A new bill introduced in the California Legislature would require insurers to offer and renew homeowners coverage for properties that meet state-defined wildfire safety standards.
SB 1076, introduced by state Sen. Sasha Renée Pérez, D-Alhambra, would mandate that insurers provide coverage to homes that comply with wildfire-safety standards adopted by the insurance commissioner. The requirement would take effect Jan. 1, 2028.
The measure, titled the Insurance Coverage for Fire-Safe Homes Act, would authorize the insurance commissioner to impose a five-year ban from California’s auto and home insurance markets on insurers that fail to comply. The same five-year ban would apply to insurers that cease offering property insurance under the law.
However, the bill includes a provision allowing insurers to seek a temporary waiver. To qualify, insurers would need to demonstrate an over-concentration of risk in a specific geographic area.
Background and Legislative Context
Pérez said discussions with survivors of the January 2025 Eaton fire in Altadena and surrounding communities prompted the proposal. According to Pérez, some homeowners expressed concern that they could be denied coverage even if they rebuild to the highest fire-safety standards.
The bill is co-sponsored by the Eaton Fire Survivors Network and Consumer Watchdog, a Los Angeles-based consumer advocacy organization. A similar measure supported by Consumer Watchdog in 2023 failed to advance in the Legislature.
Carmen Balber, executive director of Consumer Watchdog, said the current insurance environment differs from 2023. She cited that hundreds of thousands of homeowners have lost coverage in recent years and have moved to the California FAIR Plan, the state’s insurer of last resort.
The FAIR Plan, which is operated by licensed home insurers, provides more limited coverage at a higher cost. Following the January 2025 fires in the Eaton and Palisades burn areas, FAIR Plan policyholders filed lawsuits alleging issues with the handling of smoke-damage claims. The California Department of Insurance also opened an investigation into the FAIR Plan’s claims practices.
Supporters of SB 1076 also point to recent polling that indicates voter support for requiring insurers to cover homeowners who reduce wildfire risk on their properties.
Wildfire Safety Standards
The bill directs the insurance commissioner to establish home hardening and defensible space standards. While SB 1076 does not specify exact criteria, Balber said the existing Safer from Wildfires program would likely inform the new standards.
The Safer from Wildfires program, established in 2021, provides moderate premium discounts for homeowners who implement mitigation measures. These measures include installing a Class A fire-rated roof, creating a 5-foot ember-resistant zone around the home, and installing fire-resistant vents and closed eaves.
By contrast, the 2023 legislative proposal would have directly based eligibility standards on the Safer from Wildfires program.
Industry Response
Insurance industry trade groups raised concerns shortly after the bill’s introduction.
The Personal Insurance Federation of California, which represents major property and casualty insurers, criticized the proposal. Rex Frazier, the group’s president, said the bill would require insurers to operate at a loss in high fire-risk areas or face removal from the state’s markets. He stated that the likely result would be insurers exiting the homeowners market and potential effects on the auto insurance market as well.
The American Property and Casualty Insurance Association said it is reviewing the bill. Mark Sektnan, vice president of state government relations, said policymakers should proceed cautiously when considering new mandates within an already strained system.
Related Legislation
SB 1076 is one of three insurance-related bills Pérez has introduced this year with the same co-sponsors.
SB 877 would require insurers to increase transparency in the claims process. SB 878 would impose penalties on insurers that fail to make claims payments on time. As of publication, neither measure has been heard by a committee.
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