Two wildfire-related insurance bills pass committee

Press Democrat, The (Santa Rosa, CA)

May 02--A State Assembly committee approved two wildfire-related insurance bills Wednesday, including one that would mandate carriers to provide a full replacement cost estimate to policyholders on a regular basis.

The Assembly Committee on Insurance unanimously approved both bills. They are part of a package by North Coast lawmakers to address the aftermath of the October wildfires, where a recent survey found two-thirds of fire survivors were underinsured in their structure coverage.

Marc Levine, D-San Rafael, sponsored the measure, AB 1797, that would ensure homeowners are provided an updated replacement cost estimate for their home. Carriers are not mandated under current law to produce or regularly update a replacement cost calculation for homeowners.

The Levine bill would require companies to provide a full replacement cost estimate every two years, or apply an inflation factor to increase the dwelling limit at each renewal and offer the option for a replacement cost estimate.

Jim Wood, D-Santa Rosa, sponsored the other measure, AB 1875, that would bring more protections for those with extended replacement coverage -- add-on policies that pay out beyond a 100 percent limit for catastrophic losses. They range from 120 to 200 percent of a structure policy. The Wood bill would require an insurer that does not provide at least a 150-percent policy to inform their policyholders of companies that do.

You can reach Staff Writer Bill Swindell at 707-521-5223 or bill.swindell@pressdemocrat.com. On Twitter @BillSwindell.