Update on Efforts to Improve
Insurance Rates for Murrieta Residents
Using Wildfire Preparedness to help you secure the
best possible insurance rates in Murrieta
2-2024
Received After Agenda Printed
2/06/2024 - Regular Meeting
Item 10 - Staff Presentation
01 Understanding Fire Insurance
3 Insurance Regulations
Heavily Regulated Industry
• Prop 103 in 1988 established California Insurance
Code Sections 1861.01-1861.16 (Title 10 of the CCR)
• Competitive Rating System (1861.02-1861.09):
Allows insurers flexibility in setting rates based on
risk factors, potentially lowering rates for low-risk
individuals but raising them for high-risk groups.
• Territorial Rating and Filing of Rates (1861.13-
1861.16): Give insurers some leeway in setting rates
based on location and risk, leading to variations for
different areas and individuals.
4 • The Safer from Wildfires initiative is a
list of home hardening and fire
preparation steps a homeowner can
take, which is supposed to bring
them reduced premiums, but we
have not seen this executed yet.
Recent Fire Insurance actions
February 3, 2023, Insurance Commissioner Ricardo Lara
released Bulletin 2023-2
Updates Title 10 of the California Code of Regulations
Insurance plans will be required to have a rate plan that takes into account individual home wildfire mitigation.
Gave insurance agencies 180 days to comply and submit
a new rate plan
Based the wildfire mitigation on the Safer for Wildfires initiative
5 • 9/23/2023 Executive Order N-13-23
issued – New Insurance Regulatory
Actions. Signed by Governor Newsom.
• Requires insurance agencies to write no
less than 85% of their statewide market
share in distressed areas (It is likely this
would pull people out of the fair plan
because they will have insurance
available to them in the free market)
• Recognize Mitigation and Hardening
requirements to appropriately price
plan. (Utilize the Safer From Wildfires
home hardening regulations)
Recent Fire Insurance actions
• In the press release from the state for
this new Executive Order is the
following:
• “Insurance companies will not write in
high-risk areas unless they can cover
100% of consumer claims their
expenses, and make a fair return”
• This is laying the groundwork
for increased insurance
premiums on residential
properties.
6 State of Residential Fire Insurance
7 of the top 12 insurance agencies in California have paused or suspended writing policies for new properties
People are being forced into the FAIR plan, which should be a last resort, not a first resort.
There is little to no communication from the Insurance commission or agencies to local fire departments.
Anticipate Insurance rates to increase as commercial real estate insurance has already There is no measure of current fire code
enforcement carried out by local fire agencies.
MFR completed 14,000 Defensible space inspections last year, and it had 0 impact on insurance for the residents.
02 What is coming?
8 Safer From Wildfires
Initiative to have homeowners take mitigation
steps to lower their risk
• Safer from Wildfires is a ground-up approach to
wildfire resilience with three layers of
protection — for the structure, the immediate
surroundings, and the community. Following
these achievable steps can help you save
money on your insurance.
• To date, we have not seen how this will impact
rates.
10 Wildfire Mitigation
Score – Core Logic
Standardizing the measurement of risk on a
parcel level
• The Wildfire Mitigation Score is a deterministic
wildfire model, which is both comprehensive and
granular. Wildfire Mitigation Score was built off the
widely accepted Wildfire Risk Score model, while
also utilizing the full simulation U.S. Wildfire
probabilistic model to validate the relativities
associated with each of the mandatory mitigation
factors.
• It is a 0.1-100 risk score to allow for easy
integration into existing workflows, with
supplemental information for use in underwriting
guidelines.
• Will at least set a standard measuring stick to
assess risk
Utilizes AI and comprehensive data sets to model risk
03 What can Murrieta do to
help lower insurance rates?
Unfortunately… not much.
Fire Department ability to help
Fire Departments can only do two things under the Safer From Wildfires Initiative to help residents lower their insurance rates:
1. Assists Neighborhoods to become Fire Wise Communities
2. Be recognized as a Fire Risk Reduction Community by the Board of Foresters
* Robust enforcement of Defensible Space is likely also to improve insurance rates
14 Firewise
Communities
Residents Reducing Wildfire Risk
• Firewise USA® is a voluntary
recognition program that provides a
framework to help neighbors get
organized, find direction, and take
action to increase the ignition
resistance of their homes and
communities from wildfire.
• Formation requires at least 8 and up to
2,500 homes.
• Managed by NFPA – MFR can help our
communities with this process.
15 Fire Risk Reduction Community
• Cities can apply to be identified as a
Safer From Wildfire Community as
outlined in Public Resource Code
Section 4290.1.
• Reserved for communities that meet
the best practices for local fire
planning.
• Application period is now
open. MFR is in the approval
process.
04 Defensible Space in Murrieta
17 35.4 square miles
119,182 population
Murrieta
MFR inspected over 14,000 properties in Murrieta to ensure DSI compliance 19 ZONE 0:
Established by AB 3074 in 2020 Zone 0
establishes an Ember Resistant Zone
*applies to the VHFSZ only in LRA
Zone 0: The Ember-Resistant Zone (0-5 feet from your home) • This zone should be free of all flammable
materials, including vegetation, mulch, and debris.
• You can use hardscaping, such as gravel or pavers, in this zone.
• Trim tree branches away from your home and roof.
Zone 1: The Immediate Zone (5-30 feet from your home)
• This zone should be dominated by low-growing, fire-
resistant plants.
• Remove dead leaves, pine needles, and other debris
from this zone.
• Space trees out so that their crowns do not touch.
05 Questions?