likely that Lara will stop there.

“My Department will work diligently to increase discounts to reward the hard work that California consumers do to protect their families, homes, businesses, and communities,” the commissioner said.

Source link California Department of Insurance- https://bit.ly/3zfEv5F