SACRAMENTO – As wildfires continue to break out throughout California, Senator Dave Cortese’s SB 429 that will help homeowners understand their property’s wildfire risk, was passed by the Assembly Tuesday and goes back to the Senate for approval. It creates the nation’s first-of-its-kind public wildfire catastrophe model to assess wildfire risk and help inform insurance rates.
“My bill establishes a public wildfire catastrophe model to simulate property damage from major wildfires. This will allow communities and residents understand their property’s risk scores so they can do everything possible to reduce wildfire risks,” said Senator Dave Cortese (D-Silicon Valley). “That will help inform insurance rates and educate communities about wildfire risks.”
“Insurance companies’ private models penalize consumers with higher prices and nonrenewals, but refuse to explain how they calculate wildfire risk. Homeowners and renters have a right to information about their own fire risk and the ability to use it to make their homes and communities safer. With SB 429 a fully transparent wildfire model accountable to the public will put power back in consumers’ hands,” said Carmen Balber, Executive Director of Consumer Watchdog.
“Now that home insurance prices in California will based on predictive models, not just past events, we need a public model to protect consumers from overcharges. A model created by scientists for the public will be a check and balance on models created for insurance companies for profit” said Amy Bach, Executive Director of United Policyholders.
SB 429 is part of a historic package of bills written after the firestorm in Los Angeles last January. It is sponsored by State Insurance Commissioner Ricardo Lara.
