Earlier this week, California Insurance Commissioner Ricardo Lara announced the approval of new insurance pricing regulations by the Office of Administrative Law that reward wildfire mitigation and safety efforts made by homeowners and businesses. The approval allows the Commissioner to enforce the regulations, effective as of October 17, 2022.
The regulations, which were finalized by the Office of the Commissioner on September 1, 2022, require insurance companies to incorporate wildfire safety standards created earlier in the year by the California Department of Insurance (CDI) into any new rate filings, as well as to establish a process to release wildfire risk determinations to residents and businesses within 180 days. While the new regulations do not prevent insurers from non-renewing or canceling existing policies, they are designed to help restore affordable coverage to policyholders in high fire risk areas that are doing their part to fire-safe their homes and businesses. The full text of the regulations can be viewed on the CDI website here. For more information, contact RCRC Senior Policy Advocate, Staci Heaton.