The Senate Committee on Insurance, convening in Placerville, made significant strides on Wednesday by advancing a bill aimed at tackling the pressing issue of fire insurance affordability and accessibility in California.
Dubbed Senate Bill 1060, or the Fire Insurance Risk Evaluation (FIRE) Act, the legislation proposes a pivotal requirement for property insurers: to factor in wildfire mitigation endeavors when determining insurance premiums for homeowners.
Senator Josh Becker, the proponent of the measure, emphasized the urgent need for action, characterizing the situation as a crisis. “We have to recognize that this is a crisis. People are losing insurance every day or facing exorbitant markups in their insurance. So we have to start treating it like a crisis,” he asserted.
Lorianna McArthur, a resident with properties in El Dorado County, shared her firsthand experience grappling with the challenges of obtaining fire insurance. She revealed that she currently relies on the California FAIR Plan after being dropped from Mercury Insurance for one of her homes. Despite efforts to mitigate risks by clearing trees, McArthur found herself entangled in a bureaucratic back-and-forth, ultimately spending significant sums on tree removal only to be abruptly dropped from her policy.
McArthur’s predicament reflects a broader trend affecting homeowners across the state, with escalating insurance costs hindering potential homebuyers, such as her son, who dreams of owning property in the area but is deterred by prohibitive insurance expenses.
The passage of the measure, albeit by a narrow 3-2 margin, marks a pivotal step forward, according to Senator Becker. He commended homeowners like McArthur for their mitigation efforts and emphasized the importance of ensuring that such endeavors are duly recognized and reflected in insurance underwriting practices.
“This bill is about acknowledging the work being done by our communities and ensuring that it is factored into the insurance equation,” Senator Becker reiterated.
With the Senate Committee’s approval secured, the measure now advances to the Senate Appropriations Committee for further deliberation and consideration.
