Ricardo Lara, Commissioner at California Department Of Insurance | California Department Of Insurance
Insurance Commissioner Ricardo Lara announced that Governor Gavin Newsom has signed a set of new laws aimed at strengthening consumer protections for Californians affected by wildfires. The legislative package was developed in response to the experiences of wildfire survivors and builds on previous executive actions taken after recent wildfires.
“Protecting consumers from the growing threats of natural disasters and ensuring they have immediate access to resources during a crisis, free from obstacles from insurance companies, is vital,” said Commissioner Lara. “The Governor's signature complements the executive actions I have implemented and strengthens our efforts to empower consumers. My Department will continue to advocate for homeowners, making it easier for them to prepare for and recover from wildfires.”
The new laws include three key bills:
- The Eliminate “The List” Act (SB 495), authored by Senator Ben Allen, requires insurance companies to pay 60 percent of contents coverage limits—up to $350,000—to wildfire survivors who experience a total loss without requiring a detailed inventory list. It also provides consumers with at least 100 days to submit proof of loss following a declared state of emergency. The bill grants authority for data collection related to long-term risk management trends and climate-driven risks affecting insurance availability.
- The Business Insurance Protection Act (SB 547), jointly authored by Senators Sasha Renée Pérez and Susan Rubio, expands an existing one-year moratorium on non-renewals of residential property insurance policies after disasters to include commercial policies. This extension covers businesses, homeowners’ associations, condominiums, affordable housing units, and non-profits. Senator Sasha Renée Pérez stated: "Holders of commercial insurance policies need and deserve reliable insurance during a disaster in same way that we already offer protections to residential policyholders. Ensuring that the small businesses, non-profits, affordable housing providers, and other commercial insurance policyholders can trust their insurance coverage will remain intact after a disaster strikes is essential to a community's recovery. I am deeply grateful to Governor Newsom for signing this important legislation and to Insurance Commissioner Lara for his steadfast partnership on this bill.”
- The FAIR Plan Stability Act (AB 226), jointly authored by Assembly Members Lisa Calderon and David Alvarez, allows the FAIR Plan—California’s insurer of last resort—to access catastrophic bonds through the California Infrastructure and Economic Development Bank if authorized by the Commissioner. It also permits entering into line-of-credit or loan agreements with lenders. These provisions aim to strengthen financial support for timely payment of claims after major disasters.
Commissioner Lara noted that these measures build upon earlier executive actions such as expedited claims payments and protections against non-renewal for both businesses and homeowners following significant wildfire events like those in Los Angeles County in January 2025.
“While we are reducing red tape and expanding protections after wildfire disasters, we must also focus on preventing destruction in the first place,” said Commissioner Lara. “I thank Governor Newsom and legislative leaders for recognizing the importance of my Department’s ongoing efforts to enhance consumer protections for Californians.”
The California Department of Insurance oversees regulation within the nation’s largest insurance market. Under Commissioner Lara’s leadership, it works toward fair rates, solvency oversight, licensing standards enforcement, market conduct reviews, complaint resolution, and fraud investigation.
Consumers can contact the Department at www.insurance.ca.gov or call its hotline at 1-800-927-4357 for more information.
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