Daily P&C Insurance News

A new suite of California laws aimed at improving property insurance took effect on January 1, focusing on wildfire safety and consumer protections. The legislation increases transparency and customer convenience amid rising climate-driven disasters that make insurance more expensive and less available.[1]

Senate Bill 876, the Disaster Recovery Reform Act, requires insurers to submit disaster recovery plans for claims handling and doubles penalties for violations during emergencies. It expands policy limits for living expenses, up-front payments, and building code upgrades to speed recovery for wildfire survivors.[3]

California home insurance premiums are projected to rise 20% or more by end-2025 due to reinsurance costs and flood/wildfire risks in Southern California. New regulations allow better alignment of rates with catastrophe models, potentially leading to higher prices in high-risk coastal and hillside areas.[4]

The California Department of Insurance released its 2026 guide for adjusters handling property claims after major disasters like wildfires, outlining requirements for advance payments, grace periods, and building code coverage. It emphasizes timely actual cash value payments and extended timelines for replacement cost recovery during states of emergency.[5]

The California Council for Affordable Housing anticipates the 2026 Insurance Commissioner election will impact property/casualty rates and market activity amid wildfire risks and insurer exits. Escalating premiums, nonrenewals, and FAIR Plan reliance have hit affordable housing developers hardest.[6]