California is implementing a new law requiring insurance companies to use computer modeling of future wildfire exposure when setting premiums. This change aims to address the state's insurance crisis by expanding coverage options in high-risk communities.
A man stands in the middle of a street at the Seminole Springs mobile home park in Malibu Lake in Los Angeles after the Woolsey Fire roared through the community, on Nov. 10, 2018. Photo by Wally Skalij, Los Angeles Times via Getty Images
There’s no law requiring California property owners to carry insurance, but the vast majority buy it to protect themselves from fire and other perils, or are required to do so by their mortgage lenders. For decades, insuring California’s homes, farms and commercial properties was a hum-drum business of willing sellers and willing buyers. However, the formeras the state experiences an ever-increasing number of wildfires — even during winter months — that devastate homes and businesses in fire-prone areas.It would allow insurers to use computer modeling of future exposure to set premiums, while requiring them to offer coverage in risky communities roughly in line with their shares of the market.
Lara claims support from environmental groups, farmers and other stakeholders, in addition to insurers. But he’s drawing sharp criticism fromin insurance regulation. The group has also received millions of dollars in fees from intervening in insurance rates cases, and has been a harsh critic of Lara throughout his time in office.
CALIFORNIA INSURANCE WILDFIRES CLIMATE CHANGE REGULATION
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Farmers Insurance promises to write more California home insurance policies ahead of planned reformsThe company committed to writing 9,500 new policies each month.
Read more »
California Insurance Commissioner takes step to increase insurance availability in wildfire-distressed areasThe new regulations aim to strengthen Proposition 103 by establishing unprecedented coverage commitments from insurance companies, aimed at stabilizing the insurance market and expanding options fo…
Read more »
New California insurance rule will increase coverage in fire-prone areasUnder a new insurance regulation that just got approved this week, California Insurance Commissioner Ricardo Lara said homeowners should have an easier time buying fire insurance, even in fire-prone areas.
Read more »
California issues landmark rules to improve home insurance marketCalifornia's Department of Insurance released rules meant to encourage insurers to write more policies in high-fire-risk areas by using computer modeling.
Read more »
California's Unemployment Insurance System Crashes Again During PandemicCalifornia's unemployment insurance system faced another collapse during the COVID-19 pandemic, similar to its failure during the Great Recession. The fund had no reserves to handle the surge in claims and borrowed $20 billion from the federal government, potentially facing increased payroll taxes as a result.
Read more »
California Insurance Crisis Set To Ease With New Landmark RulesThe new rule aims to extend insurance coverage to more areas in the state at risk of wildfires.
Read more »