California wildfire survivors will face fewer burdens on their road to recovery after Gov. Gavin Newsom signed Senate Bill 495, authored by Sen. Ben Allen and sponsored by Insurance Commissioner Ricardo Lara.
Beginning January 2026, insurance companies will be required to pay 60% of personal property coverage limits, capped at $350,000, to policyholders experiencing total loss without requiring detailed inventory submission for at least 100 days during declared emergencies.
"The recent LA fires exposed difficult inefficiencies in our insurance system that unnecessarily delay urgently needed financial support survivors are justly due," Allen said. "I am grateful to have worked with Insurance Commissioner Lara over the past year to ensure fairer upfront payments are moving out the door quickly."
Under current law, insurance companies are only required to pay 30% of primary structure coverage limits, capped at $250,000. This formula often results in insufficient payments for properties with higher limits, as seen in recent Los Angeles wildfires. Policyholders currently must complete content inventory and submit proof of loss within 60 days.
The bill also requires insurers to provide the Department of Insurance annual reinsurance and catastrophe model data for California policies. This supports Commissioner Lara's Sustainable Insurance Strategy to expand policy writing in wildfire areas and protect the California insurance market's long-term strength.
"Senator Allen and I worked to enhance consumer protections based on wildfire survivors' experiences. It is inhumane to require survivors to list destroyed items before receiving benefits," Lara said. "By ensuring fair upfront payment, we ease a significant burden for survivors, allowing them to focus on finding shelter and starting recovery with dignity."
The bill gives the Insurance Commissioner authority to issue bulletins or regulations describing parameters for attestation forms insurers may require from policyholders, making the process clearer and less burdensome for those navigating traumatic experiences.
Edited by SMDP Staff