California Legislation Mandates Insurers to Provide and Renew Coverage for ‘Fire-Safe’ Homes

A new bill in California aims to enhance homeowners’ insurance accessibility for those who adhere to state home hardening and defensible space requirements. This legislation, known as Senate Bill 1076, or the Insurance Coverage for Fire-Safe Homes Act, was introduced by Senator Sasha Renée Pérez (D-Pasadena). It is co-sponsored by the Eaton Fire Survivors Network and Consumer Watchdog, responding to concerns from wildfire survivors about potential loss of coverage after rebuilding their homes, even when they comply with the highest wildfire safety standards.

Under SB 1076, insurance companies will be mandated to offer homeowners insurance to Californians who meet the state’s home hardening and defensible space criteria as established by the insurance commissioner.

Related: Bill Introduced to ‘Transform’ the California FAIR Plan

“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 outlines several key provisions:

• Insurance carriers will be required to offer and renew coverage for any home that meets the wildfire-safety standards adopted by the insurance commissioner, which include home hardening measures and defensible-space requirements.
• The insurance commissioner will have the authority to impose a five-year ban from both home and auto markets on insurers that refuse to comply with these requirements.

According to the bill’s text, “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 bill also allows insurers to apply for a temporary waiver of this prohibition in specific geographic areas. Furthermore, starting January 1, 2028, any residential property insurance offered must provide coverage equivalent to the most commonly offered residential property coverage by the admitted insurer in the state.

Related: California Bill Would Require Insurer Claims Handling Plans, and Double Penalties

The bill is currently awaiting referral to a committee.

Topics
California
Carriers

A new bill in California aims to enhance homeowners’ insurance accessibility for those who adhere to state home hardening and defensible space requirements. This legislation, known as Senate Bill 1076, or the Insurance Coverage for Fire-Safe Homes Act, was introduced by Senator Sasha Renée Pérez (D-Pasadena). It is co-sponsored by the Eaton Fire Survivors Network and Consumer Watchdog, responding to concerns from wildfire survivors about potential loss of coverage after rebuilding their homes, even when they comply with the highest wildfire safety standards.

Under SB 1076, insurance companies will be mandated to offer homeowners insurance to Californians who meet the state’s home hardening and defensible space criteria as established by the insurance commissioner.

Related: Bill Introduced to ‘Transform’ the California FAIR Plan

“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 outlines several key provisions:

• Insurance carriers will be required to offer and renew coverage for any home that meets the wildfire-safety standards adopted by the insurance commissioner, which include home hardening measures and defensible-space requirements.
• The insurance commissioner will have the authority to impose a five-year ban from both home and auto markets on insurers that refuse to comply with these requirements.

According to the bill’s text, “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 bill also allows insurers to apply for a temporary waiver of this prohibition in specific geographic areas. Furthermore, starting January 1, 2028, any residential property insurance offered must provide coverage equivalent to the most commonly offered residential property coverage by the admitted insurer in the state.

Related: California Bill Would Require Insurer Claims Handling Plans, and Double Penalties

The bill is currently awaiting referral to a committee.

Topics
California
Carriers