Judge Rules California Can Expand Insurance for Wildfire Areas

A judge ruled California’s insurance commissioner can order the ‘insurer of last resort’ to offer more options for homeowners who live in wildfire-prone areas and can’t buy traditional coverage.

Recent massive wildfires—like the LNU, SCU and North Complex wildfires that impacted the Greater Sacramento region in 2020— have destroyed thousands of homes across the state, prompting billions of dollars worth of insurance claims.

Insurance companies have responded by not renewing coverage for many homeowners who live in threatened areas.

When that happens, most homeowners turn to the California Fair Access to Insurance Requirements Plan, which sells insurance to homeowners who can’t buy it through no fault of their own.

Most of the plans sold this way only cover damages from fires and other disasters.