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New California rules aim to lower property insurance rates

California Water Stopping Waste
Jae C. Hong / AP
Homes are seen from Las Virgenes Reservoir in Westlake Village, Calif., Wednesday, Jan. 5, 2022.

California's insurance commissioner announced new rules on Friday aimed at lowering premiums for people who make improvements to their property to resist wildfires.

Ricardo Lara said the new rules will require insurance companies to factor property owners' improvements into the pricing of residential and commercial coverage. He said the new rules could take effect this summer.

Friday's announcement follow's last week's news that the state is setting new insurance standards. Those new standards include a fire-resistant roof, at least 5 feet of defensible space around a home, a clearly defined evacuation route in a neighborhood and removal of vegetation overgrowth.


“With more Californians rolling up their sleeves and reaching into their own pockets to protect their homes and businesses, insurance pricing must reflect their efforts," Lara said in a news release announcing the regulations.

Mark Sektnan, vice president of state government relations for the American Property Insurance Association, said the association is still reviewing the proposed regulations. He said insurers support the use of science-based mitigation standards.

“It is more vital than ever for consumers to mitigate their properties and financially prepare for wildfires, especially given the rebuilding delays and inflationary cost pressures that are forecasted to continue,” he said.