SACRAMENTO, CA – Sen. Susan Rubio (D-Baldwin Park), Chair of the Senate Committee on Insurance, held an informational hearing today focusing on emerging issues for consumers dealing with wildfire risk.

The hearing is one in a series of hearings held by the Senate Insurance Committee on wildfire-related insurance issues in recent years, and focused on getting to the bottom of new concerns being raised by homeowners and businesses throughout the state. The hearing took testimony from representatives of the Department of Insurance, industry, secondary market insurers like the FAIR Plan, and additionally reviewed insurance availability issues for farms in fire risk areas and for those who conduct prescribed burns.

“Californians are still struggling to find affordable homeowners insurance, and many of our businesses are increasingly having difficulty as well. Insurance is necessary for a home mortgage, and important for farmers who often must secure loans to operate year after year.” Sen. Rubio said. “I thank all the panelists for their participation today in the robust discussion. Protecting consumers from wildfire risk and stabilizing the insurance market will require large cooperative efforts in risk mitigation, including prescribed burns, home hardening, and forest thinning. I look forward to working with the Department of Insurance on their initiatives.”

The Department of Insurance has made several recent announcements aimed at protecting consumers. In addition to proposing regulations that will require the use of computer models that account for home and community mitigation, so that those who harden their homes against wildfire can receive a benefit for their efforts, Insurance Commissioner Ricardo Lara just today announced findings that auto insurance companies overcharged consumers as accidents fell during the Pandemic. The Commissioner has ordered auto companies to continue returning premium to consumers, building on the $1.75 billion that was rebated last year.

##

Media Contact, Edward Barrera, edward.barrera@sen.ca.gov