LOYALTON — Today, Sierra County Supervisor Lila Heuer raised concerns with the Board of Supervisors about significant year-over-year increases in insurance prices, particularly for local businesses. Heuer has been asking the public in person and via social media about difficulty with insurance, finding that many businesses are struggling to keep up with payments.
According to Heuer, Sierra County gas stations are paying over $14,000 per year in insurance. Small restaurants like the Red Moose in Sierra City pay upwards of $17,000 per year, and Sabrina’s at the Forks in Downieville pays more than $15,000. Worryingly, Heuer reported that prices jumped as much as $3,000 within the last year. Residents have also struggled with high fire insurance costs for many years, and several have been denied coverage.
Heuer names California Proposition 103 as a culprit for rising costs and declining insurance availability. Passed in 1988, the proposition requires insurance companies to have rate adjustments approved by the California Department of Insurance (CDI). The law has caused several insurance agencies to either significantly reduce or entirely remove their presence in California in the last few years as rate approvals fail to keep up with inflation and perceived increased wildfire risk.
Shasta County has already written a letter to the Governor regarding high insurance costs. In the letter, the County urges Governor Newsom to declare a statewide state of emergency and take immediate action to stabilize California’s insurance marketplace. They hope that action comes in the form of improving the efficiency, speed, and transparency of the CDI’s rate approval process. Shasta County hopes that in doing so, reliance on the FAIR Plan, California’s state-run insurance option for properties in high-fire-risk areas where other insurance companies refuse to offer coverage, will be reduced.
Supervisor Lee Adams will be working with Heuer on drafting Sierra County’s letter to the Governor, with Adams suggesting exact dollars be mentioned to help put the issue into perspective. Supervisor Sharon Dryden added that this may be the single biggest issue for California’s businesses and homeowners. Once the letter is drafted, it will return to the Board for approval before being sent to the Governor’s office.