CNN —California will now let insurance companies consider climate change when offering policies, in exchange for a mandate requiring them to offer coverage in wildfire-prone areas, state leaders announced on Thursday.
“We are at a major crossroads on insurance after multiple years of wildfires and storms intensified by the threat of climate change,” California Insurance Commissioner Ricardo Lara said in a statement.
Insurance companies will give priority to homeowners and businesses who have taken steps to harden their properties to disasters like wildfires, floods and windstorms.
Regulators believe that will help Californians to move off the FAIR plan.
It is critical that California’s insurance market works to protect homes and businesses in every corner of our state,” Newsom said in a statement.
Persons:
“, Ricardo Lara, ” Lara, Gavin Newsom, Lara, “ We’re, ” Newsom
Organizations:
CNN, FAIR, California Gov, Insurance
Locations:
California