Property insurers warn about flaw in new California wildfire rule

By Saqib Rahim | 08/21/2026 06:32 AM EDT

A state prohibition on vegetation near homes is undermined by an exception that lets localities write their own rules, insurers say.

Flames consume a home as the Gann Fire burns near Copperopolis, California.

California is trying to reduce wildfires such as this blaze near Copperopolis by prohibiting vegetation near many homes. The insurance industry says an exception to the prohibition will weaken it. Noah Berger/AP

New wildfire-safety rules in California are getting a tepid reception from the insurance industry, which says they may be insufficient to prompt property insurers to write more policies in the disaster-prone state.

California regulators on Wednesday finalized first-in-the-nation requirements that people in fire-exposed parts of the state must remove flammable material from and limit vegetation in a 5-foot area around their homes. Removing combustibles close to homes lowers the chance a property will ignite, researchers say.

But the regulation falls short, insurers say, because it lets localities make exceptions.

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“A standard that changes from place to place may not be useful or helpful in assessing risk,” Christian Rataj, a vice president with the National Association of Mutual Insurance Companies, said in an emailed statement. Insurers had sought a standard that was mandatory statewide.