Mercury to Return to Paradise California as Rebuilding Efforts Gain Momentum

Mercury Insurance announced this week that the company will begin writing new homeowners insurance policies in the town of Paradise, California.

Mercury says it is the first major insurance company to begin offering policies to Paradise homeowners since the town was destroyed by the Camp Fire in November 2018.

Mercury said the move was made possible by California Department of Insurance Commissioner Ricardo Lara’s commitment to implement his Sustainable Insurance Strategy. Lara at the end of December announced what he is calling the final step in his efforts to help the state’s ailing homeowners insurance market with the Net Cost of Reinsurance in Ratemaking Regulation, which enables reinsurance as a ratemaking factor and requires insurers to increase coverage in high-risk areas.

The efforts of Paradise city officials and residents also played a pivotal role in the carrier’s decision to reenter the market, with a commitment to reducing wildfire risk through forward-thinking urban planning and mitigation strategies.

Paradise worked with the Insurance Institute for Business & Home Safety to strengthen the town’s resilience. The town updated its building ordinance in 2022 to require all new homes be built to IBHS’s Wildfire Prepared Home standard. Wildfire Prepared is based on wildfire research and the program is designed to reduce a structure’s risk of ember ignition. Requirements include a Class A roof, an exterior that features ember-resistant vents with lower six inches of vertical space, and a noncombustible Zone 0, the five-foot buffer around a house. The result is a community positioned to deal with future fire events like never before.

Headquartered in Los Angeles, Mercury Insurance is a multiple-line insurance carrier offering personal auto, homeowners and renters insurance directly to consumers and through a network of independent agents in Arizona, California, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas and Virginia, as well as auto insurance in Florida. Mercury also writes business owners, business auto, landlord, commercial multi-peril and mechanical protection insurance in various states.

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