40 Public Interest Groups Back Insurance Legislation to Get Families the Benefits They Paid for and Keep Californians Insured, Says Consumer Watchdog

SACRAMENTO, Calif., April 14, 2026 /PRNewswire/ -- A coalition of forty wildfire survivor, consumer, environmental, civil and economic justice, labor, small business, and community organizations called on lawmakers to pass four bills that help families buy and keep home insurance coverage, and get the insurance benefits they pay for, in letters sent to the state Senate Insurance Committee. The committee will vote on the legislation on April 22nd. 

Consumer Watchdog and the Every Fire Survivor's Network are sponsoring four bills by Senators Pérez and Allen that reflect the experiences of disaster survivors fighting to get their claims paid and all consumers struggling to stay insured.  Seventy percent of Los Angeles fire survivors report that insurance delays and underpayments are impeding their recovery. Homeowners dropped from private insurance onto the FAIR Plan have caused enrollment in the last-resort insurance plan to increase five-fold since 2019.

SB 1076, authored by Senator Sasha Renée Pérez, requires insurers to offer and renew coverage for homes that meet wildfire safety standards adopted by the Insurance Commissioner. Read the coalition letter.

SB 1301, authored by Senator Ben Allen, protects policyholders from unexplained and abrupt nonrenewals with greater disclosure and time to respond before losing coverage. Read the coalition letter.

SB 877, authored by Senator Sasha Renée Pérez, helps consumers challenge claim underpayments by requiring insurers to disclose all original loss estimates and all revisions so homeowners can see how their payout was calculated, what was changed, and why. Read the coalition letter.

SB 878, authored by Senator Sasha Renée Pérez, strengthens existing laws on claim delays by imposing a 20% interest penalty when insurers don't make payments on time and eliminating insurers' incentive to stay silent on portions of a claim. Read the coalition letter.

"Insurance companies have responded to wildfire risk by raising rates and declining to renew or write insurance, forcing hundreds of thousands of homeowners onto the FAIR Plan or into the arms of unregulated insurers. Less available coverage can't be our only response as wildfires continue to intensify, we must reduce the risk of loss from fires. Requiring insurance companies to cover Californians who meet state home hardening and defensible space guidelines will bring insurance companies to the table as part of the solution and make all our communities safer," said Dave Jones, California Insurance Commissioner Emeritus. 

"When consumers can't get fair access to affordable insurance, the cascading effects are substantial: otherwise qualified homebuyers can't get a mortgage, those who do have a mortgage must decide between making their payments or putting food on the table, financial institutions lose business and income, and whole neighborhoods decrease in value. To stabilize housing markets and for consumers to access their rightful equity, legislators must act now and pass critical legislation like SB 1076, SB 1301, SB 877, and SB 878," said Jamie Buell, Research Analyst with RISE Economy.

"Without the insurance benefits families are owed, recovery is reserved for those with enough pre-fire wealth to rebuild on their own. Insurance availability now directly influences whether families can rebuild, secure mortgages, sell homes and stabilize neighborhood housing markets. Together, these bills restore what insurance is supposed to be: A functioning market where coverage is available and claims are paid fully and on time," said Joy Chen, executive director of the Every Fire Survivor's Network. 

"Insurance is the first line of defense when disaster strikes, but insurers too often are standing in the way of recovery. These bills require insurance companies to meet their obligations, be open with policyholders about their claims, follow their own renewal guidelines, and respond by offering coverage when homeowners address wildfire risk. That's critical to turn the insurance crisis around, keep families in their homes, and rebuild fire-struck communities safer," said Carmen Balber, executive director of Consumer Watchdog.

Learn more about all four bills at www.fixinsurance.org  

The organizations endorsing the four bills include:

350 Conejo / San Fernando Valley, Affordable Homeownership Foundation Inc, Altadena CoLab, Americans for Financial Reform, Ballona Wetlands Institute, Bay Area-System Change not Climate Change, Bright Operations, California Community Foundation, California Insurance Commissioner Emeritus Dave Jones, California Nurses Association, Center for Biological Diversity, Center for Community Action and Environmental Justice (CCAEJ), Climate Defenders, Consumer Action, Consumer Attorneys of California, Consumer Federation of America, Consumer Federation of California, Consumer Protection Policy Center, Consumer Watchdog, Courage California, Defend Ballona Wetlands, DENA RISE UP, Eaton Fire Renters Coalition, Eaton Fire Residents United, Every Fire Survivor's Network, Extreme Weather Survivors, Food & Water Watch, Freeport Haven Project, Green America, Jewish Federation of the Greater San Gabriel and Pomona Valleys, Leap of Faith Family to Family Support, My TRIBE Rise, 
Pasadenans Organizing Progress, Public Citizen, Rise Economy, SoCal 350 Climate Action, Sunflower Alliance, Team Palisades, The American Policyholder Association, West Berkeley Alliance for Clean Air and Safe Jobs, Xtreme Athletics Org

SOURCE Consumer Watchdog