California Commissioner Wants Rate Transparency Rules for Wildfire Risk
February 23, 2021
California Insurance Commissioner Ricardo Lara has proposed new rules to give homeowners and businesses open access to their properties’ wildfire risk scores.
The new rules would require insurance companies to provide a consumer with their property’s wildfire risk score, which must recognize a consumer’s mitigation actions that could improve their rating, such as creating defensible space and fire-hardening, and allow time for the consumer to reduce their score.
The new regulations will incentivize mitigation and help consumers make better-informed decisions when they buy, sell, or build a home, according to Lara.