California Fire Insurance and the Impact on Businesses

The recent Home Insurance Town Hall, hosted by State Senator Monique Limón, provided valuable insights into the future of fire insurance in California. With State Insurance Commissioner Ricardo Lara and industry experts in attendance, discussions centered on new policies, industry commitments, and the broader economic impact of rising insurance costs. 

Commissioner Lara discussed the California Department of Insurance’s (CDI) new claims tracker, introduced to combat misinformation regarding the LA County fires. The Commissioner reaffirmed CDI’s commitment to the Sustainable Insurance Strategy, which will ensure that insurance companies expand their footprints in wildfire-prone areas rather than withdrawing from them. He also explained that while the state’s top insurers have recommitted to California, premiums will need to rise reflect risk. State legislators are exploring several solutions, including the creation of a public risk model, so risk is not only determined by private models, and the creation of tax-free savings accounts for fire mitigation. 

Business impacts go beyond just the impacts to commercial fire insurance. Rising premiums are forcing 25% of homeowners to cut back on discretionary spending, with 90% reducing dining out and 81% limiting travel—impacting local businesses. The Chamber remains engaged in these discussions, ensuring businesses stay informed and prepared for the evolving insurance landscape. Check out the Commercial Insurance Guides plus other resources below!

Sustainable Insurance Strategy, Disaster Readiness Resources, Stay Connected with Cal Fire News & Track Fires