CAL FIRE hazard maps do not affect insurance rates or availability
Insurance Commissioner Ricardo Lara issued a fact sheet explaining that CAL FIRE hazard maps do not affect insurance rates or availability. A Spanish-language fact sheet is also available.
For many years, insurance companies have been using wildfire risk models for determining where they will write and renew policies, and how much premium to charge a policyholder -- not the Fire Hazard Severity Zone maps. CAL FIRE’s maps are required by law and their purpose is to drive local planning decisions, not insurance decisions.
Commissioner’s POV: “Let me be clear: The CAL FIRE hazard maps are not used for insurance rates or underwriting decisions. But they will empower communities with more accurate information about the very real hazards we face. The reality is we all need to do more to protect our homes and communities from wildfires. When communities know and understand their risks, they can plan and prepare.”
Background: The Department of Insurance is implementing a Sustainable Insurance Strategy aimed at supporting safer communities. Based on feedback gathered from thousands of town halls and meetings with homeowners, businesses, and individual consumers, Commissioner Lara implemented an aggressive approach to modernize insurance regulations to address insurance accessibility challenges for consumers.
Commissioner Lara’s new Safer from Wildfires regulation clarifies what actions you should take to reduce wildfire risks and receive an insurance discount.
Insurance companies use computerized wildfire catastrophe models to determine which homes to write based on the risk of loss. Building on the Safer from Wildfires initiative — the nation’s first wildfire safety discount program — the strategy requires catastrophe models to account for mitigation efforts by homeowners, businesses, and communities, something not possible even a few months ago under outdated regulations.
Learn More: The Department of Insurance fact sheet is posted at CAL FIRE’s Fire Hazard Severity Zone web page where you can learn more about enhancing your property’s fire safety and view current versions of maps.
Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.
