#California fire insurance series

It is based on the widely accepted CoreLogic Wildfire Risk Score, while utilizing CoreLogic’s in-house probabilistic wildfire model to validate the impacts associated with mitigation credits. This new solution is a risk score that uses artificial intelligence and machine learning to reevaluate a structure’s vulnerability to wildfire risk after community and property-specific mitigations are put in place. By providing a reward to policyholders for undertaking risk mitigation actions, the state is expecting to achieve more resilient communities and, ultimately, lower insurance rates for policy holders.ĬoreLogic’s new Wildfire Mitigation Score (WFMS) will assist carriers with meeting the California Department of Insurance’s minimum requirements. Properties that have enclosed eaves, multi-pane windows, fire resistant vents, as well as other factors will be considered more fire-safe than houses that do not have those elements. The newly released guidelines by the CDI go into effect on April 12 th, 2023. Within a 180-day window, they will be required to evaluate the impact of these twelve mandatory variables on their rates, create a CDI compliant rate plan, and communicate these changes to policyholders. Carriers are now required to incorporate twelve mitigation factors into their rating plan. The California Department of Insurance’s (CDI) new regulation, Section 2644.9, is changing the way the insurance industry approaches wildfires in California. This elevated level of activity has placed particular attention on making sure homeowners and insurers are making homes more resilient to wildfire and making wildfire insurance more affordable and accessible to Californians. Over the past five years, wildfires have been particularly devastating across California, leading insurers, homeowners, and regulators to reconsider how they manage and handle risk.

#California fire insurance series

This post is part of a series sponsored by CoreLogic.