California, September 23, 2025
News Summary
A proposed initiative from Consumer Watchdog aims to establish the ‘Insurance Policyholder Bill of Rights’ to protect California homeowners from insurance coverage losses due to wildfire risks. It mandates coverage for homeowners who fireproof their properties and grants them a 180-day window to make necessary repairs if policies are not renewed. The initiative, backed by consumer advocates, addresses recent insurance market volatility exacerbated by rising wildfire threats and aims to reshape insurance practices in California.
California homeowners could soon gain new protections against insurance coverage losses due to wildfire risks under a proposed initiative from the consumer advocacy group Consumer Watchdog. The initiative, titled the Insurance Policyholder Bill of Rights, mandates that insurers must provide coverage to homeowners who take steps to fireproof their properties. Failure to comply would result in insurers losing their right to sell home or auto insurance in California for a span of five years.
The measure was filed with state Attorney General Rob Bonta’s office last week and aims to make it onto the November 2026 ballot. One critical component of the initiative is that homeowners whose policies are not renewed will be given a window of 180 days to make necessary repairs and improvements to their homes before being dropped by their insurer. The proposal seeks to address the rising trend of coverage cancellations, particularly in the wake of filing claims related to wildfire damage.
The initiative is backed by Harvey Rosenfield, the founder of Consumer Watchdog and the author of the landmark Proposition 103. Rosenfield argues that this new initiative guarantees coverage for homeowners who invest in wildfire mitigation to protect their properties. Currently, two lawsuits have been filed against various California home insurers in Los Angeles County Superior Court, accusing them of dropping policyholders in favor of the state’s FAIR Plan. The FAIR Plan acts as an insurer of last resort in California; while it offers coverage, it does so at a higher cost and with limited benefits.
Despite the initiative’s intentions, the proposal allows insurers to apply for six-month waivers from the coverage requirements, particularly in regions of high risk, if they can demonstrate an overconcentration of risk. This heads off some potential issues while still encouraging homeowners to invest in safety measures.
This proposed initiative stems from years of market volatility, where many insurers have retreated from California due to rising wildfire risks and have sought substantial rate increases. Carmen Balber, the executive director of Consumer Watchdog, acknowledged that there is still uncertainty regarding whether the organization can gather the needed 500,000 signatures to qualify the initiative for the ballot.
Additionally, the initiative was motivated in part by a rival proposal from insurance broker Elizabeth Hammack. Hammack’s initiative seeks to repeal significant reforms established by Proposition 103, allowing insurers to raise rates without prior approval from the insurance commissioner, and requires the commissioner to have at least five years of insurance experience.
Complaints have been rampant in California’s home insurance market, especially regarding claims handling practices after the January 7 fires that resulted in enormous losses for homeowners. Complaints targeted State Farm, which is California’s largest home insurer, prompting Governor Gavin Newsom to push for the FAIR Plan to expedite the handling of smoke damage claims from these fires. The California Department of Insurance has recently taken legal actions regarding the FAIR Plan for denying smoke damage claims.
Public sentiment regarding insurers has soured, particularly following the tragic events of January’s firestorms that resulted in over 30 fatalities. The ongoing frustrations with claims processes underscore the need for updated protections for California homeowners, as initiatives like the Insurance Policyholder Bill of Rights aim to reshape the insurance landscape in the state.
Frequently Asked Questions
What is the purpose of the proposed Insurance Policyholder Bill of Rights?
The initiative requires insurers to offer coverage to California homeowners who fireproof their homes and provides protections against coverage losses due to wildfire risks.
What happens if insurers do not comply with the proposed regulations?
If insurers fail to comply with the proposed initiative, they would lose the right to sell home or auto insurance in California for five years.
What is the FAIR Plan?
The FAIR Plan is California’s insurer of last resort that provides coverage but often at a higher cost and with limited benefits.
What are the implications for policyholders who do not have their policies renewed?
Policyholders not renewed by their insurers would be granted 180 days to make necessary home repairs and improvements before losing coverage.
How can this proposed initiative affect California homeowners?
The measure may help reduce the frequency of policy cancellations and support homeowners making investments in fire safety.
Deeper Dive: News & Info About This Topic
- Los Angeles Times: Insurance Rights Initiative
- U.S. News: California Homeowners Insurance
- The New York Times: LA Fire Home Insurance Legislation
- Insurance Business: California’s New Insurance Laws
- LAist: Long Shot Ballot Initiative on California Insurance
- Wikipedia: Home Insurance
- Google Search: California Insurance Laws
- Google Scholar: California Insurance Rights
- Encyclopedia Britannica: Insurance
- Google News: California Fire Insurance
Author: STAFF HERE SAN DIEGO WRITER
SAN DIEGO STAFF WRITER The SAN DIEGO STAFF WRITER represents the experienced team at HERESanDiego.com, your go-to source for actionable local news and information in San Diego, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Comic-Con International, San Diego County Fair, and San Diego Pride Festival. Our coverage extends to key organizations like the San Diego Regional Chamber of Commerce and United Way of San Diego County, plus leading businesses in biotechnology, healthcare, and technology that power the local economy such as Qualcomm, Illumina, and Scripps Health. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
