WASHINGTON, DC – The California Legislature this week passed a package of bills to protect the state’s wildfire survivors, more than a year and a half after the Eaton and Palisades fires destroyed more than 16,000 structures and killed dozens of people. The legislation comes after survivors fought claim denials by their insurers after their homes withstood the wildfires but were severely damaged by toxic smoke. California’s former insurance commissioner, Congressman John Garamendi (CA-8), along with Unlocking America’s Future previously called on Insurance Commissioner Ricardo Lara to hold the insurance companies accountable for denying smoke-related claims.
“Too many wildfire survivors had to spend the last year and a half fighting their own insurance companies and pleading with the state insurance commissioner to get justice. It’s unacceptable for big home insurers, like State Farm, to deem homes ‘safe’ to avoid paying a claim, all the while posting massive profits,” said Jayson O’Neill, spokesperson for Unlocking America’s Future. “These necessary protections and requirements are long overdue, and Governor Newsom should sign them without delay. This is an important step, but real accountability means state regulators and Congress need to crack down on home insurers who delay, deny, and defend legitimate claims after disasters.”
The Smoke Damage Recovery Act and a companion bill will require insurers to test and remediate smoke-damaged homes to public health standards and keep survivors’ living expense coverage in place until their home is cleared for occupancy. Lawmakers also passed a bill requiring insurers to give homeowners six months’ notice, a specific written reason, and a chance to fix the problem before nonrenewing a policy, along with a new state-backed loan program to help families afford wildfire-hardening retrofits. The bills now head to Governor Newsom for his signature.
Home insurance corporations made $405 billion in profit over the past three years, even as California survivors documented insurers denying and delaying legitimate smoke damage claims after the fires.
Additional Resources:
- Home Insurers Save Billions by Forcing California Families Back Into Toxic Homes
- California’s Insurance Crisis: How Homeowners Pay More for Less While Insurers Profit
- ICYMI: California Fire Victims Say State Regulators Ignored Complaints About State Farm as Insurance Crisis Deepens
Email jayson@focalpointstrategygroup.com to set up interviews with ratings, legal, advocacy, and insurance experts.
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