Daily P&C Insurance News

Nine months after a wildfire destroyed his southern California home, Mark Johnson is still awaiting payment from State Farm, forcing his family to delay rebuilding. Industry groups note insurers have paid billions but acknowledge frustrations with the pace amid widespread claims.[1]

The January 2025 Los Angeles wildfires destroyed over 16,000 properties and generated $22 billion in claims, stressing California’s P&C insurance sector. FAIR Plan exposure has surged to nearly $700 billion, creating systemic risks as admitted insurers retreat from high-risk areas.[2]

Senate Bill 876, the Disaster Recovery Reform Act, mandates disaster recovery plans from insurers and doubles penalties for claims violations during emergencies. It expands living expense coverage and up-front payments to accelerate recovery for wildfire survivors.[3]

Southern California’s wet November raises flood and mudslide concerns, likely sustaining high reinsurance costs and pushing home insurance premiums up 20% or more into 2026. New regulations allow better risk pricing, but high-risk areas face continued non-renewals and stricter terms.[4]

New laws effective January 1 require insurers to pay 60% of contents coverage up to $350,000 after total home losses in disasters. The measures enhance wildfire safety, transparency, and consumer protections amid rising climate-driven insurance challenges.[5]