Forest fires: insurers required to cover high-risk areas in California

California Insurance Commissioner Ricardo Lara has issued a new regulation requiring insurers to extend their home insurance coverage to areas most vulnerable to wildfires.

Under the new state regulation, insurance companies will have to underwrite home policies for no less than 85% of their statewide market share in California. This means that companies will need to expand their coverage by 5% every two years.

In return, insurers will be allowed to use risk modeling tools to set higher rates.