The Board of Equalization (BOE) convened on June 18, 2025, to address critical issues surrounding insurance coverage for Californians affected by recent firestorms. The meeting focused on the ongoing challenges of underinsurance and the need for greater transparency and accountability in the insurance industry.

The session began with a report highlighting the findings from an informational hearing on survivors' recovery from California firestorms. A board member emphasized the silent threat posed by algorithmically driven underinsurance, noting that many property owners are unaware of their financial vulnerabilities. The report outlined several policy options aimed at enhancing consumer protections, including calls for improved transparency from insurers and the providers of algorithmic information sources.

The board member expressed concern over the long-term impact of underinsurance on individuals who have suffered losses due to natural disasters. Many victims from previous fires have yet to recover adequately, and the current insurance landscape is described as a "tattered safety net." The member committed to exploring legislative options to revise the insurance code, specifically advocating for a requirement that insurers inform policyholders about the implications of full replacement coverage.

Following the report, public comments were invited, with David Schafer, an independent insurance agent, addressing the board. He acknowledged a previous communication error regarding his proposal to reform home insurance in California, which aims to tackle the underinsurance crisis. Schafer outlined ten key reforms he believes are necessary to address the flaws in replacement cost estimators used by insurance agents and companies.

The meeting concluded with a commitment from board members to further discuss the proposals and work collaboratively towards solutions that ensure fair treatment for all Californians facing insurance challenges. The board plans to revisit these topics in future sessions, emphasizing the importance of safeguarding consumer interests in the insurance market.