Fire-safe homes could reduce losses by one-third in LA fire zones, study finds

LOS ANGELES — Rebuilding homes to fire-safe standards in areas burned by the Eaton and Pacific Palisades fires could reduce insurance losses by about one-third, according to an analysis cited today by consumer advocates backing proposed state legislation.

The analysis, released Friday by the California Department of Insurance and the National Association of Insurance Commissioners, found that meeting wildfire safety standards for roughly 30,000 homes within the Eaton and Pacific Palisades burn areas would significantly cut average annual losses.

“As Los Angeles continues to rebuild, local leaders face a pivotal choice: reconstruct to the same standards that left communities vulnerable, or seize this moment to build back with proven, science-based protections that will safeguard lives, property, and insurance access for decades to come,” Insurance Commissioner Ricardo Lara said in a statement Friday.

Consumer advocates said the findings support SB 1076, a bill that would require insurers to offer coverage to homeowners who meet state fire safety standards.

“The evidence is indisputable: If L.A. builds back fire-safe insurance companies will save a mint,” Carmen Balber, executive director of Consumer Watchdog, said in a statement. “Families fighting to rebuild have a right to know that if they invest in fire safety, insurance companies must invest in them.”

The measure was introduced by state Sen. Sasha Renee Perez, D-Pasadena, and is co-sponsored by Consumer Watchdog and the Eaton Fire Survivors Network.

Supporters said the bill is intended to address ongoing concerns about insurance availability following destructive wildfires across the region.

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

SB 1076 is scheduled to be heard in the state Senate Insurance Committee on April 22.