RCRC has expressed support for Assembly Bill 2167, authored by Assembly Member Tom Daly (D-Anaheim), as amended on July 30, 2020. AB 2167 would create the Insurance Market Action Plan (IMAP) program to help alleviate homeowners insurance nonrenewals/cancellations/high premium increases in high fire risk areas of the state.
RCRC member counties have a disproportionate percentage of residents whose residential property insurance has been nonrenewed due to wildfire risk in the past five years. A large majority of our communities have experienced dramatic premium increases and drastic spikes in nonrenewals, due to being located in high hazard severity zones. As a result, many homeowners in our communities have had to resort to the Fair Access to Insurance Requirements (FAIR) Plan for fire insurance coverage, which effectively prices them out of California’s whole-home coverage market. At the same time, the insurance industry in California is suffering unprecedented levels of losses due to the state’s “new wildfire normal”.
By establishing the IMAP program, AB 2167 would provide a viable solution that addresses both concerns. By incentivizing insurers to continue providing coverage in higher risk areas, while allowing them to obtain cost-based rates, affordable insurance would remain accessible in rural communities and would allow those residents to obtain whole-home insurance policies. RCRC’s letter of support is available here.