Insurance companies in California will be required to offer home coverage in high-risk wildfire areas to continue operating in the state. The new regulation, announced by Insurance Commissioner Ricardo Lara, mandates a gradual increase in coverage over several years. In exchange for this requirement, insurers will be allowed to pass on reinsurance costs to consumers.
SACRAMENTO, Calif. — 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 office said in a statement.
Insurance companies had said that because they can’t consider climate change in their rates, many opted to either pause or restrict new business in the state. The new rule to include climate change in rates will take effect later this week.
CALIFORNIA INSURANCE WILDFIRES REGULATION REINSURANCE
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