California Governor Gavin Newsom has directed state authorities to work with Insurance Commissioner Ricardo Lara to explore ways that communities and the re/insurance industry can work together to better mitigate wildfire risks.
Newsom’s instructions came alongside his signing of two new bills that expand consumer protections related to additional living expenses, time to collect replacement value, contents coverage, and relocation after a loss.
He noted that the devastation caused by recent catastrophic wildfires in California has been exacerbated by the fact that entire neighborhoods and towns have been rendered uninhabitable for the foreseeable future.
“These conditions have intensified the strain on residents trying to rebuild their lives and communities,” the Governor said. “The new protections provided by this bill will alleviate some of that strain. However, we must do more.”
Dozens of major wildfires have burnt their way through millions of acres in California, Oregon and other parts of the western US over the past months, devastating many areas and forcing tens of thousands from their homes.
The fires are thought to be the worst for 18 years, with some analysts estimating the overall economic cost at around $20 billion.
According to the National Interagency Fire Center, 6.7 million acres have been burned so far this year, with the August Complex fire in Tehama County, California covering more than 750,000 acres alone.
In response to this unprecedented destruction, Newsom has asked the Governor’s Offices of Planning and Research and Emergency Services and CAL FIRE to work with Insurance Commissioner Lara on better mitigation strategies.
It’s hoped that this work will inform the development of solutions for residents in wildfire prone areas who continue to face the threat of policy non-renewal and rising premium costs for policies that are still available.
Newsom also asked Commissioner Lara to start a dialogue with the Legislature, insurers, and consumer groups to address the pressure that wildfire losses place on the ability to offer insurance products and the question of how to pay for risks.
Lara greed that the collaboration should help protect communities against wildfire risk, and believes it will increase insurance availability for homeowners in the long term by encouraging competitive insurance market conditions.
“Governor Newsom’s signing of legislation for future wildfire survivors will make sure they have the time and resources to recover,” he added.
