FILE - Kelly Barton, left, is hugged by a family friend after arriving at her parents' fire-ravaged property in the aftermath of the Mountain Fire, Nov. 7, 2024, in Camarillo, Calif.
California will soon require insurers to increase home coverage in wildfire-prone areas
California will start requiring property insurers to increase coverage in wildfire-prone areas after homeowners across the state increasingly struggle to find policies
A fire burns a house in the Mountain fire, Wednesday, Nov. 6, 2024, in Camarillo, Calif.
Marcio Jose Sanchez - staff, ASSOCIATED PRESS
FILE - A firefighter watches as flames from the Mountain Fire consume a home in Camarillo, Calif., Nov. 6, 2024.
Noah Berger - ugcr, ASSOCIATED PRESS
FILE - Destroyed homes sit among smoldering hills in the Mountain fire, Nov. 6, 2024, in Camarillo, Calif.
Ethan Swope - staff, ASSOCIATED PRESS
FILE - A chimney stands at a home destroyed by the Mountain Fire in Camarillo, Calif., on Nov. 8, 2024.
Noah Berger - ugcr, ASSOCIATED PRESS
FILE - Kelly Barton, left, is hugged by a family friend after arriving at her parents' fire-ravaged property in the aftermath of the Mountain Fire, Nov. 7, 2024, in Camarillo, Calif.
SACRAMENTO, Calif. — Insurance companies that stopped providing home coverage to hundreds of thousands of Californians in recent years as wildfires became more destructive will have to again provide policies in fire-prone areas if they want to keep doing business in California under a state regulation announced Monday.
The rule will require home insurers to offer coverage in high-risk areas, something the state has never done, Insurance Commissioner Ricardo Lara’s office said in a statement. Insurers will have to start increasing their coverage by 5% every two years until they hit the equivalent of 85% of their market share. That means if an insurer writes 20 out of every 100 state policies, they’d need to write 17 in a high-risk area, Lara’s office said.
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