January 23, 2025

In response to the looming property insurance crisis, the CSAC Insurance Working Group, chaired by Supervisor Heidi Hall of Nevada County, was formed in 2024 to develop an advocacy plan on the detrimental impacts to counties created by a lack of available and affordable insurance options, especially related to wildfire. Throughout the year, CSAC collaborated with the Department of Insurance, industry leaders, consumer advocacy groups, subject matter experts, and federal agencies to bring up to date information to members of the working group and develop principles to guide future advocacy. This work culminated in November when the CSAC Agriculture, Environment, and Natural Resources (AENR) Committee and Board of Directors voted to approve adding language to the CSAC Policy Platform including inserting a new section, “Wildfires and Home Insurance” recognizing the importance of policyholder’s accessibility in the home insurance market. Accompanying the platform language, the CSAC Insurance Working Group developed a “Policy Principles”  guide to facilitate CSAC’s advocacy moving forward.

The Los Angeles County Fires cast a harsher light on the insurance crisis as thousands of homeowners in the impacted areas were dropped from insurance coverage last year. This has led to an increased focus on the sustainability of the fire insurance market both statewide and federally. As more Californians lose insurance on the private market, they are forced to seek coverage under the state’s backed insurance option, the California FAIR Plan.

In response to the LA County Fires, the California Department of Insurance has issued one-year moratoriums on nonrenewals and cancellations within the fire perimeters and has proposed extending it to commercial policyholders. Additionally, the state intends to support federal actions that will assist where losses are uninsured and funding for state-led wildfire resilience programs. Insurance Commissioner Lara outlined plans to continue working on the California Safe Homes Act proposal which would include creating a program to provide financial assistance to homeowners for mitigation.

On the legislative front, CDI has verbalized support for AB 1 (Connolly) which would require the department to consider whether to update the Safer from Wildfire regulations to include home hardening in the regulations on or before January 1, 2030 and AB 226 (Calderon) which would allow CDI to access bond funding from the California Infrastructure and Economic Development Bank. CSAC, along with local government organizations, have supported AB 1.

Fire insurance continues to be a priority for CSAC and the Agriculture, Environment, and Natural Resources Policy Committee. CSAC staff will build off the momentum of the Working Group to continue to ensure that the county perspective is heard on these issues at the state and federal level utilizing the work from the Insurance Working Group as guided by its policy principles.