Proposed California Legislation To Streamline Property Claims Advances

Legislation from State Sen. Bill Dodd, D-Napa, that would streamline residential insurance claims for victims of disasters such as wildfires cleared a key committee today.

“Californians facing the dual threat of wildfires and the coronavirus pandemic shouldn’t be subjected to insurance company delays when filing a disaster claim,” Dodd said.

“This bill prevents people from being buried under mountains of paperwork and gets them what they need to recover in a timely manner. It’s especially important to have that peace of mind in these uncertain times.”

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.