Existing law creates the Department of Insurance, headed by the Insurance Commissioner, and generally regulates classes of insurance, including residential property insurance. Existing department regulations prohibit an insurer from using a rating plan that does not take into account and reflect specified wildfire risk mitigation, including property-level building hardening measures.

On and after January 1, 2028, this bill would prohibit an admitted insurer that offers or sells residential property insurance in this state from refusing to offer, sell, or renew a policy of residential property insurance for an applicant or insured whose property meets minimum home hardening and wildfire mitigation standards, except as provided. The bill would authorize an admitted insurer to apply to the commissioner for a temporary waiver of that prohibition in a particular geographic area of the state, as specified. On and after January 1, 2028, the bill would also require any residential property insurance offered or sold to, at a minimum, provide coverage equivalent in scope to the residential property coverage the admitted insurer most commonly offers or sells in this state. The bill would suspend or revoke an insurer’s certificate of authority to offer or sell residential property insurance and automobile insurance in this state for five years if the admitted insurer habitually and as a matter of ordinary practice violates these provisions or if the admitted insurer offers residential property insurance in this state on and after January 1, 2026, but elects to cease offering that insurance rather than comply with these provisions.