Southern California Wildfire Survivors Receive Good News in their Recovery and Rebuilding Process

November 24, 2025 - Governor Newsom today issued a new executive order responding to local feedback from survivors ensuring that homeowners who choose to install rooftop solar systems keep their insurance benefits and streamlines the process for replacing septic systems with municipal sewers. The order also expands a previous order prioritizing survivors for affordable housing by including survivors who are at immediate risk of homelessness. 

The order amends and expands on previous executive orders issued by the Governor in response to local feedback and needs. Specifically, the order:

• Modifies the Governor’s previous order suspending rooftop solar and battery storage requirements, as well as upcoming building code changes for fire rebuilds, to ensure these upgrades are eligible costs for insurance purposes for homeowners who have available insurance proceeds and choose to install these features.
• Suspends the California Environmental Quality Act and California Coastal Act permitting requirements for projects to build new sewer systems supporting damaged or destroyed homes.
• Expands a prior executive order prioritizing LA fire survivors experiencing homelessness on the waiting lists for rental housing in the Department of Housing and Community Development (HCD)’s housing portfolio to include survivors at imminent risk of homelessness. Survivors must continue to meet all HCD program eligibility requirements. 

The Governor has also expanded funding for survivors through the state’s CalAssist Mortgage Relief program, allowing thousands more California homeowners impacted by recent disasters to qualify for mortgage relief. In Los Angeles County, survivors of the 2025 wildfires with household incomes up to $211,050 may now be eligible — a $70,000 increase from the previous threshold. These actions expand on the Governor’s work with state and federally chartered banks to provide mortgage relief. Bank of America recently expanded this relief by announcing they will offer their customers affected by the fires an additional two years of mortgage forbearance, as well as offering a line of credit to assist customers in rebuilding their homes. As recovery proceeds, an all-hands-on-deck approach is necessary to ensure all survivors have the support and tools they need to rebuild.

Farmers Insurance to Expand in the State

The Executive Order comes on the heel of Friday’s announcement by Farmers Insurance that it plans to expand in the state. The state’s second largest homeowners insurer said in a press release that it will begin marketing directly to approximately 300,000 consumers in wildfire distressed areas starting in early 2026.

The company also eliminated its monthly cap on the number of new homeowners insurance policies it sells in California – effective immediately – and filed a rate application targeting new growth under Insurance Commissioner Ricardo Lara’s Sustainable Insurance Strategy.

With this action, six insurance companies, including four of the state’s top homeowners carriers – Farmers, Mercury, CSAA, USAA, Pacific Specialty, and California Casualty – have publicly committed to stay and grow in California. This marks a major turnaround from the past 30 years, when insurance companies often increased rates but reduced coverage after major wildfire disasters.

Tough decisions to keep insurance available statewide: Nearly one year after the outbreak of the most destructive wildfires in state history, Commissioner Lara has protected wildfire survivors while stabilizing an insurance market in crisis after back-to-back years of wildfire disasters.

• The Department has recovered more than $147 million for wildfire survivors through our intervention on complaints filed. To date, insurance companies have paid more than $20 billion on more than 41,800 claims, with 92% of claims fully paid or underway, per the Department’s LA County Wildfire Claims Tracker.
• To increase transparency for wildfire survivors and speed up payment of claims, Commissioner Lara issued a legal Notice requiring all insurance companies to completely disclose claims-related documents to policyholders.
• Filed a legal action against the FAIR Plan for mishandling smoke damage claims. The FAIR Plan action is pending a judge’s review.
• Opened a market conduct examination of State Farm over its claims handling. The Department is conducting a thorough investigation as dictated by law and will publicly release the results as soon as possible.
• Enforcing all requirements under law including new protections that Commissioner Lara championed in 2020 making clear that “Additional Living Expenses” apply when a home is uninhabitable.
• In a proactive effort to secure the financial stability of Californians, announced a groundbreaking regulation to prevent future insurance crises resulting from climate disasters, cybersecurity threats, and misuse of artificial intelligence. The Long-Term Solvency Regulation aligns with the Commissioner’s work as a member of the International Association of Insurance Supervisors, and is the latest example of how he is using global tools to safeguard Californians.
• Thoroughly reviewing rate filings so consumers do not pay more than is required. The companies committing to stay and grow have all requested rate increases of 6.9%, identical to thousands approved by past insurance commissioners without a promise of increased coverage.

“In this rapidly evolving landscape, we must expect the unexpected. That means having the right tools and making tough decisions to protect consumers and maintain a sustainable market,” said Commissioner Lara. “I’m here to finish the job — and leave the next Commissioner in a stronger position than I inherited.”

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