California Takes Action to Address Homeowners' Insurance Crisis and Improve Coverage in Disaster-Prone Areas

California Governor Gavin Newsom has issued an executive order aimed at addressing the homeowners' insurance crisis in the state. Major insurance companies have been pulling back their coverage due to increased wildfire risk, leaving homeowners with limited options. The order allows insurers to consider climate risks when setting rates and aims to increase insurance coverage choices, particularly in wildfire-prone areas. It also seeks to expedite the approval process for insurance plans. While some consumers may see modest price increases, the goal is to ensure that insurance is available to those who currently cannot obtain coverage. However, advocacy group Consumer Watchdog has raised concerns about potential price increases for the majority of homeowners and the prioritization of a small percentage of the market. State lawmakers in fire-prone areas have welcomed the governor's action, while industry representatives have called for immediate policy solutions to protect consumer access to coverage.