Daily Property & Casualty Insurance News
California Edition

A new law eliminates the requirement for wildfire survivors to submit detailed inventories of lost personal contents, mandating insurers pay 60% of coverage limits up to $350,000 automatically. Additional measures include the California Safe Homes Grant Program for fire-resistant upgrades and extended protections against non-renewals for businesses and nonprofits.[1]

Senate Bill 876 requires insurers to submit disaster recovery plans to the CDI and doubles penalties for fair claims violations during emergencies, addressing delays in payments following the Los Angeles wildfires. The bill also expands policy limits for living expenses and mandates quicker up-front payments for total losses.[2]

California wildfires contributed $40 billion to property insurance losses in 2025, the largest single event despite a quiet hurricane season overall. Ample reinsurance capacity is expected to soften rates in 2026, benefiting primary insurers through improved homeowners profitability.[4]

The Los Angeles wildfires generated $40 billion in insured losses, the largest wildfire event in U.S. history, primarily impacting regional and mutual insurers. Commercial lines carriers were largely spared, supporting stable property-casualty results in 2026 amid softening reinsurance rates.[5]

While U.S. property insurance rates decline nationally due to reinsurance influx, California workers’ compensation sees a 9% rate increase approved by the insurance commissioner. Businesses in catastrophe-prone areas like California continue facing stringent terms despite overall market relief.[3]