The Honorable Tom Daly
Chair, Assembly Committee on Insurance
Legislative Office Building, 1020 N Street, Room 369
Sacramento, CA 95814
RE: SB 11 (Rubio) – Support
Dear Honorable Members of the California Legislature:
On behalf of the organizations listed above, we write in support of Senate Bill 11 (Rubio), which provides a critical property insurance safety net for commercial farms and ranches in California.
Nine of the ten largest wildfires in our state’s history have occurred over the past decade, five of which took place in 2020. As the climate changes, the hots get hotter and the dries get drier, increasing wildfire threats. These substantial property losses and the increased wildfire risk have led to increased property insurance nonrenewals, not only for residential homes and businesses but for commercial farms and ranches that need basic property insurance coverage.
Unlike homes and businesses, California’s commercial farms and ranches currently cannot purchase fire insurance coverage through the California FAIR Plan. The FAIR Plan is the state’s insurer of last resort, which provides a safety net, ensuring that fire insurance is available for purchase to all, no matter the customer’s residence. Currently, the FAIR Plan is prohibited from underwriting “farm risk” which leaves hundreds of commercial farms and ranches throughout the state without coverage.
SB 11 (Rubio) solves this issue by clarifying existing law to include permanent structures used for commercial agriculture or livestock may purchase insurance from the FAIR Plan. Though this is not considered a long-term solution for the broader insurance challenges faced by Californians in high-risk areas, it ensures that insurance is available for the commercial farms and ranches currently unable to find coverage elsewhere.
We look forward to working together with the Legislature to better protect homes, communities and residents.
Respectfully,
California Building Industry Association
California Fire Safe Council
Personal Insurance Federation of California
California Farm Bureau
American Property Casualty Insurance Association
California State Association of Counties
Southern California Edison
Stronger California