The California Assembly Insurance Committee approved the California Safe Homes Act with a 16-0 vote.
The legislation, backed by the insurance industry, would establish a fund for grants supporting risk mitigation projects.
The bill defines eligibility, sets funding priorities, and outlines reporting rules. It does not assign specific dollar amounts to the grants. Instead, it authorizes the California Department of Insurance to determine funding levels based on legislative appropriations during the program’s rollout.
Grant funding would support measures such as installing fire-resistant roofing, implementing community-level safety strategies, and clearing five feet of defensible space around homes, also called “zone 0,” according to the department.
These are the most effective and expensive upgrades. The department stated that many homeowners express interest in these improvements but cannot afford them.
Insurance Commissioner Ricardo Lara said these mitigation investments are essential to addressing California’s insurance issues.
He emphasized the need to expand proven safety measures, citing extensive outreach across the state, collaboration with local communities and firefighters, and consultation with insurers domestically and internationally.
We have traveled across every region of the state, listened to thousands of Californians, collaborated with local communities and firefighters, and consulted with insurance leaders from other states and countries
Insurance Commissioner Ricardo Lara
“One thing is clear: Wildfire safety works — and we must scale it like never before,” Lara said.
During this process, Lara visited Alabama, a state frequently referenced by other regulators as a model for effective mitigation grant programs.
Oklahoma followed Alabama’s approach closely when developing its own grant system, according to Oklahoma Insurance Commissioner Glen Mulready.
Louisiana adopted similar practices, and its auditor reported that homeowners with fortified roofs saw annual premium reductions averaging 22%.
Alabama Insurance Commissioner Mark Fowler told the committee that pre-disaster home protection has made insurance more affordable in his state.
He noted that natural disasters are inevitable, so stronger construction before an event reduces damage afterward. He said AB 888 supports that goal.
Natural disasters like windstorms, earthquakes or wildfires will come no matter what we do. That means you must find ways to build stronger before the event so you will have less damage after the event. It’s actually a pretty simple concept. AB 888 will help pave that way.
Alabama Insurance Commissioner Mark Fowler
The bill has received strong support from industry groups, including the American Property Casualty Insurance Association, National Association of Mutual Insurance Companies, Personal Insurance Federation of California, and Independent Insurance Agents & Brokers of California.
