California Bill Requires Insurers to Offer, Renew Coverage for ‘Fire-Safe’ Homes
A new bill in California would require insurers to offer homeowners insurance to those who meet state home hardening and defensible space requirements.
Senate Bill 1076, the Insurance Coverage for Fire-Safe Homes Act, was introduced by Senator Sasha Renée Pérez (D-Pasadena) is co-sponsored by the Eaton Fire Survivors Network and Consumer Watchdog in response to wildfire survivors’ concerns that they could lose coverage after they rebuild, even if they meet the highest wildfire safety standards.
SB 1076 requires insurance companies to offer homeowners insurance to Californians who meet state home hardening and defensible space requirements set by the insurance commissioner.
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“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 stated. “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 legislation would:
- Require carriers to offer and renew insurance coverage for any home that meets wildfire-safety standards adopted by the insurance commissioner, including home hardening measures and defensible-space requirements.
- Allow the insurance commissioner to impose a five-year bar from both home and auto markets for insurers that refuse to comply.
“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.”
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The bill is awaiting referral to a committee.