Trio of Home Insurance Reform Bills to Require Fair and Timely Payouts and Improve Access to Coverage Clear CA Senate Floor, Says Consumer Watchdog

SACRAMENTO, Calif., May 27, 2026 /PRNewswire/ -- Fire survivors and consumer advocates celebrated the Senate passage of three bills to help families keep their home insurance coverage and get the insurance benefits they pay for after a disaster. The bills now head to the Assembly.

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 878, also 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. 

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.

The bills are sponsored by the Every Fire Survivor's Network and Consumer Watchdog, and authored by Senators Sasha Renée Pérez and Ben Allen. SB 878 and SB 1301 passed yesterday, SB 877 passed last Wednesday.

"After paying premiums for years, Californians deserve not delays and denials and underpayments, but an insurance system that pays what we're owed. These bills show that Los Angeles fire survivors have become civic leaders, fighting not only for our own recovery, but for insurance that is both available and accountable for every Californian," said Joy Chen, Executive Director of Every Fire Survivor's Network.

"The Los Angeles fire recovery and every family's ability to stay in their home depends on being able to find and keep insurance. With rates skyrocketing again, the FAIR Plan's high cost and low benefits aren't a sustainable fallback for Californians. SB 1301 gives Californians information they can act on to keep their private insurance. That will help relieve mounting pressure on the FAIR Plan," said Carmen Balber, executive director, Consumer Watchdog.

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. 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. 

"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 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 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.

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. 

Find 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