California State Insurance Commissioner Ricardo Lara, along with several legislators, is advancing a comprehensive legislative package aimed at protecting wildfire survivors and improving preparedness for future disasters. This package focuses on three key goals: Consumer Protection, Climate Resiliency, and Market Strength. Among the 10 proposals sponsored by the Commissioner are a new statewide grant program to assist with wildfire hardening, protections for businesses against insurance non-renewals, initiatives to combat deceptive disaster advertising, and measures to maximize insurance claim payouts by limiting the fees that public adjusters can charge.
“As we face increasingly catastrophic disasters, our responsibility is to assist people in their recovery while also ensuring we are better prepared for the next event,” said Commissioner Lara. “Now is the time for transformational action. I will not shy away from this moment and will continue to advocate for consumer protection and the restoration of our state’s insurance market. Bold actions will yield bold results.”
“The advertising of disaster recovery related services to the victims of natural disasters needs to be open and transparent,” said Central Valley Assemblymember Heath Flora. “Private companies are certainly allowed to offer services to victims, but they should not be allowed to disguise those for-profit services as a form of government or non-profit relief aid.”
The sponsored bill proposals include:
The California Safe Homes Act (authored by Assembly Member Lisa Calderon). This legislation aims to create safer homes and communities by providing state-tax-free funds to help residents purchase fire-rated roofs and develop non-ignition zones around their properties, along with other crucial mitigation measures. These initiatives seek to safeguard lives and homes while enhancing eligibility for insurance discounts under Commissioner Lara’s existing Safer from Wildfires regulation. The act would establish a grant program at the Department of Insurance, utilizing existing funds without incurring additional costs to taxpayers—similar to current programs in other states that address windstorm threats.
The Business Insurance Protection Act (jointly authored by Senators Sasha Renée Pérez and Susan Rubio). The Wildfire Safety and Recovery Act of 2018 (SB 824, authored by then-Senator Lara) has protected millions of homeowners by prohibiting non-renewals of residential property insurance for one year. This proposal aims to extend this essential protection by broadening the insurance moratorium to include commercial policies, covering businesses, homeowners’ associations (HOAs), condominiums, affordable housing units, and non-profits.
The Insurance Payment Protection Act (AB 597, authored by Assembly Member John Harabedian) Ensuring that wildfire survivors receive the maximum funds from their insurance claims is crucial for their recovery. To help policyholders obtain the full amount they are owed, AB 597 establishes a 15 percent cap on fees for adjuster-contracted work and prohibits any additional awards outside the contract. Currently, there is no limit on the fees that public adjusters can charge, which may include claims funds received before a consumer-adjuster contract is finalized—ultimately reducing the funds available for consumers to rebuild their homes and lives.
Eliminate “The List” Act (authored by Senator Ben Allen) This bill requires insurance companies to pay wildfire survivors 100 percent of their contents coverage without needing a detailed inventory list. It also grants consumers additional time—at least 180 days—to provide proof of loss to their insurance company following a declared state of emergency.
The California Community Fire Hardening Commission Act (jointly authored by Senators Susan Rubio, Dave Cortese, and Henry Stern) proposes the creation of an independent statewide commission within the Department of Insurance. This commission is designed to develop a more effective inspection system that enables individuals to receive insurance discounts for home hardening, thereby improving wildfire safety for entire communities. Chaired by the Insurance Commissioner, the commission will review lessons learned from recent wildfires and offer recommendations to enhance and expedite home and community hardening efforts throughout the state, among other responsibilities.
The Deceptive Disaster Relief Advertising Act (AB 637, authored by Assembly Member Heath Flora). After major disasters, consumers are frequently bombarded with misleading advertisements that claim to provide legal or recovery services, often posing as official government or non-profit guidance. To enhance transparency and safeguard consumers from being misled during these difficult times, AB 637 requires that advertisements on social media, traditional broadcast media, and digital streaming platforms clearly display the statement: “This is a solicitation for business. Not affiliated with any government entity or non-profit.”
The California Wildfire Public Model Act (authored by Senator Dave Cortese) establishes the nation’s first public catastrophic model for wildfires, offering a crucial tool to assist wildfire planning and enhance transparency.
The Insurance and Wildfire Safety Act (AB 1, authored by Assembly Member Damon Connolly). AB 1 builds on Commissioner Lara’s Safer from Wildfires regulation. The legislation requires future insurance commissioners to assess the need for updates to the regulation based on new fire science and public input.
The FAIR Plan Stability Act (AB 226, jointly authored by Assembly Members Lisa Calderon and David Alvarez) aims to strengthen consumer safeguards by allowing the FAIR Plan to access catastrophic bonds through the California Infrastructure and Economic Development Bank. This provision would add an extra layer of financial support for the state’s insurer of last resort, enabling it to continue paying consumer claims promptly in the event of a worst-case disaster.
The Savings Accounts for Mitigation and Catastrophes Act (AB 232, jointly authored by Assembly Members Lisa Calderon and Mike Gipson). AB 232 creates a tax-exempt savings account for consumers. This account allows them to set aside funds specifically for home hardening and insurance deductibles in the event of a disaster.
“Strengthening how we build and harden our homes can save lives, safeguard property, and help rein in the skyrocketing insurance costs burdening families across the state,” said Senator Susan Rubio, Chair of the Senate Insurance Committee. “That’s why we’re committed to taking bold, proactive action, not just protecting those in high-risk areas but every Californian. The steps we’re taking now will fortify our neighborhoods year-round and help all hardworking Californians keep their families safe now and for future generations.”
“Countless families, businesses, and communities in Los Angeles have suffered a devastating loss due to the fires,” added Assemblymember Lisa Calderon, Chair of the Assembly Insurance Committee. “Under the leadership of Speaker Rivas and with support from Insurance Commissioner Lara, my colleagues and I are fighting to ensure homeowners can access the resources they need to prepare for and recover from wildfires.”
Among the supporters speaking out regarding the proposals was Brian Fennessy, President of the California Fire Chiefs Association.
“The California Fire Chiefs Association strongly supports legislation that prioritizes home hardening and the implementation of Zone Zero within our communities. Regulations that promote adaptive strategies and provide resources to assist homeowners in fortifying their properties are essential components of wildfire resilience,” said Fennessy. “Forward-thinking legislation that embraces innovation and prioritizes proactive wildfire mitigation measures will play a critical role in safeguarding lives, property, infrastructure and environment.”
