California mandates insurers to boost home coverage in wildfire-risk zones

Economy

1 year ago

News sources:

Credited from: APNEWS

California's new regulation mandates that home insurers must offer **coverage in high-risk wildfire areas**, a move previously unregulated.
The rule requires insurers to **increase their coverage by 5% every two years** until they reach **85% of their market share** in these areas.
This regulation aims to address the **loss of access to home insurance** for many Californians due to destructive wildfires.
Insurance Commissioner **Ricardo Lara** emphasized the need for a reliable insurance market in the face of wildfires and climate change.
Insurers like **State Farm and Allstate** have exited the California market, prompting the state to impose these new requirements to retain coverage options.

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