California Property & Casualty Insurance Daily Briefing

One year after the January 2025 Los Angeles wildfires, widespread complaints about slow, denied, and underpaid claims have spurred lawmakers to introduce multiple bills targeting insurers’ disaster claims practices.[1] Among other measures, the proposals would mandate disaster recovery plans, require clearer damage assessments, and expand up‑front payments for personal property to help survivors rebuild faster.[1]

California’s proposed Disaster Recovery Reform Act (SB 876), introduced on the anniversary of the L.A. wildfires, would require insurers to file disaster recovery plans, expand additional living expense limits, and mandate faster payments with interest penalties during declared emergencies.[2] The bill also calls for broader replacement cost coverage and automatic code upgrade coverage, aiming to speed up recovery and stabilize the state’s strained homeowners market.[2]

California home insurance premiums are projected to rise roughly 20% or more from 2023 through the end of 2025, with Southern California’s extremely wet November adding new concerns about flood, mudslide, and reinsurance-driven cost pressures heading into 2026.[3] While some global reinsurance pricing may soften, high‑risk wildfire and flood areas in California are expected to continue facing elevated rates, tighter underwriting, and more nonrenewals.[3]

A year after the deadly Eaton and Palisades fires, many Southern California survivors report delayed and insufficient insurance payments that are slowing or stalling rebuilding efforts.[6] Consumer advocates warn that the experience is exacerbating stress on California’s already fragile home insurance market, as homeowners question both the availability of coverage and whether carriers will pay promptly after future disasters.[6]

Regulators have allowed a California home insurer to nonrenew more than 1,300 policies concentrated in high wildfire‑risk areas, including parts of the Los Angeles and San Diego regions.[10] The move highlights continuing capacity constraints and underscores how carriers are reshaping their books away from the most exposed zones, pushing more homeowners toward surplus lines and the FAIR Plan.[10]