Under a new insurance regulation that just got approved this week, California Insurance Commissioner Ricardo Lara said homeowners should have an easier time buying fire insurance.

The insurance crisis has been unfolding in the state for the last couple of years, with companies leaving or dropping customers, especially those who live in wildfire-prone areas.

"How much is my premium going to be and am I getting dumped? I worry about it all the time, especially because everybody around me is getting cancelled," said Oakland Hills homeowner Catherine Johnson.

Johnson lives in a house that was rebuilt after the 1991 Oakland Hills firestorm destroyed the original structure.

"[My premium] went from $5,000 a year to $7,000 a year for my last payment period. And I'm just crossing my fingers that I'm not getting cancelled when the term expires. That's my biggest fear," said Jonhson.

Many of her neighbors are on the FAIR Plan, which is California's insurer of last resort.

Commissioner Lara announced on Friday his plan, to allow companies to use catastrophe models and climate change to set higher rates, got the approval from the Office of Administrative Law.  He said in exchange, companies promised to sell policies in areas with the greatest fire risks, areas like Wine Country, the Santa Cruz Mountains, and the Oakland Hills.

"This is the first time in California that there's a requirement for insurance companies to write policies and we're going to be enforcing that," said Michael Soller, a deputy insurance commissioner at the state's insurance department.  He said the new regulation will require companies to try to cover 85 percent of homes in designated fire-prone zip codes.

But critics said the new rule has too many loopholes.

"The regulation allows insurance companies to use secret algorithms to raise rates unaccountably. Californians will be paying more, but not have any greater access to coverage," said  Executive Director Carmen Balber.

Balber predicted the insurance companies will make more money with the new higher rates, but the insurance crisis will remain.

"What the insurance commissioner has done is fold to the insurance industry's blackmail," said Balber.  

"We are focused on bringing solutions to Californians, bringing more policies into the market so that the Fair Plan isn't the only option for people. Consumer Watchdog is bringing cynicism," said Soller.

Homeowners said they're desperate for change. One man even thought about moving to a low fire risk area.

"We expect that [our insurance] will be cancelled. But we hope maybe this new development will [change that]," said Oakland Hills resident Stephen Shefler.

Johnson said she's willing to try the new model if it can increase affordability and accessibility.

"Hopefully, it would attract some of the carriers that have made an exodus.  Maybe they'll come back, and we'll have a more competitive market," said Johnson.

State officials believed companies will use the catastrophe models to set pricing starting in mid-2025.  They believed it'll stabilize the market.

Commissioner Lara's office said the new regulation is part of the bigger strategic plan to reform the insurance industry.  They're still working on other parts of his "Sustainable Insurance Strategy."