Average annual insurance losses would fall by a third in the Eaton and Pacific Palisades fire area of Los Angeles if homeowners build back “fire-safe,” according to a new analysis released by the California Department of Insurance and the National Association of Insurance Commissioners.
The analysis makes the case for proposed legislation to require insurance companies to offer insurance to fire-safe homes.
SB 1076, the Insurance Coverage for Fire-Safe Homes Act, would require home insurance companies to offer and sell coverage to any homeowner who meets state fire safety standards set by the insurance commissioner. The bill was introduced by Sen. Sasha Renée Pérez who represents LA fire survivors and is co-sponsored by Consumer Watchdog and the Eaton Fire Survivors Network.
But, what is a fire-safe home?
It is designed to minimize ignition risks and resist flames, embers, and heat via fire-resistant materials, maintained defensible space, and active safety systems. The key features include ember-resistant roofing, tempered windows, non-combustible siding, and 5-100 feet of cleared vegetation.
Inside, it features working smoke detectors, fire extinguishers, and established escape plans.
The analysis found that meeting the IBHS Wildfire Prepared Home standard for the nearly 30,000 homes within the Eaton and Pacific Palisades fires’ burn perimeters would reduce average annual losses by one-third over the homes in place before the fires.
“The evidence is indisputable: If LA builds back fire-safe insurance companies will save a mint. Families fighting to rebuild have a right to know that if they invest in fire safety, insurance companies must invest in them. That’s what the Insurance Coverage for Fire-Safe Homes Act will require,” said Carmen Balber, Executive Director of Consumer Watchdog. “This isn’t just a question of LA’s recovery but keeping all of California insured.”
Joy Chen, Executive Director of the Eaton Fire Survivors Network, said: “Survivors are rebuilding stronger and safer. But if our community cannot access insurance even after making our homes fire-safe, our housing market will crater. SB 1076 protects both consumers and insurers.”
According to the analysis, the overwhelming evidence shows that hardening a home to resist fire and creating defensible space makes the home significantly less likely to burn. For example, in the fall of 2025 year the University of California Berkeley released an analysis of five recent California fires and found that wildfire mitigation can cut the risk to homes in half.
Eighty-five percent of voters surveyed in a poll by FM3 Research said they believe that home insurers should be required to cover homeowners who meet state fire safety guidelines.
SB 1076 will be heard in the state Senate Insurance Committee in April 22.
The devastating wildfires happened in January 2025 when a series of deadly wildfires struck areas of Los Angeles, and residents are still struggling to rebuild their homes, citing permitting, insurance, and financial gaps, more than a year later Fox News reported.
The Palisades and Eaton fires destroyed more than 16,000 homes and burned more than 38,000 acres, according to official reports.
“Hundreds of homes are already under construction in the Palisades, with over 1,000 permits in the pipeline. That’s real progress — but those are people who can,” LA District 11 Councilperson Traci Park recently said in a statement to FOX Business. “Thousands of others remain displaced, faced with lingering insurance disputes and a lack of access to affordable capital to rebuild.
