Daily California P&C Insurance News

Insurance Commissioner Ricardo Lara ordered insurers to preserve residential property coverage for 124,000 policyholders in 39 ZIP codes affected by the TCU September Complex Fire, effective for one year from September 19, 2025. This moratorium shields residents in Calaveras, Tuolumne, San Joaquin, Stanislaus, Mariposa, and Merced counties from non-renewal or cancellation regardless of loss.

California home insurance premiums are expected to increase by about 20% or more by the end of 2025 due to wildfire losses, higher reinsurance costs, and inflationary rebuilding pressures. Large carriers are seeking rate hikes up to 30% as regulators permit greater use of catastrophe models amid ongoing affordability challenges.

Insurance Commissioner Ricardo Lara issued an order for insurers to maintain residential property coverage for over 14,800 policyholders in Mono and Inyo counties after the Pack Fire emergency declaration. The one-year moratorium prevents non-renewals and cancellations regardless of property loss, supporting wildfire protections in high-risk areas.

The California FAIR Plan upsized its Golden Bear Re catastrophe bond to $750 million for fully collateralized wildfire reinsurance, aiming for lower spread pricing due to strong investor demand. This record-sized deal seeks to stabilize the insurer of last resort and reduce wildfire risk burdens in distressed California zones.

A California appellate court decision, highlighted in Law360’s top property insurance rulings of 2025, denied two homeowners’ claims for debris damage from the 2019 Saddle Ridge wildfire. The ruling, reviewed by expert Scott Seaman, aligned with policy language and California Supreme Court precedent on smoke and debris coverage limits.