Sacramento lawmakers have responded to a host of underwriting practices that make it harder to obtain homeowners' insurance. Half a dozen bills are pending in the Legislature, while Insurance Commissioner John Garamendi plans to issue new rules.
The moves follow reports in the Business Journal and other publications about homeowners being unable to get coverage or finding that their rates have skyrocketed after filing claims or simply making an inquiry about a loss.
Insurers are also grappling with investment losses, terrorism jitters and mold hysteria among homeowners.
Among the key complaints is the practice of companies classifying an inquiry as a claim even if the homeowner never formally files one.
Janine Gifford, a lobbyist with the Association of California Insurance Companies, defended the practice, maintaining that under current law companies may be obligated if inquiries turn into claims. State Sen. Jackie Speier, D-San Francisco, chairwoman of the insurance committee, has proposed a bill banning the practice. | 