40 groups back insurance bills
A coalition of 40 public‑interest groups is supporting California legislation aimed at addressing homeowner insurance availability and affordability as the market remains strained. The coordinated backing spans wildfire survivors, environmental groups and community organizations, signalling the issue’s growing political weight in the state. (insurancejournal.com)
Forty California public-interest groups are pushing lawmakers to pass four homeowner-insurance bills as coverage gets harder to find and keep. (consumerwatchdog.org) The coalition sent letters to the Senate Insurance Committee before an April 22 hearing, backing bills by Senators Sasha Renée Pérez and Ben Allen. The groups include wildfire survivors, consumer advocates, environmental organizations, labor, small-business and community groups. (consumerwatchdog.org) One bill, Senate Bill 1076, would require admitted insurers starting January 1, 2028 to offer or renew residential coverage for homes that meet state home-hardening and wildfire-mitigation standards, with a temporary waiver option in some areas. (insurancejournal.com) Another, Senate Bill 1301, would require six months’ notice before a nonrenewal, force insurers to explain the reasons, and give policyholders time to make repairs that could keep a policy in force. It would also bar nonrenewal just because a customer asked about a claim or filed one that was denied or later resolved. (consumerwatchdog.org) The other two bills focus on claims after a disaster. Senate Bill 877 would require insurers to disclose original loss estimates and revisions, while Senate Bill 878 would impose a 20% interest penalty for late payments and target delays on parts of a claim. (consumerwatchdog.org) The push comes as California’s backup market keeps growing. Consumer Watchdog said FAIR Plan enrollment has increased five-fold since 2019 after homeowners were dropped by private insurers. (consumerwatchdog.org) State data and legislative briefings show how central that backup market has become. An Assembly Insurance Committee background paper said the California FAIR Plan now accounts for almost 6% of the state’s property-insurance market. (assembly.ca.gov) The strain is no longer limited to the highest-risk foothill communities. Bloomberg, reported by Insurance Journal on March 16, found 14% of current FAIR Plan policies are in largely urban, low-fire-risk zones, and 28% of the plan’s exposure is now there. (insurancejournal.com) Lawmakers are moving on two tracks at once. Insurance regulators have been speeding rate reviews to coax insurers back into the market, while legislators are advancing new mandates after the 2025 Los Angeles fires exposed disputes over underpayment, delays and nonrenewals. (insurancejournal.com) Insurers and their trade groups have warned that California’s market is still fragile and that new mandates could affect whether carriers expand or pull back. American Property Casualty Insurance Association Vice President Mark Sektnan told Insurance Journal in March that legislative choices could make California look “more encouraging” or “less encouraging” to insurers. (insurancejournal.com) The April 22 committee vote will show whether that warning carries more weight in Sacramento than pressure from survivor networks and the 40-group coalition now lining up behind the bills. (consumerwatchdog.org)
