Bill > SB876

This bill, concerning fire and residential property insurance, introduces several key changes aimed at improving consumer protections and claims handling, particularly during states of emergency. It mandates that insurers pay the actual cash value of a totally lost structure within 30 days and then the undisputed replacement cost within another 30 days, with interest accruing for delays. The bill also enhances coverage for building code upgrades, requiring them to cover costs as if rebuilding at the original location and mandating at least 20% of policy limits for such upgrades during a state of emergency. Insurers must now offer extended replacement cost coverage of at least 50% and guaranteed replacement cost coverage, requiring policyholders to acknowledge in writing if they decline these offers. Furthermore, the bill strengthens requirements for cost estimates for rebuilding, extends additional living expense coverage periods, and increases policy limits for additional living expenses by 100% during a state of emergency. It also mandates that insurers provide a primary claims adjuster for emergency-related claims and a written report within five business days of assigning a subsequent adjuster. The bill also increases penalties for unfair insurance practices during states of emergency and requires insurers to submit disaster response plans to the Department of Insurance. Finally, it clarifies that building code upgrade coverage applies to codes in effect at the time of rebuilding and requires insurers to provide a payment of 100% of the personal property coverage limit within 30 days for a furnished primary dwelling totally lost during a state of emergency, with interest for delays.

Business and Industry

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB876