Waters, Sherman introduce bill to close wildfire insurance loopholes

Two California representatives in Washington are trying to combat the state’s home insurance crisis that has left many residents without coverage as wildfires ravage the Los Angeles area.

Reps. Maxine Waters (D-Los Angeles) and Brad Sherman (D-Sherman Oaks) on Thursday reintroduced the Wildfire Insurance Coverage Study Act, which calls for an assessment of the home insurance market in communities at high fire risk of forest. The bill easily passed the House Financial Services Committee with bipartisan support last Congress, but was withdrawn from consideration before being voted on by the full House.

The bill’s return comes after a week of desperate firefighting in Southern California, where entire neighborhoods were reduced to ashes and rubble. The fires ravaged thousands of homes and businesses in Pacific Palisades, Malibu, Altadena and other communities.

Before the fires broke out, California’s home insurance market was already in crisis, with insurers choosing not to renew thousands of policies in areas deemed high fire risk, including those that have been affected by the current fires. Some homeowners whose coverage was not canceled saw their rates rise sharply.

“Over the years, we have seen insurance companies raise premiums, reduce coverage and completely abandon wildfire coverage in high-risk areas,” Waters said in a statement. “This leaves families and businesses across the state of California without the resources they need to recover. »

The Wildfire Insurance Coverage Study Act would require the Government Accountability Office to examine the availability and affordability of homeowners insurance in fire-prone areas. The GAO would also gather data on disparities in access to wildfire coverage and make recommendations on federal actions to stabilize insurance markets.

“The devastating fires in my district and the greater Los Angeles area underscore the need for Congress to focus on the availability and cost of fire insurance coverage,” Sherman said.

Although insurance is a state-regulated industry, Waters said his bill would “help Congress and the federal government better understand what federal tools are available to respond to the risks posed by wildfires.”

The bill also calls for an investigation into the role climate change plays in exacerbating wildfires.

Also this week, California lawmakers introduced legislation they hope will close gaps in support for renters and homeowners affected by fires, as well as the inmate firefighters the state relies on.

Los Angeles Democratic Assemblyman Isaac Bryan proposed a bill on Wednesday to increase the pay of inmate firefighters during hours they are “actively fighting a fire” to match the lowest pay for professional firefighters of the state.

California has long relied on incarcerated firefighters on the front lines, with hundreds of prison firefighters deployed to Los Angeles in recent days. The practice has drawn criticism from some because of the meager pay these inmates receive for potentially deadly work.

Firefighters earn between $5.80 and $10.24 per day, plus an additional $1 hourly wage on the front lines, for shifts lasting up to 24 hours, according to the California Department of Corrections and rehabilitation.

“We see our inmates putting their lives on the line and protecting entire communities,” Bryan said in an interview. “We talk about how they do this work for slave wages, but we never do anything about it. »

Democratic Assemblyman John Harabedian, whose district includes fire-ravaged Altadena, this week introduced AB 238, a bill aimed at providing financial relief to Californians forced to take on payments simultaneously for temporary housing and mortgages.

Another bill, AB 246, calls for a rent freeze across Los Angeles County and would create a civil penalty for landlords who violate it. The effort comes as the Los Angeles City Council decided to ban evictions of certain tenants and pets amid the emergency.