Daily P&C Insurance News
California Edition

Assembly Bill 1680, the Make It FAIR Act, aims to reform the California FAIR Plan by improving customer service, claims handling, and transparency following issues identified in a recent Department of Insurance examination. The bill addresses systemic problems exposed after the 2025 Los Angeles wildfires, including delays and denials for wildfire survivors, while requiring more comprehensive coverage options and public reporting.

California lawmakers, led by Sen. Adam Schiff, demanded explanations from major insurers like State Farm and the FAIR Plan regarding strict itemization requirements for personal property losses from the 2025 wildfires. The letter highlights ongoing challenges for displaced fire victims, including multiple adjusters causing payout reductions, amid new laws allowing up to 60% of coverage without receipts.

A suite of new California laws effective January 1, 2026, enhances property insurance protections, including mandatory 60% contents coverage payments up to $350,000 for disaster victims without itemization. These measures promote wildfire safety, transparency, and consumer convenience amid rising climate-driven insurance challenges.

California wildfire survivors report significant delays in insurance rebuilding due to disputes with carriers like State Farm over claims processing. Industry groups acknowledge frustrations while noting tens of billions in payouts, as reconstruction in fire-affected Los Angeles areas remains slow.

Farmers Insurance announced it will eliminate its 9,500 new home policy monthly cap in California starting early 2026, crediting Commissioner Lara’s Sustainable Insurance Strategy. This expansion targets 300,000 consumers in distressed areas amid ongoing scrutiny of catastrophe-exposed markets like California.