Senate Bill 495, authored by Sen. Ben Allen, D-Pacific Palisades, passed the Assembly Appropriations Committee, advancing legislation to increase upfront insurance payments for disaster victims.
The bill would require insurers to pay at least 60% of contents coverage, up to $350,000 upfront, before requiring policyholders to inventory lost items following a state emergency. Current law mandates 30% of coverage up to $250,000.
SB 495 would also extend the deadline for submitting proof of loss to at least 100 days during declared emergencies.
"Victims of major natural disasters, such as the recent LA Fires, have an ocean of logistics to sort through in order to get by from one day to the next," Allen said. "SB 495 recognizes this by better supporting policyholders through the tedious itemization process and providing greater flexibility for meeting deadlines."
The itemization process has been a top complaint among LA Fires survivors. The requirement has caused delays or reduced payments due to missing receipts or insufficient documentation while re-traumatizing victims.
"The last thing a disaster victim deserves is to be dragged through the mud by insurers, just to receive contents coverage payments that they have been dutifully paying premiums for month after month," Allen said.
The bill now advances to the Assembly floor for a vote in coming weeks.
Edited by SMDP Staff