Mercury becomes first major insurance company to return to Paradise

Mercury Insurance, a leading provider of property and casualty insurance, announced today that the company will begin writing new homeowners insurance policies in the town of Paradise, California.

Mercury is the first major insurance company to begin offering policies to Paradise homeowners since the town was engulfed by the Camp Fire in November 2018.

The move was made possible by California Department of Insurance Commissioner Ricardo Lara's commitment to implement his Sustainable Insurance Strategy, which is designed to provide California consumers with a wider array of home insurance options.

The efforts of Paradise city officials and residents also played a pivotal role in Mercury's decision to reenter the market, as they've demonstrated a commitment to reducing wildfire risk through forward-thinking urban planning and mitigation strategies.

"Mercury's return to offering homeowners coverage in Paradise, California is the result of hard work by the city and its residents, the state and numerous individuals and organizations who have reimagined how a town can grow and thrive in an area prone to wildfires," said Victor Joseph, President and Chief Operating Officer of Mercury Insurance. "Our team has taken numerous trips to the city to see the transformation firsthand, and what we've seen makes us confident that Paradise can serve as a model for other cities facing similar challenges."

The rebuilding process began as soon as it was safe to return to the area. City officials, emergency services, private residents, grassroots organizations like the Rebuild Paradise Foundation, and numerous other entities have led the charge on the rebuild, making Paradise the fastest growing city in California, according to the California Department of Finance.

"Rebuilding the town's infrastructure while generating momentum for our neighbors and businesses to return to Paradise has been our overarching goal," said newly elected Mayor Steve Crowder. "We see Mercury's return to providing coverage in Paradise as a crucial step in our rebuild strategy and a demonstration that we have been successful in redefining how cities can be built to lower wildfire risk."

Paradise worked closely with the Insurance Institute for Business & Home Safety to strengthen the town's resilience. The town updated its building ordinance in July 2022 to require all new homes be built to IBHS's Wildfire Prepared Home standard.

Wildfire Prepared is based on years of wildfire research and the program is designed to significantly reduce a structure's risk of ember ignition. Requirements include a Class A roof, an exterior that features ember-resistant vents with lower six inches of vertical space, and a noncombustible Zone 0, the five-foot buffer around a house. The result is a community positioned to deal with future fire events like never before.

"The Town of Paradise has been thoughtful in its approach and is working hard to rebuild the community in a way that will not only provide better protection, but also make it more insurable," said Roy Wright, IBHS President and CEO. "Wildfire has a role in nature. Yet, the goal we aim to achieve is to keep it from entering our neighborhoods and consuming homes. And that's where Paradise is leading the way in community resiliency, using our research to build back stronger. That is more appealing for insurance companies like Mercury."

"Being part of the rebuilding process has been important to us," says Paradise resident, Gary Ledbetter. "Paradise leadership has demonstrated remarkable foresight, and the community is fully committed to rebuilding in a way that greatly enhances the town's resiliency. As a result, we now are getting access to more affordable home insurance options other than the FAIR plan."

Mercury Insurance is confident the company's return to Paradise will pave the way for other insurance providers to follow suit.

"It's vital the insurance industry supports the efforts of communities and homeowners to build greater resilience against wildfires," said Joseph. "We are working with a number of communities in higher risk areas to build on what we're doing in Paradise, and we anticipate Mercury will continue to grow our customer base in these areas. This is the direct result of not only the Commissioner's Sustainable Insurance Strategy, but also the leadership and dedication of Governor Gavin Newsom, who has significantly grown and improved the state's ability to manage and fight wildfires.

"If communities take proactive steps to better protect their community and homes, we believe the insurance industry should acknowledge these efforts by doing our part to provide coverage at an affordable price. We're proud that Mercury is the first major insurance company to come back to Paradise, because this town has done their part and now it's our turn to do ours."

Mercury Insurance has remained committed to the state and has consistently worked to support its fellow Californians. In 2024, Mercury spearheaded an effort to maintain insurance availability for thousands of consumers who otherwise would have lost their coverage when Tokio-Marine America made the difficult decision to withdraw from its personal line business in California. Mercury also announced last year that it has partnered with the UCLA Anderson Forecast to study the impact climate change is having on the company and its customers in California. This research will shed light on how Mercury and others can collaborate with various stakeholders to provide innovative insurance products and services specific to catastrophic weather risks, including wildfires.

About Mercury Insurance

Headquartered in Los Angeles, Mercury Insurance is a multiple-line insurance carrier offering personal auto, homeowners and renter's insurance directly to consumers and through a network of independent agents in California, Arizona, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas and Virginia, as well as auto insurance in Florida. Mercury also writes business owners, business auto, landlord, commercial multi-peril and mechanical protection insurance in various states.

Since 1962, Mercury has provided customers with tremendous value for their insurance dollar by pairing ultra-competitive rates with excellent customer service, through nearly 4,100 employees and a network of more than 6,500 independent agents in 11 states. Mercury has earned "A" ratings from A.M. Best and Fitch, as well as "Best Auto Insurance Company" designations from Forbes and Insure.com.

For more information visit MercuryInsurance.com or follow the company on Twitter or Facebook.