CA Dept of Insurance Finds Rebuilding Fire-Safe From LA Fires Would Reduce Losses by One-Third; Survivors Back Bill Requiring Insurers to Cover Fire-Safe Homes, Says Consumer Watchdog

LOS ANGELES, March 30, 2026 /PRNewswire/ -- A new analysis showing that insurance average annual losses would fall by one-third in the Eaton and Pacific Palisades fire areas if homeowners build back fire-safe makes the case for proposed legislation to require insurance companies to offer insurance to fire-safe homes, said consumer advocates and fire survivors today.

SB 1076, the Insurance Coverage for Fire-Safe Homes Act, would require home insurance companies to offer and sell coverage to any homeowner who meets state fire safety standards set by the insurance commissioner. The bill was introduced by Senator Sasha Renée Pérez who represents LA fire survivors and is co-sponsored by Consumer Watchdog and the Eaton Fire Survivors Network.

The analysis released late Friday by the California Department of Insurance and the National Association of Insurance Commissioners found that meeting the IBHS Wildfire Prepared Home standard for the nearly 30,000 homes within the Eaton and Pacific Palisades fires' burn perimeters would reduce average annual losses by one-third over the homes in place before the fires.

"The evidence is indisputable: If LA builds back fire-safe insurance companies will save a mint. Families fighting to rebuild have a right to know that if they invest in fire safety, insurance companies must invest in them. That's what the Insurance Coverage for Fire-Safe Homes Act will require," said Carmen Balber, executive director of Consumer Watchdog. "This isn't just a question of LA's recovery but keeping all of California insured."

Joy Chen, executive director of the Eaton Fire Survivors Network, said, "Survivors are rebuilding stronger and safer. 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 analysis adds to the overwhelming evidence that hardening a home to resist fire and creating defensible space makes the home significantly less likely to burn. For example, in the fall of last year the University of California Berkeley released an analysis of five recent California fires and found that wildfire mitigation can cut the risk to homes in half.

Eighty-five percent of voters surveyed in a poll by FM3 Research believe that home insurers should be required to cover homeowners who meet state fire safety guidelines.

SB 1076 will be heard in the state Senate Insurance Committee in April 22.

Consumer Watchdog and Eaton Fire Survivors Network are supporting or co-sponsoring several other bills addressing home insurance claims, access and affordability this year, including:

SB 1301 (Allen) to give homeowners a chance to prevent insurance non-renewals 
SB 877 (Pérez) – Requiring transparency in insurer loss estimates 
SB 878 (Pérez) – Enforcing penalties when insurers delay payments
SB 982 (Wiener) – Holding fossil fuel companies accountable for rising insurance costs
AB 1642 (Harabedian) – Setting health standards for smoke damaged homes

To learn more about our co-sponsored bills visit www.FixInsurance.org

SOURCE Consumer Watchdog