Sen. Dodd’s Insurance Claims Streamlining Bill Advances

Tuesday, August 11, 2020

 SACRAMENTO -- Legislation from 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,” Sen. 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.

“With wildfires continuing to threaten the entire state, we must do everything in our power to cut red tape for future wildfire survivors to access insurance benefits,” said Insurance Commissioner Ricardo Lara. “I thank Sen. Dodd for authoring SB 872 so future wildfire survivors are guaranteed the time and resources they need to recover, and I thank the Assembly Insurance Committee for recognizing the importance of this legislation.”

The bill, coauthored by Sen. Mike McGuire, D-Healdsburg, makes insurers give homeowners a 60-day grace period for payment of residential premiums after an emergency. Also, insurance companies will be barred from deducting the land value from payouts for those who build on new lots.

SB 872 passed the Assembly insurance committee on a 12 to 0 vote.

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Senator Bill Dodd represents California’s 3rd Senate District, which includes all or portions of Solano, Napa, Sonoma, Yolo, Sacramento, and Contra Costa counties. You can learn more about Senator Dodd at www.sen.ca.gov/dodd.