WILDFIRES AND HOMEOWNER’S INSURANCE
Below are 10 proposals included in a bill package announced Tuesday by California Insurance Commissioner Dave Jones and lawmakers representing Northern California Wine Country and Santa Barbara. The proposals would affect only those whose homes were damaged or destroyed in declared natural disasters, such as wildfires, for which they have insurance coverage.
Policy renewals and living expenses: Senate Bill 894, Sen. Bill Dodd, D-Napa, would allow people to cobble together unused coverage — from personal property, other insured structures, living expenses — to rebuild their homes after a disaster. It also would require an insurer to renew a homeowner’s policy twice after a disaster strikes, rather than just once, and would allow wildfire survivors to collect living expenses benefits for three years, rather than two years. RV and Airbnb stays — and no inventory required:
Senate Bill 897, from Sen. Mike McGuire, D-Healdsburg, would ensure that additional living expenses benefits cover various forms of temporary housing — not just hotels — including RV rentals and Airbnb stays. The bill also aims to simplify the ordeal of claiming personal property losses by allowing homeowners to settle for 80 percent of their policy limit’s amount without having to compile an inventory. More time to rebuild: Assembly Bill 1722, Assemblywoman Cecilia Aguiar-Curry, D-Winters, would give homeowners more time — three years instead of two — to rebuild and collect insurance benefits after a declared disaster, as the demand for construction after a natural disaster is known to cause delays. Annual FYI on rising construction costs: Assembly Bill 1797, Assemblyman Marc Levine, D-San Rafael, would require insurers to produce a replacement-cost estimate each year so longtime homeowners can keep up with the rising cost of construction and adjust their coverage as needed.
My policy documents, please: Assembly Bill 1799, also from Levine, would require insurers to provide a complete copy of policy documents upon request.
Rebuild or buy — your choice: Assembly Bill 1800, by Levine, would ensure that policyholders who lost their homes can collect their home’s full replacement cost whether they decide to rebuild or buy a new home.
Faster debris clean-up: Assemblywoman Monique Limón, D-Santa Barbara, aims to expedite clean-up by requiring insurers to participate in the consolidated debris removal program after a declared disaster.
Mandatory coverage: Assemblyman Jim Wood, DHealdsburg, is proposing that new and renewed homeowners insurance policies cover at least 50 percent of the replacement cost.
Additional proposals from the insurance commissioner would extend a policyholder’s right to sue after a declared disaster from one year to two years and would provide automatic additional coverage after a declared disaster.