California Insurance Crisis Set To Ease With New Landmark Rules

California Insurance Commissioner Ricardo Lara has announced new regulations aimed at expanding insurance coverage in wildfire-prone areas. Insurers will now use computer modeling for policy writing, rather than relying solely on historical data, and must offer coverage to most homes in fire-risk zip codes. This initiative, effective January 2, 2025, aims to address the challenges faced by residents in rural areas. However, some critics argue that the lack of transparency in rate-setting could lead to increased costs without guaranteed coverage expansion.