Consumer advocates say the changes would also mean rate hikes for many Californians.
Struggling to find affordable homeowner’s insurance because you live in a fire-prone area? A new proposal by state regulators could soon make it much easier to get coverage. But consumer advocates worry that it would also mean steep rate hikes for many Californians.. In exchange for allowing insurers to raise rates based on the growing threat of climate change — long an industry demand — companies would agree to expand coverage in parts of the state with the greatest wildfire risk.
Seren Taylor, vice president of the Personal Insurance Federation of California, an industry group, said that he expects many insurers, who negotiated much of the plan, to agree to the deal. What’s less clear, Taylor said, is whether State Farm, which has the most policies in the state, would start writing new coverage as it already has such a large portion of the market share at around 20%.
They’ve also raised concerns that smaller insurance companies and new carriers entering the market would be exempt from some requirements. And they suggested the insurance department might be unwilling to enforce the new coverage mandates after an initial two-year period to phase in the changes. “We have strong enforcement tools under existing law to hold insurance companies accountable, and we will,” said agency spokesperson Michael Soller.
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