California, September 23, 2025
News Summary
California’s Consumer Watchdog has introduced the Insurance Policyholder Bill of Rights, aimed at protecting homeowners from losing coverage due to wildfire risks. The proposal mandates insurers to offer coverage to those who fireproof their properties and imposes significant penalties for non-compliance. It also allows policyholders 180 days to make necessary repairs if their insurance is not renewed. Amid rising wildfire threats, the initiative seeks to address ongoing insurance market challenges and has garnered significant public concern.
California is witnessing significant developments in its insurance sector as the consumer advocacy group Consumer Watchdog has proposed the Insurance Policyholder Bill of Rights. This initiative aims to protect California homeowners from losing their coverage due to risks associated with wildfires.
The proposed measure requires insurers to offer coverage to homeowners who take proactive steps to fireproof their properties. Should insurers fail to comply with this requirement, they would face severe consequences, losing the right to sell home or auto insurance in California for five years. The initiative was officially filed with the office of state Attorney General Rob Bonta last week and the group aims to secure a spot for it on the November 2026 ballot.
One of the critical features of the proposal stipulates that policyholders whose insurance is not renewed would be allowed 180 days to make necessary home repairs and improvements. The initiative seeks to mitigate situations where insurance coverage is canceled after claims related to wildfire damages have been filed.
Consumer Watchdog’s founder, Harvey Rosenfield, strongly supports the initiative, emphasizing its importance for those who are investing in wildfire mitigation. The proposal comes at a time when two lawsuits have been filed against home insurers in Los Angeles County Superior Court. These lawsuits allege that insurers are dropping policyholders and forcing them onto California’s FAIR Plan, which serves as the insurer of last resort. While the FAIR Plan provides coverage, it often comes at a higher cost and with limited benefits.
The proposed initiative arrives in the wake of significant challenges within California’s home insurance market. Insurers have been retreating from the market due to increasing wildfire risks and have sought substantial rate increases. There are provisions within the new proposal allowing insurers to apply for six-month waivers of the coverage rule in specific areas, should they demonstrate an overconcentration of risk.
Carmen Balber, the executive director of Consumer Watchdog, has expressed uncertainty about whether the group will successfully gather the estimated 500,000 signatures needed to qualify the initiative for the ballot. The proposal responds to a competing initiative from insurance broker Elizabeth Hammack, which intends to repeal critical reforms of Proposition 103. Hammack’s initiative would allow insurers to implement rate hikes before obtaining approval from the insurance commissioner and mandates that the commissioner possess a minimum of five years of insurance-related experience.
The insurance landscape in California is fraught with complaints regarding claims handling, particularly following the devastating fires on January 7, which resulted in numerous homeowner losses. Homeowners have voiced significant frustration with the claims processes used by State Farm, the state’s largest home insurer. In light of the January incidents, Governor Gavin Newsom has called upon the FAIR Plan to process smoke damage claims more efficiently and fairly. Additionally, the California Department of Insurance has taken legal actions against the state’s insurer of last resort over the denial of smoke damage claims.
The public’s anger continues to grow regarding the treatment of claims by insurers, particularly following the deadly firestorms in January which resulted in over 30 fatalities. The proposed Insurance Policyholder Bill of Rights reflects ongoing concerns about insurance coverage and the pressing need for reforms in California’s insurance market.
Frequently Asked Questions
What is the Insurance Policyholder Bill of Rights?
The Insurance Policyholder Bill of Rights is a proposed initiative by Consumer Watchdog in California that requires insurers to offer coverage to homeowners who fireproof their homes.
What happens if insurers fail to comply with the initiative?
If insurers fail to comply, they would lose the right to sell home or auto insurance in California for five years.
What provisions does the initiative include for policyholders?
Policyholders not renewed by their insurers would be granted 180 days to make necessary home repairs and improvements.
Why was this initiative proposed?
The initiative aims to mitigate coverage cancellations due to filing claims related to wildfire damages.
What is the FAIR Plan?
The FAIR Plan is California’s insurer of last resort, offering coverage but often at higher costs and with limited benefits.
What complaints are homeowners experiencing?
California’s home insurance market is facing widespread complaints regarding claims handling, particularly after the January 7 fires that resulted in many homeowner losses.
Key Features of the Proposal
| Feature | Description |
|---|---|
| Coverage Requirement | Insurers must offer coverage to homeowners who fireproof their homes. |
| Penalty for Non-Compliance | Insurers that fail to comply would lose the right to sell home or auto insurance in California for five years. |
| Repair Timeline | Policyholders not renewed by insurers are granted 180 days to make improvements. |
| Legal Actions | Two lawsuits have been filed against California home insurers for dropping policyholders. |
| FAIR Plan | California’s insurer of last resort, often with higher costs and limited benefits. |
| Current Market Challenges | Insurers are retreating due to wildfire risks and seeking significant rate increases. |
Deeper Dive: News & Info About This Topic
- Los Angeles Times: Insurance Rights Initiative
- US News: Homeowners Insurance in California
- New York Times: LA Fire Home Insurance Legislation
- Insurance Business Magazine: California Cracks Down on Insurance Brokers
- LAist: Long Shot Ballot Initiative on California Insurance
- Wikipedia: Insurance
- Google Search: California Insurance Laws
- Google Scholar: California Insurance Issues
- Encyclopedia Britannica: Insurance
- Google News: California Insurance
Author: STAFF HERE CORONADO
The Coronado Staff Writer represents the experienced team at HERECoronado.com, your go-to source for actionable local news and information in Coronado, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Coronado Island Film Festival, productions at Lamb’s Players Theatre, community workshops at John D. Spreckels Center, and iconic celebrations at Hotel del Coronado. Our coverage extends to key organizations like the Coronado Chamber of Commerce and Visit Coronado, plus leading businesses in hospitality, dining, and tourism that drive the local economy. As part of the broader HERE network, including HERESanDiego.com, HEREHuntingtonBeach.com, HERELongBeach.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
