California Bill Aims to Mandate Insurance for Wildfire-Resilient Homes

A new California bill, SB 1076, seeks to address the growing challenge of homeowners being unable to secure property insurance due to wildfire risk. The legislation would require insurance companies to offer and renew coverage for homes that meet specific wildfire-safety standards, potentially reshaping the state’s insurance market.

Key Provisions of SB 1076

Introduced by state Senator Sasha Renée Pérez (D-Alhambra) on Wednesday, February 18, 2026, the Insurance Coverage for Fire-Safe Homes Act mandates that insurers offer and renew policies for homes meeting wildfire-safety standards adopted by the California Insurance Commissioner, effective January 1, 2028. Source

The bill includes provisions for enforcement, allowing the Insurance Commissioner to impose a five-year ban on insurers operating in California’s auto and home markets for non-compliance. A similar ban would apply to insurers ceasing property insurance offerings under the law. Source

Still, insurers can seek a temporary waiver if they demonstrate an over-concentration of risk in a specific geographic area.

Addressing Homeowner Concerns

Senator Pérez highlighted the concerns of wildfire survivors, particularly those who rebuilt homes to high safety standards but feared being denied insurance coverage. “To help fire survivors return home, we need assurance that newly built, wildfire-resilient homes will receive insurance coverage,” she stated. “Being denied coverage after meeting safety standards sends the wrong message and is akin to being penalized for doing the right thing.” Source

The bill is co-sponsored by the Eaton Fire Survivors Network and Consumer Watchdog, reflecting a collaborative effort to address the insurance crisis facing wildfire-prone communities.

Industry Response and Potential Challenges

The proposed legislation has drawn criticism from the insurance industry. The Personal Insurance Federation of California argues that the bill could force insurers to operate at a loss or exit the state altogether, potentially exacerbating the insurance crisis. Source

The American Property and Casualty Insurance Assn. Expressed concerns that adding mandates to an already strained system could deepen market challenges for consumers. Source

Wildfire Safety Standards

SB 1076 would establish home hardening and defensible space measures set by the Insurance Commissioner. While specific standards are yet to be defined, it is anticipated that the state’s Safer from Wildfires program, established in 2021, will inform these new standards. Source

Mitigation measures under the Safer from Wildfires program include installing Class-A fire-rated roofs, creating a 5-foot ember-resistant zone around homes and installing fire-resistant vents and closed eaves.

Broader Legislative Efforts

SB 1076 is one of three insurance-related bills introduced this year by Senator Pérez, co-sponsored by the Eaton Fire Survivors Network and Consumer Watchdog. SB 877 aims to increase transparency in the claims process, while SB 878 would penalize insurers for delayed claims payments. Source