Daily P&C Insurance News

California Headlines

Wildfire Mitigation & Home Hardening

New California insurance laws taking effect in 2026: What policyholders need to know

AB 888 establishes the California Safe Homes Grant Program to help low- and moderate-income homeowners fund ember-resistant work in Zone Zero and fire-safe roof replacements.[1] This mitigation work intersects with new requirements for residential policies to include at least 10% building code upgrade coverage starting July 1, 2026.[1]

Contents Coverage Protections

Faster contents payments after total loss (SB 495)

SB 495 requires insurers to pay 60% of contents coverage limits (capped at $350,000) to wildfire survivors experiencing total loss without an item-by-item inventory.[1] The law extends proof of loss deadlines to 100 days after a declared emergency and mandates advance payments for additional living expenses.[1]

FAIR Plan Stabilization

FAIR Plan claim payment stability (AB 226)

AB 226 authorizes the California FAIR Plan to access catastrophe bonds and lines of credit to ensure reliable claim payments after major disasters.[1] FAIR Plan policyholders receive the same rebuilding timelines, contents advances, and living expense protections as standard policies after emergencies.[1]

Commercial & HOA Protections

The Business Insurance Protection Act (SB 547)

SB 547 extends one-year non-renewal prohibitions after fires to businesses, HOAs, condos, affordable housing, and nonprofits.[2] This provides the same post-disaster coverage stability homeowners receive to critical commercial and community properties.[2]

Wildfire Risk Transparency

How insurers decide your wildfire risk (SB 429)

SB 429 increases transparency in how insurers assess wildfire risk for underwriting and premium decisions.[1] Combined with AB 1’s wildfire mitigation discounts, these laws aim to reward fire-hardening while providing clearer risk evaluation criteria.[1]