California Department of Insurance
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California Department of Insurance
Where do we start…..? Well Lara will be leaving. That’s something.
CALIFORNIA DEPARTMENT OF INSURANCE
RELEASE
FOR IMMEDIATE RELEASE:
Tuesday, September 22, 2026
CONTACT: (916) 492-3566 main
Michael Soller: (916) 661-0556 cell
Gabriel Sanchez: (213) 418-5338 cell
MEDIA E-MAIL INQUIRIES: cdipress@insurance.ca.gov
Commissioner Lara urges Californians to review insurance coverage before “likely historic” El Niño storms hit
Climate-intensified El Niño heightens flooding, mudslide, and debris-flow risks; Commissioner Lara urges consumers to consider flood insurance before 30-day waiting period since most homeowners and renter policies do not cover flooding
SACRAMENTO, Calif. — Following Governor Gavin Newsom’s emergency declaration to strengthen statewide preparedness for a “likely historic” El Niño, Insurance Commissioner Ricardo Lara is urging Californians to review their insurance coverage now and take steps to protect their families, homes, and businesses from potential flooding, heavy rain, mudslides, and other severe weather.
“We share the same goal: keeping Californians safe, prepared, and protected before severe weather arrives,” said Commissioner Lara following the Governor’s declaration. “Now is the time to understand what your insurance covers, know your rights, and take steps to protect your family and property. The Department of Insurance is here to help consumers prepare, and if communities are impacted by strong storms, flooding, or other damage, we will be there to support recovery, protect consumers, and make sure insurance companies meet their obligations to policyholders.”
Californians living near areas affected by recent wildfires should also be prepared for flooding, mudslides, and debris flows from wildfire burn scars, which can be especially vulnerable to severe weather. Commissioner Lara previously sent out a Notice to insurance companies reminding them of their legal duty to cover damage from any mudslide, debris flow, or similar disaster that is caused by statewide wildfires that may have weakened hillsides.
Consumers should take the following steps before severe weather arrives:
Review your insurance coverage. Homeowners, renters, and commercial insurance policies typically exclude damage caused by flooding, mudslides, debris flows, and other similar disasters unless they are directly or indirectly caused by a recent wildfire or another covered peril. However, policies may provide coverage for certain water damage caused by wind-driven rain. Damage caused from fallen trees is generally covered under all standard homeowner policies. Renters should review their renters’ insurance to understand coverage for their personal belongings, which generally are not covered by a landlord’s insurance policy. Consumers should contact their insurance company or agent to understand their coverage before severe weather arrives.
Consider flood insurance. The National Flood Insurance Program provides the majority of flood insurance coverage written in California, and private flood insurance is also available. Flood insurance generally takes effect 30 days after purchase, except in the case of a home purchase where flood insurance is required by the lender. Consumers should plan rather than wait until a storm is approaching.
Review your auto coverage. Comprehensive auto insurance can provide coverage for vehicles damaged by flooding, fallen trees, and other storm-related events. Check your auto insurance declaration page to see if this optional coverage is included in your policy or contact your insurance company or agent.
Create a home inventory. Use your smartphone to photograph or record your home and belongings and keep copies of important insurance documents in a safe, accessible location. A current inventory can make it easier to document belongings if you need to file a claim.
Prepare your property and family. Follow local emergency alerts and evacuation instructions, secure loose outdoor items, clear gutters and drains, and have emergency supplies and important documents ready.
This warning comes during National Preparedness Month, an annual reminder for Californians to take steps now to prepare for emergencies and disasters. Throughout the month, the California Department of Insurance is sharing preparedness information and resources to help consumers understand their insurance coverage before disaster strikes. The Department’s Outreach team is participating in several emergency preparedness events throughout the state to help inform consumers about key insurance topics and answer their questions.
The California Department of Insurance is also available to help consumers understand their insurance coverage and answer questions about policies and claims. Consumers can contact the Consumer Hotline at 800-927-4357 or visit insurance.ca.gov for information about flood insurance, wildfire-related coverage, and preparing for severe weather.
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Media Notes:
Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud.
Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.govvia webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.
CALIFORNIA DEPARTMENT OF INSURANCE
RELEASE
FOR IMMEDIATE RELEASE:
Wednesday, July 1, 2026
CONTACT: (916) 492-3566 main
Michael Soller: (916) 661-0556 cell
Gabriel Sanchez: (213) 418-5338 cell
MEDIA E-MAIL INQUIRIES: cdipress@insurance.ca.gov
Commissioner Lara defeats attempt to undermine California insurance market
Judge upholds critical stabilization reforms, shielding homeowners and ensuring long-term market availability
LOS ANGELES — Insurance Commissioner Ricardo Lara applauded a judge’s order upholding his authority to protect consumers’ access and stabilize the state’s insurance market. Late yesterday, Los Angeles Superior Court Judge Tiana J. Murillo rejected a lawsuit filed by Consumer Watchdog. The lawsuit challenged two Bulletins issued by Commissioner Lara aimed at breaking the cycle of insurance unavailability. Commissioner Lara’s actions addressed what a news story called a “hidden crisis” of insurance companies withdrawing from California due to fear of possible major assessments by the FAIR Plan after a major disaster.
“While critics choose to complain and litigate from the sidelines, we are doing the hard work to fix a broken system, lower reliance on the FAIR Plan, and get companies back to writing policies,” said Commissioner Lara. “This victory sends a loud and clear message: The era of allowing special interests to derail consumer choice is over. We have the momentum, we have the authority, and we will continue to fight until every California has access to the coverage they deserve.”
Commissioner Lara issued a Bulletin in September 2024 protecting consumers by ensuring that, in an extreme worst-case scenario, insurance companies cannot pass through all excess FAIR Plan losses to their policyholders -- they must be proportional and, if approved, be recovered over no more than two years. That worst-case scenario happened months later with the L.A. wildfires, when Commissioner Lara’s order helped stabilize the insurance market. His February 2025 Bulletin further provided guidance to the procedure for insurers to seek prior approval of pass-throughs under Proposition 103.
Media notes:
Judge Murillo wrote: “The meaning of Section 10095(c) is plain: it governs how writings, profits, losses, and expenses must be allocated between FAIR Plan member insurers. Petitioner objects to the way the Commissioner permits insurers to handle assessments after they are levied. This does not fall within the plain language of section 10095(c). Nothing in that statutory text conditions an insurer’s proportional share of FAIR Plan expenses on ultimately absorbing those costs rather than paying them initially. Section 10095(c) regulates the apportionment obligation itself, not the insurer’s subsequent financial decisions or transactions with its policyholders. If the Court accepted that pass-through charges could somehow be incorporated into the terms of section 10095(c), such that section 10095(c) were ambiguous, principles of statutory construction and legislative history still would not dictate a different result. Petitioner does not demonstrate the Court can impose a substantial limit on the Commissioner’s powers authorized under Proposition 103 by inferring an affirmative limitation from an omission that is only apparent by comparison to other policy schemes. Therefore, the Commissioner’s authority to issue the Bulletins, which exists under Proposition 103, does not violate section 10095(c).”
Following the L.A. wildfire disaster in January 2025, the FAIR Plan, an insurance safety net that the state requires insurance companies to operate, requested the Commissioner’s approval for $1 billion in additional funds from its member companies. Insurance companies were allowed to pass through some – but not all – of those costs to policyholders.
Under Prop. 103, insurance companies applied to the Department, which reviewed and approved the two-year temporary fees. Insurance companies passed the fees to consumers, under the same procedure used to pass through to consumers awards of compensation to intervenors, including Consumer Watchdog. The median fee for homeowners was $28 per year.