California Reveals Fire-Prone Areas It Wants Insurers to Cover.

California has designated regions of the state where property insurers will be required to provide coverage in order to prevent insurers from leaving due to wildfire risk. The designated areas include fire-prone regions in Northern California, the Central Coast, northwest of Los Angeles, and east of San Diego. The state is also developing rules to allow insurers to request rate increases based on forward-looking catastrophe models instead of historical data. Larger insurers will be required to increase their presence in high-risk areas, and the regulations also target coverage in ZIP codes with high reliance on the state-run FAIR Plan, counties with high-risk homes, and low-income communities burdened by high premiums. However, consumer advocates have expressed concerns that the proposed regulations may not ensure affordable prices for customers. [Extracted from the article]

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