Daily P&C Insurance News

A new law (SB 495) requires insurance companies to pay 60% of contents coverage limits, capped at $350,000, to wildfire survivors experiencing total home loss without needing a detailed inventory list upfront. Customers submitting a full list can receive 100% coverage, streamlining claims for disaster victims.

Home insurance costs in California have risen 16.1% since 2023, with projections for another 16% increase by end of 2026 due to advanced risk modeling and market factors. Regulatory pressures and election-year politics may cap increases at this level despite economic justifications for higher hikes.

AB 888 creates the California Safe Homes Grant Program to fund ember-resistant Zone Zero work and fire-safe roof replacements for low- and moderate-income homeowners in wildfire-prone areas. Applications may open in spring 2026, with policyholders advised to document current conditions and gather contractor bids for eligibility.

The Business Insurance Protection Act (SB 547) applies California’s one-year wildfire non-renewal moratorium to commercial properties, HOAs, condos, affordable housing, and nonprofits after declared emergencies. Business owners and HOA members should verify moratorium applicability on any non-renewal notices and consult brokers.

AB 226 allows the California FAIR Plan to secure catastrophe bonds and financing through the Infrastructure Bank, subject to Commissioner approval, enhancing claim payment stability. FAIR Plan policyholders retain the same post-emergency protections as standard policies, including extended timelines for claims and rebuilding.