California

Homeowners class action plaintiffs will depend on finding evidence of conspiracy in discovery process, a legal expert said, but the large scope and cost of discovery, as well as difficulty getting a summary judgment, are likely to lead defendant companies to settle.

Consumer Watchdog argues that California's insurance commissioner cannot allow the FAIR Plan homeowners insurance of last resort to pass on half a $1 billion assessment to consumers.

AB 226, a borrowing mechanism bill passed by the state assembly, allows bond issues supporting the homeowners insurer of last resort – but doesn't specify traditional financing or catastrophe bonds. Cat bonds would not have to be paid back. Also, a climate finance policy advisor said, the bill doesn't account for future disaster risks.

Recent wildfire updates include the Federal Housing Authority's waiving of quality-control reviews and the upheaval of the state's commercial real estate space.

State lawmakers approved a trailer bill to last year's budget that aided Medi-Cal and provided funding to local governments affected by January's wildfires.

Insurers resort to subrogation when they suspect that a third party is ultimately responsible for the losses. Rather than deal with the recovery risk, insurers have been selling claims on to alternative investment managers.

Insurers had already doled out more than $12 billion to pay for wildfire damages as of early March, according to California state officials.

California is emerging from its wettest time of the year with new fire and drought risks.

The measure applies to mortgages closed in the months prior to the Southern California wildfires, which are now experiencing early-stage distress.

Offices, apartment buildings and retail locations in Los Angeles face a tangle of difficulties as the smoke clears from January's wildfires. High on the list is inadequate insurance, a common problem in California.