Under a new state regulation, insurance companies in California will have to offer coverage to homeowners in wildfire-prone areas. The new regulation aims to give residents access to more insurance options after major companies pulled coverage from some areas, according to KABC.

Insurance companies will be required to write policies in those areas equivalent to no less than 85% of their statewide market share. Coverage won’t increase to that level immediately. Instead, companies will be given a requirement of a 5% increase every two years.

“Californians deserve a reliable insurance market that doesn’t retreat from communities most vulnerable to wildfires and climate change,” according to Insurance Commissioner Ricardo Lara.

The City of Pasadena has taken steps to make its voice heard in an effort to convince Gov. Gavin Newsom to take steps to protect homeowners. Last year, the City Council approved a resolution that called for California’s Governor, Insurance Commissioner, and State Legislature to take immediate steps to stabilize the state’s property insurance market.

Mayor Victor Gordo invited the insurance commissioner to speak to the City Council in the future.

State Farm stopped writing new policies for California homeowners, and Allstate limited its policies. The Department of Insurance approved rate increases totaling 34% and 30%, respectively. According to media reports, those actions were taken due to a number of factors, including the rising cost of rebuilding homes and the increasing frequency and severity of natural disasters, including wildfires. Several other insurers have also announced plans to limit new policy offerings.

Allstate is California’s fourth-largest insurer and provides coverage for 350,000 homeowners. In September, State Farm projected that it could drop more than 1 million California policies over the next five years due to impending financial instability. The San Francisco Chronicle reported that June filings submitted to the California Department of Insurance found that if the insurance company continues to decline, its sector involving property insurance, comprised of homeowner’s insurance and business liability, could face a total policy count drop from 3.1 million to under 2 million in just five years.