The state has taken action to stop new cancelations
of ConsumerAffairsEven before the Santa Ana winds turned the Los Angeles wildfires into a raging inferno, the entire area was struggling with an insurance crisis. Because a number of insurance companies canceled policies or declined to offer coverage, many Los Angeles residents who lost homes were not covered by insurance.
The California Association of Realtors, which has been dealing with the issue for at least two years, expressed hope that policymakers are ready to address the issue.
"As Los Angeles reels from the devastating fires that have resulted in the loss of homes, businesses, schools, and neighborhoods, we are encouraged by the proactive measures taken by policymakers to tackle the homeowners insurance crisis, the group said in a statement.
Specifically, the Realtors group said it has actively worked with state leaders since the beginning of the insurance crisis and is supporting Assembly Bill 226, authored by Assembly Insurance Committee Chair Lisa Calderon and Assemblymember David Alvarez.
The bill aims to alleviate uncertainty for FAIR Plan policyholders. CAR said it also supports Insurance Commissioner Ricardo Lara's moratorium on homeowner insurance policy cancellations.
"In addition, CAR continues to support the California Department of Insurance's 'Sustainable Insurance Strategy,' key pillars of which are now in place, said CAR President Heather Ozur, a Palm Springs Realtor.
Removing barrier to access
This approach aims to remove barriers to insurance access, particularly for those in higher-risk areas. As we now confront the significant aftermath of these fires, we will continue to work with government leaders on solutions to ensure that all homeowners have access to the homeowners insurance they need."
In December, California introduced new insurance regulations aimed at encouraging insurers to offer more policies in wildfire-prone areas.
Under these new rules, insurers will use advanced computer models, which take into account weather, geography, and other data, to set insurance rates, rather than relying solely on past losses.
The change comes in response to the impact of climate change on wildfires, which has made it difficult to find homeowners and renters insurance in some of the state's most populous areas.
With our changing climate we can no longer look to the past. We are being innovative and forward-looking to protect Californians access to insurance, Insurance Commissioner Ricardo Lara said in a statement.
As the fires raged last week, Lara took action to protect Southern California homeowners by issuing a mandatory one-year moratorium on insurance non-renewals and cancellations. The Commissioners Bulletin shields those within the perimeters or adjoining ZIP Codes of the Palisades and Eaton fires in Los Angeles County for one year from the Governors January 7 emergency declaration regardless of whether they suffered a loss.
Photo Credit: Consumer Affairs News Department Images
Posted: 2025-01-13 16:48:12
