Wildfire recovery legislation aims to protect Californians from canceled insurance policies

As one of California’s largest wildfires in modern history stretches into its third week, state Sen. Ricardo Lara (D-Bell Gardens) has introduced legislation to protect residents from canceled insurance policies.

Lara announced the Wildfire Safety and Recovery Act on Wednesday morning. The senator said he hopes that, after going through the legislative process, his proposal could become law by 2019.

The act would require companies to offer mitigation discounts to homeowners who invested in fire-resistant materials and seek approval from the Department of Insurance before reducing policies in high-risk areas.

“People have been loyal to these insurance companies” and haven’t been taken care of, Lara said in a phone interview Tuesday.

Some homeowners said they were crushed when their insurance was canceled after years of paying for it.

Al O’Brien, 68, took a proactive approach to protecting his home. The Tuolumne County resident spent years clearing trees, grass and brush from within at least 100 feet of his 5-acre property.

“They said I had to do this work” to stay insured, he said. But O’Brien said his insurance was still canceled.

Placer County Supervisor Jennifer Montgomery said she’s seen wildfires “come earlier and stay longer.” With the fires spreading from “largely rural communities to urban ones,” Montgomery said many homeowners are doing all they can to protect their homes — even without coverage.

Larry Williams, 75, was told by his insurance company of 22 years that they would not renew his policy in February. He has been rejected by three companies.

“This isn’t a problem with individual companies. It’s an industry problem,” said Williams, who lives in Mariposa County with his wife, Carol.

Their home wasn’t affected by fire damage, but the couple have spent thousands of dollars to remove 70 trees from their 5-acre property, Williams said. They may turn to the state-sponsored plan for assistance.

Williams said that considering how much money the couple have paid for insurance over the years, “to be told you’re canceled is a little disheartening.”

michael.livingston@latimes.com