Are California homeowners getting any insurance breaks for beefing up their property to protect against wildfires? [Bay Area News Group]
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"I could have had a concrete bunker with no windows and still couldn't have gotten insured based on that formula," said Bauerle, 60, a UC Santa Cruz math professor.
Insurance Commissioner
But amid an accelerating
Adding to the problem, insurers are discontinuing coverage of homes even after customers make fire protection modifications. And at least one -- Farmers -- has referred customers to a group that certifies the completion of more than a half-dozen fire safety mitigations -- and charges the homeowners
There's no question such measures benefit homeowners and their communities regardless of insurance benefits. Structural improvements to a home can reduce wildfire risk up to 40%, and when combined with vegetation modifications can reduce vulnerability up to 75%, according to Moody's.
Neither Lara's office nor the insurers themselves can say how many homeowners have qualified for and received the discounts. The department says it's approved 140 insurer discount plans, but acknowledges many companies have yet to implement them.
The California FAIR Plan, the last resort, high-risk insurance for those who lose regular coverage, introduced the first fire protection discount plan last August. But it requires homeowners to complete multiple mitigations to qualify, contrary to the commissioner's directive.
Deputy Insurance Commissioner
"I think we're making progress," Soller said. "This story is still being written. We're not all the way there."
Farmers spokesman
The state of
Insurers have complained the state doesn't let them collect enough in premiums to cover their rising costs and risk, and as a consequence, those companies have dropped coverage for tens of thousands of homeowners, particularly in areas considered higher risk for wildfires.
Lara plans to deliver regulatory changes by the end of the year to satisfy insurers' biggest concerns, while extracting from them a commitment to offer more policies in areas at higher risk of wildfires. But those efforts haven't calmed the state's imploding market, where it's biggest insurer,
The situation angers homeowners who are doing what they can to save their homes and their insurance.
"Getting that wildfire-prepared home designation is hard for a lot of households, and we don't want people to lose their insurance when they can't check all those boxes," said
The FAIR Plan offers a two-tiered home hardening discount program. Homeowners can get a 10% discount for structural wildfire hardening of their home, and a 5% discount for hardening the home's immediate surroundings. Those who meet requirements of both can get a total of 14.5% off their bill. And those who live in areas that implement broader "
To qualify for the structural discount, homeowners must meet all of five of the following criteria:
To qualify for the immediate surroundings hardening discount, homeowners must meet these four criteria:
Most homeowners already meet some of those criteria in each discount category or can do so at minimal cost. All but 1% of
But other measures can be far more costly or complicated.
"I don't have
"As a mountain resident, I can attest that it is a lot of work, very expensive, or virtually impossible," Cassidy said.
For homeowners like Bauerle, the fire protections he labored on are "still valuable even if it doesn't necessarily get us into a better place with insurance."
"I know I live in an area that has a non-zero probability of going up in flames," Bauerle said, but he added that after losing his regular home insurance, replacement coverage is likely to double his bill from
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