CLTA Signs Coalition Letter Urging Legislature to Preserve Subrogation Rights

CLTA joined a housing coalition letter urging the Legislature to reject any proposals to eliminate subrogation, amid a last-minute push by the Governor’s office and utility companies. 

The letter was a response to end-of-legislative-session efforts to bail out utilities by restricting the utility shareholder liability for wildfires caused by their equipment. Opponents argued that, if successful, the proposal could be harmful for homeowners and businesses seeking property insurance, and add further strain to the housing market and business community. Actuarial estimates done by both the Governor’s Office and the insurance trades indicated that the proposal would likely cost homeowners an additional $250 per year in homeowner’s insurance premiums in the non-distressed areas of the state, and over $500 for those in distressed areas. The proposal, which ultimately did not move forward in the Legislature, was also seen as a potential setback for the Insurance Commissioner's Sustainable Insurance Solution and reverse incentives for property insurers to return to California, should it have been passed.