California, September 23, 2025
News Summary
Consumer Watchdog has proposed the Insurance Policyholder Bill of Rights in California, mandating that insurers provide coverage for fireproofed homes. Homeowners not renewed will have 180 days to make necessary repairs. The initiative aims to address increasing policy cancellations amid wildfire threats. Recently filed lawsuits against insurers have spotlighted issues within the state’s insurance market, where many residents are discontented with claims handling. This proposal seeks to secure better protections for California homeowners in the face of rising wildfire risks.
California Consumer Watchdog Proposes Insurance Policyholder Rights Initiative
Consumer advocacy group Consumer Watchdog has introduced the Insurance Policyholder Bill of Rights in California. This initiative mandates that insurers must offer coverage to homeowners who actively take steps to fireproof their properties. If insurers do not adhere to this requirement, they risk losing their ability to sell home or auto insurance in California for five years.
The initiative was submitted to the office of state Attorney General Rob Bonta last week, aiming to secure a place on the ballot for the November 2026 election. Under this proposed measure, homeowners whose insurance policies are not renewed would have a grace period of 180 days to make necessary repairs and enhancements to their homes. The intention behind this proposal is to address the surge in policy cancellations linked to claims made due to wildfire damage.
The founder of Consumer Watchdog and author of Proposition 103, Harvey Rosenfield, has expressed support for the initiative, emphasizing its importance in guaranteeing coverage for homeowners who invest in wildfire prevention. Furthermore, two lawsuits have recently been filed in Los Angeles County Superior Court against various home insurers for dropping policyholders and coercing them onto the state’s FAIR Plan, which serves as California’s insurer of last resort. While this plan provides essential coverage, policyholders often face higher premiums and limited benefits.
Insurers currently have the option to seek six-month waivers from the coverage requirement in specific areas if they can prove a concentrated risk. This proposed bill follows a troubling trend of insurers withdrawing from the California market in response to devastating wildfires and demanding substantial rate increases.
Carmen Balber, the executive director of Consumer Watchdog, has noted the uncertainty surrounding the group’s potential to gather the requisite 500,000 signatures needed to qualify the proposal for the ballot. The initiative was prompted by a competing proposal from insurance broker Elizabeth Hammack, which aims to repeal key reforms established by Proposition 103. Hammack’s initiative would facilitate insurance companies in implementing rate hikes without prior approval from the insurance commissioner and would require the commissioner to have a minimum of five years of insurance-related experience.
California’s home insurance market is currently facing a plethora of complaints regarding claims management, especially following the destructive fires on January 7, 2023. Many homeowners have voiced their frustrations with the claims processes employed by State Farm, the largest home insurer in California. In light of the situation, Governor Gavin Newsom has called upon the FAIR Plan to expedite and fairly manage smoke damage claims arising from the January 7 fires.
In addition, the California Department of Insurance has initiated legal actions relating to the state’s insurer of last resort over instances of denied smoke damage claims. Public sentiment has turned sharply against insurers, particularly in the wake of the deadly January fire storms that resulted in over 30 fatalities.
Summary of the Initiative
- Proposed Initiative: Insurance Policyholder Bill of Rights
- Targeted Audience: California homeowners
- Main Requirement: Insurers must cover fireproofed homes
- Consequences for Non-compliance: Loss of home or auto insurance selling rights for five years
- Grace Period: 180 days for homeowners not renewed to make repairs
- Current Lawsuits: Against insurers for dropping policyholders
- Market Conditions: Insurers retreating due to wildfire risks
FAQ
What is the Insurance Policyholder Bill of Rights?
The initiative requires insurers to offer coverage to California homeowners who fireproof their homes.
What happens if insurers fail to comply with the initiative?
If insurers fail to comply, they would lose the right to sell home or auto insurance in California for five years.
How long do homeowners have to make necessary repairs if their policy is not renewed?
Homeowners not renewed by their insurers would be granted 180 days to make necessary home repairs and improvements.
What has led to the introduction of this initiative?
The initiative was prompted by a rival proposal that seeks to repeal key reforms of Proposition 103 and the increasing complaints from homeowners regarding claims handling.
Key Features of the Insurance Policyholder Bill of Rights
| Feature | Description |
|---|---|
| Coverage Requirement | Insurers must offer coverage to homeowners who fireproof their homes. |
| Compliance Penalty | Insurers who fail to comply risk losing the right to sell home or auto insurance for five years. |
| Repair Grace Period | Homeowners not renewed by their insurers get 180 days to make repairs. |
| Legal Action | Two lawsuits filed against insurers for dropping policyholders. |
| Market Conditions | Insurers retreating from the market due to wildfire risks. |
Deeper Dive: News & Info About This Topic
- Los Angeles Times: Insurance Rights Initiative Proposed by Consumer Group
- U.S. News: Homeowners Insurance in California
- Insurance Business: California Cracks Down on Insurance Brokers
- LAist: Potential Impact of Insurance Initiative in California
- Daily Journal: Key State Laws for Wildfire Recovery
- Wikipedia: Insurance in the United States
- Google Search: Insurance Policyholder Rights
- Google Scholar: Insurance Policyholder Bill of Rights
- Encyclopedia Britannica: Insurance
- Google News: California Insurance News
Author: STAFF HERE BEVERLY HILLS WRITER
The Beverly Hills Staff Writer represents the experienced team at HEREBeverlyHills.com, your go-to source for actionable local news and information in Beverly Hills, 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 Rodeo Drive Concours d'Elegance, the Beverly Hills artSHOW, Concerts on Canon, and holiday celebrations throughout the city. Our coverage extends to key organizations like the Beverly Hills Chamber of Commerce and Visit Beverly Hills, plus leading businesses in luxury fashion, hospitality, and entertainment that drive the local economy. As part of the broader HERE network, including HERELosAngeles.com, HERESantaAna.com, HEREHuntingtonBeach.com, and HERECostaMesa.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
