Californians could see greater insurance support after disasters following the passing of a package of bills in response to the firestorms that tore through Los Angeles earlier this year.
Among the legislation passed Friday is a new provision that will require insurance companies to pay 60% of personal property coverage limits for policyholders who experience a total loss in the event of a declared emergency, according to a news release from the state’s insurance department. In other words, insurers have to cover all of a policyholder’s loss up to $350,000, not just their physical building.
Under the current system, insurers are only required to pay 30% of primary structure coverage limits, with a cap of $250,000. That means insurers must only cover up to 30% of the physical building after a total loss.
State Senator Ben Allen, who represents the Pacific Palisades, and California Insurance Commissioner Ricardo Lara called the existing structure “confusing for policyholders given it is based on primary structure coverage, but it often results in insufficient payments for properties with higher limits — examples of which were common in the recent Los Angeles wildfires.”
The new legislation also gives policyholders at least 100 days to submit a detailed inventory of their loss as opposed to the existing 60-day limit. The law is set to take effect in January.
“It is inhumane to require survivors to list destroyed items before receiving benefits," Lara said in a statement Friday. "By ensuring a fair upfront payment, we ease a significant burden for survivors, allowing them to focus on what truly matters after a catastrophe: finding shelter and starting the long journey to recovery with dignity, compassion, and meaningful financial support."
Lawmakers pass package of bills aimed at easing rebuild efforts in LA
A slate of other legislation was passed Friday aimed at boosting rebuilding efforts after January’s fires and preparing for future disasters.
There’s the California Safe Homes Act that establishes a grant program to assist residents in implementing fire-safe mitigation measures. The Insurance and Wildfire Safety Act creates a more frequent regulation review and enhances insurance discounts. And the California Wildfire Public Catastrophe Model Act allows the insurance department to help fund a public model for wildfire risk and loss data.
Other legislation passed includes provisions to streamline and expedite permitting, offer property tax relief, and provide homeowners with longer temporary housing following a disaster.
“While it’s been nine months since these firestorms struck Los Angeles, the destruction and devastation left behind is still fresh for thousands of survivors and remains a constant reminder that we have more to do to support our fellow Californians,” Newsom said in a statement Friday. The legislation aims to deliver "the most significant upgrade to California’s disaster response and recovery efforts in years — supporting wildfire survivors now and in the future.”