California's home insurance crisis: What went wrong, how it can be fixed and what owners can do

Climate change and extreme weather have contributed to catastrophic fires that destroyed thousands of California homes in recent years — and an insurance crisis that could result in the biggest set of regulatory changes since the passage of Proposition 103 in 1988. Insurers have pulled back from the homeowners market, leading to a flurry of activity in Sacramento aimed at making coverage available and affordable for at-risk residents in places like the Santa Monica Mountains and Malibu.

Will the commissioner's reforms fly? In February, Lara introduced draft regulations to streamline the rate approval process for insurers in the homeowners, auto and other markets, rules originally created by Proposition 103, the state's landmark insurance reform law. Lara says the regulations were established in an 'age of pagers and pay phones' and don't precisely specify the materials and information for a timely review.

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