Daily P&C Insurance News

Senate Bill 876, the Disaster Recovery Reform Act, requires insurers to submit disaster recovery plans for claims handling during emergencies and doubles penalties for violations. It expands policy limits for living expenses, mandates upfront payments for total losses, and offers extended replacement cost coverage to aid wildfire survivors.

Insurance Commissioner Ricardo Lara issued a bulletin preserving residential property insurance for over 147,000 policyholders in areas affected by the Gifford Fire, shielding them from non-renewals for one year. This action, enabled by a 2018 law he authored, supports wildfire-impacted communities amid efforts to stabilize California’s insurance market.[2]

California home insurance premiums are projected to rise 20% or more by end-2025 due to reinsurance costs, wildfires, and recent wet weather increasing flood risks in Southern California. Regulatory changes now allow better catastrophe modeling, potentially leading to higher rates in high-risk areas but more carrier participation long-term.[3]

One year after the Eaton and Palisades fires, numerous Southern California survivors continue experiencing delays and issues with insurance claims. The ongoing problems highlight persistent challenges in the state’s property insurance handling for major catastrophes.[5]

California’s FAIR Plan, the insurer of last resort, saw its exposure increase by 37% year-over-year after adding more in the fourth quarter. This growth underscores ongoing pressures in the voluntary property insurance market amid wildfire risks and carrier retreats.[8]