New California Law Aims to Protect Wildfire Zone Home Insurance

Governor Gavin Newsom signed Assembly Bill 2724 into law, a measure aimed at helping homeowners in fire-prone regions keep access to residential property coverage. The legislation was authored by Assemblymember Rebecca Bauer-Kahan, who represents Danville, San Ramon, and surrounding East Bay communities in the 16th Assembly District.

Under the new law, the California Department of Insurance must annually review and update designations for distressed wildland-urban interface areas starting in 2027. The state will consult with Cal Fire and publish yearly lists of impacted ZIP codes to ensure insurance companies have incentives to offer coverage rather than non-renewing policies.

Homeowners along the Mount Diablo foothills and across Contra Costa County have experienced extensive policy cancellations in recent years, leaving many dependent on the California FAIR Plan. The newly enacted measure seeks to stabilize the private insurance market for local foothill neighborhoods.