Gavin Newsom calls for CA homeowner insurance recommendations in executive order
Gov.
That request came in an executive order, which the Governor’s Office said was an effort to speed up the work required under a new state law. That law, authored by state Sen.
“We’re taking a whole-of-government response to protect Californians from wildfire while boosting coverage options and bringing down costs,” Newsom said in news release.
Senate Bill 254, which Newsom signed in September, calls for the state to come up with long-term changes to “protect access to insurance, reduce litigation costs, provide fair and expeditious compensation to claimants, support wildfire mitigation, safety, and community resilience, and ensure large electrical corporations are accountable for safety and also have the financial health to attract low-cost capital on behalf of ratepayers.”
Californians have had to pay higher prices to find home insurance coverage or use the state’s backup provider in recent years as companies have restricted business in response to losses from fires and rising risks of future ones.
“The Governor is exactly right: we need a ‘whole-of-government’ approach to keep moving in the right direction,” Insurance Commissioner
It asks the department to provide feedback and suggestions on the accessibility of property coverage, as well as a state-supported property insurance plan for wildfires and other disasters, publicly-funded financial aid to help make insurance rates more affordable, and other proposals.
“Many of the ideas in the executive order are promising,” said
The governor also asked the
“It’s vital that the stability and health of California’s insurance market remain a priority as work is being done on this report, and insurers are looking forward to participating in the process,” said
The
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