Daily Property & Casualty Insurance News

California Edition

California Headlines

Wildfire Insurance Moratorium

Insurance Commissioner Ricardo Lara ordered insurance companies to preserve residential property insurance coverage for over 147,000 policyholders affected by the Gifford Fire. The one-year moratorium on non-renewals and cancellations applies to 29 ZIP codes within or adjoining the wildfire perimeter, regardless of property loss.[1]

Home Insurance Rates

Southern California’s flood and mudslide risks, combined with high reinsurance costs, are driving scrutiny of high-value neighborhoods and potential non-renewals. New California regulations allow insurers to better incorporate forward-looking catastrophe models and reinsurance expenses into homeowner rates.[2]

Fire Claims Payouts

Lawmakers demanded explanations from major insurers including State Farm about itemization requirements and payout reductions for fire victims, citing potential violations of state law. A new law signed by Gov. Newsom provides up to $350,000 or 60% of personal property coverage upfront without detailed inventories for declared disasters.[3]

Surplus Lines Market

California’s property insurance market saw accelerated migration to surplus lines and the FAIR Plan due to admitted carriers’ pullback amid wildfire risks. Regulators approved 6.9% rate hikes for CSAA and Mercury Insurance to encourage writing business in high-risk areas.[4]

FAIR Plan Reforms

Commissioner Lara approved 6.9% rate increases for Mercury and CSAA, but critics argue private insurers continue retreating from high-risk areas. Proposed FAIR Plan reforms aim to improve claims handling, expand coverage, and increase transparency for wildfire-impacted policyholders.[6]