San Mateo County recently passed a resolution urging Governor Newsom to declare a state of emergency regarding the housing insurance crisis. This request isn’t an isolated one; several other counties in California have made similar appeals.

According to a report by the Mercury News, local leaders in San Mateo County are pressing the governor to take immediate action to stabilize the state’s housing insurance market. The situation has worsened in recent years, with rampant wildfires leading to soaring insurance premiums and an increasing difficulty in securing coverage for consumers.

In the resolution passed this week, the San Mateo County Board of Supervisors called for the governor to act swiftly to address the mounting challenges homeowners and businesses face in obtaining property insurance. They also urged California’s Insurance Commissioner, Ricardo Lara, and the state legislature to expedite procedures to implement temporary rules aimed at stabilizing the insurance market as soon as possible.

Ray Mueller, a representative for the coastal areas of the county, stated, “Families and businesses in San Mateo County are on the brink of collapse, as the insurance crisis threatens to leave their homes, livelihoods, and futures unprotected. Insurance options are dwindling, while the risks from wildfires and storms continue to rise, putting many small businesses at risk of closing down.”

Other counties, including Placer, San Bernardino, and Shasta, have also sought the governor’s declaration of a state of emergency. The insurance crisis has escalated in recent years, with companies abandoning coverage for hundreds of thousands of homeowners in fire-prone areas. Those unable to obtain traditional policies have been forced to rely on the costly FAIR Plan, California’s last resort for insurance.

Mueller emphasized that while the Insurance Commissioner has proposed regulations to address the crisis, those measures won’t take effect until 2026 at the earliest. He pointed out that the commissioner can act now to issue emergency rules, quickly adjust premium rates, and take other steps to stabilize the market.

The California Department of Insurance indicated that the regulatory goals outlined in San Mateo County’s resolution align with the reforms initiated by Commissioner Lara as part of the “Sustainable Insurance Strategy” launched last September. Reports suggest the agency is taking multiple actions and emergency regulations to implement the most significant insurance reforms in California in over 30 years, with a commitment to transparency and public engagement.