Department of Insurance: housing insurance study.

Assembly Member Mark González's proposal for a comprehensive study of insurance coverage in California's affordable housing sector aims to address mounting concerns over insurance availability and costs. The Department of Insurance would examine property, liability, and builders' risk insurance coverage available to affordable housing entities that receive state grants, loans, or tax credits.

The study would require insurers to provide data about coverage offerings, pricing, and underwriting practices affecting affordable housing properties. The Department would analyze how insurers consider factors like resident income levels, housing assistance payments, and affordability restrictions when making coverage decisions. While insurers must share relevant information, the bill classifies this data as confidential trade secrets, allowing public release only in aggregate form.

Within one year of receiving appropriated funds, the Department would submit recommendations to legislative insurance committees on policy and budget options for addressing coverage access and cost challenges. The Department would develop these recommendations in consultation with affordable housing entities, insurers, nonprofit insurance providers, risk-sharing pools, and state housing agencies. The bill's provisions would sunset on January 1, 2031, unless extended by future legislation.