Just before wildfires hit, California told insurers to cover homes in risky areas—in exchange for passing on more costs

A scene of burned houses and vehicles in the Pacific Palisades neighborhood on Jan. 8, 2025. (Credit: Tayfun Coskun—Anadolu via Getty Images)

• Days before wildfires ravaged the Los Angeles area, California's insurance commissioner said carriers will be required to increase coverage in risky areas. In exchange, insurers got more leeway on how much they can charge homeowners.

In the final days of 2024, the State of California announced a new regulation that was meant to help homeowners in risky areas obtain more access to insurance.