SACRAMENTO – Legislation from Sen. Bill Dodd, D-Napa, that would streamline residential insurance claims for victims of disasters such as wildfires has cleared a key committee.
“People who pay their premiums deserve to be taken care of without unnecessary delay,” Sen. Dodd said. “They definitely shouldn’t have to jump through hoops when their homes have been damaged or destroyed. Insurance companies must act swiftly to advance living expenses for temporary housing and other costs and they shouldn’t bury home owners in exhaustive inventory forms.”
Senate Bill 872, sponsored by Insurance Commissioner Ricardo Lara, expands the definition of additional living expenses that must be paid to homeowners for losses incurred in a state of emergency. Upon submission of a claim, it requires an advance payment of no less than four months for costs such as housing, furniture rental and transportation. Also, it mandates an advance payment of no less than 25 percent of a policy limit for lost contents without submission of an inventory form.
The bill, coauthored by Sen. Mike McGuire, D-Healdsburg, makes insurers give homeowners a 60-day grace period for payment of residential premiums after an emergency. Also, insurance companies will be barred from deducting the land value from payouts for those who build on new lots.
SB 872 cleared the Senate Insurance committee Thursday with overwhelming support.
“As wildfire season begins, cutting red tape for future survivors to access insurance benefits is more important than ever,” said Insurance Commissioner Ricardo Lara. “I thank the Senate Insurance Committee for recognizing the need for this legislation and thank Sen. Dodd for authoring it to protect policyholders by guaranteeing residents time and resources that they have paid for and desperately need in order to recover after a disaster.”
Senator Bill Dodd represents California’s 3rd Senate District, which includes all or portions of Solano, Napa, Sonoma, Yolo, Sacramento, and Contra Costa counties. You can learn more about Senator Dodd at www.sen.ca.gov/dodd.
