CA| California Insurance Commissioner Ricardo Lara released Bulletin 2025-02 on January 23, 2025, addressing consumer protections for wildfire survivors in Southern California. The bulletin emphasizes the importance of swift insurance claim payments and outlines several key protections under existing California law.
Key Points:
- Insurers must offer to renew a policyholder’s policy for at least the next two renewal periods (no less than 24 months) after a total loss.
- Insurance companies are required to provide advance payments for Additional Living Expenses (ALE) of no less than four months upon request for total loss claims.
- Insurers must offer a payment of at least 30% of the policy limit (up to $250,000) for contents coverage without requiring an itemized claim for furnished residences.
- Policyholders have the right to rebuild at a new location or purchase an already built home while still receiving full benefits, including building code upgrade costs.
- The value of land at a new location cannot be deducted from the measure of damages when rebuilding or purchasing elsewhere.
- After a state of emergency, policyholders have a minimum of 36 months to collect full replacement cost, with possible extensions.