California Wildfire Insurance Bill: Protecting Fire-Safe Homes

A proposed bill in the California State Senate aims to enhance insurance coverage options for homeowners who have upgraded their properties to withstand wildfires. Led by Sen. Sasha Renée Pérez, Senate Bill 1076, known as the Insurance Coverage for Fire-Safe Homes Act, mandates that insurance carriers provide or renew policies for homes meeting wildfire safety standards set by State Insurance Commissioner Ricardo Lara. This includes safeguards like sprinkler systems, fortified roof eaves, and maintaining defensible spaces to mitigate fire spread risk.

If passed, the legislation would empower Commissioner Lara to enforce market restrictions on non-compliant insurers, potentially barring them from offering home and auto insurance for up to five years. This regulatory measure comes in response to a challenging insurance landscape in California, where frequent wildfires have led some carriers to halt new policies and cancel existing ones, citing increased underwriting risks. Consequently, there has been a rise in demand for the state's FAIR Plan, which reported 670,500 policyholders by December 2025.

Sen. Pérez highlighted the bill's necessity in ensuring that homeowners investing in fire-resistant upgrades secure insurance coverage. The proposal has gained traction among groups like the Eaton Fire Survivors Network and Consumer Watchdog, advocating for the recognition of wildfire safety investments within underwriting processes. Joy Chen, director of the Eaton Fire Survivors Network, warned of housing market repercussions if insurers deny coverage to fire-safe homes. Similarly, Carmen Balber of Consumer Watchdog criticized insurers for overlooking risk management efforts and underscored the need for compliance with fair and accountable insurance practices.