Insurance ‘horror stories’ after wildfires prompt California lawmakers to consider reforms
"Californians hard hit by these disasters should not be hung up by insurance company red tape as they rebuild their lives," said Insurance Commissioner
A package of 10 proposals, unveiled by Jones and lawmakers representing areas devastated by the Wine Country and Thomas fires, aims to bolster consumer protections in future disasters. The bills would allow homeowners more time to rebuild as they grapple with construction delays fueled by an overwhelming demand for labor, for example, and give them the option of recouping personal property losses -- 80 percent of their policy limits -- without painstakingly documenting each item lost.
"I will guarantee you that many of us in this room couldn't provide that information right now, let alone when we are sifting through the ashes of our belongings," said Sen.
Aside from SB 897's provision on loss itemization, which would be available to victims of recent fires, the bill package is not retroactive and would apply only to future events.
Those who lost homes in wildfires and other natural disasters would be able to renew their insurance policies twice -- covering at least two years after the loss -- under
Dodd's bill would also allow disaster victims to recover living expenses from their insurance company over a longer stretch of time -- three years, rather than two -- and would require insurance companies to report to the state each time they decline to renew a policy or leave the market.
A bill by Assemblywoman Monique Limón, D-
Last year's deadly wildfires killed at least 45 people and destroyed or damaged more than 21,000 homes and 728 businesses, according to the
One thing became clear to
Gaines, who is rebuilding her
"You really don't know what you're getting until something happens -- and then it's too late," she said. "I hear stories from friends who have lost their homes, and a lot of people aren't getting the care that we are getting, and they are paying as much, if not more."
"If they're going to layer on additional benefits," Sektnan said, "then that is going to cost more money, and we have to make sure people are willing to pay more money for the additional benefits that are going to be mandated by the legislature."
Asked Tuesday whether the bills would make coverage more expensive for homeowners, Jones responded that they were "common sense, reasonable proposals" and that
Climate change is making extreme events far more common, lawmakers noted, and homeowners deserve better protections.
"Families pay their insurance premiums year in and year out," Dodd said, "and when a major disaster strikes we need our insurance companies to have our back."
WILDFIRES AND HOMEOWNER'S INSURANCE
Below are 10 proposals included in a bill package announced Tuesday by California Insurance Commissioner
Policy renewals and living expenses: Senate Bill 894, Sen.
RV and Airbnb stays -- and no inventory required: Senate Bill 897, from Sen.
More time to rebuild: Assembly Bill 1722, Assemblywoman
Annual FYI on rising construction costs: Assembly Bill 1797, Assemblyman
My policy documents, please: Assembly Bill 1799, also from Levine, would require insurers to provide a complete copy of policy documents upon request.
Rebuild or buy -- your choice: Assembly Bill 1800, by Levine, would ensure that policyholders who lost their homes can collect their home's full replacement cost whether they decide to rebuild or buy a new home.
Faster debris clean-up: Assemblywoman Monique Limón, D-
Mandatory coverage: Assemblyman
Additional proposals from the insurance commissioner would extend a policyholder's right to sue after a declared disaster from one year to two years and would provide automatic additional coverage after a declared disaster.
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