California, September 23, 2025
News Summary
A proposed initiative, the Insurance Policyholder Bill of Rights, seeks to enhance protections for California homeowners against wildfire-related insurance losses. Filed by Consumer Watchdog, the initiative requires insurers to provide coverage for homeowners who fireproof their residences. Non-compliance would lead to a five-year ban on selling home or auto insurance in the state. The proposal also offers a grace period for homeowners to make repairs if their policies are not renewed. This initiative aims to tackle rising insurance cancellations and provide stability amidst growing wildfire risks.
California homeowners may soon gain enhanced protections against insurance coverage losses related to wildfire risks through a proposed initiative known as the Insurance Policyholder Bill of Rights. Consumer advocacy group Consumer Watchdog filed the initiative with state Attorney General Rob Bonta’s office last week, aiming to secure a position on the November 2026 ballot.
The initiative would mandate that insurers offer coverage to homeowners who proactively take steps to fireproof their homes. Should insurers fail to comply with this requirement, they would be prohibited from selling home or auto insurance in California for five years. Additionally, homeowners whose policies are not renewed would have a grace period of 180 days to implement necessary home repairs and improvements.
This proposal aims to address the growing trend of insurance coverage cancellations for homeowners who file claims related to damages caused by wildfires, seeking to provide greater stability to homeowners facing risks from these natural disasters.
Harvey Rosenfield, the founder of Consumer Watchdog and the author of Proposition 103, has expressed support for this initiative, emphasizing that it guarantees coverage for individuals investing in wildfire mitigation efforts. The urgency of this initiative is underscored by ongoing litigation, including two lawsuits filed in Los Angeles County Superior Court against home insurers that have dropped policyholders and shifted them to the state’s FAIR Plan.
The FAIR Plan is California’s insurer of last resort, offering coverage with higher costs and limited benefits. According to the initiative, insurers could apply for waivers lasting six months for the coverage requirement in specific areas where they demonstrate an overconcentration of risk.
This move comes after years of insurance providers retreating from the California market amid escalating wildfire risks and significant rate hikes. Complaints regarding claims handling have surged, particularly after the devastating January 7 fires that resulted in numerous homeowners suffering losses. This has led to increasing dissatisfaction among policyholders, primarily directed at State Farm, which is California’s largest home insurer.
In response to these challenges, Governor Gavin Newsom has called on the FAIR Plan to expedite and manage smoke damage claims fairly from the January 7 fires. The California Department of Insurance has also launched legal actions regarding the state’s insurer of last resort for denying claims related to smoke damage. The public’s frustration is palpable, particularly following the catastrophic January fire storms that resulted in over 30 fatalities and significant property damage.
In tandem with this initiative, the effort by Consumer Watchdog arises from a competing proposal by Elizabeth Hammack, an insurance broker, aiming to repeal key reforms established by Proposition 103. Hammack’s proposal would permit insurers to implement rate hikes before receiving approval from the insurance commissioner and stipulates that the commissioner must possess a minimum of five years of insurance-related experience.
As of now, there remains uncertainty regarding whether Consumer Watchdog will successfully gather the required 500,000 signatures to place the Insurance Policyholder Bill of Rights on the ballot, setting the stage for a contentious debate on the future of California’s home insurance market.
FAQs
What is the Insurance Policyholder Bill of Rights?
The Insurance Policyholder Bill of Rights is a proposed initiative by Consumer Watchdog that would require insurers to offer coverage to homeowners who fireproof their homes.
What happens if insurers fail to comply with this initiative?
If insurers fail to comply, they would lose the right to sell home or auto insurance in California for five years.
What is the FAIR Plan?
The FAIR Plan is California’s insurer of last resort, providing coverage but often at a higher cost and with limited benefits.
How many signatures does Consumer Watchdog need for the ballot?
Consumer Watchdog needs to gather 500,000 signatures to qualify the initiative for the ballot.
Key Features of the Initiative
| Feature | Description |
|---|---|
| Coverage Requirement | Insurers must offer coverage to homeowners who fireproof their homes. |
| Non-compliance Penalty | Insurers lose the right to sell home or auto insurance in California for five years. |
| Repair Grace Period | Homeowners not renewed have 180 days to make necessary repairs and improvements. |
| Status | Filed with state Attorney General for potential ballot placement in November 2026. |
| Litigation Context | Includes ongoing lawsuits against insurers for dropping policyholders. |
| Hammack’s Proposal | A rival proposal seeks to repeal key reforms of Proposition 103. |
Deeper Dive: News & Info About This Topic
- Los Angeles Times: Insurance Rights Initiative Proposed by Leading Consumer Group
- U.S. News: Homeowners Insurance in California
- New York Times: LA Fire Home Insurance Legislation
- Daily Journal: Emergency Specific Property Insurance Rules in California
- LAist: Long Shot Ballot Initiative Could Impact California Insurance
- Wikipedia: California Wildfires
- Google Search: California Insurance Policy
- Google Scholar: Insurance Laws California
- Encyclopedia Britannica: Insurance
- Google News: California Insurance News
Author: STAFF HERE HOLLYWOOD
The Hollywood Staff Writer represents the experienced team at HEREHollywood.com, your go-to source for actionable local news and information in Hollywood, Los Angeles County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Hollywood Bowl summer concerts, the Hollywood Christmas Parade, film premieres at TCL Chinese Theatre, and festivals at the Magic Castle. Our coverage extends to key organizations like the Hollywood Chamber of Commerce and Visit Hollywood, plus leading businesses in entertainment, dining, and tourism that define the local economy. As part of the broader HERE network, including HERELosAngeles.com, HEREBeverlyHills.com, HEREAnaheim.com, and HEREHuntingtonBeach.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
