California will soon require insurers to increase home coverage in wildfire-prone areas

Associated Press

SACRAMENTO, Calif. (AP) — California will start requiring property insurers to increase coverage in wildfire-prone areas after homeowners across the state increasingly struggle to find policies. The state’s new rule announced Monday requires insurers 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. The requirement will take effect within 30 days. In exchange for increasing coverage, the state will let insurance companies pass on the costs of reinsurance to California consumers. Some worry it will increase premiums in California by 40%.