California Governor Wants Better Fire Insurance Market For Those In Fire-Prone Areas
LAKE COUNTY (CBS13) — Dozens of homeowners are facing the harsh reality of going back to their place where their home once stood with nothing there.
The Rocky Fire's devastation is worse for some homeowners who are cleaning up without fire insurance.
People who live in high-risk areas have trouble getting coverage because of the potential for loss. Cal Fire says it's been a challenge for years, but now the governor says it's time to make some changes.
FIRE INSURANCE INFORMATION: California Department of Insurance | FAIR insurance plans
While touring the site of the Rocky Fire, Gov. Jerry Brown said he wants to help people living in fire zones who can't fire coverage, even when they try.
"The funny part is last week I tried to get fire insurance and they said, 'No. This is really high fire danger; you can't get insurance,'" Richard Sutton said.
Homeowners can get fire coverage under Fair Access to Insurance Requirements plans, but many say the system that bills itself as insurance as a last resort is too pricey.
Brown says a similar solution to these problems may already exist.
"We have an earthquake insurance program where you normally can't get insurance," he said. "Maybe in these fire zones we can create a similar program. I definitely will take a look."
The special earthquake insurance program started after the Northridge earthquake of 1994. It guarantees coverage is available to all homeowners.
Nicole Ganley with the California Department of Insurance, which regulates all insurance prices.
"We can work with the governor and the Department of Insurance and try to look at the problem, but California actually has a competitive insurance market," she said
