Consumer Watchdog Alert: Senator Calls Insurance Coverage for Fire-Safe Communities "Communism"

SACRAMENTO, Calif., April 30, 2026 /PRNewswire/ -- A new Consumer Alert video from Consumer Watchdog calls out Senator Laura Richardson for calling consumer protections "communism" and standing with the insurance industry to block legislation requiring insurance coverage for communities where homes are made fire-safe.

The legislation, SB 1076 by Senator Sasha Renée Pérez, would have built a first of its kind pilot program to provide proof that making whole communities fire-safe -- through home-hardening with fire-resistant materials and implementing vegetation management -- reduces risk of loss. Under the bill, homes in five pilot communities could meet state mitigation standards in order to qualify for guaranteed insurance coverage for four years.

The bill fell short by one vote in the Senate Insurance committee when Senators Laura Richardson and Susan Rubio did not vote. The Consumer Alert video highlights comments in the hearing.

"Last I heard, in the United States, we don't require any company to do anything. That's... that's the difference between capitalism and communism, frankly," said Senator Laura Richardson.

"Whose side are they on?" asks the video.

In fact, U.S. companies must routinely meet government requirements. California auto insurance companies must sell auto insurance to all good drivers. Nationally, all health insurance companies must sell individual health insurance coverage to all comers. We require companies to pay minimum wage, follow safety laws, meet environmental standards, and honor contracts.

Senators Steve Padilla, Josh Becker and Caroline Menjivar voted to advance the bill. Senators Jones and Niello voted no.

"To come in and kill a bill that does exactly what the industry has said is the major dynamic in what causes them to not be able to write policies—I personally find a little offensive and a little disingenuous," said Senator Padilla. He asked, "Why would a policyholder—a whole community of policyholders—have any incentive whatsoever to invest in risk reduction or home hardening or anything? What incentive do they have? If they say, 'Well, I can do all this risk mitigation and we can do all these things as a community,' and there is no guarantee of anything... why would they do that?" 

"If a homeowner is going to make the investment in home hardening, they want to know they're going to have homeowners insurance," said Senator Pérez.

Ada Hernandez, who lost her home in the Eaton Fire, said in support of the bill: "SB 1076 would give families like mine something we desperately need: certainty. It would ensure that if we build fire-safe homes, we can protect them. It would allow us to move forward without the constant fear of losing everything all over again. I am asking you, from the deepest part of my heart, to please support this bill."

SOURCE Consumer Watchdog