Daily P&C Insurance Agent News
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California Property & Casualty Daily Briefing
Curated news on California P&C regulation, markets, and catastrophe risk.
California Headlines
State Farm’s California Homeowners Rate Request Nears Final Settlement
State Farm General, the California Department of Insurance and Consumer Watchdog have reached a three-party settlement that would lock in an emergency 17% homeowners rate hike while providing refunds with interest to certain rental and condo policyholders. The deal, which also ties into plans for a new state-organized wildfire reinsurance entity called CAL Reinsure, still requires approval from an Administrative Law Judge and Insurance Commissioner Ricardo Lara.
New California Insurance Laws Take Effect to Improve Wildfire Coverage
A package of California laws effective January 1, 2026, strengthens property insurance protections by promoting wildfire safety, expanding consumer rights, and streamlining claims. Key provisions include eliminating detailed post-fire contents inventories for partial payouts and extending nonrenewal protections to businesses, HOAs, affordable housing and nonprofits after declared disasters.
California Bill Would Require Insurers to Cover Fire-Hardened Homes
SB 1076, introduced in the California Legislature, would mandate that insurers offer and renew homeowners coverage for properties that meet wildfire safety standards set by the insurance commissioner starting in 2028. Supporters say the bill protects consumers who invest in mitigation, while insurers warn it could force carriers out of high-risk markets and further strain the state’s homeowners and auto insurance sectors.
New California Laws Aim to Stabilize FAIR Plan and Speed Wildfire Claims
Nine new laws sponsored by Insurance Commissioner Ricardo Lara, effective January 1, 2026, create a wildfire safety grant program, expand insurance discounts and accelerate payouts for wildfire survivors. The FAIR Plan Stability Act also authorizes the state’s insurer of last resort to tap catastrophe bonds and credit facilities to bolster its ability to pay claims after major disasters.
California Lawmakers Propose Overhaul of Disaster Claims and Payout Rules
Several California bills, including SB 876, SB 877 and SB 878, would reshape property insurance claims by requiring faster payments with interest, expanding upfront payouts after total losses and imposing strict timelines and penalties for delays. The measures also call for broader disclosure of loss estimates and mandatory disaster recovery planning by insurers, potentially increasing both consumer protections and carrier compliance burdens.
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