Community groups, businesses, local leaders, and residents have the chance this week to tell the state what they think about planned reforms to the state's insurance market. California's Department of Insurance has been working with insurance companies to complete a package of reforms by the end of this year called the "Sustainable Insurance Strategy," with the goal of making insurance more available across the state.
The state is seeking public feedback about the final phase of new wildfire modeling regulation. But the deadline is quickly approaching.
A virtual public hearing will be held on September 17 at 10 a.m., during which the public can also weigh in on these regulations. Those looking to submit comments need to do so no later than the meeting date and time, according to the CDI.
As NBC Bay Area has previously reported, many California homeowners have recently struggled to keep or afford their insurance coverage. The State Department of Insurance reports that since 2022, seven of the top twelve insurance companies have paused or restricted writing homeowners policies in California.
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Homeowners across the state report getting "dropped" (sent a nonrenewal letter) by their insurance companies.
"I received a letter a few weeks ago from Liberty Mutual," explained Farrokh, a homeowner in San Ramon.
The letter Farrokh received said Liberty Mutual was not renewing his home because of the "condition of property" and added, "Roof-Algae/mildew/mold/moss."
California
"Which kind of flabbergasted me because, first of all, in this climate here in San Ramon, it's just so dry and hot," continued Farrokh, who asked to only be identified by his first name for privacy reasons.
Farrokh said he asked Liberty Mutual to provide proof of what they saw on his roof, but he said he had not received any yet. He checked his roof himself and did not see any of the mentioned items.
Farrokh said he called his roofer, who agreed there was no moss on his roof. He said he took photos of his roof and submitted them to Liberty Mutual, but the company did not reverse its decision.
"It felt like somebody was putting one over on me," Farrokh said.
NBC Bay Area contacted Liberty Mutual to comment on this story but has not heard back.
Farrokh is one of the many homeowners across California who are finding themselves dumped by their insurance companies for a range of reasons. Some local leaders are pleading for more change, fast.
This past week, the Placer County Board of Supervisors asked Governor Newsom to declare a state of emergency and to take immediate action to stabilize the insurance market.
California's Insurance Commissioner Ricardo Lara is working to roll out new reforms by the end of 2024 to address these mounting concerns.
"There are parts of the state right now where an insurance company won't even call you back, and that's gonna change once these new rules are in place," explained Deputy Insurance Commissioner Michael Soller.
Soller explained that the wildfire modeling regulation, in particular, aims to give insurance companies access to tools they've been asking for to set prices. In exchange, those insurance companies will be asked to write more policies in wildfire-distressed areas.
Soller said the department expects insurance companies to begin filing with the state in early 2025, and the state will need to review those policies. He said the public can expect to see more insurance options next year.
"We need to hear from the public, as we move forward to implement changes that are gonna help people get access to the insurance that they need," Soller said.
"I hope it's not like a shallow, Band-Aid solution, because they do need to fix the problem," Farrokh said.
Farrokh said he wants more transparency from insurance companies about why they are pulling back in California.
If your insurance policy has been dropped, experts recommend taking action immediately to protect yourself and your home.
Comments can be sent to the California Department of Insurance via email to CDIRegulations@insurance.ca.gov, and more details on this hearing can be found here.
