Proposed California Home Insurance Reform Bills Advance in State Senate | Insurify
One bill would require home insurance companies to provide homeowners with more detailed reasoning and more time to respond when their insurer decides to non-renew a policy. Another would require insurers to disclose more detail around loss estimates when the insurer pays less than the requested claim amount.
The third would impose a 20% penalty on late claim payments.
All three bills are with the
The Insurance Committee rejected a fourth home insurance bill that would have barred insurers from refusing to cover homes that meet minimum home hardening and wildfire mitigation standards.
The average annual cost of home insurance in
What these bills would do for
Under SB 1301, insurers that elect to not renew a homeowners policy or that reduce a policy's limits or coverages must:
Clearly explain to affected policyholders the reasons for the insurer's decisionRefer to the specific provision in the insurer's underwriting guidelines that justifies its decisionProvide policyholders with all information the insurer used in making its decision, including any images and documentation
The bill also extends notification requirements.
If passed, the bill would take effect
SB 877, which would take effect
Finally, SB 878 would force insurance companies that miss deadlines for responding to and accepting or denying a claim to pay an annual 20% penalty to affected policyholders, plus the claim amount, and "reasonable and necessary attorney's fees."
The Insurance Committee, with votes along party lines, approved all three bills and sent them to the
Fourth time isn't the charm
The Insurance Committee rejected a fourth bill that would have required insurers to cover homes in areas with high wildfire risks if the homeowner made wildfire-resistant home and landscaping improvements. It was the fourth time since 2020 that such legislation failed to win approval from state legislators.
Sen. Sasha Renée Pérez, who represents the Eaton areas hardest hit by
The Insurance Committee rejected the amended bill on
What's next? Three bills advance in committee
The three remaining home insurance measures are now in the hands of the state
If the committee rejects the bill or suspends it for consideration, the bill generally dies.
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