SACRAMENTO, California — State Sen. Steve Padilla and Insurance Commissioner Ricardo Lara introduced a legislative proposal on Tuesday to overhaul how property insurance companies pay out claims after disasters like the Los Angeles wildfires.
What happened: Padilla (D), whom state Senate President Pro Tem Monique Limón recently named chair of the Senate Insurance Committee, and Lara are pushing a suite of measures aimed at speeding up post-disaster recovery in SB 876.
Among the changes they’re pushing is a 30-day deadline for property insurers to pay out the actual cash value of a home if a total loss occurs, a doubling of penalties during a declared emergency for violations of fair claims practice and settlement law, and a requirement insurers cover the costs of building code upgrades at the time of the rebuild instead of the loss to account for updated rules.
Why this matters: Lara and Padilla cast the proposal as a response to continued delays in recovery experienced by LA residents who suffered losses in the wildfires that tore through the Pacific Palisades and Altadena one year ago.
