The California Department of Insurance Commissioner Ricardo Lara has joined together with various state legislators to advance a comprehensive legislative package of ten distinct bills aimed at protecting wildfire survivors and improving preparedness for future disasters. The package focuses on consumer protection, climate resiliency, and market strength, and includes a new grant program for home hardening, protection for businesses and non-profits against non-renewals, measures to maximize insurance payouts by limiting fees, and initiatives to combat deceptive advertisements and solicitations.
The sponsored bill proposals include:
- The California Safe Homes Grant Program (AB 888, Calderon) - This legislation would provide state-tax-free funds to help residents purchase fire-rated roofs and develop non-ignition zones around their properties, along with other crucial mitigation measures, and would establish a grant program within the Department of Insurance, utilizing existing funds without incurring additional costs to taxpayers. Additionally, the grants would be federal-tax-free if Congress passes the bipartisan “Disaster Resiliency and Coverage Act”.
- The Business Insurance Protection Act (SB 547, Pérez and Rubio) - The Wildfire Safety and Recovery Act of 2018 (SB 824, Lara) prohibits non-renewals of residential property insurance for one year. This proposal aims to extend this essential protection by broadening the insurance moratorium to include commercial policies, covering businesses, homeowners' associations (HOAs), condominiums, affordable housing units, and non-profits.
- The Insurance Payment Protection Act (AB 597, Harabedian) – Seeks to ensure that wildfire survivors receive the maximum funds from their insurance claims and to help policyholders obtain the full amount they are owed. AB 597 establishes a 15% cap on fees for adjuster-contracted work and prohibits any additional awards outside the contract. Currently, there is no limit on the fees that public adjusters can charge, which may include claims funds received before a consumer-adjuster contract is finalized, ultimately reducing the funds available for consumers to rebuild.
- Eliminate “The List” Act (SB 495, Allen) - This bill requires insurance companies to pay wildfire survivors 100% of their contents coverage without needing a detailed inventory list. It also grants consumers additional time - at least 180 days - to provide proof of loss to their insurance company following a declared state of emergency. Furthermore, the proposal aims to establish specific data collection authority to assist the Department of Insurance in understanding long-term trends in risk management tools, technical data, and the integration of information related to climate-intensified risks that can significantly affect insurance availability.
- The California Community Fire Hardening Commission Act (SB 616, Rubio, Cortese, and Stern) - Proposes the creation of an independent statewide commission within the Department of Insurance that would be designed to develop a more effective inspection system that enables individuals to receive insurance discounts for home hardening, thereby improving wildfire safety for entire communities. Chaired by the Insurance Commissioner, the commission will review lessons learned from recent wildfires and offer recommendations to enhance and expedite home and community hardening efforts throughout the state, among other responsibilities.
- The Deceptive Disaster Relief Advertising Act (AB 637, Flora) - After major disasters, consumers are frequently bombarded with misleading advertisements that claim to provide legal or recovery services, often posing as official government or non-profit guidance. To enhance transparency and safeguard consumers from being misled during these difficult times, AB 637 requires that advertisements on social media, traditional broadcast media, and digital streaming platforms clearly display the statement: “This is a solicitation for business. Not affiliated with any government entity or non-profit.”
- The California Wildfire Public Model Act (SB 653, Cortese) - Establishes the nation's first public catastrophic model for wildfires, offering a crucial tool to assist wildfire planning and enhance transparency.
- The Insurance and Wildfire Safety Act (AB 1, Connolly) - Builds on Commissioner Lara’s Safer from Wildfires regulation and requires future insurance commissioners to assess the need for updates based on new fire science and public input.
- The FAIR Plan Stability Act (AB 226, Calderon and Alvarez) - Aims to strengthen consumer safeguards by allowing the FAIR Plan to access catastrophic bonds through the California Infrastructure and Economic Development Bank. This provision would add an extra layer of financial support for the state’s insurer of last resort, enabling it to continue paying consumer claims promptly in the event of a worst-case disaster.
- The Savings Accounts for Mitigation and Catastrophes Act (AB 232, Calderon and Gipson) - Creates a tax-exempt savings account for consumers and allows them to set aside funds specifically for home hardening and insurance deductibles in the event of a disaster.
“The California Association of REALTORS® (C.A.R.) has supported the Department of Insurance’s Sustainable Insurance Strategy, which aims to remove barriers to insurance access, particularly for those in higher risk areas. C.A.R. is encouraged that this comprehensive legislative package will continue to build on that strategy and provide enhanced consumer protection for homeowners who have been victims of wildfires,” said Heather Ozur, C.A.R. President.
More information about these bills and other insurance related resources can be found at https://www.insurance.ca.gov/0400-news/0100-press-releases/2025/.
