California wildfires: Thousand Oaks town hall addresses home insurance crisis

New regulations could help improve the home insurance issues facing local 
residents but may not bring a quick fix, officials said earlier this week.

In 2017 and 2018, tens of thousands of homes were destroyed as some of 
California's largest, most destructive wildfires burned. The list includes 
the Thomas and Woolsey fires in Ventura County. In the aftermath of those 
fires and others in recent years, more areas were deemed at high risk and 
insurance companies raised rates and canceled policies.

State law now requires insurers to look at steps homeowners take to 
protect against wildfires and hundreds of communities have signed up to be 
recognized for those efforts. But still, companies were not writing 
policies and some are leaving the state.

"We know that the insurance crisis is hitting everyone up and down the 
state," said Julia Juarez, a deputy commissioner for the California 
Department of Insurance.

Juarez was one of several panelists at this week's home insurance town 
hall in Thousand Oaks organized by county Supervisor Jeff Gorell. The new 
regulations should be in place by January, and the changes are expected to 
prompt companies to write more policies, she said.

State Assemblymember Jacqui Irwin, D-Thousand Oaks, co-hosted the panel 
discussion along with Gorell. Both called home insurance one of the 
biggest issues for their constituents, not only in areas at high risk from 
wildfires but throughout the region.

"Understandably, homeowners are extremely frustrated," Irwin said.

Some have looked for agents out of state. Those lucky enough to find a 
policy had rates skyrocket. Many turned to California’s FAIR Plan, which 
offers less coverage, higher costs and was intended as a last resort.

What are the new home insurance regulations?
Plans call for developing regulations by the end of the year that would 
allow insurance companies to use modeling for catastrophic wildfires when 
developing rates, officials said. Previously, the modeling, described as 
forward-looking, could not be used in the state.

Officials described the current pricing of insurance policies as looking 
backward. So, insurance prices jumped up after big fires. Catastrophic 
modeling looks forward to determine risk and potentially takes other 
factors into account.

Under the proposed regulations, companies would be allowed to use the 
catastrophe models if they write more policies in areas with the biggest 
risk and the most people on the FAIR plan, according to the insurance 
commissioner’s office. Ventura was included on the state's list of 
counties with more homes considered at high risk.

When will California's insurance crisis turn around?
Plans call for the state to have everything in place by the end of the 
year, Juarez said. That would allow insurance companies to start turning 
in applications for rate reviews as early as January, she said.

But how long it takes companies to turn in applications or for rate 
reviews to be completed is not yet known. Juarez said officials expect to 
have applications approved by mid-2025. What will happen to rates also 
remains to be seen.

"What we need to do is create the market where they are going to then be 
competing to get your business," Juarez said. "That is what's going to 
then bring the prices down."

Will home-hardening help people stay insured or get a discount?
Empty lots where the Thomas Fire destroyed homes in Ventura are shown in 
this file photo.

Efforts to harden a home against wildfire or become recognized as a 
Firewise community can help with insurance policies. The number of those 
communities countywide has jumped from two to 21 in the past two years, 
officials said.

People have reported varying degrees of success regarding their insurance 
rates, said Stephen Watson, executive director of the Ventura Regional 
Fire Safe Council. The organization provides free wildfire assessments and 
has worked with communities on the Firewise recognition.

“What we've seen is anywhere from 1% all the way up to 27%,” Watson said 
during the town hall meeting.

Typically, it is 10% or lower, he said. The biggest reduction was reported 
by a homeowners' association that did a lot of work after the Firewise 
recognition, he said, adding that he tells people to be proactive and shop 
around.

The wildfire assessments help identify ways residents can harden their 
homes against flames and embers. Fixes will make a home safer, Watson 
said.

"There are things you can do. There are things your community can do, and 
we can help you out with that," he said.

Juarez said this week that companies are now required to explain to 
homeowners the reason for their property's wildfire risk score. People 
also can reach out to the state department of insurance at 800-927-4357 
for assistance, she said.

To watch a recording of the town hall, visit 
youtube.com/@vcd2super/streams. More information about the fire safe 
council is available at venturafiresafe.org/.

Cheri Carlson covers the environment and county government for the Ventura 
County Star. Reach her at [email protected] or 805-437-0260.

https://www.vcstar.com/story/news/local/california/2024/10/18/california-
wildfire-home-insurance-crisis-regulations/75579210007/