Bill > SB523

This bill would allow homeowners' insurance policies to distinguish between fires that start inside a home ("internal fire") and those that start outside the property ("external fire"), such as wildfires or fires from a neighbor's property, when determining coverage. Additionally, it mandates the creation of a commission by the California Earthquake Authority (CEA), which is a state-run entity that provides earthquake insurance. This commission, to be formed by April 1, 2026, and composed of CEA board members or their representatives, will study the financial implications of statewide earthquake threats and explore potential federal aid for extreme scenarios. The commission must finish its work by April 1, 2027, and report to the Legislature by June 1, 2027, on the feasibility of a broader disaster insurance program in California, with these provisions set to expire on June 1, 2031.

Business and Industry

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB523