The California Senate Insurance Committee blocked legislation on Monday that would have required insurance companies to provide coverage for homeowners who complete fire-hardening renovations.
The Los Angeles Times reports that SB 1076 failed to pass despite amendments intended to scale back the original aggressive requirements.
State Sen. Sasha Renée Pérez (D-Pasadena) initially proposed a mandate for insurers to offer and renew coverage for any home meeting state safety standards by 2028.
Companies failing to comply would have faced a five-year ban on selling home or auto insurance within the state.
Pérez later modified the bill to establish community-wide pilot projects designed to gather data on loss prevention.
This compromise version required insurers to offer four years of coverage to homeowners within successful pilot zones.
Industry trade groups maintained their opposition to the amended legislation.
Denni Ritter, a vice president of the American Property Casualty Insurance Assn. (APCIA), stated: “While we appreciate the intent behind those conversations, those concepts do not remove our opposition, because they retain the same core flaw — substituting underwriting judgment and solvency safeguards with a statutory mandate to accept risk.”
Senator Laura Richardson (D-San Pedro) criticized the interventionist nature of the proposal during the committee vote.
Richardson said: “Last I heard, in the United States, we don’t require any company to do anything.
“That’s the difference between capitalism and communism, frankly.”
Committee Chair Sen. Steve Padilla (D-Chula Vista) expressed disappointment regarding the lack of cooperation from the insurance industry.
The failure of the bill follows the January 2025 wildfires that destroyed over 18,000 structures.
Homeowners in zones like Palisades and Eaton have increasingly relied on the California FAIR Plan (CFP).
Enrollment in the state insurer of last resort increased from 14,272 in 2020 to 28,440 in 2024.
The California Board of Forestry and Fire Protection (CBFFP) met last week to discuss new vegetation management rules for fire-prone neighborhoods.
The Los Angeles Times found that these regulations create a tiered defense system including a one-foot safety zone where no plants are permitted.
A wider five-foot buffer known as Zone Zero allows only grass and dispersed plants up to 18 inches tall.
Structural requirements include noncombustible fencing against the house and noncombustible exteriors for sheds within the zone.
Beth Burnam, a leader in multiple fire safety organizations, told the board: “It is a reasonable compromise.
“Do I like everything? No. Can I live with it? Yes.”
New constructions must comply with these standards starting July 7.
Existing homeowners have three years to meet plant spacing requirements and five years for structural upgrades such as shed replacements.
The board estimated compliance costs could reach $4,500 per household.
One resident in Berkeley reported receiving a quote for $13,000 to meet similar local standards.
Tony Andersen, the executive officer for the board, noted that officials will seek to develop financial support for homeowners.
The Insurance Institute for Business and Home Safety (IBHS) noted that state compliance does not guarantee insurance renewals.
Companies often maintain more stringent standards for property maintenance than the state mandates.
In separate actions, the Senate Insurance Committee passed SB 877 and SB 878 to increase claims transparency.
Members also approved SB 1301 to protect policyholders from unexplained non-renewals.
