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Additional Questions

Homeowners insurance

A few of the questions were not able to be answered during the presentation.  Here are those questions and answers:

1.   Do insurance companies get federal reimbursement for losses in the event of an emergency declaration? 

 Answer: We are not aware of any federal funding for losses in the event of an emergency declaration (or federal disaster declaration).  That would be best asked to FEMA.


2.   Rural homeowners seem to be bearing the entire brunt of wildfire risk with increased costs. These  communities are within outdoor recreation areas used by everyone in the state. Can these costs be distributed more equitably? Such as policy increases in metropolitan areas to offset their use of recreational land.

 Answer: Thank you for your feedback. I will include it as the Department considers ideas to address the availability and affordability issues facing property insurance.


3.  Living in a rural area like Oak Run, we have spent thousands of dollars and many hours making our property and home as prepared as possible for wildfire by creating defensible space and home hardening. In 2022 we got a thumbs up from Cal Fire inspectors and even a slight decrease in our homeowners insurance. Now a year later, we have received an increase in our insurance by an additional $1,000 + yearly. Can you please explain why this is acceptable, especially in communities where many residents are retired and living on a fixed income (as we are)?

 Answer: The Department agrees that homeowners that mitigate their properties and that are located in communities that also take mitigation seriously should get credit in the form of reduced premium on their insurance.  This was the primary reason that Commissioner Lara adopted the Safer from Wildfire regulations that require insurance companies to recognize mitigation steps taken by property owners and communities.  Insurance companies have submitted their plans to the Department and these plans are currently under review. Once implemented, most insurance companies will be required to offer a discount when certain mitigation steps are taken.