Commissioner Lara urges action on “Zone Zero” regulations as critical to saving money for consumers and helping insure their homes

LOS ANGELES — Insurance Commissioner Ricardo Lara has urged the state’s Board of Forestry and Fire Protection to expedite the finalization of “Zone Zero” regulations in California’s most wildfire-prone areas. These regulations aim to protect homes while saving Californians money. Since 2022, Commissioner Lara has mandated discounts for homeowners and commercial insurance under his Safer from Wildfires regulations, which benefit properties with a non-combustible five-foot area around structures—known as Zone Zero—along with other mitigation strategies. Implementing these measures can lead to significant savings for consumers and improve access to insurance for homes and businesses.

“These regulations are designed to prevent future wildfire disasters by establishing an ember-resistant five-foot zone around structures in our most vulnerable areas,” Commissioner Lara stated in his letter to the Board. “Finalizing consistent statewide ‘Zone Zero’ regulations will bolster my efforts to ensure property insurance remains available throughout the state while qualifying more individuals for insurance discounts. With an increasing number of insurance companies returning to the market under my Sustainable Insurance Strategy, we need a ‘whole-of-government’ approach to continue our progress.”

Insurance companies are not public utilities and are not required to offer policies in all areas. This underscores the necessity of implementing scientifically based wildfire safety regulations that enhance insurability. The legally mandated insurance discounts can help lower costs, while programs like the “California Safe Homes Act,” sponsored by Commissioner Lara and recently signed into law by the Governor, along with local community mitigation initiatives, will assist in covering expenses. Once fully funded and operational, the California Safe Homes Act, under the California Department of Insurance, will help finance Zone Zero and other mitigation efforts, drawing on successful programs from the Southeast aimed at preventing hurricane damage to improve insurability.

So far, five insurance companies, including three California-based homeowners carriers, have announced plans to reopen business lines and expand in California under the Sustainable Insurance Strategy, marking a significant shift from a previous trend of raising rates and dropping policies. With insurers re-entering the market, some are committing to cover homes that adhere to wildfire safety standards, including Zone Zero.

This proposed regulation would support local communities that have experienced devastating wildfires and have implemented mitigation actions in Zone Zero as part of a comprehensive strategy. Notable examples include Paradise, which suffered the Camp Fire in 2018; Berkeley, which experienced the Tunnel Fire in 1991; South Lake Tahoe, impacted by the Caldor Fire in 2021; and Marin County, which established the Marin Wildfire Authority. These areas have initiated robust community education programs supported by grant funding and local ordinances.

This week, Commissioner Lara endorsed the IBHS Wildfire Prepared Home standard for the rebuilding of Los Angeles in a foreword to a report co-authored by IBHS and Headwaters Economics. Initial investments in wildfire safety, including Zone Zero, can yield substantial long-term savings through insurance discounts and expanded coverage options outside of the FAIR Plan, an insurance company-run last-resort policy that offers less coverage at a higher cost.

“Achieving wildfire safety at scale requires a collective effort rooted in community education and incentives aimed at those who may struggle to afford necessary improvements. Just as safe drivers or good students are recognized by insurers today, Safer from Wildfires discounts can save consumers money, promote safety across communities, and encourage mitigation efforts,” Commissioner Lara wrote to the Board.

“Wildfires do not recognize city or county borders. Our strength lies in our collective resilience. Strong and consistent Zone Zero regulations will enhance safety for everyone.”