California state senators announce proposed fire insurance bill
State senators from Northern and Southern California are proposing a bill that would make it harder for insurance companies to drop policyholders over fire risk. The bill comes roughly a year after Los Angeles County was hit by the costliest wildfire in terms of insurance in state history.
“The bill basically says if you’re trying to non-renew somebody, you’ve got to give them six months notice and you’ve got to give them some indication as to why they’re being dropped,” State Sen. Ben Allen said.
If a policyholder is being dropped due to a lack of defensible space for example, companies would have to give the homeowner a chance to fix the situation.
