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Local News

Newscast: California Tackles Insurance Crisis with New Rules

California Insurance Commissioner Ricardo Lara wearing a navy suit with a white shirt and blue tie with geometric pattern
California Department of Insurance
California Insurance Commissioner Ricardo Lara says the rule making process is complete

The California Department of Insurance announced new rules last week to address the state's insurance challenges, combining incentives and mandates to reshape the market.

The new rules allow insurers to use forward-looking catastrophe models to assess wildfire risk and requiring them to expand coverage in high-risk areas. Insurance Commissioner Ricardo Lara said the reforms will modernize outdated practices and improve homeowner coverage.

"This regulation is a first of its kind in California," Lara stated. The new rules also require catastrophe models to consider wildfire mitigation efforts, such as tree trimming, brush clearance, and the creation of ember-resistant zones. "For homeowners, this enables us to utilize technology like never before to ensure rates reflect the millions of dollars Californians have invested in mitigation," Lara noted.

The Department of Insurance posted the final regulation after the Office of Administrative Law filed it with the Secretary of State, officially concluding a rulemaking process that saw strong public support over the past year.

Homeowners like Mendocino County resident Nancy Crider hope the changes will ease skyrocketing premiums.

The reforms appear to be having an impact, with major insurers reacting positively. Farmers Insurance, California’s second-largest home insurer, announced plans to expand its presence in the state following the changes.

In related news, heavy rains last week caused flooding in parts of Mendocino County, with the Russian and Navarro rivers reaching minor flood stages. Roads were closed temporarily, and Pacific Gas and Electric Co. addressed outages affecting 149 residents.

Local News
Elise Cox worked as an editor and reporter for the San Jose Mercury News, Knight Ridder, U.S. News & World Report and other publications prior to moving to the Mendocino coast in 2022. She began reporting stories for KZYX in August 2024 and became news director in December 2024.