Newsom Signs Executive Order Aimed at Fixing Homeowners' Insurance Crisis in California - KQED
Newsom Signs Executive Order Aimed at Fixing Homeowners' Insurance Crisis in California | KQED
Gov. Gavin Newsom issued an executive order (PDF) on Thursday pressing the state’s insurance commissioner to shore up California’s troubled insurance market as options for homeowners across the state are dwindling.
Citing increased risk from wildfire, major insurance companies have drastically pulled back their coverage in California this year. Both State Farm and Allstate announced they would not issue new policies in the state, while Farmers put a cap on the number of new homeowners policies each month. The governor’s new plan aims to keep those and other smaller insurance companies from leaving Californians without coverage, by essentially allowing insurers to consider climate risks when setting their rates.
Ricardo Lara, the state’s insurance commissioner, praised what he called an “emergency regulatory action” to address the declining options for California homeowners and business owners.
“The current regulatory framework does not meet our needs,” Lara told reporters at a press conference on Thursday afternoon. “Can consumers get the insurance they need? Can they get it today? And the answer, in all honesty, is no.”
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