Governor Newsom signs three bills sponsored by Insurance Commissioner Lara on wildfire protections

Insurance Commissioner Ricardo Lara announced that Governor Gavin Newsom has signed three new bills designed to strengthen wildfire safety measures for California residents. The legislation aims to increase mitigation efforts, reduce wildfire risks, and encourage insurance companies to re-enter the state market. The new laws focus on providing financial support for fire prevention projects, improving insurance discounts, and creating a public wildfire model to help communities plan and educate themselves.

“Investing in mitigation is essential to tackling the insurance crisis. We are not powerless in this fight. With these new laws, we can equip consumers with the resources needed for necessary work while putting money in their pockets,” said Insurance Commissioner Ricardo Lara. “We have traveled across the state, listened to thousands of Californians, collaborated with local communities and firefighters, and consulted insurance leaders from other states and countries. Disaster mitigation programs are the cornerstone of our National Climate Resilience Strategy, effectively safeguarding homes against risks, stabilizing markets, and providing consumers with more options.”

These legislative actions build upon previous efforts such as the Safer from Wildfires initiative established in 2021 by Commissioner Lara. This program introduced a set of insurance discount regulations based on proven methods for reducing wildfire risk.

One of the new laws, AB 888—The California Safe Homes Act—creates a grant program through the Department of Insurance. It will help eligible homeowners pay for fire-resistant roofs and implement mitigation steps close to their homes (in an area known as “Zone Zero”). The grants may cover all or part of these costs as part of broader community safety plans.

SB 429—The California Wildfire Public Catastrophe Model Act—authorizes grants to develop what will be the first publicly available data source for wildfire losses in the country. This public model will help assess wildfire risks, inform communities, and increase transparency about how decisions are made regarding wildfires. Recommendations from a group led by Cal Poly Humboldt helped shape this bill.

AB 1—The Insurance and Wildfire Safety Act—requires regular review of Safer from Wildfires regulations so they remain current with advances in science and safety practices. The goal is to ensure homeowners receive appropriate discounts while supporting vulnerable communities.

Supporters of these bills include several local governments and consumer groups such as the California Association of Realtors, United Policyholders, Environmental Defense Fund, and Natural Resources Defense Council.

“Homeowners shouldn’t be left in the dark about how decisions about their insurance are made. SB 429 will create the nation’s first wildfire public catastrophe model to help homeowners understand whether they’re getting a fair deal, and it will give communities, local governments, and first responders better tools to prepare for and respond to wildfires. When homeowners know their wildfire risk, they can take meaningful steps to reduce it, protecting their property and lowering their insurance costs.” – Senator Dave Cortese

“Now that AB 1 has become law, California will be able to provide much needed relief to consumers on their insurance bills while also mitigating wildfire risk,” said Assemblymember Damon Connolly. “I am proud to have authored this important legislation in partnership with Insurance Commissioner Lara, to give homeowners the chance to be heard, and allow for more Californians to benefit from the Safer from Wildfires program.”

“One thing is clear: wildfire safety works—and we must scale it like never before,” said Commissioner Lara. “I am grateful to the many legislators and partners who worked with me to champion these important issues, and I thank Governor Newsom for signing these bills to enhance wildfire safety and preparedness for all Californians.”

The California Department of Insurance oversees regulation of insurers operating within California’s large market. Its responsibilities include protecting consumers against unfair rates or practices by insurers; monitoring company solvency; licensing agents; reviewing market conduct; resolving complaints; investigating fraud; among other duties.