Mercury returns to Paradise California as rebuilding efforts gain momentum

Mercury Insurance has announced that it will begin writing new homeowners insurance policies in Paradise, California, becoming the first major insurer to return to the area since the devastating Camp Fire in November 2018.

The Camp Wildfire became the deadliest and most destructive wildfire in California’s history after devastating the town of Paradise on November 8, 2018. It went on to destroy a total of 18,793 structures, killing 85 people and burned through 153,336 acres.

Mercury’s return to Paradise was enabled by California Department of Insurance Commissioner Ricardo Lara’s Sustainable Insurance Strategy, which is designed to provide California consumers with a wider variety of home insurance options. 

At the same time, Paradise’s efforts to combat wildfire risk also played a  pivotal role in Mercury’s decision to re-enter the market.

It has been reported that Paradise worked with the Insurance Institute for Business & Home Safety (IBHS) to strengthen the town’s resilience. In fact, the town updated its building ordinance in 2022 to require all new homes be built to IBHS’s Wildfire Prepared Home standard.

Importantly, wildfire prepared is based on years of research and the program is designed to reduce a structure’s risk of ember ignition, with requirements including 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.

Victor Joseph, President and Chief Operating Officer of Mercury Insurance, commented: “Mercury’s return to offering homeowners coverage in Paradise, California is the result of hard work by the City and its residents, the State and numerous individuals and organizations who have reimagined how a town can grow and thrive in an area prone to wildfires. Our team has taken numerous trips to the city to see the transformation firsthand, and what we’ve seen makes us confident that Paradise can serve as a model for other cities facing similar challenges.”

Roy Wright, IBHS President and CEO, said: “The Town of Paradise has been thoughtful in its approach and is working hard to rebuild the community in a way that will not only provide better protection, but also make it more insurable. Wildfire has a role in nature. Yet, the goal we aim to achieve is to keep it from entering our neighborhoods and consuming homes. And that’s where Paradise is leading the way in community resiliency, using our research to build back stronger. That is more appealing for insurance companies like Mercury.”

Joseph, added: “It’s vital the insurance industry supports the efforts of communities and homeowners to build greater resilience against wildfires. We are working with a number of communities in higher risk areas to build on what we’re doing in Paradise, and we anticipate Mercury will continue to grow our customer base in these areas. This is the direct result of not only the Commissioner’s Sustainable Insurance Strategy, but also the leadership and dedication of Governor Gavin Newsom, who has significantly grown and improved the state’s ability to manage and fight wildfires.

“If communities take proactive steps to better protect their community and homes, we believe the insurance industry should acknowledge these efforts by doing our part to provide coverage at an affordable price. We’re proud that Mercury is the first major insurance company to come back to Paradise, because this town has done their part and now it’s our turn to do ours.”

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