Senate committee advances SB 876 to overhaul disaster claims process after wildfire losses

The California State Senate Committee on Insurance voted to pass SB 876, a wide-ranging measure framed by its sponsors as a survivor-centered overhaul of the disaster claims process, sending the bill as amended to the Judiciary Committee.

Senator Padilla, the committee chair, said the bill is intended to "fill critical gaps" exposed by recent catastrophic wildfires and to ‘‘cut red tape, improve payouts, and end delays’’ for families who lose homes.

Insurance Commissioner Ricardo Lara, who testified in support as a sponsor, told the committee SB 876 focuses on recovery rather than rates. "SB 8 76 is about one thing, making disaster recovery faster, clearer, and more fair for the families who have already lost everything," he said, summarizing several of the bill's consumer-oriented provisions: updated replacement-cost estimates based on current construction prices; requirements that insurers offer (but not force) extended replacement-cost options; expanded building-code upgrade coverage after declared disasters; deadlines for paying actual cash value and replacement cost benefits; five-day status reports from adjusters; required pre-disaster emergency response plans from insurers; and…