Newsom Signs California Home Insurance Protections but Vetoes Two Wildfire Claims Bills

If you own a home in California, the rules around losing your policy and filing a claim just shifted, though not as far as fire survivors wanted.

What happened

On Sunday, Sept. 27, California Gov. Gavin Newsom acted on hundreds of bills, according to his office's legislative update for that day. Several of them deal with home insurance, a major worry in a state where many homeowners have struggled to find or keep coverage after big wildfires.

Signed:

• SB 1301, by state Sen. Ben Allen, deals with nonrenewals. A nonrenewal is when an insurance company decides not to continue your policy when it ends. According to the Los Angeles Times, the law requires insurers to give clear reasons for a nonrenewal, generally requires 90 days' notice, and gives homeowners a chance to fix the problem first.
• SB 876, by state Sen. Steve Padilla, doubles penalties for unfair claims practices during declared emergencies and requires insurers to pay restitution directly to policyholders for unfair settlements, according to the Times. Restitution means paying back money someone was wrongly denied.
• AB 69 and AB 1680 make changes to the California FAIR Plan, the state's insurer of last resort for people who can't get regular coverage, according to the governor's office.

Vetoed:

• SB 877, by state Sen. Sasha Renée Pérez, would have required insurers to show homeowners the original estimate of their loss and any later changes to it.
• SB 878, also by Pérez, would have required insurers to give written claim decisions and pay interest when payments were late.

Why the vetoes drew criticism

Newsom said the two vetoed bills would "codify portions of existing, unrelated regulations that are unnecessary at this time," according to the Times. MyNewsLA reported that he pointed to regulations from state Insurance Commissioner Ricardo Lara as a reason the bills weren't needed.

Wildfire survivors and consumer groups disagreed. Joy Chen, who leads a network of fire survivors, told MyNewsLA: "We paid our premiums for years. Then disaster came, and too many of us discovered that having insurance and getting the benefits we paid for are two very different things."

Carmen Balber of the group Consumer Watchdog argued that nothing in state law requires insurers to share revised loss estimates and that existing late-payment interest rules lack teeth.

Other money-related bills signed the same day

The governor's office also announced that Newsom signed:

• AB 1349, which requires full refunds for canceled or postponed events and bans speculative ticket sales. A speculative ticket is one a reseller lists before actually owning it.
• SB 923, which expands the right to have your personal information deleted and limits changes to privacy settings without your consent.
• AB 2409, which bars California public officials from issuing meme coins, a type of cryptocurrency.

What this means for your wallet

If your policy is up for renewal, read any notice from your insurer closely. Under SB 1301, you should get a clearer explanation if your insurer decides not to renew, which may give you time to make fixes or shop for other coverage.

If you ever file a claim, keep your own records. Take photos and videos of your home and belongings now, save receipts, and keep a written log of every call and email with your insurer. Since SB 877 was vetoed, it may help to ask your insurer in writing for copies of all estimates.

Review your coverage yearly. Make sure your policy limits would cover the cost to rebuild at today's prices, not what you paid for the home.

Not in California? Many states are debating similar rules. The same habits, such as documenting your belongings and reading renewal notices, can protect you anywhere.