California Senate Bill 1076: Wildfire Insurance Coverage Protection

A proposed legislative measure in California, Senate Bill 1076, seeks to address homeowner concerns regarding insurance coverage in wildfire-prone areas. This bill mandates insurers to offer policies to those who comply with established home hardening and defensible space requirements. Introduced by Senator Sasha Renée Pérez from Pasadena and co-sponsored by the Eaton Fire Survivors Network and Consumer Watchdog, this initiative addresses issues faced by wildfire survivors experiencing coverage rejections despite adhering to advanced safety standards.

Starting January 1, 2028, SB 1076 requires insurers not to decline, refuse to sell, or renew residential property insurance for applicants meeting the mandated safety criteria set by the insurance commissioner. It allows insurers to appeal for a temporary waiver of this mandate in specific geographic regions where regulatory compliance requirements may be challenging. Additionally, any residential property insurance policy issued post-2028 must offer coverage at least equivalent to the carrier's most common policy offerings in California.

Senator Pérez emphasized the importance of rewarding homeowners who adhere to the highest protective measures against wildfires rather than denying coverage. She stated, "Being denied coverage after meeting safety standards sends the wrong message and is akin to being penalized for doing the right thing. SB 1076 will ensure that our communities' insurance needs are met by making coverage available to them for making existing neighborhoods safer." This legislative proposal, part of a broader policy movement, aims to strengthen California’s insurance framework, enhancing preparedness and recovery in the face of natural disasters.