Daily P&C Insurance Agent News
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Daily California P&C Insurance News
Wildfire Insurance Protection
Insurance Commissioner Ricardo Lara ordered companies to preserve residential property insurance for over 147,000 policyholders in 29 ZIP codes affected by the Gifford Fire, providing a one-year moratorium on non-renewals or cancellations from the December 23 emergency declaration date. This action, enabled by a 2018 law authored by Lara, offers relief to wildfire-impacted communities regardless of property loss.[1]
FAIR Plan Reforms
Bill Introduced to ‘Transform’ the California FAIR Plan
Assembly Bill 1680, the Make It FAIR Act, authored by Assemblymember Lisa Calderon and sponsored by Commissioner Ricardo Lara, aims to reform the FAIR Plan by improving claims handling, customer service, transparency, and offering comprehensive homeowners coverage options. The bill responds to a Department of Insurance examination revealing systemic issues, including delays and denials for wildfire survivors after the 2025 Los Angeles fires.[3]
Fire Claims Payouts
Insurers forced to defend claims policies for fire victim payouts
Lawmakers urged major insurers like State Farm and the FAIR Plan to ease itemization requirements for fire victims, following complaints of excessive demands for receipts and photos after recent wildfires. A new October 2025 law mandates up to 60% of personal property coverage (capped at $350,000) without detailed inventories in declared disasters, with the Department of Insurance examining claims practices.[4]
New Insurance Laws
New California Insurance Laws on the Books in 2026
A suite of 2025 laws effective January 1, 2026, enhances property insurance by mandating 60% contents coverage payouts up to $350,000 without itemization in disasters, while promoting wildfire safety, transparency, and consumer protections amid rising climate-driven costs. These measures aim to provide stability as natural disasters accelerate, making insurance more expensive and harder to obtain.[5]
Home Insurance Rates
2026 Home Insurance Rates: Will SoCal’s Record-Wet Months Push Premiums Higher?
Southern California’s flood and mudslide risks in high-value neighborhoods, combined with surging reinsurance costs and new regulatory allowances for catastrophe modeling, are driving higher home insurance premiums in 2026. While short-term rates rise in risky areas, long-term changes may encourage more carriers to return by better aligning premiums with actual risks.[2]
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