There's some good news on the home insurance front.

After disaster hits, you expect homeowners insurance policy rates to rise.

But that's not what's happening in California.

Southern California's devastating wildfires damaged or destroyed more than 2,000 homes. But analysts say there's little if any chance homeowner policy costs will rise.

How's that possible?

California insurers understand the risk of California wildfires and plan for the danger. Insurers reserve premiums to give them the ability to pay claims after wildfires and other disasters.

That's according to Insurance & Technology, an analyst for the insurance and technology industries.

And credit rater, Moody's Investor Service agrees that the insurance industry's financial stability will remain sound after the claims are paid.

California also enforces strong consumer protection law which forbids insurers from refusing policy renewals after a declared state of emergency.

Insurers are often seen as the bad guy, but Insurance & Technology reports technology helped California's insurers quickly respond in the field to wildfire claims.

And respond they did.

After the California wildfires, several insurance companies imposed a freeze on cancellations of policies held by delinquent home owners. Others processed claims for homeowners whose policies had lapsed.

And still another company offered to rebuild some homes according to stronger "green" building code standards -- at no additional costs to the policyholder.

Southern California's wildfires scorched some 500,000 acres, resulting in nearly 23,000 insurance claims -- for auto and commercial policies, as well as homeowners policies.

Some of the losses were devastating. But, for the most part, homeowners suffering losses needn't worry about extra insurance costs.

Published: December 24, 2007

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A journalist for 35-years, Broderick Perkins parlayed an old-school daily newspaper career into a digital news service offering editorial content and consulting services. Perkins' San Jose, CA-based DeadlineNews Group includes the flagship news site, DeadlineNews.Com, offering real estate, personal finance and consumer journalism, and a backshop, the Deadline Newsroom.