Daily California P&C Insurance News

Senate Bill 876, the Disaster Recovery Reform Act, requires insurers to submit disaster recovery plans for claims handling during emergencies and doubles penalties for violations. It expands policy limits for living expenses, up-front payments, and building code upgrades to speed recovery for wildfire victims.

Insurance Commissioner Ricardo Lara issued a bulletin preserving residential property insurance for over 147,000 policyholders in areas affected by the Gifford Fire. The order prevents non-renewals or cancellations for one year in 29 ZIP codes, providing relief regardless of property loss.

Southern California’s flood and wildfire risks, combined with surging reinsurance costs, are driving higher home insurance premiums despite positive U.S. P&C growth projections. New California regulations now allow insurers to better reflect catastrophe models and reinsurance expenses in rates.

Lawmakers urged major insurers including State Farm to simplify claims processes for fire victims, following a new law allowing up to 60% of personal property coverage (capped at $350,000) without itemized inventories. The legislation extends claim filing time to 100 days and responds to survivor complaints about excessive documentation requirements.

A suite of 2025 laws effective January 1, 2026, mandates insurers pay 60% of contents coverage up to $350,000 for disaster total losses without detailed inventories. The reforms enhance wildfire safety, consumer protections, transparency, and oversight amid rising climate-driven insurance challenges.