A California Senate committee has rejected legislation that would have required insurers to provide coverage to homeowners who reduce wildfire risks on their properties. The decision marks the latest setback for similar proposals introduced in recent years.
The Senate Insurance Committee voted down Senate Bill 1076 on April 21. The measure, known as the Insurance Coverage for Fire-Safe Homes Act, was introduced by Sen. Sasha Renée Pérez, a Democrat from Pasadena.
The bill aimed to address ongoing challenges in California’s property insurance market following the January 2025 wildfires, which damaged or destroyed more than 18,000 structures and resulted in 31 fatalities.
Under its original framework, SB 1076 would have required insurers to offer and renew coverage for homes that meet the state insurance commissioner’s wildfire safety standards, beginning Jan. 1, 2028. The proposal also included enforcement measures, such as potential restrictions on insurers that failed to comply, though some exceptions were allowed.
In response to opposition from the insurance industry, the bill was later revised. The amended version proposed community-based pilot programs to evaluate how wildfire mitigation efforts could reduce property losses and insurance exposure. Insurers participating in successful pilot areas would have been required to offer four years of coverage to qualifying homeowners.
Industry representatives maintained their opposition despite the revisions. Denni Ritter, vice president of the American Property Casualty Insurance Association, told lawmakers that the bill would interfere with underwriting practices and financial safeguards.
She stated that the proposal would replace insurer risk assessment with statutory requirements, which the association considers a fundamental issue.
Several lawmakers also expressed concerns during the committee hearing. Sen. Laura Richardson, a Democrat from San Pedro, cited broader concerns about government mandates on private companies when explaining her vote against the bill.
Committee Chair Sen. Steve Padilla responded by noting the effort to balance industry concerns with the need for data and policy solutions related to wildfire risk and insurance availability.
The proposal represented the fourth attempt since 2020 to pass legislation requiring insurers to cover properties that meet wildfire mitigation standards. These measures typically include clearing vegetation, installing fire-resistant roofing, and sealing structural openings to prevent embers from entering.
The broader context for the bill includes changes in the insurance market leading up to the 2025 wildfires. Many insurers reduced their exposure in high-risk areas by dropping policyholders, thereby increasing reliance on the California FAIR Plan. This state-backed program serves as the insurer of last resort and offers limited coverage at higher costs.
According to an analysis cited in the report, enrollment in the FAIR Plan nearly doubled in wildfire-affected regions between 2020 and 2024, from 14,272 to 28,440 policies.
Supporters of SB 1076 included advocacy organizations and community groups formed after the wildfires, as well as several professional and environmental associations. However, opposition from insurers remained a central factor in the bill’s outcome.
Other insurance-related legislation moved forward in the same committee session. Two additional bills introduced by Pérez advanced, including measures to increase transparency in the claims process and impose penalties for delayed payments. A separate bill addressing policy non-renewals also passed.
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