Insurance Challenges Loom as Altadena Rebuilds After Fire

A state insurance official told Altadenans Monday that California is working to ensure homeowners can rebuild and maintain insurance coverage in the aftermath of the Eaton Fire disaster.

Julia Juarez, Deputy Commissioner for the Community Relations and Outreach Branch at the California Department of Insurance, said the department is collaborating with the California Governor’s office, legislature, and insurance companies to develop a sustainable insurance strategy.

Key protections for local homeowners are to include a mandatory moratorium on policy non-renewals, and assurances that residents with completely destroyed homes are to receive two years of continuous insurance coverage automatically.

Meanwhile, State Farm, California’s largest home insurer, requested an emergency 22% average rate increase for homeowners statewide. Advocacy groups pushed back, alleging the insurer should be able to cover the cost of fire claims without the large increase.

Juarez said the state has implemented a detailed “Safer from Wildfires” framework to help reduce future insurance risks, which includes six specific steps:

• Improving home safety features
• Addressing immediate property surroundings
• Creating fire-safe community partnerships
• Examining home eaves and exterior details
• Evaluating immediate surrounding areas
• Developing community-wide fire prevention strategies

Officials said insurance rate increases will not be uniform across all areas. Rates will be adjusted based on individual property risks, with some areas potentially seeing lower rates if risk mitigation efforts are successful.

Residents can check their eligibility for insurance protections by visiting insurance.ca.gov or calling the California Department of Insurance at 1-800-927-4357. The department will help residents navigate insurance issues and mediate between homeowners and insurance providers.

Small businesses facing insurance challenges also have support options. The U.S. Small Business Administration offers federal funds with a 12-month zero-interest deferment, allowing businesses to remain operational with financial flexibility.

Supervisor Kathryn Barger, who represents Altadena and Pasadena, announced she is creating an Altadena Recovery Commission (ARC) to streamline rebuilding efforts. The commission will work to expedite infrastructure rebuilding, streamline permitting processes, and develop scalable housing solutions to help residents return home quickly and affordably.