New California Regulation Requires Insurance Discounts for Wildfire Safety Measures
It's no secret that California has been hit hard by wildfires in recent years, with entire towns being devastated by flames. These disasters not only have a devastating human cost, but they also come with a hefty financial price tag. Insurance premiums for those living in high-risk areas have skyrocketed, and many residents have complained that companies have been unwilling to credit them for steps taken to lower the risk of loss and damage, such as clearing combustible vegetation from properties or installing fire-resistant roofs.
Now, the state has implemented a new regulation that will require insurance companies to offer discounts to homeowners and businesses that take steps to protect their properties from wildfire damage. According to Tom Larsen, senior director of insurance solutions at CoreLogic, "too many homes in California are burning down". In an effort to encourage more homeowners to take action to mitigate their fire risk, the California Department of Insurance (CDI) has released a Safer from Wildfires framework that includes a list of recommended actions for improving wildfire protection.
Under the new law, all admitted insurance carriers in California must recognize and reward wildfire safety and mitigation efforts made by homeowners and businesses. They must also submit new rate filings that incorporate wildfire safety standards created by the CDI, and establish a process for releasing wildfire risk determinations to residents and businesses – all within 180 days of the enforcement date on October 17, 2022. The clock is ticking down to April 15, 2023!
The new regulation has received support from various community groups and associations, including the California Professional Firefighters, the California Assn. of Realtors, and the California Farm Bureau. Amy Bach, executive director of the nonprofit organization United Policyholders, called it a "common-sense and sustainable solution to the property insurance problems millions of Californians are experiencing". It arrives as residents in California are dealing with larger, faster-moving, and more frequent wildfires fueled by climate change. In fact, 15 of the state's 20 most destructive wildfires on record have occurred since 2015, according to the California Department of Forestry and Fire protection.
The CDI's Safer from Wildfires framework includes 11 mitigation measures across three layers of protection, which insurers must factor into their rating and use to provide consumers with a "wildfire risk score". These measures include things like maintaining a five-foot ember-resistant zone around the home, non-combustible six inches at the bottom of exterior walls, and upgraded windows.
Don't let your home or business become another statistic! Reach out to Wetline Wildfire Defense, who specialize in installing high-tech, high-touch fire protection systems for homeowners in wildfire-prone areas. Wetline offers a range of services, including exterior sprinkler systems, Cold Fire® fire-suppressant, and patented Class A Clear Coat Fire Retardant, all designed to provide multiple layers of defense against approaching wildfires. By taking steps now to reduce your wildfire risk, you'll not only be helping to safeguard your property, but you'll also be saving yourself money on insurance premiums. It's a win-win situation that everyone in California can benefit from.