Dodd’s Insurance Claims Streamlining Bill Clears California Legislature

A proposal from State Sen. Bill Dodd, D-Napa, that would streamline residential insurance claims for victims of disasters such as wildfires passed the legislature today with bipartisan support.

“This latest round of destructive wildfires underscores the need to support Californians suffering through these all-too-familiar disasters,” Dodd said.

“Above all, they should not be hit with unnecessary insurance company delays as they seek coverage for living expenses and temporary housing. This bill brings peace of mind, ensuring people aren’t buried under mountains of insurance company paperwork.”

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.