Regulations enacted in late 2022 require insurance companies in California to recognize and reward homeowners that take steps to harden and protect their homes from wildfire risk.
The regulation is aimed at bringing some semblance of relief for homeowners in areas that are at higher risk of wildfires and who have been hit with skyrocketing homeowner’s insurance premiums and policy cancelations.
The new rules require insurers to submit new rates for properties whose owners have taken steps like installing fire-proof exteriors and creating a defensible space around their homes.
The hope is that homeowners will have more incentive to protect their properties against forest fires, which have been a growing threat to communities throughout California.
The regulation applies to any insurer that has created specific rates or applies surcharges based on a policyholder’s or applicant’s wildfire risk.
It bars insurers from using rating plans that do not take into account the following mandatory factors: Insurers Must Consider Mitigation When Pricing Homeowner