State Senator Pérez Bill Would Force Insurers to Cover Wildfire-Hardened Homes

State Sen. Sasha Renée Pérez, who represents Altadena and Pasadena, introduced legislation Tuesday that would require insurance companies to offer and renew coverage for any California home that meets state wildfire safety standards — or face a five-year ban from the state’s home and auto insurance markets.

The bill, Senate Bill 1076, directly addresses a fear gripping Eaton Fire survivors across Altadena: that even newly rebuilt homes, constructed to the highest fire-resistance codes, could be denied insurance.

Co-sponsored by the Eaton Fire Survivors Network and Consumer Watchdog, the measure would compel insurers to cover homeowners who meet home hardening and defensible space requirements established by State Insurance Commissioner Ricardo Lara, according to a press release from Pérez’s office.

“To help fire survivors return home, we need assurance that newly built, wildfire resilient homes will receive insurance coverage,” Pérez said in a statement. “Homeowners who meet or exceed safety standards should not be met with coverage denials.”

Pérez, a Democrat who represents the 25th Senate District — which includes Pasadena, Altadena and Sierra Madre — said she has heard directly from constituents rebuilding after the Eaton Fire who worry they will be unable to purchase insurance despite investing in fire-resistant construction.

“Being denied coverage after meeting safety standards sends the wrong message and is akin to being penalized for doing the right thing,” Pérez said.

The Eaton Fire, which began on January 7, 2025, destroyed more than 9,000 buildings and killed at least 19 people, devastating Altadena and surrounding communities. More than a year later, survivors navigating the rebuilding process face a parallel crisis: a statewide insurance market in retreat.

Enrollment in the California FAIR Plan, the state’s insurer of last resort, has doubled in two years, according to the senator’s office. Hundreds of thousands of homeowners across the state have lost their original coverage, according to the senator’s office. Insurance companies have dropped twice as many policies in wildfire-distressed areas since 2023 than they have committed to sell by 2028 under the state’s Sustainable Insurance Strategy, according to Consumer Watchdog.

The bill’s sponsors say SB 1076 applies a model already familiar in California: Proposition 103, the voter-approved 1988 law that requires auto insurers to offer a Good Driver Discount policy to any motorist who meets the state’s safe-driving standard. Supporters argue that homeowners who invest in making their properties fire-safe deserve the same guarantee.

“Survivors are rebuilding stronger and safer,” said Joy Chen, executive director of the Eaton Fire Survivors Network. “But if our community cannot access insurance even after making our homes fire-safe, our housing market will crater. SB 1076 protects both consumers and insurers.”

The wildfire safety standards referenced in the bill include home-hardening measures — such as installing sprinklers, closing off eaves to prevent the collection of burning embers and creating a “zone zero” that removes combustible materials from within five feet of a structure — along with defensible space requirements, according to reporting by the Pasadena Star-News.

Carmen Balber, executive director of Consumer Watchdog, said the bill addresses a gap in how insurers assess wildfire risk.

“Wildfire safety measures can reduce communities’ fire risk by half, yet too often these steps are ignored when insurance companies decide who to cover,” Balber said in a statement. “Homeowners deserve to know that when they invest in wildfire protection and make their home safer from wildfires, they will be able to insure it.”

Polling data cited by the bill’s sponsors indicates that 85 percent of California voters surveyed in separate polls by Hart Research and FM3 Research believe that home insurers should be required to cover homeowners who meet state fire safety guidelines, according to the senator’s press release.

The American Property and Casualty Insurance Association, an industry group, has not publicly commented on SB 1076. The association’s vice president for state government relations, Denni Ritter, said in January — in response to Pérez’s earlier insurance bills — that insurers are committed to paying claims fairly and promptly, according to a report in the San Francisco Chronicle.

SB 1076 is one of several insurance-related bills Pérez has introduced this legislative session. SB 877, also co-sponsored by Consumer Watchdog and the Eaton Fire Survivors Network, would require insurers to disclose all original loss estimates and revisions to policyholders. SB 878 would impose a 20 percent interest penalty on insurers who fail to make timely claims payments, according to Consumer Watchdog.

Studies from the National Association of Insurance Commissioners, the California Department of Forestry and Fire Protection, and the University of California, Berkeley support the conclusion that home hardening and defensible space significantly reduce structural damage from wildfire, according to the senator’s office.

Residents seeking more information about the legislation can contact Pérez’s Pasadena office at 215 N. Marengo Ave., Suite 380, in Pasadena, or by phone at (626) 304-1086.

“SB 1076 will ensure that our communities’ insurance needs are met by making coverage available to them for making existing neighborhoods safer,” Pérez said.