Daily California P&C Insurance News

Senate Bill 876, introduced by Insurance Commissioner Ricardo Lara and Senate Insurance Committee Chair Steve Padilla, mandates disaster recovery plans from insurers to speed claims handling during emergencies and doubles penalties for violations. The bill also expands policy limits for living expenses, requires upfront payments for total losses, and offers extended replacement cost coverage to aid wildfire survivors’ recovery.[1]

California home insurance premiums are projected to rise 20% or more through 2025, driven by reinsurance cost surges, recent wet weather increasing flood and mudslide risks, and regulatory changes allowing better use of catastrophe models. Homeowners in high-risk Southern California areas face higher rates, potential non-renewals, and stricter underwriting as carriers adjust to elevated exposures.[2]

Farmers Insurance is eliminating its 9,500 new homeowners policies per month cap in California and filing a new rating plan with a 6.99% statewide rate increase plus enhanced 22% home/auto bundling discounts. The carrier plans to target 300,000 consumers in distressed areas identified by the Department of Insurance starting early 2026.[3]

One year after the January 2025 Los Angeles wildfires, survivors are battling insurers over delayed claims, denials, and lowballed estimates, prompting multiple legislative bills. A new state law signed by Gov. Gavin Newsom allows fire victims up to $350,000 upfront for personal property without itemized lists.[4]

One year after the deadly Eaton and Palisades fires, many Southern California survivors report ongoing insurance claim delays and insufficient payouts stalling rebuild efforts. Lawmakers and industry groups highlight issues like high deductibles and non-covered damages amid a strained home insurance market.[7]