Newsom signs fire insurance reforms but vetoes two bills addressing complaints by wildfire victims
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Set us as preferred Gov.Gavin Newsom has signed wildfire insurance reforms, but vetoed bills cracking down on claims-handling practices that drew complaints from January 2025 fire victims.Over the weekend, Newsom signed the Disaster Recovery Reform Act by Sen.
Steve Padilla, (D-San Diego), sponsored by Insurance Commissioner Ricardo Lara, as well as a bill by Sen.Ben Allen, (D-Santa Monica), which tightens regulations governing non-renewals of policies.Padilla’s bill, SB 876, will double penalties during a declared emergency for violations of fair claims practices, require insurers to pay restitution directly to policyholders when they engage in unfair settlement practices and mandate timely status reports whenever an insurer changes adjusters, amid other provisions.
Business California Gov.Gavin Newsom signed two bills extending mortgage relief to victims of the January 2025 wildfires in Los Angeles County and other state disasters.“When disaster strikes, families shouldn’t have to face a second disaster in the claims process.
SB 876 modernizes laws that were written for a different era,” Padilla said in a statement.SB 1301, the bill by Allen, who represents the Palisades fire zone, requires insurers to provide clear reasons for not renewing a homeowner policy, generally requires a 90-day notice of the decision and gives homeowners a chance to remedy any problems.However, Newsom vetoed two bills by state Sen.Sasha Renée Pérez, (D-Pasadena), whose district includes the Eaton fire zone.
The bills targeted specific claims-handling issues highlighted by the January 2025 wildfires.SB 877 would have required insurers to provide homeowners the original loss estimates prepared by the company’s adjusters, as well as any subsequent revisions.California Palisades Village shopping center reopens 19 months after the deva...