Daily California P&C Insurance News

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. This mitigation work intersects with new requirements for residential policies to include at least 10% building code upgrade coverage starting July 1, 2026.

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 emergency and mandates advance payments for additional living expenses.

AB 226 authorizes the California FAIR Plan to access catastrophe bonds and lines of credit to ensure prompt claims payments after major disasters without triggering assessments on policyholders. FAIR Plan policyholders receive the same statutory protections as other insurers for rebuilding timelines and living expense coverage.

Insurify projects a 16% increase in California home insurance rates by end of 2026 as insurers recoup $41 billion in 2025 Los Angeles wildfire losses using advanced risk modeling. State Farm secured a 17% emergency rate increase following early 2025 wildfires, though regulatory pressures may limit further hikes.

The Eliminate “The List” Act eliminates the requirement for wildfire survivors to submit detailed inventories before receiving contents reimbursement after total loss. Insurers must advance 60% of contents limits (up to $350,000) immediately, with full reimbursement available for those providing detailed lists.