California looks to change insurance laws as homeowners complain about canceled policies and high rates

LOS ANGELES (KABC) — Thousands of California homeowners recently lost their insurance, and some faced drastic rate increases.

On Tuesday, some of them gathered at a press conference before the hearing on insurance supervision.

“Last year we had 100 percent full coverage,” says homeowner Bruce Breslau. “Now we have half that.”

Referring to the aggregate costs for homeowners in the Chatsworth community where he represents the HOA, Beslau adds, “However, the premium went from $349,000 to a staggering $1.7 million.”

He is one of several who came to an insurance regulatory commission hearing in downtown Los Angeles opposing proposed regulations by Insurance Commissioner Ricardo Lara.

“In short, these laws will not provide people with more insurance coverage, but will actually make everyone pay higher insurance premiums,” said Jamie Court of Consumer Watchdog.

California residents face rate increases and non-renewal or cancellation of insurance policies.

“My insurance shouldn’t cost me as much as my mortgage,” says Crestline resident Gigi Bannister.

Lara says insurance companies have been asking for rate increases, but his rules will force insurers to resume writing new policies in high-risk areas.

“We have every right under our current legal system to hold them accountable. To recoup the rate if they don’t meet the standards set out in the contract, and that’s really historic,” Lara says.

But critics like Consumer Watchdog say this is not enough.

Harvey Rosenfeld of Consumer Watchdog says, “What’s the fight about now? The fight is this: For the last 18 months, insurance companies have been pulling out of neighborhoods across the state.”

Lara says, “That’s why we need to make sure that insurance is affordable. We can’t have insurers pulling out or leaving the state because then we’ll never get to affordability.”

The new rules will come into effect at the end of the year. Lara expects the insurance market to start stabilizing in mid-2025.