Three Bills to Reform Insurance Claims Abuses and Help Homeowners Keep Their Insurance Pass Final Committee, Head to CA Assembly Floor, Says Consumer Watchdog

SACRAMENTO, Calif., Aug. 13, 2026 /PRNewswire/ -- Three bills to help families prevent home insurance nonrenewals and require fair and timely payouts of a claim after a disaster were advanced out of the Assembly Appropriations committee today. Every Fire Survivor's Network and Consumer Watchdog, the bill sponsors, cheered the bills' approval and move to a final vote on the Assembly Floor.

SB 1301, authored by Senator Ben Allen, protects policyholders from unexplained and abrupt insurance nonrenewals by requiring more notice before a loss of coverage, specific disclosure of the reasons a policyholder may be dropped, and an opportunity to make repairs to keep coverage when possible. The bill also prohibits nonrenewals based on filing certain claims, or the age of a homeowners' roof alone.

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 undisputed claims. The bill also requires partial payment within 30 days of a disaster for a home that is a total loss after a wildfire, and full payment within 30 days once a homeowner hires a contractor to rebuild.

SB 877, also Pérez, helps consumers challenge claim underpayments by requiring insurers to disclose all original loss estimates and all revisions.

Seventy percent of Los Angeles fire survivors reported that insurance delays and underpayments have impeded 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. Survivors of the L.A. fires and consumers struggling to keep their insurance across the state have rallied in support of the bills addressing two insurance crises: lack of access to coverage, and failure to pay the benefits promised.

"We collected more than 2,200 firsthand accounts from L.A. fire survivors about what went wrong with insurance, from families struggling to find coverage to survivors fighting delays and underpayments when they needed their insurance most. These bills grew directly from the experiences of real people. They are practical reforms that will help Californians keep their insurance and make sure that, when disaster strikes, the coverage they paid for is there when they need it," said Joy Chen, Executive Director of Every Fire Survivor's Network and Eaton Fire survivor.

"It's time for insurers to stop the unexplained cancellations and unjustified claims delays that are making insurance inaccessible or useless to homeowners across the state. These bills are all about helping Californians keep their existing coverage and getting consumers the insurance benefits they paid for," said Carmen Balber, executive director of Consumer Watchdog.

"Too many Californians are suddenly losing their coverage without sufficient time or reasoning from their insurer, unnecessarily risking the livelihoods of working families and overburdening our FAIR Plan," said Senator Ben Allen (D-Pacific Palisades). "SB 1301 provides stronger, commonsense consumer protections that help them maintain affordable coverage in the private market."

"SB 877 and SB 878 will impose stronger requirements on the insurance industry to help Californians recover from disasters like the Eaton and Palisades fires," said Senator Sasha Renée Pérez (D-Pasadena). "The insurance industry needs to do a better job at ensuring that fire survivors can quickly get back in their homes without the frustrating delays and barriers they've been facing."

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

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

Learn more at www.fixinsurance.org  

SOURCE Consumer Watchdog