With an increasing number of rural Shasta County homeowners finding that they’re practically uninsurable, the Board of Supervisors may join a growing chorus urging the Governor to declare a state of emergency. It’s hoped that such an action will allow the State Department of Insurance to improve their rate approval process and thereby force a stabilization of the insurance market. When the Department of Insurance was established by a voter initiative in 1988, it set up the “fair access to insurance requirements” plan, which is the insurer of last resort for high-risk customers who are denied by private insurance companies. A situation is now developing where the worsening fire danger throughout the state has forced so many people onto the Fair Plan that it’s at risk of insolvency. Regulations have been drafted to address the crisis, but the reforms will not take effect for a few years and in the meantime many fear a catastrophic loss of everything they’ve worked for. Supervisors will consider the issue at Tuesday’s meeting.
-Steve Gibson