San Mateo County supervisors are asking Gov. Gavin Newsom to declare a state of emergency to stabilize California’s home insurance market, which has seen rising costs and declining availability.
In a resolution passed this week, the Board of Supervisors called on the governor to take immediate action in response to the growing challenges families and businesses face in securing property insurance. They are also calling on state Insurance Commissioner Ricardo Lara and the state Legislature to expedite what is typically a lengthy process and quickly implement interim rules to stabilize the insurance market.
“Families and businesses in San Mateo County are on the brink, as an insurance crisis threatens to protect their homes, livelihoods and futures,” said Supervisor Ray, who represents the county’s coastal communities. Mr. Moller said.
“As the risk of natural disasters from wildfires and storm surges increases, insurance options are shrinking, community development projects at the interface of wildlands and cities are stalling, and small businesses are facing closure,” Moller said. said. “Our request for a state of emergency, like other counties (such as Placer, San Bernardino and Shashta), is a fair and equitable way to keep our communities safe and resilient in the face of large-scale disasters.” This is an urgent call to ensure stable insurance markets in the future, as the climate becomes increasingly unpredictable.”
The insurance crisis has worsened in recent years, with insurance companies cutting off coverage for hundreds of thousands of homeowners in fire-prone areas. Homeowners without traditional insurance are now forced to rely on California’s last remaining insurance carrier, the expensive FAIR Plan. Meanwhile, major insurance companies such as State Farm and Allstate have suspended new home insurance policies across the state, reducing options and raising premiums.
Mueller emphasized that California’s insurance commissioner has proposed regulations to address the crisis, but they won’t take effect until at least 2026. “The California Insurance Commissioner has broad authority under insurance law to introduce emergency regulations to promote the public welfare,” Mueller said. He said the secretary could act now by issuing emergency rules to expedite rate changes and other measures to stabilize the market.
Other counties, including Shasta and San Bernardino, are also asking Governor Newsom to declare a state of emergency to prevent insurance companies from dropping policyholders and bring stability to the state’s insurance market.
Lara’s office did not respond to requests for comment.
