Legislature enacts home insurance reforms without relief for 2017 wildfire victims
The package of bills passed both chambers prior to summer adjournment on Saturday, despite resistance from the politically powerful property and casualty insurance industry. Most notably, industry lobbyists were able to thwart any measure that would have provided retroactive relief to help policyholders for the almost 6,200
"These bills will help consumers trying to get back on their feet after devastating wildfires," state Insurance Commissioner
Many local homeowners found themselves underinsured -- some as much as hundreds of thousands of dollars -- in the aftermath of the fires. Others were burdened by onerous requirements to itemize all of their personal-property losses in order to obtain their full coverage reimbursement.
One consumer advocate said the insurance package was the most robust legislative effort to help homeowners since laws enacted in the aftermath of massive wildfires in
"This is a much more productive outcome than I thought we were going to get," said
A key bill by state Sen.
"The insurance industry has a huge lobby in front of the committees," Dodd said of his uphill fight.
The Dodd measure also would require insurers to renew homeowner policies for at least two years, instead of one year, if the total loss of a home was caused by a disaster.
The bill also would increase insurance coverage for rental living after a home is destroyed from two years to three, if the policyholder is "acting in good faith and with reasonable due diligence" while encountering rebuilding delays.
Another important bill, AB 1800, by Assemblymember
Some local residents have encountered a gray area when attempting to use the add-on policy to help pay for a new home elsewhere, Bach said.
The insurance measures also included AB 1875 by Assemblyman
Last week, the governor signed another one of the insurance measures, AB 1797, by Levine. It requires insurance companies to provide homeowners an estimate every two years of how much it would cost to rebuild their homes.
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