Three Bills Holding Insurance Companies to their Promises Pass Final Senate Committee, Head to Floor, Says Consumer Watchdog

SACRAMENTO, Calif., May 14, 2026 /PRNewswire/ -- Three bills to help families keep their home insurance coverage and get the insurance benefits they pay for after a disaster, passed out of the state Senate Appropriations Committee today and head to the Senate Floor. 

Wildfire survivors and consumers struggling to keep their insurance and recover from the Eaton and Pacific Palisades fires have rallied in support of the bills cosponsored by Consumer Watchdog and the Every Fire Survivor's Network and authored by Senators Sasha Renée Pérez and Ben Allen.

The bills reflect the fight of disaster survivors to get their claims paid and support all consumers struggling to keep their home insurance. Seventy percent of Los Angeles fire survivors report that insurance delays and underpayments are impeding their recovery. Nearly one million Californians have been pushed onto the low-benefit, high-cost FAIR Plan, or into unregulated surplus lines insurance companies, in just the last few years.

SB 878, authored by Senator Sasha Renée Pérez, strengthens existing laws on claim delays by requiring insurers to respond to claims in writing and on time and penalizes late payment of claims.

"SB 878 is about accountability. Families who have already lost everything should not be forced to fight month after month just to receive the payments we are owed," said Damon Blount, a survivor of the Eaton fire who lost his home and livelihood in the fire.

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.

"SB 877 is simple. It requires insurers to show homeowners the original loss estimates and explain any changes. After losing so much, simple transparency is the least we deserve," said Rossana Valverde, whose standing home in Pasadena was left full of toxic contamination by the fire.

SB 1301, authored by Senator Ben Allen, protects policyholders from unexplained and abrupt nonrenewals with greater disclosure and more time to repair any problem to prevent losing coverage.

"SB 1301 would require insurers to clearly state, in writing, what is needed to maintain coverage and give homeowners a real opportunity and time to comply. If those protections had been in place, we would likely still have our policy today," said Magda Molina, who spent $8,000 on repairs only to be told by her insurance company it wasn't enough to keep their coverage.

"Every Californian will be safer because of these bills," said Joy Chen, Executive Director, Every Fire Survivor's Network

"These bills are all about access to coverage and getting consumers the insurance benefits they paid for," said Carmen Balber, executive director, Consumer Watchdog.

Senate Bills 877, 877 and 1301 now head to the Senate Floor.

Polls show over 90% of Californians support requiring insurance companies to give longer notice before nonrenewal and sufficient time to make improvements to stay insured.

Watch the press conference with lawmakers and survivors in support of the bills.

40 wildfire survivor, consumer, environmental, civil and economic justice, labor, small business, and community organizations joined in support of the bills.

Learn more at www.fixinsurance.org

SOURCE Consumer Watchdog