Two wildfire-related insurance bills pass California Assembly committee

A state Assembly committee approved two wildfire-related insurance bills on Wednesday, including one that would require insurance carriers to inform their policyholders on whether they have sufficient coverage to rebuild or replace their homes after a disaster.

Assemblyman Marc Levine, D-San Rafael, sponsored both bills in response to the October wildfires, when many fire victims found themselves underinsured while trying to rebuild. The state Assembly Insurance Committee approved the two measures on a 13-0 vote.

One bill (AB 1799) would mandate the specific information that insurance companies are required to provide to fire victims after a loss, including the full insurance policy, any endorsements to the policy and the policy declarations page.

The other bill (AB 1800) would allow homeowners to use to use their additional coverage protections – such as building code upgrades – to rebuild on a different lot or buy a home at a different location after a total loss. Insurers can now withhold this coverage unless the owner rebuilds on the same lot.

Both bills will head to the floor of the state Assembly.