Insurance commissioner, legislative leaders join forces to introduce proposals for wildfire mitigation and recovery

Insurance Commissioner Ricardo Lara, along with several legislators, is advancing a comprehensive legislative package aimed at protecting wildfire survivors and improving preparedness for future disasters.

Lara's office said this package focuses on three key goals: Consumer protection, climate resiliency, and market strength.

Among the 10 proposals sponsored by the commissioner are a new statewide grant program to assist with wildfire hardening, protections for businesses against insurance non-renewals, initiatives to combat deceptive disaster advertising, and measures to maximize insurance claim payouts by limiting the fees that public adjusters can charge.

"As we face increasingly catastrophic disasters, our responsibility is to assist people in their recovery while also ensuring we are better prepared for the next event," said Commissioner Lara. "Now is the time for transformational action. I will not shy away from this moment and will continue to advocate for consumer protection and the restoration of our state's insurance market. Bold actions will yield bold results."

"Countless families, businesses, and communities in Los Angeles have suffered a devastating loss due to the fires," said Assemblymember Lisa Calderon, chair of the Assembly Insurance Committee. "Under the leadership of Speaker Rivas and with support from Insurance Commissioner Lara, my colleagues and I are fighting to ensure homeowners can access the resources they need to prepare for and recover from wildfires."

"Strengthening how we build and harden our homes can save lives, safeguard property, and help rein in the skyrocketing insurance costs burdening families across the state," said Sen. Susan Rubio, chair of the Senate Insurance Committee. "That's why we're committed to taking bold, proactive action, not just protecting those in high-risk areas but every Californian. The steps we're taking now will fortify our neighborhoods year-round and help all hardworking Californians keep their families safe now and for future generations."

"Just like residential homeowners, holders of commercial insurance policies need and deserve reliable insurance during a disaster like the wildfires we've just experienced," said Sen. Sasha Renée Pérez. "My legislation will expand the one-year moratorium to prevent cancelations or notices of nonrenewal on small businesses and nonprofit organizations. I appreciate the State Insurance Commissioner's actions to protect Californians during these devastating Los Angeles County wildfires."

"This legislative package is an important step to incentivize homeowners to harden and protect their homes from wildfires, while helping consumers save money on insurance bills," said Assemblymember Damon Connolly. "With the current state of our insurance market, it is critical that we continue to support homeowners across California who are proactively protecting their homes and making community level wildfire mitigation efforts by making sure that they are being offered as much relief as possible."

"Wildfire victims have been through so much, and deserve all the support we can offer. Guaranteeing coverage of their possessions offers an important step towards closure, and extending deadlines to provide proof of loss allows them ample time to sufficiently regroup and sort through the many logistics of recovery," said Sen. Ben Allen. "Californians who have lost all that they call home should not be subject to the pain compounded by insufficient coverage or missed deadlines. Additionally, the Eliminate 'The List' Act modernizes our data collection protocols to provide us with better climate insight that will guide us to a more insurable future."

"The advertising of disaster recovery related services to the victims of natural disasters needs to be open and transparent," said Assemblymember Heath Flora. "Private companies are certainly allowed to offer services to victims, but they should not be allowed to disguise those for-profit services as a form of government or non-profit relief aid."

"Public adjusters should help wildfire survivors rebuild, not wreck their recovery. Some public adjustors will charge excessive fees or take a portion of homeowners' insurance payouts through unfair practices. I'm proud to partner with Commissioner Lara on AB 597 to ensure wildfire survivors get every dollar they deserve to rebuild their lives," said Assemblymember John Harabedian.

"Wildfires and other natural disasters continue to devastate communities across California, leaving families struggling to recover," said Assemblymember Mike A. Gipson. "AB 232 empowers homeowners by providing them with a tax-exempt savings account to proactively prepare for emergencies. By allowing individuals to set aside funds for natural disasters, we are ensuring that Californians have the financial tools necessary to protect their homes and rebuild their lives when disaster strikes. I am proud to co-author this critical legislation with Assemblymember Calderon and stand with Commissioner Lara in advancing policies that enhance resilience and consumer protection."

"When disaster strikes, Californians should be able to count on their insurance coverage to pay out claims," said Assemblymember David Alvarez. "It is clear that the FAIR Plan needs more legs to stand on, and AB 226 is an urgent step among many we must take, to stabilize California's insurance market and prevent additional assessments that will hurt California homeowners."

"This first-in-the-nation public wildfire catastrophe model will be transparent, science-driven, and work for everyone—homeowners, communities, emergency responders, and local governments. By investing in a university-led research center, this bill ensures a model that not only improves wildfire preparedness and planning but also gives homeowners and communities a clearer picture of wildfire risk and whether they're getting a fair deal on insurance," said Sen. Dave Cortese.

"Time and time again, fires have destroyed our communities throughout California including my own. As we begin to recover from this historic disaster, it's important now more than ever that we find a way to make communities fire-safe and stabilize the insurance market. We cannot do this home-by-home. That's why the Commission takes a community scale approach to hardening, to ensure that local governments and communities that take fire code compliance seriously, and invest in hardening, have that work recognized by insurers. If we don't, it won't just be more houses that burn, but costs for everyone will go up," said Sen. Henry Stern.

Commissioner Lara's 10 sponsored bill proposals include:

The California Safe Homes Act (authored by Assembly Member Lisa Calderon) This legislation aims to create safer homes and communities by providing state-tax-free funds to help residents purchase fire-rated roofs and develop non-ignition zones around their properties, along with other crucial mitigation measures. These initiatives seek to safeguard lives and homes while enhancing eligibility for insurance discounts under Commissioner Lara's existing Safer from Wildfires regulation. The act would establish a grant program at the Department of Insurance, utilizing existing funds without incurring additional costs to taxpayers—similar to current programs in other states that address windstorm threats. Additionally, the grants would be federal-tax-free if Congress passes the bipartisan "Disaster Resiliency and Coverage Act," which has received support from the Commissioner, many members of California's congressional delegation, and numerous representatives from states facing the severe impacts of climate change.

The Business Insurance Protection Act (jointly authored by Senators Sasha Renée Pérez and Susan Rubio) The Wildfire Safety and Recovery Act of 2018 (SB 824, authored by then-Senator Lara) has protected millions of homeowners by prohibiting non-renewals of residential property insurance for one year. This proposal aims to extend this essential protection by broadening the insurance moratorium to include commercial policies, covering businesses, homeowners' associations (HOAs), condominiums, affordable housing units, and non-profits.

The Insurance Payment Protection Act (AB 597, authored by Assembly Member John Harabedian) ensures that wildfire survivors receive the maximum funds from their insurance claims is crucial for their recovery. To help policyholders obtain the full amount they are owed, AB 597 establishes a 15% cap on fees for adjuster-contracted work and prohibits any additional awards outside the contract. Currently, there is no limit on the fees that public adjusters can charge, which may include claims funds received before a consumer-adjuster contract is finalized — ultimately reducing the funds available for consumers to rebuild their homes and lives.

Eliminate "The List" Act (authored by Senator Ben Allen) This bill requires insurance companies to pay wildfire survivors 100 percent of their contents coverage without needing a detailed inventory list. It also grants consumers additional time—at least 180 days—to provide proof of loss to their insurance company following a declared state of emergency. Furthermore, the proposal aims to establish specific data collection authority to assist the Department in understanding long-term trends in risk management tools, technical data, and the integration of information related to climate-intensified risks that can significantly affect insurance availability.

The California Community Fire Hardening Commission Act (jointly authored by Senators Susan Rubio, Dave Cortese, and Henry Stern) proposes the creation of an independent statewide commission within the Department of Insurance. This commission is designed to develop a more effective inspection system that enables individuals to receive insurance discounts for home hardening, thereby improving wildfire safety for entire communities. Chaired by the Insurance Commissioner, the commission will review lessons learned from recent wildfires and offer recommendations to enhance and expedite home and community hardening efforts throughout the state, among other responsibilities

The Deceptive Disaster Relief Advertising Act (AB 637, authored by Assembly Member Heath Flora) After major disasters, consumers are frequently bombarded with misleading advertisements that claim to provide legal or recovery services, often posing as official government or non-profit guidance. To enhance transparency and safeguard consumers from being misled during these difficult times, AB 637 requires that advertisements on social media, traditional broadcast media, and digital streaming platforms clearly display the statement: "This is a solicitation for business. Not affiliated with any government entity or non-profit.

The California Wildfire Public Model Act (authored by Senator Dave Cortese) Establishes the nation's first public catastrophic model for wildfires, offering a crucial tool to assist wildfire planning and enhance transparency.

The Insurance and Wildfire Safety Act (AB 1, authored by Assembly Member Damon Connolly) AB 1 builds on Commissioner Lara's groundbreaking Safer from Wildfires regulation. The legislation requires future insurance commissioners to assess the need for updates to the regulation based on new fire science and public input.

The FAIR Plan Stability Act (AB 226, jointly authored by Assembly Members Lisa Calderon and David Alvarez) AB 226 aims to strengthen consumer safeguards by allowing the FAIR Plan to access catastrophic bonds through the California Infrastructure and Economic Development Bank. This provision would add an extra layer of financial support for the state's insurer of last resort, enabling it to continue paying consumer claims promptly in the event of a worst-case disaster.

The Savings Accounts for Mitigation and Catastrophes Act (AB 232, jointly authored by Assembly Members Lisa Calderon and Mike Gipson) AB 232 creates a tax-exempt savings account for consumers. This account allows them to set aside funds specifically for home hardening and insurance deductibles in the event of a disaster.

Bills without numbers have not been formally introduced but will be by Feb. 21.

Firefighters, along with organizations representing businesses, non-profits, wildfire survivors, and other consumers, are uniting in support of this legislative package, which supporters said will enhance the implementation of the Sustainable Insurance Strategy this year and beyond.

"We appreciate Insurance Commissioner Lara and Legislative Leaders for providing substantive measures to address our current insurance crisis and its impact on California's housing crisis," said Dan Dunmoyer, president and CEO of the California Building Industry Association. "Homebuilders, homebuyers, and renters must be able to secure insurance, including Californians who live in condominiums, apartments, and affordable housing. All consumers will benefit greatly from more stability in the insurance market and a stable FAIR Plan. This is why CBIA is sponsoring AB 226 (Calderon and Alvarez), which gives the FAIR Plan new tools to better manage costs related to paying policyholder claims after disasters."

"Our communities demand action on the insurance crisis, and this bill package is a critical step forward," said Jeff Griffiths, California State Association of Counties president and Inyo County supervisor. "Counties appreciate Commissioner Ricardo Lara for leading this effort and encourage continued progress by streamlining recovery efforts, such as expanding the Executive Orders issued for the 2025 Los Angeles County Wildfires to all counties facing disaster."

"The California Fire Chiefs Association strongly supports legislation that prioritizes home hardening and the implementation of Zone Zero within our communities. Regulations that promote adaptive strategies and provide resources to assist homeowners in fortifying their properties are essential components of wildfire resilience. Forward-thinking legislation that embraces innovation and prioritizes proactive wildfire mitigation measures will play a critical role in safeguarding lives, property, infrastructure and environment," said Chief Brian Fennessy, president, California Fire Chiefs Association.

"The California Association of REALTORS has supported the Department of Insurance's Sustainable Insurance Strategy, which aims to remove barriers to insurance access, particularly for those in higher risk areas. CAR is encouraged that this comprehensive legislative package will continue to build on that strategy and provide enhanced consumer protection for homeowners who have been victims of wildfires," said Heather Ozur, CAR president.