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SAN FRANCISCO (AP) — Heidi Lange was among the first to rebuild after the deadliest wildfire in California history destroyed her home in 2018 along with much of the town of Paradise. Residents have received annual premiums that near or exceed $10,000 — leaving many to wonder how they're supposed to rebuild their hard-hit community when insurance is so shockingly high for houses in an area that is supposed to be among the most affordable in California. Seven of the 12 top home-insurers in California — including Farmers Insurance, State Farm, Allstate — have paused or restricted new business in California, saying they can’t afford to take on new clients. Carl Johnsen, a retired drywall contractor, has lived in the same house since 1979, when he moved to Paradise. The Robinsons are paying $4,500 through the California Fair Access to Insurance Requirements Plan, and $750 with another insurer for supplemental liability coverage.

Persons: — Heidi Lange, “, ”, Ricardo Lara, Michael Soller, Rex Frazier, Carl Johnsen, Johnsen doesn’t, Gene Robinson, Robinson, Lara, Soller, Kathy Ehrhart, ” Lange Organizations: FRANCISCO, Fire, Farmers Insurance, State Farm, Allstate, California’s, Insurance Department, Paradise . Farmers Insurance, Farmers, “, Personal Insurance Federation of, Robinsons, FAIR Locations: California, Paradise, Personal Insurance Federation of California, Louisiana , Texas, Florida, Chicago

☆ What do homeowners in California and Florida have in common? A major insurance problem
▼ + stars: | 2023-10-19 | by ( Kelsey Vlamis | ) www.businessinsider.com time to read: +4 min

Homeowners in both California and Florida are facing a home insurance crisis due to natural disasters. AdvertisementAdvertisementFormer Florida residents Natalia and John told Insider's Jordan Pandy that they had to leave after their homeowners insurance skyrocketed to $12,000. The lifelong Florida residents said they moved to a town in Wisconsin where they could get a lot more bang for their buck. Across the country, another form of natural disaster is complicating homeowner's insurance in the West, including California. "Modernizing our insurance market is not going to be easy or happen overnight," California Insurance Commissioner Ricardo Lara, said, according to AP.

Persons: —, Natalia, John, Insider's Jordan Pandy, Insider's Catherine Boudreau, Dan Latu, Ricardo Lara Organizations: Service, Census, CBS News, Guardian, Allstate, AP Locations: California, Florida, Wisconsin

☆ California lets insurers factor wildfire risks in rates to widen coverage
▼ + stars: | 2023-09-22 | by ( ) www.reuters.com time to read: +2 min

A house is fully engulfed by flames at the Dixie Fire, a wildfire near the town of Greenville, California, U.S. August 5, 2021. REUTERS/Fred Greaves/File Photo Acquire Licensing RightsCompanies Liberty Mutual Group Inc FollowSept 21 (Reuters) - California Insurance Commissioner Ricardo Lara took steps on Thursday to allow property insurers to factor in climate risks including wildfires in rate prices, if they increase underwriting in at-risk areas to wean consumers off state-funded coverage. The measures by the state's insurance regulator follow an executive order by Governor Gavin Newsom urging regulatory action to expand coverage in underserved areas, account for catastrophe risks in rates, and keep the FAIR Plan solvent. The continued retreat of larger insurance carriers from the California residential property insurance market signals ongoing regulatory constraints, rising cost inflation, and higher catastrophe losses, credit rating agency Fitch said in a note earlier this year. Reporting by Deep Vakil in Bengaluru; Editing by Jamie FreedOur Standards: The Thomson Reuters Trust Principles.

Persons: Fred Greaves, Ricardo Lara, Lara, Gavin Newsom, Gallagher, Fitch, Jamie Freed Organizations: REUTERS, Companies Liberty Mutual Group, California Insurance, State Farm, Liberty Mutual, FAIR, Gallagher Re, Thomson Locations: Greenville , California, U.S, California, Florida, Bengaluru

Here's a look at what California Insurance Commissioner Ricardo Lara proposed and how it would affect the state's insurance market:WHAT ARE THE RULES FOR INSURANCE COMPANIES? It said insurance companies had to get permission from the state Department of Insurance before they could raise their rates. When setting their rates, insurance companies cannot consider current or future risks to a property. Insurance companies also buy insurance themselves, a process known as reinsurance. The process includes lots of time for insurance companies and consumer groups to give their input.

Persons: Ricardo Lara, They've, Lara Organizations: California, of Insurance, Insurance, Companies, California Department of Forestry, Protection . Insurance, . Insurance, FAIR, Consumer Locations: SACRAMENTO, Calif, California, ratepayers

☆ California paves way for more insurance coverage in disaster-prone areas
▼ + stars: | 2023-09-22 | by ( Cheri Mossburg | ) edition.cnn.com time to read: +2 min

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

SACRAMENTO, Calif. (AP) — A new plan from California's insurance commissioner aims to stop the nation's top insurers from leaving the wildfire-prone state by letting them consider climate risks when setting their prices. Unlike most states, California tightly restricts how insurance companies can price policies. Companies aren't allowed to factor in current or future risks when deciding how much to charge for an insurance policy. It’s one reason why, in the past year, seven of California’s top insurance companies have paused or restricted new business in the state. On Thursday, California Insurance Commissioner Ricardo Lara said the state will write new rules to let insurers look to the future when setting their rates.

Persons: aren't, Ricardo Lara, ” Lara, Denni Ritter, Amy Bach, United, “, Ken Sweet Organizations: First Street Foundation, California, American, Casualty Insurance Association, Consumer Watchdog, Associated Press Locations: SACRAMENTO, Calif, California, Florida, New York

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