Ricardo Lara, Commissioner at California Department Of Insurance | California Department Of Insurance
California Governor Gavin Newsom has signed Senate Bill 495, a measure aimed at easing the recovery process for wildfire survivors. The bill, authored by Senator Ben Allen and sponsored by Insurance Commissioner Ricardo Lara, introduces changes to insurance payout procedures following declared emergencies.
Starting in January 2026, insurance companies will be required to pay 60 percent of personal property coverage limits—capped at $350,000—to policyholders who experience a total loss. This payment must be made without requiring a detailed inventory from policyholders for at least 100 days after the loss.
Senator Allen commented on the recent challenges faced by wildfire survivors: “The recent LA Fires exposed difficult inefficiencies in our insurance system that unnecessarily delay the urgently needed financial support survivors are justly due. I am grateful to have worked with Insurance Commissioner Lara over the past year to ensure fairer upfront payments are moving out the door quickly and without overburdening those who just lost everything. Thank you Governor Newsom for recognizing we can and must do more to support disaster victims on the difficult road of recovery.”
Previously, insurers were only required to pay 30 percent of primary structure coverage limits, with a cap of $250,000. Policyholders also had to submit a content inventory and proof of loss within 60 days—a process considered burdensome and often unfeasible during disasters.
The new law also requires insurers to provide annual reinsurance and catastrophe model data for California policies from the previous year to the Department of Insurance. This initiative is part of Commissioner Lara’s Sustainable Insurance Strategy, which aims to strengthen the availability and stability of insurance in wildfire-prone areas by analyzing short- and long-term market trends through public aggregation of this data.
Commissioner Lara said: “Senator Allen and I worked to enhance consumer protections based on the experiences of wildfire survivors. It is inhumane to require survivors to list destroyed items before receiving benefits. By ensuring a fair upfront payment, we ease a significant burden for survivors, allowing them to focus on what truly matters after a catastrophe: finding shelter and starting the long journey to recovery with dignity, compassion, and meaningful financial support."
Additionally, SB 495 gives the Insurance Commissioner authority over guidelines for any attestation forms that insurers may ask policyholders to sign after losses, aiming for clearer and less stressful procedures during claims.
The California Department of Insurance continues its role as consumer protection agency overseeing insurance market practices in California. Consumers with questions or complaints are encouraged to contact their hotline or visit www.insurance.ca.gov.
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