SANTA CRUZ — In response to mounting challenges in homeowners insurance across California, a representative from the California Department of Insurance—the nation’s largest state consumer protection agency—will visit Santa Cruz County to engage with local leaders and residents.
A high-level spokesperson from the office of California Insurance Commissioner Ricardo Lara will attend Tuesday’s county Board of Supervisors meeting to discuss recent market shifts and address concerns about escalating insurance issues, particularly affecting residents in the wildland-urban interface region.
The visit comes amid rising rates and coverage discontinuations by major insurers like Travelers Insurance, which recently announced plans to increase rates by an average of 15.3% for hundreds of thousands of policyholders. This follows State Farm’s decision to drop coverage for 72,000 homes statewide, including many in Santa Cruz County.
Zach Friend, 2nd District Supervisor, highlighted the profound impact of insurance loss on the community, with residents facing significantly higher rates or struggling to find coverage, placing homes and investments at risk.
To address these challenges, Commissioner Lara and his team have pledged to overhaul home insurance regulations by year-end to stabilize the volatile market.
The Commissioner’s representative will speak before the board starting no sooner than 1 p.m. Tuesday at 701 Ocean St., Room 525, Santa Cruz, providing an opportunity for public engagement on this critical issue.
Additionally, the representative will attend a community education and preparedness workshop in Scotts Valley later that day from 6-8 p.m. at the Performing Arts and Cultural Center, offering further insights from agencies like Cal Fire, Firewise, and the Scotts Valley Fire Department.
Recovery Permit Center Extension and Bond Issuance Considerations
In addition to addressing insurance challenges, the Board’s Tuesday agenda includes discussions on critical recovery efforts post-CZU Lightning Complex Fire.
The board will consider extending a contract with 4Leaf Inc. to support fire survivors with permitting and recovery-related services through the Recovery Permit Center. The proposed $600,000 contract would extend services for another six months, prioritizing CZU survivors with expedited appointments and building permit reviews.
Moreover, the board will discuss authorizing issuance of up to $95 million in bonds to address cash flow challenges resulting from infrastructure recovery needs post multiple federally declared disasters since 2017. This financing, noted as the largest in the county’s history, aims to sustain critical operations while awaiting FEMA reimbursements.
Both items will be addressed during the board meeting starting at 9 a.m., with discussions on the bond issuance expected during the afternoon session after 1 p.m.
