Consumer Watchdog Calls for Mandatory Insurance for Forest Fire-Proof Homes | Insurance business America
The executive says this will incentivize homeowners to “do the right thing.”
Property
By Mika Pangilinan
A consumer advocacy group in California is pushing for reforms that would require insurance companies to provide coverage to homeowners who have taken steps to mitigate the risk of wildfires on their properties.
Carmen Balber, executive director of Consumer Watchdog, told the Little Hoover Commission on Thursday that “homeowners who do the right thing” by following California’s wildfire protection guidelines deserve the peace of mind of being able to secure insurance coverage.
Balber told the independent state watchdog that requiring coverage would help incentivize homeowners to take remedial measures such as home security and defensible space measures.
It will also have the added benefit of “depopulating the FAIR plan to help stabilize the finances of the state insurer of last resort,” she added.
Additionally, in her testimony, Balber criticized the effectiveness of a deal recently announced by California Insurance Commissioner Ricard Lara.
The deal was introduced to expand insurance coverage in wildfire-prone areas, but Balber said Consumer Watchdog has obtained documents showing that plan will not require insurers to offer coverage to individual new homeowners.
“Insurers could instead meet their obligation by offering basic FAIR Plan equivalent policies, leaving consumers no better off than they are today,” she said.
Balber was one of four people to testify at the Little Hoover Commission hearing on the California home insurance market.
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2024-04-01 09:33:12
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