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California creates wildfire resilience loan program tied to insurer partnerships
The program, signed into law Sept. 29, is aimed at funding home hardening and defensible space for owners who cannot pay upfront costs.
California signed SB 894 into law on Sept. 29, creating the California Wildfire Resilience Loan Program, a measure designed to support wildfire preparedness rather than imposing a moratorium, rate cap, or expanding the FAIR Plan, according to Insurance Business.
The program will provide financial assistance to property owners who want to harden homes and create defensible space but cannot afford the upfront costs, with the stated goal of improving insurability and community resilience in areas vulnerable to wildfire risk.
SB 894 also specifies who participates in delivering that financing. It authorizes the California Alternative Energy and Advanced Transportation Financing Authority to form partnerships with insurers, lenders, contractors, and local governments, including roles for insurers in identifying eligible applicants, aggregating demand, and facilitating bulk purchasing.
Eligible improvements are broad, covering home hardening and ignition-resistant features, vegetation management and defensible space treatments, and smoke mitigation retrofits, with Cal Fire cited in the bill text as part of the implementation.