Protections For California Homeowners

	Many insurance companies will raise rates or deny future coverage altogether if a homeonwner makes a claim, even if the damage is no fault of the homeowner's.

CALPIRG is supporting new rules proposed by Insurance Commissioner John Garamendi to prevent insurance companies from penalizing homeowners who file legitimate claims.

The regulations proposed by Commissioner Garamendi require insurance companies to tell their customers up front and in writing whether they will raise rates if the customers file homeowner’s insurance claims.

Additionally, the proposal would prevent insurance companies from raising rates when homeowners file claims for damage that was not their fault, such as a neighbor’s tree falling on their garage.

“Insurance companies have home-owners in a pickle,” said CALPIRG’s Steve Blackledge. “We pay month after month for protection, but when we need to use it, we’re reluctant to do so, out of fear of higher rates and canceled policies.”

The insurance industry has beaten back previous homeowners’ insurance reforms. “We expect opposition from the industry, but what’s fair is fair, and these protections are needed to ensure that homeowners are treated fairly,” concluded Blackledge.