Daily P&C Insurance News

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 and fire-safe roof replacements. Starting July 1, 2026, residential policies must include at least 10% building code upgrade coverage as additional coverage for fire-resistant rebuilding standards.

SB 495: Faster contents payments after total loss for wildfire survivors

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

AB 226: FAIR Plan Stability Act provides liquidity tools

AB 226 authorizes the California FAIR Plan to access catastrophe bonds and lines of credit to ensure prompt claim payments after major disasters without triggering assessments on policyholders. FAIR Plan policyholders receive the same rebuilding timelines and protections as standard policies after declared emergencies.

California Homeowners Could Face 16% Insurance Rate Jump in 2026, Report Says

Insurify projects a 16% rise in California home insurance rates by end of 2026 due to $41 billion in 2025 Los Angeles wildfire losses and advanced risk modeling. Regulatory constraints and election year politics may limit increases below economic justifications despite cumulative 34% rises since 2023.

New California Insurance Laws on the Books in 2026 – Eliminate “The List” Act (SB 495)

SB 495 eliminates the requirement for wildfire survivors to submit detailed itemized lists for contents reimbursement after total loss in qualifying disasters. Insurers must advance 60% of contents coverage limits up to $350,000 immediately, with full reimbursement available for those providing detailed inventories.